Document and Entity Information
Document and Entity Information Document - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 19, 2019 | Jun. 30, 2018 | |
Entity [Abstract] | |||
Entity Registrant Name | SJW GROUP | ||
Entity Central Index Key | 766,829 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Common Stock, Shares Outstanding | 28,427,145 | ||
Entity Shell Company | false | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 1,212 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Utility plant: | ||
Land | $ 18,296,000 | $ 17,831,000 |
Depreciable plant and equipment | 1,833,051,000 | 1,714,228,000 |
Construction in progress | 68,765,000 | 45,851,000 |
Intangible assets | 15,799,000 | 14,413,000 |
Property, Plant and Equipment, Gross | 1,935,911,000 | 1,792,323,000 |
Less accumulated depreciation and amortization | 607,090,000 | 553,059,000 |
Public Utilities, Property, Plant and Equipment, Net | 1,328,821,000 | 1,239,264,000 |
Real estate investments | 56,336,000 | 56,213,000 |
Less accumulated depreciation and amortization | 12,327,000 | 11,132,000 |
Property, Plant and Equipment, Net | 44,009,000 | 45,081,000 |
Current assets: | ||
Cash | 8,722,000 | 7,799,000 |
Money market fund | 412,000,000 | 0 |
Accounts receivable: | ||
Customers, net of allowances for uncollectible accounts of $272 and $190 in 2018 and 2017, respectively | 19,154,000 | 17,305,000 |
Income tax | 1,888,000 | 7,981,000 |
Other | 1,203,000 | 1,118,000 |
Accrued unbilled utility revenue | 27,974,000 | 27,905,000 |
Current regulatory assets, net | 26,910,000 | 0 |
Other current assets | 4,871,000 | 4,750,000 |
Assets, Current | 502,722,000 | 66,858,000 |
Other assets: | ||
Investment in California Water Service Group | 0 | 4,535,000 |
Net regulatory assets, less current portion | 76,715,000 | 99,554,000 |
Other | 4,122,000 | 2,709,000 |
Assets, Noncurrent | 80,837,000 | 106,798,000 |
Assets | 1,956,389,000 | 1,458,001,000 |
Stockholders’ equity: | ||
Common stock, $0.001 par value; authorized 36,000,000 shares; issued and outstanding 28,404,316 shares in 2018 and 20,520,856 shares in 2017 | 28,000 | 21,000 |
Additional paid-in capital | 495,366,000 | 84,866,000 |
Retained earnings | 393,918,000 | 376,119,000 |
Accumulated other comprehensive income | 0 | 2,203,000 |
Total stockholders’ equity | 889,312,000 | 463,209,000 |
Long-term debt, less current portion | 431,424,000 | 431,092,000 |
Capitalization, Long-term Debt and Equity | 1,320,736,000 | 894,301,000 |
Current liabilities: | ||
Lines of credit | 100,000,000 | 25,000,000 |
Current portion of long-term debt | 0 | 0 |
Accrued groundwater extraction charges, purchased water and power | 13,694,000 | 14,382,000 |
Accounts payable | 24,937,000 | 22,960,000 |
Accrued interest | 7,132,000 | 6,869,000 |
Accrued property taxes and other non-income taxes | 1,926,000 | 1,904,000 |
Accrued payroll | 7,181,000 | 6,011,000 |
Other current liabilities | 9,115,000 | 7,926,000 |
Liabilities, Current | 163,985,000 | 85,052,000 |
Deferred income taxes | 79,651,000 | 85,795,000 |
Advances for construction | 80,610,000 | 83,695,000 |
Contributions in aid of construction | 168,243,000 | 160,830,000 |
Postretirement benefit plans | 70,490,000 | 72,841,000 |
Regulatory liability | 59,149,000 | 62,476,000 |
Other noncurrent liabilities | 13,525,000 | 13,011,000 |
Commitments and contingencies | 0 | 0 |
Liabilities and Equity | $ 1,956,389,000 | $ 1,458,001,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Allowance for uncollectible accounts | $ 272 | $ 190 |
Capitalization: | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 36,000,000 | 36,000,000 |
Common stock, shares issued | 28,404,316 | 20,520,856 |
Common stock, shares outstanding | 28,404,316 | 20,520,856 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Operating revenue | $ 397,699 | $ 389,225 | $ 339,706 |
Production Expenses: | |||
Purchased water | 97,378 | 86,456 | 72,971 |
Power | 6,180 | 7,295 | 6,102 |
Groundwater extraction charges | 46,770 | 47,817 | 32,088 |
Other production expenses | 18,398 | 16,571 | 14,470 |
Total production expenses | 168,726 | 158,139 | 125,631 |
Administrative and general | 48,933 | 48,940 | 41,529 |
Maintenance | 18,414 | 18,361 | 18,361 |
Property taxes and other non-income taxes | 14,975 | 13,642 | 12,123 |
Depreciation and amortization | 54,601 | 48,292 | 44,625 |
Merger related expenses | 18,610 | 0 | 0 |
Total operating expense | 324,259 | 287,374 | 242,269 |
Operating income | 73,440 | 101,851 | 97,437 |
Other (expense) income: | |||
Interest on long-term debt, mortgage and other interest expense | (24,332) | (22,929) | (21,838) |
Pension non-service cost | (2,356) | (3,772) | (4,321) |
Unrealized loss on California Water Service Group stock | (527) | 0 | 0 |
Gain on sale of California Water Service Group stock | 104 | 0 | 3,197 |
Gain on sale of equity interests in Texas Water Alliance Limited and utility property | 9 | 12,499 | 0 |
Gain on sale of real estate investments | 0 | 6,903 | 10,419 |
Other, net | 2,494 | 1,941 | 1,487 |
Income before income taxes | 48,832 | 96,493 | 86,381 |
Provision for income taxes | 10,065 | 35,393 | 33,542 |
Net income before noncontrolling interest | 38,767 | 61,100 | 52,839 |
Less net income attributable to the noncontrolling interest | 0 | 1,896 | 0 |
SJW Group net income | 38,767 | 59,204 | 52,839 |
Other comprehensive income: | |||
Unrealized income on investment, net of taxes of $466 in 2017 and $657 in 2016 | 0 | 679 | 955 |
Reclassification adjustment for gain realized on investment, net of taxes of $1,198 in 2016 | 0 | 0 | (1,742) |
SJW Group comprehensive income | $ 38,767 | $ 59,883 | $ 52,052 |
SJW Group earnings per share | |||
—Basic (in dollars per share) | $ 1.83 | $ 2.89 | $ 2.59 |
—Diluted (in dollars per share) | $ 1.82 | $ 2.86 | $ 2.57 |
Weighted average shares outstanding | |||
—Basic (shares) | 21,214,277 | 20,506,960 | 20,439,957 |
—Diluted (shares) | 21,332,387 | 20,685,118 | 20,588,973 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Unrealized loss on investment, taxes | $ 0 | $ 466 | $ 657 |
Reclassification adjustment for gain on investment, taxes | $ 0 | $ 0 | $ 1,198 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] | Noncontrolling Interest [Member] |
Balance, value at Dec. 31, 2015 | $ 383,783 | $ 21 | $ 79,231 | $ 302,220 | $ 2,311 | $ 0 |
Balance, shares at Dec. 31, 2015 | 20,381,949 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 52,839 | 52,839 | ||||
Unrealized income on investment, net of tax effect | 955 | 955 | ||||
Reclassification adjustment for gain realized on investment, net of tax effect of $1,198 | (1,742) | (1,742) | ||||
Share-based compensation | 1,577 | 1,691 | (114) | |||
Issuance of restricted and deferred stock units, value | (161) | (161) | ||||
Issuance of restricted and deferred stock units, shares | 44,062 | |||||
Employee stock purchase plan, value | $ 954 | 954 | ||||
Employee stock purchase plan, shares | 30,214 | 30,214 | ||||
Dividends | $ (16,559) | (16,559) | ||||
Balance, value at Dec. 31, 2016 | 421,646 | $ 21 | 81,715 | 338,386 | 1,524 | 0 |
Balance, shares at Dec. 31, 2016 | 20,456,225 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 61,100 | 59,204 | 1,896 | |||
Unrealized income on investment, net of tax effect | 679 | 679 | ||||
Share-based compensation | 2,504 | 2,643 | (139) | |||
Distribution to noncontrolling interest | (1,896) | (1,896) | ||||
Issuance of restricted and deferred stock units, value | (707) | (707) | ||||
Issuance of restricted and deferred stock units, shares | 36,888 | |||||
Employee stock purchase plan, value | $ 1,215 | 1,215 | ||||
Employee stock purchase plan, shares | 27,743 | 27,743 | ||||
Dividends | $ (21,332) | (21,332) | ||||
Balance, value at Dec. 31, 2017 | $ 463,209 | $ 21 | 84,866 | 376,119 | 2,203 | 0 |
Balance, shares at Dec. 31, 2017 | 20,520,856 | 20,520,856 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative effect of change in accounting principle, net of tax effect of $1,507 | $ 0 | 2,203 | (2,203) | |||
Net income | 38,767 | 38,767 | ||||
Share-based compensation | 2,020 | 2,117 | (97) | |||
Issuance of restricted and deferred stock units, value | (4,057) | (4,057) | ||||
Issuance of restricted and deferred stock units, shares | 95,053 | |||||
Employee stock purchase plan, value | $ 1,371 | 1,371 | ||||
Employee stock purchase plan, shares | 25,907 | 25,907 | ||||
Dividends | $ (23,074) | (23,074) | ||||
Common stock issued | 411,076 | $ 7 | 411,069 | |||
Common stock issued, shares | 7,762,500 | |||||
Balance, value at Dec. 31, 2018 | $ 889,312 | $ 28 | $ 495,366 | $ 393,918 | $ 0 | $ 0 |
Balance, shares at Dec. 31, 2018 | 28,404,316 | 28,404,316 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Stockholders' Equity [Abstract] | |||
Cumulative Effect on Retained Earnings, Tax | $ 1,507 | $ 0 | $ 0 |
Unrealized loss on investment, taxes | 0 | 466 | 657 |
Reclassification adjustment for gain on investment, taxes | $ 0 | $ 0 | $ 1,198 |
Common stock, dividends per share, paid | $ 1.12 | $ 1.04 | $ 0.81 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating activities: | |||
Net income before noncontrolling interest | $ 38,767 | $ 61,100 | $ 52,839 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 56,907 | 50,501 | 46,295 |
Deferred income taxes | (9,486) | (436) | 4,803 |
Share-based compensation | 2,117 | 2,643 | 1,691 |
Unrealized loss on California Water Service Group stock | 527 | 0 | 0 |
Gain on sale of California Water Service Group stock | (104) | 0 | (3,197) |
Gain on sale of real estate investments | 0 | (6,903) | (10,419) |
Gain on sale of Texas Water Alliance Limited and utility property | 0 | (12,499) | 0 |
Changes in operating assets and liabilities: | |||
Accounts receivable and accrued unbilled utility revenue | (2,003) | (1,702) | (5,377) |
Accounts payable and other current liabilities | 2,130 | 2,888 | (337) |
Accrued groundwater extraction charges, purchased water and power | (688) | 3,536 | 3,683 |
Tax receivable and accrued taxes | 5,841 | 2,164 | (680) |
Postretirement benefits | 203 | (769) | (349) |
Regulatory asset related to balancing and memorandum accounts | (6,488) | (979) | 19,297 |
Other noncurrent assets and noncurrent liabilities | 1,923 | 741 | 5,468 |
Other changes, net | 1,697 | 827 | 854 |
Net cash provided by operating activities | 91,343 | 101,112 | 114,571 |
Investing activities: | |||
Company-funded | (135,973) | (141,213) | (129,134) |
Contributions in aid of construction | (8,454) | (7,842) | (13,086) |
Additions to real estate investment | (123) | (116) | (328) |
Payments for business/asset acquisition and water rights | (2,496) | (1,149) | (1,070) |
Cost to retire utility plant, net of salvage | (3,909) | (3,356) | (3,361) |
Proceeds from sale of California Water Service Group stock | 4,112 | 0 | 4,509 |
Proceeds from sale of Texas Water Alliance Limited and utility property | 0 | 28,623 | 0 |
Proceeds from sale of real estate investments | 0 | 11,179 | 20,341 |
Net cash used in investing activities | (146,843) | (113,874) | (122,129) |
Financing activities: | |||
Borrowings from lines of credit | 76,000 | 56,500 | 62,075 |
Repayments of lines of credit | (1,000) | (45,700) | (82,475) |
Long-term borrowings | 0 | 0 | 50,999 |
Long-term borrowings held as restricted cash | 0 | 0 | 19,001 |
Repayments of long-term borrowings | 0 | (2,717) | (16,599) |
Dividends paid | (23,074) | (21,332) | (16,559) |
Receipts of advances and contributions in aid of construction | 10,890 | 12,581 | 14,366 |
Refunds of advances for construction | (2,700) | (2,622) | (2,522) |
Issuance of common stock, net of issuance costs | 411,385 | 0 | 0 |
Other changes, net | (3,078) | (1,499) | (617) |
Net cash provided by (used in) financing activities | 468,423 | (4,789) | 27,669 |
Net change in cash, cash equivalents and restricted cash | 412,923 | (17,551) | 20,111 |
Cash and cash equivalents, beginning of year | 7,799 | 25,350 | 5,239 |
Cash, cash equivalents and restricted cash, end of year | 420,722 | 7,799 | 25,350 |
Cash paid during the year for: | |||
Interest | 27,038 | 25,254 | 23,962 |
Income Taxes Paid, Net | 13,750 | 34,052 | 27,517 |
Supplemental disclosure of non-cash activities: | |||
Increase (Decrease) in accrued payables for construction costs capitalized | 340 | 2,700 | 3,696 |
Utility property installed by developers | 1,747 | 3,723 | 9,614 |
Reconciliation to Consolidated Balance Sheets: | |||
Cash, cash equivalents and restricted cash, end of year | $ 7,799 | $ 25,350 | $ 5,239 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Summary of Significant Accounting Policies The accompanying consolidated financial statements include the accounts of SJW Group, its wholly owned subsidiaries, and two variable interest entities in which two SJW Group subsidiaries are the primary beneficiaries. All intercompany transactions and balances have been eliminated in consolidation. SJW Group’s principal subsidiary, San Jose Water Company, is a regulated California water utility providing water service to approximately one million people in the greater metropolitan San Jose area. San Jose Water Company’s accounting policies comply with the applicable uniform system of accounts prescribed by the California Public Utilities Commission (“CPUC”) and conform to generally accepted accounting principles for rate-regulated public utilities. Approximately 91% of San Jose Water Company’s revenues are derived from the sale of water to residential and business customers. SJWTX, Inc., a wholly owned subsidiary of SJW Group, is incorporated in the State of Texas and is doing business as Canyon Lake Water Service Company (“CLWSC”). CLWSC is a public utility in the business of providing water service to approximately 49,000 people. CLWSC’s service area comprises more than 246 square miles in the southern region of the Texas Hill Country in Blanco, Comal, Hays and Travis counties, the growing region between San Antonio and Austin, Texas. SJWTX, Inc. has a 25% interest in Acequia Water Supply Corporation. Acequia has been determined to be a variable interest entity within the scope of ASC Topic 810 with SJWTX, Inc. as the primary beneficiary. As a result, Acequia has been consolidated with SJWTX, Inc. SJW Land Company owns a commercial property, an undeveloped real estate property, and a warehouse property in the state of Tennessee. In September 1999, SJW Land Company contributed real property for a 70% limited partnership interest in 444 West Santa Clara Street, L.P. A commercial building was constructed on the partnership property and was leased to an unrelated international real estate firm under a long-term lease. 444 West Santa Clara Street, L.P. has been determined to be a variable interest entity within the scope of ASC Topic 810 with SJW Land Company as the primary beneficiary. As a result, 444 West Santa Clara Street L.P. has been consolidated with SJW Land Company. The consolidated financial statements of SJW Group at December 31, 2018 and 2017 include the operating results of 444 West Santa Clara Street, L.P. Intercompany balances and transactions have been eliminated. Results of operations and balances of the non-controlling interest are not material to the consolidated financial statements (see Note 1, “Real Estate Investments”). Hydro Sub, Inc., a wholly-owned subsidiary of SJW Group, is a Connecticut corporation that was formed on March 9, 2018, for the sole purpose of effecting the proposed merger of SJW Group and Connecticut Water Service, Inc. (“CTWS”). See Note 12 for a discussion of the SJW Group and CTWS Merger Agreement. Texas Water Alliance Limited (“TWA”), formerly a wholly owned subsidiary of SJW Group, was undertaking activities that were necessary to develop a water supply project in Texas. On February 22, 2016, SJW Group entered into a Purchase and Sale Agreement with the Guadalupe-Blanco River Authority (“GBRA”) pursuant to which SJW Group agreed to sell all of its equity interests in TWA to GBRA for $31,000 in cash. The sales transaction closed on November 16, 2017. As provided in the sale agreement, GBRA held back $3,000 (“Holdback Amount“) from the payment of the purchase price at the closing, which amount will be paid to SJW Group on June 30, 2021, subject to reduction under certain conditions. The transaction resulted in a pre-tax gain on sale of utility property of $12,501 , excluding the Holdback Amount. Recently Adopted Accounting Principles In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers.” The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new standard replaced most existing revenue recognition guidance in generally accepted accounting principles. The updated guidance also requires additional disclosures regarding the nature, timing and uncertainty of revenue transactions. SJW Group adopted the new revenue standard on January 1, 2018, using the modified retrospective method, and determined that no adjustment to the opening balance of retained earnings was necessary for contracts with remaining obligations as of the effective date. In addition, SJW Group applied the “right to invoice” practical expedient. The adoption of the new standard requires certain changes to the recognition of balancing and memorandum account revenue and related costs (See Note 1, “Balancing and Memorandum Accounts”). However, the changes did not have a material impact on our consolidated results of operations, financial position, or cash flows. Concurrently, the company implemented ASU 2017-10, “Identifying the Customer in a Service Concession Arrangement.” Upon adoption of ASU 2017-10, the service concession fee paid to the City of Cupertino was determined to be an up-front payment and accordingly will be amortized as a reduction to future revenue as opposed to amortized as an expense on SJW Group’s Consolidated Statements of Comprehensive Income. In January 2016, the FASB issued ASU 2016-01, “Financial Instruments - Overall” which changes the recognition of changes in fair value of financial liabilities when the fair value option is elected. In addition, the standard requires equity investments to be measured at fair value with changes in fair value recognized in net income instead of through other comprehensive income. The updated guidance affected the accounting for the company’s equity investment in California Water Service Group stock classified as an available-for-sale security. The new standard became effective for SJW Group beginning in the first quarter of the fiscal year ending December 31, 2018. Prior to adoption of ASU 2016-01, SJW Group recognized changes in fair value of its equity investment in California Water Service Group stock through other comprehensive income or loss on the statement of comprehensive income. Upon adoption on January 1, 2018, SJW Group began recording the change in fair value of its equity investment in other income and expense. In addition, the ASU stated that entities should apply the new standard by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. As such, SJW Group recorded a cumulative-effect adjustment of $2,203 to beginning retained earnings to eliminate the cumulative change in fair value of its equity investment, net of tax from accumulated other comprehensive income. Subsequent to the adoption of ASU 2016-01, SJW Group sold its investment in California Water Service Group stock. See below in Note 1, “Investment in California Water Service Group” for further discussion. In October 2016, the FASB issued ASU 2016-16, “Intra-Entity Transfers of Assets Other Than Inventory,” which modifies existing guidance and is intended to reduce diversity in practice with respect to accounting for the income tax consequences of intra-entity transfers of assets. The ASU requires that the current and deferred income tax consequences of intra-entity transfers of assets be immediately recognized. Prior guidance allowed the entities to defer the consolidated tax consequences of an intercompany transfer of an asset other than inventory to a future period and amortize those tax consequences over time. SJW Group adopted ASU 2016-16 effective January 1, 2018. Upon adoption of ASU 2016-16, SJW Group did not record an unamortized tax expense. As a result, the company did not record a cumulative catch-up adjustments upon adoption of this ASU. In March 2017, the FASB issued ASU 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Costs,” which requires employers to present the service cost component of the net periodic benefit cost in the same income statement line item as other employee compensation costs arising from services rendered during the period. The standard provides that only the service cost component of net periodic pension costs is eligible for asset capitalization. Companies should present the other components of net periodic benefit costs separately from the line items that include the service cost and outside of any subtotal of operating income, if one is presented. ASU 2017-07 requires retrospective presentation in the income statement of the service cost component and the other components of net periodic cost and net periodic postretirement benefit cost and prospective presentation from date of adoption for the capitalization in assets of only the service cost component of net periodic cost and net periodic postretirement benefit cost. SJW Group adopted ASU 2017-07 effective January 1, 2018. As such, the consolidated statements of comprehensive income for the periods presented have been reclassified to reflect the retrospective changes. See Note 9, “Benefit Plans” for further discussion. Use of Estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Utility Plant The cost of additions, replacements and betterments to utility plant is capitalized. The amount of interest capitalized in 2018 , 2017 and 2016 was $2,856 , $2,807 and $2,188 , respectively. Construction in progress was $ 68,765 and $ 45,851 at December 31, 2018 and 2017 , respectively. The major components of depreciable plant and equipment as of December 31, 2018 and 2017 are as follows: 2018 2017 Equipment $ 335,358 307,938 Transmission and distribution 1,375,821 1,295,690 Office buildings and other structures 121,872 110,600 Total depreciable plant and equipment $ 1,833,051 1,714,228 Depreciation is computed using the straight-line method over the estimated remaining service lives of groups of assets, ranging from 5 to 75 years . The estimated service lives of depreciable plant and equipment are as follows: Useful Lives Equipment 5 to 35 years Transmission and distribution plant 35 to 75 years Office buildings and other structures 7 to 50 years For the years 2018 , 2017 and 2016 , depreciation expense as a percent of the beginning of the year balance of depreciable plant was approximately 3.6% , 3.6% and 3.5% , respectively. A portion of depreciation expense was allocated to administrative and general expense. For the years 2018 , 2017 and 2016 , the amounts allocated to administrative and general expense were $2,306 , $2,209 and $1,670 , respectively. Depreciation expense for utility plant for the years ended December 31, 2018 , 2017 and 2016 was $53,031 , $46,456 and $42,659 , respectively. The cost of utility plant retired, including retirement costs (less salvage), is charged to accumulated depreciation and no gain or loss is recognized. Utility Plant Intangible Assets All intangible assets are recorded at cost and are amortized using the straight-line method over the estimated useful life of the asset, ranging from 5 to 70 years (see Note 6, “Intangible Assets”). Real Estate Investments Real estate investments are recorded at cost and consist primarily of land and buildings. Net gains and losses from the sale of real estate investments are recorded as a component of other (expense) income in the Consolidated Statements of Comprehensive Income. Nonutility property in Water Utility Services is also classified in real estate investments and not separately disclosed on the balance sheet based on the immateriality of the amount. Nonutility property is property that is neither used nor useful in providing water utility services to customers and is excluded from the rate base for rate-setting purposes. San Jose Water Company recognizes gain/loss on disposition of nonutility property in accordance with CPUC Code Section 790, whereby the net proceeds are reinvested back into property that is useful in providing water utility services to customers. There is no depreciation associated with nonutility property as it is all land. The major components of real estate investments as of December 31, 2018 and 2017 are as follows: 2018 2017 Land $ 13,262 13,262 Buildings and improvements 43,074 42,951 Total real estate investment $ 56,336 56,213 Depreciation on buildings and improvements for real estate investments is computed using the straight-line method over the estimated useful lives of the assets, ranging from 7 to 39 years . On April 6, 2017, 444 West Santa Clara Street, L.P. sold all of its interests in the commercial building and land the partnership owned and operated for $11,000 . 444 West Santa Clara Street, L.P. recognized a pre-tax gain on sale of real estate investments of $6,323 , after selling expenses of $1,157 . SJW Land Company holds a 70% limited interest in 444 West Santa Clara Street, L.P. SJW Land Company and the noncontrolling interest recognized a pre-tax gain on sale of real estate investments of $4,427 and $1,896 , respectively, on the transaction. In addition, SJW Land Company sold undeveloped land located in San Jose, California for $1,350 on April 6, 2017. SJW Land Company recognized a pre-tax gain on sale of real estate investments of $580 on the transaction, after selling expenses of $14 . In 2015, SJW Land Company was notified by the Arizona Department of Transportation that in order to achieve their goals of developing a new freeway extension, they, in conjunction with the Federal Highway Commission, would be exercising their powers of eminent domain for SJW Land Company’s warehouse building located in Phoenix, Arizona. On September 8, 2016, SJW Land Company sold the Arizona warehouse building and received a settlement value of $20,000 . Title to the property transferred on October 13, 2016 upon the recording of the court’s Final Order of Condemnation. SJW Group recognized a pre-tax gain on sale of real estate investments in the fourth quarter of 2016 of $9,981 , after selling expenses of $112 . Real estate investments include $56,090 and $55,966 as of December 31, 2018 and 2017 , respectively, of assets that are leased or available for lease. The following schedule shows the future minimum rental payments to be received from third parties under operating leases that have remaining noncancelable lease terms in excess of one year as of December 31, 2018 : Year ending December 31: Rental Revenue 2019 $ 4,432 2020 4,513 2021 2,644 2022 1,184 2023 1,198 Thereafter 5,565 Impairment of Long-Lived Assets In accordance with the requirements of FASB ASC Topic 360—“Property, Plant and Equipment,” the long-lived assets of SJW Group are reviewed for impairment when changes in circumstances or events require adjustments to the carrying values of the assets. When such changes in circumstances or events occur, the company assesses recoverability by determining whether the carrying value of such assets will be recovered through the undiscounted expected future cash flows. To the extent an impairment exists, the asset is written down to its estimated fair value with a corresponding charge to operations in the period in which the impairment is identified. Long-lived assets consist primarily of utility plant in service, real estate investments, intangible assets, and regulatory assets. In addition, the company tests unamortized intangible assets, which primarily relate to water rights, at least annually or more frequently if events or changes in circumstances indicate that the asset may be impaired. SJW Group first performs a qualitative assessment to determine whether it is necessary to perform the quantitative impairment test. In assessing the qualitative factors, SJW Group considers the impact of these key factors: change in industry and competitive environment, financial performance, and other relevant Company-specific events. If SJW Group determines that as a result of the qualitative assessment it is more likely than not (> 50% likelihood) that the fair value is less than carrying amount, then a quantitative test is performed. No impairments occurred during 2018 , 2017 or 2016 . Cash and Cash Equivalents Cash and cash equivalents primarily consist of cash on deposit with banks and investments in a money market fund with maturities of three months or less from the date of purchase. Financial Instruments The following instruments are not measured at fair value on the company’s consolidated balance sheets but require disclosure of fair values: cash and cash equivalents, accounts receivable and accounts payable. The estimated fair value of such instruments approximates their carrying value as reported on the consolidated balance sheets. The fair value of such financial instruments are determined using the income approach based on the present value of estimated future cash flows. The fair value of these instruments would be categorized as Level 2 in the fair value hierarchy, with the exception of cash and cash equivalents, which would be categorized as Level 1. The fair value of investment in California Water Service Group Stock is discussed in Note 1, long-term debt in Note 4 and pension plan assets in Note 9. Financial instruments that are potentially subject to concentration of credit risk is primarily cash and cash equivalents which primarily consists of a short-term money market fund. The money market fund is managed by a reputable financial institution. Investment in California Water Service Group SJW Group’s investment in California Water Service Group was accounted for under FASB ASC Topic 320—“Investments—Debt and Equity Securities,” as an available-for-sale marketable security. The investment was recorded on the Consolidated Balance Sheet at its quoted market price with the change in unrealized gain or loss reported, net of tax, as a component of other expense (income) with the adoption of ASU 2016-01 on January 1, 2018. Prior to adoption, the changes in unrealized gain or loss, net of tax, were reported as a component of other comprehensive income. As of December 31, 2018 , SJW Group held no remaining shares of California Water Service Group. During the year ended December 31, 2018 , SJW Group sold 100,000 shares of California Water Service Group for $4,112 before fees of $9 . SJW Group recognized a gain on the sale of the stock of approximately $104 and tax expense of approximately $29 for a net gain of $75 . During the year ended December 31, 2016 , SJW Group sold 159,151 shares of California Water Service Group for $4,510 before fees of $20 . SJW Group recognized a gain on the sale of the stock of approximately $3,197 and tax expense of approximately $1,303 for a net gain of $1,894 . The unrealized holding gain associated with the shares sold in 2016 was reclassified out of accumulated other comprehensive income was $1,742 and was based on the fair value of the stock as of the date of the transaction. As of December 31, 2018 and 2017 , fair value of the SJW Group’s investment in California Water Service Group was $0 and $4,535 , respectively, and was categorized as Level 1 of the fair value hierarchy. Regulatory Rate Filings California Regulatory Affairs San Jose Water Company’s rates, service and other matters affecting its business are subject to regulation by the CPUC. Generally, there are three types of rate adjustments that affect San Jose Water Company’s revenue collection: general rate adjustments, cost of capital adjustments, and offset rate adjustments. General rate adjustments are authorized in general rate case decisions, which usually authorize an initial rate adjustment followed by two annual escalation adjustments. General rate applications are normally filed and processed during the last year covered by the most recent general rate case as required by the CPUC in order to avoid any gaps in regulatory decisions on general rate adjustments. Cost of capital adjustments are rate adjustments resulting from the CPUC’s usual tri-annual establishment of a reasonable rate of return for San Jose Water Company’s capital investments. The purpose of an offset rate adjustment is to compensate utilities for changes in specific pre-authorized offsettable capital investments or expenses, primarily for purchased water, groundwater extraction, purchased power and pensions. Pursuant to Section 792.5 of the California Public Utilities Code, a balancing account must be maintained for each expense item for which such revenue offsets have been authorized. Memorandum accounts track revenue impacts due to catastrophic events, certain unforeseen water quality expenses related to new federal and state water quality standards, energy efficiency, water conservation, water tariffs and other approved activities or as directed by the CPUC such as the memorandum account for the Tax Cuts and Jobs Act (H.R. 1) (the “Tax Act”). The purpose of a balancing and memorandum account is to track the under-collection or over-collection associated with such expense changes. On November 15, 2017, San Jose Water Company filed Advice Letter No. 513/513A with the CPUC requesting a revenue increase of $15,670 , or 4.22% , for the 2018 escalation year included in the 2015 General Rate Case. This request was approved and the new rates became effective on January 1, 2018. On November 29, 2017, San Jose Water Company filed Advice Letter No. 514 with the CPUC requesting to adjust the Utilities Reimbursement Account User Fees as directed by CPUC Resolution M-4832. The reimbursement fee was reduced from 1.44% to 1.40% . This request was approved and the new fee became effective on January 1, 2018. San Jose Water Company filed Advice Letter No. 515 on December 28, 2017, with the CPUC requesting authorization to establish the 2018 Tax Accounting Memorandum Account. This memorandum account will capture any changes to revenue requirement resulting from the impact of the Tax Act signed into law December 22, 2017. This request became effective on January 1, 2018. As required by the CPUC, on April 3, 2017, San Jose Water Company filed an application requesting authority to establish its authorized Cost of Capital for the period from January 1, 2018 through December 31, 2020. On March 22, 2018, the CPUC approved a new cost of capital for San Jose Water Company in Decision 18-03-035 that lowers the rate of return from 8.09% to 7.64% thereby reducing the 2018 revenue requirement by $5,843 or 1.57% effective January 1, 2018. On March 22, 2018, San Jose Water Company filed Advice Letter No. 518 with the CPUC requesting authorization to adjust water rates to reflect the decision effective March 22, 2018. On January 4, 2018, San Jose Water Company filed General Rate Case Application No. 18-01-004 (“GRC”) with the CPUC requesting authority for an increase of revenue of $34,288 , or 9.76% , in 2019, $14,232 , or 3.70% , in 2020 and $20,582 , or 5.17% , in 2021. Among other things, the application also includes requests to recover $20,725 from balancing and memorandum accounts, the establishment of a Water Revenue Adjustment Mechanism and Sales Reconciliation Mechanism (“WRAM/SRM”), and a shift to greater revenue collection in the service charge. On June 28, 2018, the CPUC issued an order in the case identifying the issues to be considered, including whether the proposed merger between SJW Group and Connecticut Water Service, Inc. will have any ratemaking impact on the customers of San Jose Water Company (see discussion on the proposed merger at Note 12). This consideration was subsequently removed from the GRC to be considered in an Order Instituting Investigation (“OII”) on the proposed merger issued on July 20, 2018, see below for further discussion. On August 10, 2018, San Jose Water Company and the Office of Ratepayer Advocates filed a joint motion for partial settlement (“Settlement”) of the GRC with the CPUC, resolving all issues in the GRC with the exception of authorization of a WRAM/SRM and the recovery of the balance in the Hydro Generation Research, Development and Demonstration Memorandum Account, such issues being subsequently contested in legal briefs. On October 16, 2018 the CPUC issued a Proposed Decision adopting the Settlement in part, without any impact on the proposed revenue requirement outlined in the Settlement, and delaying ruling on the contested issues in order to allow the Settlement rates to become effective January 1, 2019. On December 4, 2018, the CPUC issued Decision 18-11-025 authorizing new rates for 2019. Accordingly, San Jose Water Company filed Advice Letter No. 528/528A on December 7, 2018 requesting authorization to increase revenue requirement by $16,378 or 4.55% in 2019. This was approved on December 28, 2018 and new rates became effective January 1, 2019. On March 23, 2018, San Jose Water Company filed Advice Letter No. 519 with the CPUC requesting authorization to update the Rule 15 income tax provisions as a result of the recent changes to the federal tax laws. This advice letter has no impact on water rates and was effective January 1, 2018. The CPUC directed its Class A water utilities, including San Jose Water Company, to reflect the changes to the Internal Revenue Code resulting from the passage of the Tax Act in customer rates. On May 8, 2018, the CPUC directed San Jose Water Company to file an advice letter to implement a change in water rates to reflect the lower income tax rate provided by the Tax Act, effective July 1, 2018. On May 23, 2018, San Jose Water Company filed Advice Letter No. 522 in compliance with the CPUC’s directive. On June 7, 2018, San Jose Water Company filed Advice Letter No. 522A amending the rate change to reflect a reduction in revenue requirement for 2018 of $14,801 or 3.89% , with no impact on after tax income. This request became effective July 1, 2018. On June 13, 2018, San Jose Water Company filed Advice Letter No. 523 with the CPUC requesting authorization to implement surcharges to offset the increases to purchased potable water charges, the ground water extraction fee, and purchased recycled water charges implemented by the Santa Clara Valley Water District (“SCVWD”) and South Bay Water Recycling effective July 1, 2018. The increases amount to a revenue increase of $13,732 or 3.75% . This request became effective July 1, 2018. San Jose Water Company filed Advice Letter No. 524 with the CPUC on July 26, 2018, requesting authorization to recover the 2017 capital additions related to the Montevina Water Treatment Plant Upgrade Project. The filing requested a revenue increase of $3,155 or 0.83% and became effective August 25, 2018. On July 20, 2018 the CPUC issued OII No. 18-07-007 concerning SJW Group’s merger with Connecticut Water Service, Inc. In its filing, the CPUC committed to a schedule that would complete its investigation in a time frame to allow the proposed merger to move forward by the end of 2018, if appropriate. At a required pre-hearing Conference on August 22, 2018, the CPUC confirmed its commitment to the schedule and a Scoping Memorandum was subsequently issued on September 7, 2018, which identified issues to be considered on whether the proposed merger is subject to CPUC approval and its likely impacts within California. On September 14, 2018, SJW Group and San Jose Water Company submitted joint comments in response to the issues identified above in accordance with the Scoping Memorandum’s adopted schedule, and reply comments were submitted on October 19, 2018. A Public Participation Hearing was held on January 31, 2019, with a CPUC decision now expected in the second quarter of 2019. In January 2017, a San Jose Water Company customer inquired about the company’s billing practice as it related to the proration of service charges in billing cycles where a rate change occurred. After reviewing its existing practice as well as those of other Class A water utilities, San Jose Water Company determined that it was appropriate to modify its existing practice to prorate service charges similar to the manner in which it prorates quantity charges - that is by applying both the old and new rates to the portion of the billing cycle for which the rates were in effect. This change was implemented on January 30, 2017, and retroactively applied to January 1, 2017. Subsequently, on May 8, 2017, the CPUC’s Water Division notified San Jose Water Company that it had violated Public Utilities Code 532 and other CPUC Orders and directed the company to file an advice letter providing refunds for the period of January 1, 2014, through December 31, 2016. As directed, San Jose Water Company filed Advice Letter 510 on June 6, 2017, to propose customer refunds in the amount of $1,794 for the same period. On June 22, 2017, San Jose Water Company was served with Complaint 17-06-009 regarding its billing practice for service charge rate changes. On August 11, 2017, the Water Division rejected Advice Letter 510 in light of the CPUC’s investigation into San Jose Water Company’s past and present billing practice. The billing issue was made a part of San Jose Water Company’s current GRC proceeding. Testimony was provided by the Office of Ratepayer Advocates (now the Public Advocates Office or “Cal PA”) on May 23, 2018. On June 8, 2018, the company provided its rebuttal testimony. On August 10, 2018, San Jose Water Company and Cal PA submitted a partial settlement agreement on issues presented in the GRC. Both the company and Cal PA settled on the billing issue limiting the duration from which to calculate customer refunds from June 1, 2011 through December 31, 2016. Accordingly, San Jose Water Company has provided an additional reserve to cover the remaining period covered by the settlement. In accordance with Decision 18-11-025 for the GRC, San Jose Water Company filed Advice Letter No. 530 proposing total refunds of $2,020 for the period from June 1, 2011 through December 31, 2016. This advice letter became effective February 8, 2019. On September 14, 2018, the CPUC issued OII No. 18-09-003 to which San Jose Water Company was named as Respondent. The OII will determine whether the company unlawfully overcharged customers over a 30-year period by failing to pro-rate service charges when increases occurred during a billing period, and whether the company double-billed service charges during one billing period when allegedly switching from billing such charges in advance to billing in arrears. The OII resulted from a report by the CPUC’s Consumer Protection and Enforcement Division (“CPED”), dated August 16, 2018, recommending an investigation into San Jose Water Company’s billing practice. CPED calculated a refund obligation of approximately $2,061 for the years 2014 to 2016 that had been the subject of San Jose Water Company’s Advice Letter 510. CPED calculated a further refund obligation of approximately $1,990 for the years 1987 to 2013. CPED also asserted that the company double-billed its customers during a billing period when it allegedly converted from billing in advance to billing in arrears, assumed that such double-billing occurred in January 2011, and calculated a refund obligation of approximately $4,935 . The OII notes these estimates and identifies the proper refund amount as an issue in the proceeding. The OII also identifies the CPUC’s authority to consider imposing penalties on San Jose Water Company in amounts ranging from five hundred dollars to fifty thousand dollars per offense, per day. San Jose Water Company continues to cooperate with the CPUC to resolve these issues. On October 15, 2018, San Jose Water Company filed a response to the OII with the CPUC, in which the company stated that it believes it would not be appropriate for the Commission to require refunds extending prior to June 2011, that no double billing has occurred and that no penalties should be imposed on the company. The company believes it is only probable that refunds agreed to in the pa |
Capitalization
Capitalization | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
CAPITALIZATION | Capitalization SJW Group is authorized to issue 36,000,000 shares of common stock of $0.001 par value per share. At December 31, 2018 and 2017 , 28,404,316 and 20,520,856 , respectively, shares of common stock were issued and outstanding. At December 31, 2018 and 2017 , 1,000,000 shares of preferred stock of $0.001 par value per share were authorized for SJW Group. At December 31, 2018 and 2017 , no shares of preferred stock were issued or outstanding. On November 28, 2018, SJW Group entered into an underwriting agreement with J.P. Morgan Securities LLC, Barclays Capital Inc., RBC Capital Markets, LLC and UBS Securities LLC, as representatives of the several underwriters (the “Underwriters”) , pursuant to which SJW Group sold to the Underwriters an aggregate of 6,750,000 shares of SJW Group ’ s common stock, par value $0.001 per share (the “Firm Shares”), in an underwritten public offering. Pursuant to the underwriting agreement, SJW Group granted the Underwriters a 30 -day option to purchase up to an additional 1,012,500 shares of its common stock (the “Option Shares”), which was exercised in full on December 3, 2018. The offering of the Firm Shares closed on December 3, 2018 and the offering of the Option Shares on December 5, 2018. SJW Group received net proceeds of approximately $358,256 from the sale of the Firm Shares and received additional net proceeds of approximately $53,738 from the sale of the Option Shares, in each case after deducting the underwriting discounts and commissions and estimated offering expenses payable by SJW Group. SJW Group intends to use the net proceeds from the offering, together with the net offering proceeds from new debt financing in 2019, to finance the proposed merger of CTWS and to pay related fees and expenses. See Note 12 for a discussion on the proposed CTWS merger. Pending such use, the company has invested the net proceeds temporarily in a short-term money market fund. The offering is not conditioned on the consummation of the proposed merger. If for any reason the proposed merger of CTWS does not close, then SJW Group intends to use the proceeds from the offering for general corporate purposes, which may include acquisitions, share repurchases or debt repayment. SJW Group will not have any obligation to repurchase any or all of its shares of common stock sold in the offering. |
Lines of Credit
Lines of Credit | 12 Months Ended |
Dec. 31, 2018 | |
Line of Credit Facility [Abstract] | |
LINES OF CREDIT | Lines of Credit San Jose Water Company entered into a $125,000 credit agreement (the “Credit Agreement”) with JPMorgan Chase Bank, N.A., as the lender (the “Lender”) on June 1, 2016. The Credit Agreement provides an unsecured credit facility with a letter of credit sublimit of $10,000 . Proceeds of borrowings under the Credit Agreement may be used to refinance existing debt, for working capital, and for general corporate purposes. The Credit Agreement has a maturity date of June 1, 2021. The Credit Agreement contains customary representations, warranties and events of default, as well as certain restrictive covenants customary for facilities of this type, including restrictions on indebtedness, liens, acquisitions and investments, restricted payments, asset sales, and fundamental changes. The Credit Agreement also includes certain financial covenants that require the Company to maintain a maximum funded debt to capitalization ratio and a minimum interest coverage ratio. SJW Group and SJW Land Company (collectively, the “Borrowers”), entered into a $15,000 credit agreement with the Lender (the “SJW Group Credit Agreement”) on June 1, 2016, which provides an unsecured credit facility to the Borrowers with a letter of credit sublimit of $5,000 . The SJW Group Credit Agreement matures on June 1, 2021. Borrowings under the SJW Group Credit Agreement bear interest under the same terms and conditions as those in the Credit Agreement. In addition, on June 1, 2016, SJW Group, as guarantor, and SJWTX, Inc. (the “Borrower”), entered into a $5,000 credit agreement with the Lender (the “SJWTX Credit Agreement”), which provides an unsecured credit facility to the Borrower with a letter of credit sublimit of $1,000 . The SJWTX Credit Agreement matures on June 1, 2021. As of December 31, 2018 and 2017 , SJW Group had outstanding balances on the lines of credit of $100,000 and $25,000 , respectively. Cost of borrowing on the lines of credit averaged 2.94% and 2.27% as of December 31, 2018 and 2017 , respectively. The SJW Group and SJWTX, Inc. unsecured bank lines of credit have the following affirmative covenants calculated with the financial statements of SJW Group, on a consolidated basis: (1) the funded debt cannot exceed 66-2/3% of total capitalization, and (2) net income available for interest charges for the trailing 12-calendar-month period cannot be less than 175% of interest charges. As of December 31, 2018 , SJW Group and SJWTX, Inc. were in compliance with all covenants. San Jose Water Company’s unsecured bank lines of credit have the following affirmative covenants: (1) the funded debt cannot exceed 66-2/3% of total capitalization, and (2) net income available for interest charges for the trailing 12-calendar-month period cannot be less than 175% of interest charges. As of December 31, 2018 , San Jose Water Company was in compliance with all covenants. SJW Group has received a financing commitment letter from lenders, including JPMorgan Chase Bank, N.A., Barclays Bank PLC, Royal Bank of Canada and UBS AG, Stamford Branch to provide a senior unsecured bridge loan facility of up to $975,000 in the event that SJW Group is unable to secure other financing for the Merger at or prior to the time the Merger is completed. Upon completion of our December 2018 issuance of common stock, the facility commitment was reduced to $563,000 . The financing commitments include customary conditions to funding. As of December 31, 2018 , the merger was not completed and no amount has been extended under the facility. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-Term Debt Long-term debt as of December 31 was as follows: Description Due Date 2018 2017 Senior notes, San Jose Water Company: Series A 8.58% 2022 $ 20,000 20,000 Series B 7.37% 2024 30,000 30,000 Series C 9.45% 2020 10,000 10,000 Series D 7.15% 2026 15,000 15,000 Series E 6.81% 2028 15,000 15,000 Series F 7.20% 2031 20,000 20,000 Series G 5.93% 2033 20,000 20,000 Series H 5.71% 2037 20,000 20,000 Series I 5.93% 2037 20,000 20,000 Series J 6.54% 2024 10,000 10,000 Series K 6.75% 2039 20,000 20,000 Series L 5.14% 2044 50,000 50,000 SJWTX, Inc. Series A 6.27% 2036 15,000 15,000 SJW Group Series A 4.35% 2021 50,000 50,000 Total senior notes $ 315,000 315,000 California Pollution Control Financing Authority Revenue Bonds 5.10%, San Jose Water Company 2040 50,000 50,000 California Pollution Control Financing Authority Revenue Bonds 4.75%, San Jose Water Company 2046 70,000 70,000 Total debt $ 435,000 435,000 Less: Unamortized debt issuance costs related to debt above 3,576 3,908 Current portion — — Total long-term debt, less current portion $ 431,424 431,092 Senior notes held by institutional investors are unsecured obligations of SJW Group, San Jose Water Company and SJWTX, Inc. and require interest-only payments until maturity. To minimize issuance costs, the companies’ debt has primarily been placed privately. The senior note agreements of San Jose Water Company generally have terms and conditions that restrict the Company from issuing additional funded debt if: (1) the funded debt would exceed 66-2/3% of total capitalization, and (2) net income available for interest charges for the trailing 12-calendar-month period would be less than 175% of interest charges. As of December 31, 2018 , San Jose Water Company was not restricted from issuing future indebtedness as a result of these terms and conditions. The senior note agreement of SJWTX, Inc. has terms and conditions that restrict SJWTX, Inc. from issuing additional funded debt if: (1) the funded debt would exceed 66-2/3% of total capitalization, and (2) net income available for interest charges for the trailing 12-calendar-month period would be less than 175% of interest charges. In addition, SJW Group is a guarantor of SJWTX, Inc.’s senior note which has terms and conditions that restrict SJW Group from issuing additional funded debt if: (1) the funded consolidated debt would exceed 66-2/3% of total capitalization, and (2) the minimum net worth of SJW Group becomes less than $125,000 plus 30% of Water Utility Services cumulative net income, since December 31, 2005. As of December 31, 2018 , SJWTX, Inc. and SJW Group were not restricted from issuing future indebtedness as a result of these terms and conditions. The senior note agreement of SJW Group has terms and conditions that restrict SJW Group from issuing additional funded debt if: (1) the funded consolidated debt would exceed 66-2/3% of total capitalization, and (2) the minimum net worth of SJW Group becomes less than $175,000 plus 30% of Water Utility Services cumulative net income, since June 30, 2011. As of December 31, 2018 , SJW Group was not restricted from issuing future indebtedness as a result of these terms and conditions. San Jose Water Company has obligations pursuant to loan agreements with the California Pollution Control Financing Activity (“CPCFA”) totaling $120,000 in aggregate principal amounts of CPCFA revenue bonds outstanding as of December 31, 2018 . The loan agreements contain affirmative and negative covenants customary for loan agreements relating to revenue bonds, containing, among other things, certain disclosure obligations, the tax exempt status of the interest on the bonds and limitations, and prohibitions on the transfer of projects funded by the loan proceeds and assignment of the loan agreements. As of December 31, 2018 , San Jose Water Company was in compliance with all such covenants. The fair value of long-term debt as of December 31, 2018 and 2017 was approximately $490,148 and $537,646 , respectively, and was determined using a discounted cash flow analysis, based on the current rates for similar financial instruments of the same duration and creditworthiness of the Company. The fair value of long-term debt would be categorized as Level 2 of the fair value hierarchy. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income tax expense were: 2018 2017 2016 Current: Federal $ 14,485 29,377 21,651 State 5,066 6,452 7,088 Deferred: Federal (7,702 ) (1,174 ) 6,119 State (1,784 ) 738 (1,316 ) $ 10,065 35,393 33,542 The following table reconciles income tax expense to the amount computed by applying the federal statutory rate to income before income taxes of $48,832 , $96,493 and $86,381 in 2018 , 2017 and 2016 : 2018 2017 2016 “Expected” federal income tax $ 10,255 33,773 30,233 Increase (decrease) in taxes attributable to: State taxes, net of federal income tax benefit 3,420 4,986 4,874 Dividend received deduction (4 ) (18 ) (21 ) Uncertain tax positions 24 12 16 Tangible Property Regulations (899 ) (1,159 ) (1,184 ) Tax reform - rate change impact on deferred taxes — (2,357 ) — Reversal of excess deferred taxes recognized in regulatory liability (1,383 ) — — Stock-based compensation (1,602 ) (552 ) — Noncontrolling interest income — (664 ) — Other items, net 254 1,372 (376 ) $ 10,065 35,393 33,542 The components of the net deferred tax liability as of December 31 was as follows: 2018 2017 Deferred tax assets: Advances and contributions $ 14,592 12,036 Unamortized investment tax credit 418 441 Pensions and postretirement benefits 20,439 21,807 California franchise tax 981 1,278 Merger related expenses 4,527 — Tax related net regulatory liability 16,212 17,166 Other 3,336 3,440 Total deferred tax assets $ 60,505 56,168 Deferred tax liabilities: Utility plant $ 114,731 114,695 Pension and postretirement benefits 18,534 19,184 Investment in California Water Service Group stock — 1,199 Deferred gain and other-property related 5,753 5,640 Debt reacquisition costs 170 204 Other 968 1,041 Total deferred tax liabilities $ 140,156 141,963 Net deferred tax liabilities $ 79,651 85,795 Management evaluates the realizability of deferred tax assets based on all available evidence, both positive and negative. The realization of deferred tax assets is dependent on our ability to generate sufficient future taxable income during periods in which the deferred tax assets are expected to reverse. Based on all available evidence, management believes it is more likely than not that SJW Group will realize the benefits of these deferred tax assets. The change in the net deferred tax liabilities of $6,144 in 2018 included non-cash items of $3,342 primarily consisting of regulatory assets and liabilities relating to income tax temporary differences. The total amount of unrecognized tax benefits, before the impact of deductions for state taxes, excluding interest and penalties was $1,411 and $1,359 as of December 31, 2018 and 2017 , respectively. The amount of tax benefits, net of any federal benefits for state taxes and inclusive of interest that would impact the effective rate, if recognized, is approximately $70 and $46 as of December 31, 2018 and 2017 , respectively. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2018 2017 2016 Balance at beginning of year $ 1,307 $ 1,132 $ 755 Increase related to tax positions taken during a prior year, including interest 75 185 397 Reductions related to tax positions taken in a prior year, including interest — (10 ) (20 ) Balance at end of year $ 1,382 $ 1,307 $ 1,132 SJW Group’s policy is to classify interest and penalties associated with unrecognized tax benefits, if any, in tax expense. Accrued interest expense, net of the benefit of tax deductions which would be available on the payment of such interest, is approximately $70 as of December 31, 2018 . SJW Group has not accrued any penalties for unrecognized tax benefits. The amount of interest recognized in 2018 was an expense of $24 . SJW Group does not foresee material changes to its gross uncertain tax liability due to the lapse of the statute of limitations within the next 12 months following December 31, 2018 . On August 15, 2018, SJW Group received notification that the Texas Comptroller of Public Accounts completed its audit of the Texas Franchise Tax Report for the report year 2015 and has no changes. SJW Group applied the accounting method changes required to comply with the Tangible Property Regulations starting with the 2014 tax returns. The 2018 federal and state repairs and maintenance deduction under the new methodology was $12,873 , resulting in an estimated $2,703 federal deferred tax liability and a state income tax benefit of $899 . The 2017 federal and state repairs and maintenance deduction under the new methodology was $20,168 , resulting in an estimated $7,059 federal deferred tax liability and a state income tax benefit of $1,159 . On December 22, 2017 the Tax Act was signed into law. The Tax Act includes a number of changes in existing tax law impacting businesses including, among other things, a reduction in the corporate income tax rate from 35% to 21% . The rate reduction was effective on January 1, 2018. In accordance with generally accepted accounting principles, SJW Group recorded the revaluation of deferred taxes and related impacts using the new corporate tax rate in its December 31, 2017 consolidated financial statements. The amounts recorded were based on information known and reasonable estimates used as of December 31, 2017. As such, SJW Group recorded this estimate as a provisional amount. SJW Group recorded a tax benefit of $2,357 related to the deferred taxes revaluation impacting non-regulated operations due to the tax rate reduction. However, for regulated operations governed by state public utility commissions, the lower tax rate benefits are expected to flow back to customers under current normalization rules and agreed-upon methods with the commissions. The revaluation of deferred tax assets and liabilities of the regulated operations resulted in a decrease in net deferred tax liabilities of $83,666 which was recorded as a regulatory liability in 2017. SJW Group completed its accounting for the tax effects of tax reform in fourth quarter of 2018. An additional tax expense of $67 and a reduction of $455 in regulatory liability was recorded. The CPUC has directed San Jose Water Company to establish a memorandum account to capture all of the impacts of the Tax Act including the benefit of the reduction in the federal statutory income tax rate from 35% to 21% on its regulated revenue requirement. The CPUC has indicated that the net benefit from implementing the new law should ultimately be passed on to customers. The PUCT has directed water utilities to record as a regulatory liability the difference between the revenues collected under existing rates and the revenue that would have been collected had the existing rates been set using the new federal statutory income tax rate. The benefits associated with regulatory activities is expected to flow back to customers as directed by the CPUC and PUCT, with no impact to net income. As per Advice Letter No. 522A filed with CPUC, the benefit of the reduction in the federal statutory income tax rate from 35% to 21% were reflected in the customer bills effective July 1, 2018. The tax memorandum account only includes the benefit of the reduction in the federal statutory income tax rate through June 30, 2018. The other impacts of the Tax Act were recorded in the tax memorandum account for the entire year. Accordingly, San Jose Water Company recorded $6,504 liability in the tax memorandum account for the year ended December 31, 2018. CLWSC refunded the accrued amounts for the period January 25, 2018, through April 30, 2018, in the second quarter of 2018. The FTCC will continue to be reflected on customer bills every month starting from May 1, 2018 until the implementation of new rates resulting from the next rate case. SJW Group expects the Internal Revenue Service to issue guidance in future periods that will determine the final disposition of the excess deferred taxes and other impacts of the Tax Act. At this time, the Company has applied a reasonable interpretation of the Tax Act. Future clarification of the Tax Act may change the amounts estimated. SJW Group files U.S. federal income tax returns and income tax returns in various states. SJW Group is no longer subject to tax examination for fiscal years prior to 2015 for federal purposes and 2014 for state purposes. The open tax years for the jurisdictions in which SJW Group files are as follows: Jurisdiction Years Open Federal 2015 - 2017 California 2014 - 2017 Arizona 2014 - 2016 Tennessee 2015 - 2017 Texas 2014 - 2017 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | Intangible Assets Intangible assets consist of a concession fee paid to the City of Cupertino of $6,800 for operating the City of Cupertino municipal water system and other intangibles of $8,999 as of December 31, 2018 . Other intangibles consists of $4,128 which was paid for service area and water rights related to CLWSC, $3,831 for infrastructure related to the Cupertino service concession arrangement and $1,040 incurred in conjunction with SCVWD water contracts related to the operation of San Jose Water Company. All intangible assets are recorded at cost and all are being amortized using the straight-line method over the legal or estimated economic life of the asset ranging from 5 to 70 years. Amortization expense for the intangible assets was $647 , $616 and $530 for the years ended December 31, 2018 , 2017 and 2016 , respectively. Amortization expense for 2019 through 2023 is anticipated to be $647 per year. The costs of intangible assets as of December 31, 2018 and 2017 are as follows: 2018 2017 Concession fees $ 6,800 6,800 Other intangibles 8,999 7,613 Intangible assets 15,799 14,413 Less: Accumulated amortization Concession fees 5,780 5,508 Other intangibles 2,960 2,585 Net intangible assets $ 7,059 6,320 |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2018 | |
Commitments Disclosure [Abstract] | |
Commitments | Commitments San Jose Water Company purchases water from SCVWD under terms of a master contract expiring in 2051. Delivery schedules for purchased water are based on a contract year beginning July 1, and are negotiated every three years under terms of the master contract with SCVWD. For the years ended December 31, 2018 , 2017 and 2016 , San Jose Water Company purchased from SCVWD 19,477 million gallons ( $80,243 ), 20,172 million gallons ( $76,106 ) and 18,241 million gallons ( $61,645 ), respectively, of contract water. In accordance with the reduction of treated water deliveries approved by the SCVWD Board of Directors on June 13, 2017, the contractual delivery schedule was reduced by 10% through June 30, 2018. On June 13, 2017, SCVWD Board of Directors approved treated water deliveries reflecting the contractual delivery schedule reduced by 10% through June 30, 2019. Based on current prices and estimated deliveries, San Jose Water Company is committed to purchase from SCVWD a minimum of 90% of the reduced delivery schedule, or 19,775 million gallons ( $84,296 ) of water at the current contract water rate of $4.3 per million gallons in the year ending December 31, 2019 . Additionally, San Jose Water Company purchases non-contract water from SCVWD on an “as needed” basis if the water supply is available. In 1997, San Jose Water Company entered into a 25 -year contract agreement with the City of Cupertino to operate the City’s municipal water system. San Jose Water Company paid a one-time, upfront concession fee of $6,800 to the City of Cupertino which is amortized over the contract term. Under the terms of the contract agreement, San Jose Water Company assumed responsibility for maintenance and operating costs, while receiving all payments for water service. Water service rates are generally subject to approval by the Cupertino City Council. CLWSC has long-term contracts with the GBRA. The terms of the agreements expire in 2037, 2040, 2044 and 2050. The agreements, which are take-or-pay contracts, provide CLWSC with 6,900 acre-feet per year of water supply from Canyon Lake. The water rate may be adjusted by GBRA at any time, provided they give CLWSC a 60 -day written notice on the proposed adjustment. In 2018, CLWSC acquired raw water supply agreements with the Lower Colorado River Authority (“LCRA”) and West Travis Public Utility Agency (“WTPUA”) expiring in 2053 and 2046, respectively, for 250 acre-feet of water under each agreement per year from Lake Austin and the Colorado River, respectively, at prices that may be adjusted periodically by the agencies. As of December 31, 2018 , San Jose Water Company had 367 employees, of whom 132 were executive, administrative or supervisory personnel, and of whom 235 were members of unions. In November 2016, San Jose Water Company reached three -year collective bargaining agreements with the Utility Workers of America, representing the majority of all employees, and the International Union of Operating Engineers, representing certain employees in the engineering department, covering the period from January 1, 2017 through December 31, 2019. The agreements include a 3.5% wage increase in 2017, 3% in 2018 and 4% in 2019 for union workers as well as increases in medical co-pays and employee cost-sharing. Negotiations are expected to begin in the third quarter of 2019 for collective bargaining agreements for the period from January 1, 2020 through December 31, 2022. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Legal Proceedings [Abstract] | |
Contingencies | Contingencies Class Action Suits Related to the Merger On June 14, 2018, certain shareholders of CTWS filed two nearly identical class-action complaints in Connecticut state court against the CTWS board of directors, SJW Group, Eric W. Thornburg, Chairman, President and Chief Executive Officer of SJW Group, and CTWS. The complaints, as amended on September 18, 2018 and September 20, 2018, allege that the CTWS board breached its fiduciary duties in connection with the Merger, that CTWS’s preliminary proxy statement, filed with the SEC on August 20, 2018, omits certain material information and that SJW Group and Mr. Thornburg aided and abetted the alleged breaches by the CTWS board of directors. Among other remedies, the actions seek to recover rescissory and other damages and attorney’s fees and costs. SJW Group believes the claims in these complaints are without merit and intends to vigorously defend this litigation. The parties to the lawsuits have agreed in principle to settle the lawsuits in exchange for the issuance of additional disclosures by CTWS. Pursuant to the agreements to settle the lawsuits, the plaintiffs have reserved the right to seek a mootness fee from CTWS. The parties moved to stay proceedings, other than fee-related proceedings, until such time as the transaction closes, and the court has granted the parties’ motion to stay. Pursuant to the agreement in principle to settle the litigation, the complaints will be dismissed at such time as the transaction closes. On November 20, 2018, the plaintiffs filed an opening brief in support of their fee application. SJW Group has determined that the likelihood of loss related to these class-action complaints is remote. Additional complaints have been filed in connection with the Merger but neither SJW Group nor any of its officers or directors are named as defendants therein. On October 5, 2018, certain shareholders of CTWS filed two complaints, one individually and the other as a putative class action, in the United States District Court for the District of Connecticut against CTWS, the CTWS board of directors and the Merger. The complaints allege that the preliminary proxy statement issued in connection with the Merger omitted material information in violation of Section 14(a) and 20(a) of the Securities Exchange Act of 1934. Among other remedies, the actions seek an order (1) enjoining the defendants from consummating or closing on the Merger; (2) rescinding the Merger or awarding rescissory damages; (3) directing the defendants to disseminate a corrective proxy statement; (4) declaring that the defendants have violated Section 14(a) and/or 20(a) of the Securities Exchange Act of 1934, as well as Rule 14a-9 promulgated thereunder; and (5) awarding attorney’s fees and costs. SJW Group believes the claims in these complaints are without merit. Billing Practice OII with CPUC On September 14, 2018, the CPUC issued OII No. 18-09-003 to which San Jose Water Company was named as Respondent. The OII will determine whether the company unlawfully overcharged customers over a 30-year period by failing to pro-rate service charges when increases occurred during a billing period, and whether the company double-billed service charges during one billing period when allegedly switching from billing such charges in advance to billing in arrears. By a decision adopted November 29, 2018, in San Jose Water Company’s then-pending GRC, the CPUC approved a settlement to resolve the alleged overcharging issue for the period since June 2011 by requiring refunds to customers totaling $2,020 . That amount will be refunded to customers pursuant to San Jose Water Company’s Advice Letter No. 530, effective January 13, 2019, and is provided for in the accompanying consolidated financial statements. See discussion on the matter in Note 1, “Regulatory Rate Filings.” The CPUC investigation pursuant to OII No. 18-09-003 may result in liability for San Jose Water Company in addition to the $2,020 being credited to customers pursuant to the CPUC’s November 29, 2018 decision. Such additional liability could result from a possible CPUC requirement that refunds or penalties be paid based on alleged over-billing prior to June 1, 2011. A reasonable estimate of the potential loss amount, if any, cannot be made at this time. SJW Group is subject to ordinary routine litigation incidental to its business. There are no pending legal proceedings to which SJW Group or any of its subsidiaries is a party, or to which any of its properties is the subject, that are expected to have a material effect on SJW Group’s business, financial position, results of operations or cash flows. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Benefit Plans Pension Plans San Jose Water Company sponsors a noncontributory defined benefit pension plan (the “Pension Plan”) for its eligible employees. Employees hired before March 31, 2008 are entitled to receive retirement benefits using a formula based on the employee’s three highest years of compensation (whether or not consecutive). For employees hired on or after March 31, 2008, benefits are determined using a cash balance formula based upon compensation credits and interest credits for each employee. The Pension Plan is administered by a committee that is composed of an equal number of company and union representatives (the “Committee”). The Committee has retained an investment consultant, Wells Fargo Advisors Financial Network, LLC, to assist it with, among other things, asset allocation strategy, investment policy advice, performance monitoring, and investment manager due diligence. Individual investment decisions have been delegated by the Committee to the investment managers who are monitored by the investment consultant. Investment guidelines provided in the Investment Policy Statement require that at least 25% of plan assets be invested in fixed income securities. As of December 31, 2018 , the plan assets consist of approximately 34% bonds, 6% cash equivalents, and 60% equities. Furthermore, equities are to be diversified by industry groups and selected to achieve a balance of long-term growth and income combined with a goal of long-term preservation of capital. Except as provided for in the prospectus of any co-mingled investments, investment managers may not invest in commodities and futures contracts, private placements, options, letter stock, speculative securities, nor may they hold more than 5% of assets of any one private corporation. Except as provided for in the prospectus of any co-mingled investments, fixed income assets may only be invested in bonds, commercial paper, and money market funds with acceptable ratings by Moody’s or Standard & Poor’s as defined by the Investment Policy Statement. The investment managers ’ performance is reviewed regularly by the investment consultant who provides semi-annual reports to the Committee for review. Plan assets are marked to market at each measurement date, resulting in unrealized actuarial gains or losses. Unrealized actuarial gains and losses on pension assets are amortized over the expected future working lifetime of participants of 12.91 years for actuarial expense calculation purposes. Market losses in 2017 increased pension expense by approximately $1,388 in 2018 and market gains in 2016 decreased pension expense by approximately $200 in 2017 . For the past 10 years, the plan has achieved a 8.49% return on its investments while the applicable benchmark was 8.54% for the same period. The applicable benchmark is a weighted-average of returns for those benchmarks shown in the table below. For the past five years, the investment managers, following the required investment guidelines, achieved a 5% return on their investments, while the applicable benchmark was 5.16% for the same period. Generally, it is expected of the investment managers that the performance of the assets held in the Pension Plan, computed on a total annual rate of return basis, should meet or exceed specific performance standards over a three -to- five -year period and/or full market cycle. These standards include specific absolute and risk-adjusted performance standards over a three-to-five-year period and/or full market cycle. San Jose Water Company calculates the market-related value of the defined benefit pension plan assets, which is defined under FASB ASC Topic 715—“Compensation—Retirement Benefits” as a balance used to calculate the expected return on plan assets, using fair value. The fair value is based on quoted prices in active markets for identical assets and significant observable inputs. Officers hired before March 31, 2008 are eligible to receive additional retirement benefits under San Jose Water Company’s Executive Supplemental Retirement Plan, and officers hired on or after March 31, 2008 are eligible to receive additional retirement benefits under San Jose Water Company’s Cash Balance Executive Supplemental Retirement Plan. Both of the plans are non-qualified plans in which only officers and other designated members of management may participate. The annual cost of the plans has been included in the determination of the net periodic benefit cost shown below. The plans, which are unfunded, had a projected benefit obligation of $25,380 and $24,832 as of December 31, 2018 and 2017 , respectively, and net periodic pension cost of $2,905 , $2,186 and $1,729 for 2018 , 2017 and 2016 , respectively. Other Postretirement Benefits In addition to providing pension and savings benefits, San Jose Water Company also provides health care and life insurance benefits for retired employees under the San Jose Water Company Social Welfare Plan. The plan is a flat dollar plan which is unaffected by variations in health care costs. Flexible Spending Plan Effective February 1, 2004, San Jose Water Company established a Flexible Spending Account for its employees for the purpose of providing eligible employees with the opportunity to choose from among the fringe benefits available under the plan. The flexible spending plan is intended to qualify as a cafeteria plan under the provisions of the Internal Revenue Code Section 125. The flexible spending plan allows employees to save pre-tax income in a Health Care Spending Account (“HCSA”) and/or a Dependent Care Spending Account (“DCSA”) to help defray the cost of out-of-pocket medical and dependent care expenses. The annual maximum limit under the HCSA and DCSA plans is $2.5 and $5 , respectively. Deferral Plan San Jose Water Company sponsors a salary deferral plan that allows employees to defer and contribute a portion of their earnings to the plan. Contributions, not to exceed set limits, are matched by San Jose Water Company. San Jose Water Company contributions were $1,465 , $1,585 and $1,242 in 2018 , 2017 and 2016 , respectively. Special Deferral Election Plan and Deferral Election Program SJW Group maintains a Special Deferral Election Plan allowing certain executives and a Deferral Election Program allowing non-employee directors to defer a portion of their earnings each year and to realize an investment return on those funds during the deferral period. Executives and non-employee directors have to make an election on the deferral and distribution method of the deferrals before services are rendered. Executives and non-employee directors had deferred $4,244 , $4,528 and $4,250 under the plans as of December 31, 2018 , 2017 and 2016 , respectively. Assumptions Utilized on Actuarial Calculations Net periodic cost for the defined benefit plans and other postretirement benefits was calculated using the following weighted-average assumptions: Pension Benefits Other Benefits 2018 2017 2016 2018 2017 2016 % % % % % % Discount rate 3.52 4.04 4.24 3.45 3.93 4.10 Expected return on plan assets 7.00 7.00 7.00 7.00 7.00 7.00 Rate of compensation increase 4.00 4.00 4.00 N/A N/A N/A The expected rate of return on plan assets was determined based on a review of historical returns, both for the Pension Plan and for medium- to large-sized defined benefit pension funds with similar asset allocations. This review generated separate expected returns for each asset class. These expected future returns were then blended based on the Pension Plan’s target asset allocation. Benefit obligations for the defined benefit plans and other postretirement benefits were calculated using the following weighted-average assumptions as of December 31: Pension Benefits Other Benefits 2018 2017 2018 2017 % % % % Discount rate 4.16 3.52 4.09 3.45 Rate of compensation increase 4.00 4.00 N/A N/A San Jose Water Company utilized each plan’s projected benefit stream in conjunction with the Citigroup Pension Discount Curve in determining the discount rate used in calculating the pension and other postretirement benefits liabilities at the measurement date. In 2018 and 2017, San Jose Water Company adopted the newly issued MP-2018 and MP-2017, respectively, Mortality Improvement Scales to determine mortality assumptions. The tables and scales reflect increasing life expectancies of participants in the United States. See also “Reconciliation of Funded Status” below. Net Periodic Pension Costs Net periodic costs for the defined benefit plans and other postretirement benefits for the years ended December 31 was as follows: Pension Benefits Other Benefits 2018 2017 2016 2018 2017 2016 Components of net periodic benefit cost Service cost $ 5,790 4,699 4,447 $ 616 529 527 Interest cost 6,879 6,993 6,830 627 634 655 Expected return on assets (9,255 ) (7,888 ) (7,288 ) (450 ) (376 ) (292 ) Amortization of prior service cost 51 94 376 197 198 197 Recognized actuarial loss 3,986 3,844 3,527 321 273 316 Net periodic benefit cost $ 7,451 7,742 7,892 $ 1,311 1,258 1,403 Effective January 1, 2018, SJW Group adopted ASU 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Costs.” The new standard requires retrospective presentation in the income statement of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost and prospective presentation from date of adoption for the capitalization in assets of only the service cost component of net periodic pension cost and net periodic postretirement benefit cost. The components of net periodic benefit cost have been recorded in the consolidated statements of comprehensive income as follows: Pension Benefits Other Benefits 2018 2017 2016 2018 2017 2016 Net periodic benefit cost recorded on income statement Other production expenses 1,534 1,231 1,165 163 139 138 Administrative and general expense 3,249 2,632 2,490 346 296 295 Maintenance expense 1,007 836 792 107 94 94 Pension non-service costs 1,661 3,043 3,445 695 729 876 $ 7,451 7,742 7,892 $ 1,311 1,258 1,403 Reconciliation of Funded Status For the defined benefit plans and other postretirement benefits, the benefit obligation is the projected benefit obligation and the accumulated benefit obligation, respectively. The projected benefit obligations and the funded status of San Jose Water Company’s defined benefit pension and other postretirement plans as of December 31 were as follows: Pension Benefits Other Benefits 2018 2017 2018 2017 Change in benefit obligation Benefit obligation at beginning of year $ 196,207 174,097 $ 18,003 16,461 Service cost 5,790 4,699 616 529 Interest cost 6,879 6,993 627 634 Actuarial (gain)/loss (14,447 ) 16,552 (988 ) 1,124 Implicit rate subsidy — — (207 ) (196 ) Benefits paid (6,552 ) (6,134 ) (562 ) (549 ) Benefit obligation at end of year $ 187,877 196,207 $ 17,489 18,003 Change in plan assets Fair value of assets at beginning of year $ 133,360 113,895 $ 6,804 5,366 Actual return on plan assets (7,700 ) 17,298 (262 ) 736 Employer contributions 8,502 8,301 629 702 Benefits paid (6,552 ) (6,134 ) (1,322 ) — Fair value of plan assets at end of year 127,610 133,360 5,849 6,804 Funded status at end of year $ (60,267 ) (62,847 ) $ (11,640 ) (11,199 ) The amounts recognized on the balance sheet as of December 31 were as follows: Pension Benefits Other Benefits 2018 2017 2018 2017 Current liabilities $ 1,323 1,099 $ 94 86 Noncurrent liabilities 58,944 61,748 11,546 11,113 $ 60,267 62,847 $ 11,640 11,199 San Jose Water Company recorded a regulatory asset on the projected benefit obligation of the postretirement benefit plans as follows: 2018 2017 Funded status of obligation $ 71,907 74,046 Accrued benefit cost (5,674 ) (5,490 ) Regulatory asset, amount to be recovered in future rates $ 66,233 68,556 Plan Assets Plan assets as of December 31 were as follows: Pension Benefits Other Benefits 2018 2017 2018 2017 Fair value of assets at end of year: Debt securities $ 42,654 42,784 $ 2,200 1,710 33 % 32 % 38 % 25 % Equity securities 77,053 83,352 3,416 4,111 60 % 63 % 58 % 60 % Cash and equivalents 7,903 7,224 233 983 6 % 5 % 4 % 14 % Total $ 127,610 133,360 $ 5,849 6,804 The following tables summarize the fair values of plan assets by major categories as of December 31, 2018 and 2017 : Fair Value Measurements at December 31, 2018 Asset Category Benchmark Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 8,136 $ 8,136 $ — $ — Actively Managed (a): All Cap Equity Russell 3000 Value 5,670 5,632 38 — U.S. Large Cap Equity Russell 1000, Russell 1000 Growth, Russell 1000 Value 47,040 47,040 — — U.S. Mid Cap Equity Russell Mid Cap, Russell Mid Cap Growth, Russell Mid Cap Value 8,372 8,372 — — U.S. Small Cap Equity Russell 2000, Russell 2000 Growth, Russell 2000 Value, Russell 2500 8,528 8,528 — — Non-U.S. Large Cap Equity MSCI EAFE 4,969 4,969 — — REIT NAREIT—Equity REIT’s 5,889 — 5,889 — Fixed Income (b) (b) 44,855 — 44,855 — Total $ 133,459 $ 82,677 $ 50,782 $ — ___________________________________ The Plan has a current target allocation of 55% invested in a diversified array of equity securities to provide long-term capital appreciation and 45% invested in a diversified array of fixed income securities to provide preservation of capital plus generation of income. (a) Actively managed portfolio of securities with the goal to exceed the stated benchmark performance. (b) Actively managed portfolio of fixed income securities with the goal to exceed the Barclays 1-5 Year Government/Credit, Barclays Intermediate Government/Credit, and Merrill Lynch Preferred Stock Fixed Rate. Fair Value Measurements at December 31, 2017 Asset Category Benchmark Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 8,207 $ 8,207 $ — $ — Actively Managed (a): All Cap Equity Russell 3000 Value 6,413 6,376 37 — U.S. Large Cap Equity Russell 1000, Russell 1000 Growth, Russell 1000 Value 50,351 50,351 — — U.S. Mid Cap Equity Russell Mid Cap, Russell Mid Cap Growth, Russell Mid Cap Value 9,358 9,358 — — U.S. Small Cap Equity Russell 2000, Russell 2000 Growth, Russell 2000 Value 8,725 8,725 — — Non-U.S. Large Cap Equity MSCI EAFE 5,973 5,973 — — REIT NAREIT—Equity REIT’s 6,143 — 6,143 — Fixed Income (b) (b) 44,994 — 44,994 — Total $ 140,164 $ 88,990 $ 51,174 $ — ___________________________________ The Plan has a current target allocation of 55% invested in a diversified array of equity securities to provide long-term capital appreciation and 45% invested in a diversified array of fixed income securities to provide preservation of capital plus generation of income. (a) Actively managed portfolio of securities with the goal to exceed the stated benchmark performance. (b) Actively managed portfolio of fixed income securities with the goal to exceed the Barclays 1-5 Year Government/Credit, Barclays Intermediate Government/Credit, and Merrill Lynch Preferred Stock Fixed Rate. In 2019 , San Jose Water Company expects to make required and discretionary cash contributions of up to $8,411 to the pension plan and other postretirement benefit plan. Benefits expected to be paid in the next five years and in the aggregate for the five years thereafter are: Pension Plan Other Postretirement Benefit Plan 2019 $ 7,235 $ 851 2020 7,550 852 2021 8,013 903 2022 8,419 951 2023 8,886 992 2024 - 2027 50,695 5,366 |
Equity Plans
Equity Plans | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Equity Plans | Equity Plans Common Stock SJW Group has a Long-Term Stock Incentive Plan (the “Plan”), which has 1,800,000 shares of common stock reserved for issuance. The Plan was initially adopted by the Board of Directors on March 6, 2002. On January 30, 2013, the amended and restated Plan was adopted by the Board and became effective on April 24, 2013. The Plan was subsequently amended and the amended and restated Plan was adopted by the Board on July 29, 2015. The Plan allows SJW Group to provide employees, non-employee Board members or the board of directors of any parent or subsidiary, consultants, and other independent advisors who provide services to the Company or any parent or subsidiary the opportunity to acquire an equity interest in SJW Group. A participant in the Plan generally may not receive Plan awards covering an aggregate of more than 600,000 shares of common stock in any calendar year. Additionally, awards granted under the Plan may be conditioned upon the attainment of specified Company performance goals. The types of awards included in the Plan are restricted stock awards, restricted stock units, performance shares, or other share-based awards. In addition, shares are issued to employees under the Employee Stock Purchase Plan (“ESPP”) that was approved by SJW Group stockholders. As of December 31, 2018 , 2017 and 2016 , 793,811 , 628,546 and 576,074 shares have been issued pursuant to the Plan, and 124,275 , 228,885 and 229,972 shares are issuable upon the exercise of outstanding restricted stock units and deferred restricted stock units for the years ended 2018 , 2017 and 2016 , respectively. The remaining shares available for issuance under the Plan are 881,914 as of December 31, 2018 . The compensation costs charged to income is recognized on a straight-line basis over the requisite service period. A summary of compensation costs charged to income, proceeds from the exercise of stock options and similar instruments and the tax benefit realized from stock options and similar instruments exercised, that are recorded to additional paid-in capital and common stock, by award type, are presented below for the years ended December 31: 2018 2017 2016 Compensation costs charged to income: ESPP $ 242 214 168 Restricted stock and deferred restricted stock 1,875 2,429 1,523 Total compensation costs charged to income $ 2,117 2,643 1,691 Proceeds from the exercise of stock options and similar instruments: ESPP 1,371 1,215 954 Total proceeds from the exercise of stock options and similar instruments $ 1,371 1,215 954 Excess tax benefits realized from share options exercised and stock issuance: Restricted stock and deferred restricted stock — — 203 Total excess tax benefits realized from share options exercised and stock issuance $ — — 203 Restricted Stock and Deferred Restricted Stock Under SJW Group’s Amended and Restated Deferred Restricted Stock Program (the “Deferred Restricted Stock Program”), SJW Group granted deferred restricted stock units to non-employee Board members. This program was amended effective January 1, 2008. As a result of that amendment, no new awards of deferred restricted stock units will be made under the Deferred Restricted Stock Program with respect to Board service after December 31, 2007. On January 30, 2018 , certain officers of SJW Group were granted performance-based restricted stock units covering an aggregate target number of SJW Group’s shares of common stock equal to 4,081 that will vest based on the actual attainment of specified performance goals measured for the 2018 calendar year and continued service through December 31, 2018. The number of shares issuable under such units, ranging between 0% to 150% of the target number of shares, is based on the level of actual attainment of specified performance goals. The units do not include dividend equivalent rights. The awards have no market conditions and the stock-based compensation expense of $58.02 per unit which was based on the award grant date fair value is being recognized assuming the performance goals will be attained. As of December 31, 2018 , the specified performance goals and service requirement were met by the officers and 150% of the target number of shares is expected to vest on February 25, 2019 and issued on February 28, 2019 upon approval of the Executive Compensation Committee of the Board on February 25, 2019. On January 30, 2018 , certain officers of SJW Group were granted performance-based restricted stock units covering an aggregate target number of SJW Group’s shares of common stock equal to 5,259 that will vest based on the actual attainment of specified performance goals for the 2020 calendar year and continued service through December 31, 2020. The number of shares issuable under the awards, ranging between 0% to 150% of the target number of shares, is based on the level of actual attainment of specified performance goals. The units do not include dividend equivalent rights. The awards have no market conditions and the stock-based compensation expense of $55.89 per unit which is based on the award grant date fair value is being recognized assuming the performance goals will be attained. As of December 31, 2018 , the forecast determines a potential payout of the specified performance goals and service requirement between 50% and 100% of the target number of shares to vest in 2021. On January 30, 2018 , performance-based restricted stock units were granted to a key officer of SJW Group covering a target number of shares of SJW Group’s common stock equal to 6,342 that will vest based on continued service and attainment of specified performance goals over the period from January 1, 2018, to December 31, 2020. The number of shares issuable under the award, ranging between 0% and 200% of the target number of shares, is based on the level of actual attainment of specified performance goals. These units do not include dividend equivalent rights. The fair value of the performance-based restricted stock award was estimated utilizing the Monte Carlo valuation model, using the fair value of SJW Group’s common stock with the effect of market conditions and no dividend yield on the date of grant, and assumes the performance goals will be attained. Stock-based compensation expense is recognized at $63.85 per unit. If such goals are not met and requisite service is not rendered, no compensation cost will be recognized and any recognized compensation cost will be reversed. On April 25, 2018 , restricted stock units covering an aggregate of 7,385 shares of common stock of SJW Group were granted to the non-employee board members of SJW Group. The units vest upon continuous board service through the day immediately preceding the date of the next annual stockholder meeting with no dividend equivalent rights. Stock-based compensation expense of $55.80 per unit, which is based on the award grant date fair value, is being recognized over the service period beginning in 2018. A summary of SJW Group’s restricted and deferred restricted stock awards as of December 31, 2018 , and changes during the year ended December 31, 2018 , are presented below: Units Weighted- Average Grant- Date Fair Value Outstanding as of January 1, 2018 190,496 $ 27.81 Issued 58,211 $ 50.29 Exercised (143,614 ) $ 28.41 Forfeited or expired — $ — Outstanding as of December 31, 2018 105,093 $ 37.73 Shares vested as of December 31, 2018 45,912 $ 16.46 A summary of the status of SJW Group’s nonvested restricted and deferred restricted stock awards as of December 31, 2018 , and changes during the year ended December 31, 2018 , are presented below: Units Weighted- Average Grant- Date Fair Value Nonvested as of January 1, 2018 87,483 $ 40.89 Granted 58,211 $ 50.29 Vested (86,513 ) $ 35.99 Forfeited — $ — Nonvested as of December 31, 2018 59,181 $ 54.67 As of December 31, 2018 , the total unrecognized compensation costs related to restricted and deferred restricted stock plans amounted to $1,801 . This cost is expected to be recognized over a weighted-average period of 1.20 years. Dividend Equivalent Rights Under the Plan, certain holders of restricted stock and deferred restricted stock awards may have the right to receive dividend equivalent rights (“DERs”) each time a dividend is paid on common stock after the grant date. Stock compensation on DERs is recognized as a liability and recorded against retained earnings on the date dividends are issued. The Deferred Restricted Stock and Deferral Election Programs for non-employee Board members were amended effective January 1, 2008, to allow the DERs’ with respect to the deferred shares to remain in effect only through December 31, 2017. Accordingly, the last DERs’ conversion into deferred restricted stock units under such programs occured on the first business day in January 2018. Previously, no such time limitation was placed in the Deferred Restricted Stock and Deferral Election Program. As of December 31, 2018 , 2017 and 2016 , a cumulative of 79,478 , 77,034 and 74,403 dividend equivalent rights were converted, since inception, to deferred restricted stock awards, respectively. For the years ended December 31, 2018 , 2017 and 2016 , $97 , $139 and $114 , respectively, related to dividend equivalent rights were recorded against retained earnings and were accrued as a liability. Employee Stock Purchase Plan The ESPP allows eligible employees to purchase shares of SJW Group’s common stock at 85% of the fair value of shares on the purchase date. Under the ESPP, employees can designate up to a maximum of 10% of their base compensation for the purchase of shares of common stock, subject to certain restrictions. A total of 400,000 shares of SJW Group’s common stock have been reserved for issuance under the ESPP. As of December 31, 2018 , the ESPP had eight purchase intervals since its inception. For the year ended December 31, 2018 , 2017 and 2016 , a total of 25,907 , 27,743 and 30,214 shares, respectively, were issued under the ESPP. The plan has no look-back provisions. For the years ended December 31, 2018 , 2017 and 2016 , cash received from employees towards the ESPP amounted to $1,523 , $1,282 and $1,060 , respectively. For the years ended December 31, 2018 , 2017 and 2016 , SJW Group’s recorded expenses were $265 , $229 and $185 related to the ESPP. The total unrecognized compensation costs related to the semi-annual offering period that ended January 31, 2019 for the ESPP is approximately $111 . This cost is expected to be recognized during the first quarter of 2019. |
Segment and Non-Tariffed Busine
Segment and Non-Tariffed Businesses Reporting | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment and Non-Tariffed Businesses Reporting | Segment and Non-Tariffed Businesses Reporting SJW Group is a holding company with four subsidiaries: (i) San Jose Water Company, a water utility operation with both regulated and non-tariffed businesses, (ii) SJWTX, Inc. which is doing business as Canyon Lake Water Service Company, a regulated water utility located in Canyon Lake, Texas, and its consolidated non-tariffed variable interest entity, Acequia Water Supply Corporation, (iii) SJW Land Company and its consolidated variable interest entity, 444 West Santa Clara Street, L.P., which operated commercial building rentals, and (iv) Hydro Sub, Inc. a Connecticut corporation that was formed on March 9, 2018 for the sole purpose of effecting the SJW Group and CTWS merger (see discussion on the proposed merger at Note 12). In November 2017, SJW Group sold its equity interest in its wholly-owned subsidiary TWA, a non-tariffed water utility operation that was undertaking activities that developed a water supply project in Texas. In accordance with FASB ASC Topic 280—“Segment Reporting,” SJW Group has determined that it has two reportable business segments. The first segment is that of providing water utility and utility-related services to its customers through SJW Group’s subsidiaries, San Jose Water Company, Canyon Lake Water Service Company and, up to the date of the sale, Texas Water Alliance Limited, together referred to as “Water Utility Services.” The second segment is property management and investment activity conducted by SJW Land Company, referred to as “Real Estate Services.” SJW Group’s reportable segments have been determined based on information used by the chief operating decision maker. SJW Group’s chief operating decision maker includes the Chairman, President and Chief Executive Officer, and his senior staff. The senior staff reviews financial information presented on a consolidated basis that is accompanied by disaggregated information about operating revenue, net income and total assets, by subsidiaries. The following tables set forth information relating to SJW Group’s reportable segments and distribution of regulated and non-tariffed business activities within the reportable segments. Certain allocated assets, revenue and expenses have been included in the reportable segment amounts. Other business activity of SJW Group not included in the reportable segments is included in the “All Other” category. For year ended December 31, 2018 Water Utility Services Real Estate Services All Other (1) SJW Group Regulated Non- tariffed Non- tariffed Non- tariffed Regulated Non- tariffed Total Operating revenue 384,639 7,578 5,482 — 384,639 13,060 397,699 Operating expense 294,536 5,012 3,539 21,172 294,536 29,723 324,259 Operating income (loss) 90,103 2,566 1,943 (21,172 ) 90,103 (16,663 ) 73,440 Net income (loss) 53,181 1,848 885 (17,147 ) 53,181 (14,414 ) 38,767 Depreciation and amortization 53,067 338 1,196 — 53,067 1,534 54,601 Senior note and other interest expense 22,157 — — 2,175 22,157 2,175 24,332 Income tax expense (benefit) in net income 14,826 719 903 (6,383 ) 14,826 (4,761 ) 10,065 Assets 1,492,954 4,489 46,517 412,429 1,492,954 463,435 1,956,389 For year ended December 31, 2017 Water Utility Services Real Estate Services All Other (1) SJW Group Regulated Non- tariffed Non- tariffed Non- tariffed Regulated Non- tariffed Total Operating revenue 376,104 7,419 5,702 — 376,104 13,121 389,225 Operating expense 276,061 4,855 3,688 2,770 276,061 11,313 287,374 Operating income (loss) 100,043 2,564 2,014 (2,770 ) 100,043 1,808 101,851 Net income before noncontrolling interest 47,736 1,137 8,089 4,138 47,736 13,364 61,100 Depreciation and amortization 46,500 572 1,220 — 46,500 1,792 48,292 Senior note, mortgage and other interest expense 20,670 — 60 2,199 20,670 2,259 22,929 Income tax expense in net income 30,127 993 644 3,629 30,127 5,266 35,393 Assets 1,406,221 4,471 47,668 (359 ) 1,406,221 51,780 1,458,001 For year ended December 31, 2016 Water Utility Services Real Estate Services All Other (1) SJW Group Regulated Non- tariffed Non- tariffed Non- tariffed Regulated Non- tariffed Total Operating revenue 326,547 6,442 6,717 — 326,547 13,159 339,706 Operating expense 232,138 4,257 4,074 1,800 232,138 10,131 242,269 Operating income (loss) 94,409 2,185 2,643 (1,800 ) 94,409 3,028 97,437 Net income (loss) 45,594 954 7,406 (1,115 ) 45,594 7,245 52,839 Depreciation and amortization 42,709 480 1,436 — 42,709 1,916 44,625 Senior note, mortgage and other interest expense 18,667 — 912 2,259 18,667 3,171 21,838 Income tax expense in net income 27,902 750 4,235 655 27,902 5,640 33,542 Assets 1,368,886 17,794 54,818 1,878 1,368,886 74,490 1,443,376 ____________________ (1) The “All Other” category includes the accounts of SJW Group and Hydro Sub, Inc. on a stand-alone basis. For the year ended December 31, 2018 , Hydro Sub, Inc. had no recorded revenue or expenses and as of December 31, 2018 , held no assets and incurred no liabilities. For the years ended, December 31, 2017 and 2016 , the “All Other” category includes the accounts of SJW Group on a stand-alone basis. |
SJW Group and CTWS Merger (the
SJW Group and CTWS Merger (the Merger) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
SJW Group and CTWS Merger (the “Merger”) | SJW Group and CTWS Merger (the “ Merger ”) On March 14, 2018, SJW Group, Hydro Sub, Inc., a Connecticut corporation and a wholly-owned subsidiary of SJW Group and CTWS entered into an Agreement and Plan of Merger to merge the two companies, SJW Group and CTWS, in an all-stock transaction. On August 5, 2018, SJW Group, Hydro Sub, Inc. and CTWS entered into a Second Amended and Restated Agreement & Plan of Merger (the “Merger Agreement”), which among other things, changed the merger to an all-cash transaction. Under the terms of the Merger Agreement, Hydro Sub, Inc. will merge with and into CTWS, with CTWS surviving the Merger as a wholly-owned subsidiary of SJW Group. Subject to the terms and conditions of the Merger Agreement, at the time at which the Merger becomes effective (the “Effective Time”), each share of common stock, without par value, of CTWS (“CTWS Common Share”), other than CTWS Common Shares directly or indirectly owned by SJW Group, Hydro Sub, Inc., CTWS or any of their respective subsidiaries (in each case, other than any CTWS Common Shares held on behalf of third parties), issued and outstanding immediately prior to the Effective Time will be converted into the right to receive $70.00 per share in cash (without interest and less any applicable withholding taxes). The transaction was approved by the boards of directors of both companies and by CTWS shareholders. Consummation of the Merger is subject to customary conditions, including, without limitation: approval by CTWS shareholders (which has been obtained); approval by certain regulators; the absence of any law or judgment prohibiting the consummation of the Merger; the accuracy of the representations and warranties of the parties (subject to customary materiality qualifiers); each party’s performance in all material respects of its obligations contained in the Merger Agreement; and the absence of any material adverse effect on SJW Group or CTWS since the date of the Merger Agreement, which has not been ameliorated or cured. On December 3, 2018, the Connecticut Public Utilities Regulatory Authority (“PURA”) issued a proposed final decision denying the application by SJW Group and CTWS for approval of the proposed merger (“Proposed Final Decision”). On December 5, 2018, PURA conditionally granted SJW Group’s and CTWS’s motion to suspend the schedule permitting SJW Group and CTWS to file new evidence that was unavailable before the close of the record in the proceeding for PURA’s consideration. On December 14, 2018, SJW Group and CTWS filed a motion to reopen the record and extend the procedural schedule to admit new evidence that was submitted concurrent with the motion (“Motion to Reopen”). On January 4, 2019, PURA denied the Motion to Reopen concluding that the concessions and offers of commitments did not constitute new evidence and to the extent that some of the filed material contains “new” evidence, the material was insufficient to warrant reopening. On January 9, 2019, SJW Group and CTWS withdrew their application before PURA and issued a joint press release announcing that they are continuing to evaluate their regulatory approach in connection with the proposed merger, including the possibility of submitting a new application to PURA. PURA closed the docket without issuing a final decision on January 11, 2019. After a thorough review conducted by the management and boards of both companies with the support of their respective local Connecticut regulatory counsel SJW Group and CTWS announced on February 20, 2019 that they intend to file a new merger approval application with PURA. The new application is expected to be filed during the second quarter of 2019. On December 20, 2018, the Maine Public Utilities Commission (“MPUC”) staff issued a stay in the reorganization proceeding pending resolution of the regulatory filing in Connecticut. On January 10, 2019, following the withdrawal of the PURA application, the Maine Water Company notified the MPUC of such withdrawal in a status report. On January 23, 2019, the Maine Water Company filed notice of its intent to voluntarily withdraw its application without prejudice, reserving the right to refile at a later date. Later that day, the MPUC acknowledged receipt of the Maine Water Company’s notice and issued notice closing the docket. After a thorough review conducted by the management and boards of both companies with the support of their respective local Maine regulatory counsel SJW Group and CTWS announced on February 20, 2019 that they intend to file a new merger approval application with MPUC. The new application is expected to be filed during the second quarter of 2019. There is no guarantee that all of the closing conditions and approvals will be satisfied, and the failure to complete the Merger may adversely affect the financial conditions and results of operations of SJW Group. For a description of certain risk factors related to the Merger, please see Item 1A, “Risk Factors” in SJW Group’s Form 10-K for the year ended December 31, 2018. |
Unaudited Quarterly Financial D
Unaudited Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Quarterly Financial Data | Unaudited Quarterly Financial Data Summarized quarterly financial data is as follows: 2018 Quarter Ended March June September December Operating revenue $ 75,042 99,086 124,853 98,718 Operating income 7,331 22,799 25,828 17,482 SJW Group net income 1,285 12,871 15,788 8,823 Comprehensive income 1,285 12,871 15,788 8,823 Earnings per share: —Basic 0.06 0.63 0.77 0.38 —Diluted 0.06 0.62 0.76 0.38 Market price range of stock: —High 63.47 68.15 67.29 65.31 —Low 51.96 51.68 56.12 52.63 Dividend per share 0.28 0.28 0.28 0.28 2017 Quarter Ended March June September December Operating revenue $ 69,045 102,073 124,578 93,529 Operating income 10,833 30,787 38,245 18,214 SJW Group net income 3,671 18,688 19,540 17,305 Comprehensive income 3,787 18,744 19,620 17,732 Earnings per share: —Basic 0.18 0.91 0.95 0.84 —Diluted 0.18 0.90 0.94 0.84 Market price range of stock: —High 55.30 53.00 57.43 68.13 —Low 46.13 45.74 48.46 57.60 Dividend per share 0.22 0.22 0.22 0.38 |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts and Reserves | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts and Reserves | VALUATION AND QUALIFYING ACCOUNTS AND RESERVES Years ended December 31, 2018 , 2017 and 2016 (in thousands) Description 2018 2017 2016 Allowance for doubtful accounts: Balance, beginning of period $ 190 200 200 Charged to expense 430 399 504 Accounts written off (650 ) (675 ) (681 ) Recoveries of accounts written off 302 266 177 Balance, end of period $ 272 190 200 Reserve for litigation and claims: Balance, beginning of period $ 1,892 2,105 263 Charged to expense 480 528 2,186 Revision to accrual, due to settlements 1 (245 ) (19 ) Payments (192 ) (496 ) (325 ) Balance, end of period $ 2,181 1,892 2,105 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Consolidation Policy | The accompanying consolidated financial statements include the accounts of SJW Group, its wholly owned subsidiaries, and two variable interest entities in which two SJW Group subsidiaries are the primary beneficiaries. All intercompany transactions and balances have been eliminated in consolidation. |
Recently Adopted Accounting Principles Policy | In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers.” The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new standard replaced most existing revenue recognition guidance in generally accepted accounting principles. The updated guidance also requires additional disclosures regarding the nature, timing and uncertainty of revenue transactions. SJW Group adopted the new revenue standard on January 1, 2018, using the modified retrospective method, and determined that no adjustment to the opening balance of retained earnings was necessary for contracts with remaining obligations as of the effective date. In addition, SJW Group applied the “right to invoice” practical expedient. The adoption of the new standard requires certain changes to the recognition of balancing and memorandum account revenue and related costs (See Note 1, “Balancing and Memorandum Accounts”). However, the changes did not have a material impact on our consolidated results of operations, financial position, or cash flows. Concurrently, the company implemented ASU 2017-10, “Identifying the Customer in a Service Concession Arrangement.” Upon adoption of ASU 2017-10, the service concession fee paid to the City of Cupertino was determined to be an up-front payment and accordingly will be amortized as a reduction to future revenue as opposed to amortized as an expense on SJW Group’s Consolidated Statements of Comprehensive Income. In January 2016, the FASB issued ASU 2016-01, “Financial Instruments - Overall” which changes the recognition of changes in fair value of financial liabilities when the fair value option is elected. In addition, the standard requires equity investments to be measured at fair value with changes in fair value recognized in net income instead of through other comprehensive income. The updated guidance affected the accounting for the company’s equity investment in California Water Service Group stock classified as an available-for-sale security. The new standard became effective for SJW Group beginning in the first quarter of the fiscal year ending December 31, 2018. Prior to adoption of ASU 2016-01, SJW Group recognized changes in fair value of its equity investment in California Water Service Group stock through other comprehensive income or loss on the statement of comprehensive income. Upon adoption on January 1, 2018, SJW Group began recording the change in fair value of its equity investment in other income and expense. In addition, the ASU stated that entities should apply the new standard by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. As such, SJW Group recorded a cumulative-effect adjustment of $2,203 to beginning retained earnings to eliminate the cumulative change in fair value of its equity investment, net of tax from accumulated other comprehensive income. Subsequent to the adoption of ASU 2016-01, SJW Group sold its investment in California Water Service Group stock. See below in Note 1, “Investment in California Water Service Group” for further discussion. In October 2016, the FASB issued ASU 2016-16, “Intra-Entity Transfers of Assets Other Than Inventory,” which modifies existing guidance and is intended to reduce diversity in practice with respect to accounting for the income tax consequences of intra-entity transfers of assets. The ASU requires that the current and deferred income tax consequences of intra-entity transfers of assets be immediately recognized. Prior guidance allowed the entities to defer the consolidated tax consequences of an intercompany transfer of an asset other than inventory to a future period and amortize those tax consequences over time. SJW Group adopted ASU 2016-16 effective January 1, 2018. Upon adoption of ASU 2016-16, SJW Group did not record an unamortized tax expense. As a result, the company did not record a cumulative catch-up adjustments upon adoption of this ASU. In March 2017, the FASB issued ASU 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Costs,” which requires employers to present the service cost component of the net periodic benefit cost in the same income statement line item as other employee compensation costs arising from services rendered during the period. The standard provides that only the service cost component of net periodic pension costs is eligible for asset capitalization. Companies should present the other components of net periodic benefit costs separately from the line items that include the service cost and outside of any subtotal of operating income, if one is presented. ASU 2017-07 requires retrospective presentation in the income statement of the service cost component and the other components of net periodic cost and net periodic postretirement benefit cost and prospective presentation from date of adoption for the capitalization in assets of only the service cost component of net periodic cost and net periodic postretirement benefit cost. SJW Group adopted ASU 2017-07 effective January 1, 2018. As such, the consolidated statements of comprehensive income for the periods presented have been reclassified to reflect the retrospective changes. See Note 9, “Benefit Plans” for further discussion. |
Use of Estimates Policy | The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Utility Plant Policy | The cost of additions, replacements and betterments to utility plant is capitalized. The amount of interest capitalized in 2018 , 2017 and 2016 was $2,856 , $2,807 and $2,188 , respectively. Construction in progress was $ 68,765 and $ 45,851 at December 31, 2018 and 2017 , respectively. The major components of depreciable plant and equipment as of December 31, 2018 and 2017 are as follows: 2018 2017 Equipment $ 335,358 307,938 Transmission and distribution 1,375,821 1,295,690 Office buildings and other structures 121,872 110,600 Total depreciable plant and equipment $ 1,833,051 1,714,228 Depreciation is computed using the straight-line method over the estimated remaining service lives of groups of assets, ranging from 5 to 75 years . The estimated service lives of depreciable plant and equipment are as follows: Useful Lives Equipment 5 to 35 years Transmission and distribution plant 35 to 75 years Office buildings and other structures 7 to 50 years For the years 2018 , 2017 and 2016 , depreciation expense as a percent of the beginning of the year balance of depreciable plant was approximately 3.6% , 3.6% and 3.5% , respectively. A portion of depreciation expense was allocated to administrative and general expense. For the years 2018 , 2017 and 2016 , the amounts allocated to administrative and general expense were $2,306 , $2,209 and $1,670 , respectively. Depreciation expense for utility plant for the years ended December 31, 2018 , 2017 and 2016 was $53,031 , $46,456 and $42,659 , respectively. The cost of utility plant retired, including retirement costs (less salvage), is charged to accumulated depreciation and no gain or loss is recognized. |
Utility Plant Intangible Assets Policy | All intangible assets are recorded at cost and are amortized using the straight-line method over the estimated useful life of the asset, ranging from 5 to 70 years (see Note 6, “Intangible Assets”). |
Real Estate Investments Policy | Real estate investments are recorded at cost and consist primarily of land and buildings. Net gains and losses from the sale of real estate investments are recorded as a component of other (expense) income in the Consolidated Statements of Comprehensive Income. Nonutility property in Water Utility Services is also classified in real estate investments and not separately disclosed on the balance sheet based on the immateriality of the amount. Nonutility property is property that is neither used nor useful in providing water utility services to customers and is excluded from the rate base for rate-setting purposes. San Jose Water Company recognizes gain/loss on disposition of nonutility property in accordance with CPUC Code Section 790, whereby the net proceeds are reinvested back into property that is useful in providing water utility services to customers. There is no depreciation associated with nonutility property as it is all land. Depreciation on buildings and improvements for real estate investments is computed using the straight-line method over the estimated useful lives of the assets, ranging from 7 to 39 years . |
Impairment of Long-Lived Assets Policy | In accordance with the requirements of FASB ASC Topic 360—“Property, Plant and Equipment,” the long-lived assets of SJW Group are reviewed for impairment when changes in circumstances or events require adjustments to the carrying values of the assets. When such changes in circumstances or events occur, the company assesses recoverability by determining whether the carrying value of such assets will be recovered through the undiscounted expected future cash flows. To the extent an impairment exists, the asset is written down to its estimated fair value with a corresponding charge to operations in the period in which the impairment is identified. Long-lived assets consist primarily of utility plant in service, real estate investments, intangible assets, and regulatory assets. In addition, the company tests unamortized intangible assets, which primarily relate to water rights, at least annually or more frequently if events or changes in circumstances indicate that the asset may be impaired. SJW Group first performs a qualitative assessment to determine whether it is necessary to perform the quantitative impairment test. In assessing the qualitative factors, SJW Group considers the impact of these key factors: change in industry and competitive environment, financial performance, and other relevant Company-specific events. If SJW Group determines that as a result of the qualitative assessment it is more likely than not (> 50% likelihood) that the fair value is less than carrying amount, then a quantitative test is performed. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and cash equivalents primarily consist of cash on deposit with banks and investments in a money market fund with maturities of three months or less from the date of purchase. |
Financial Instruments Policy | The following instruments are not measured at fair value on the company’s consolidated balance sheets but require disclosure of fair values: cash and cash equivalents, accounts receivable and accounts payable. The estimated fair value of such instruments approximates their carrying value as reported on the consolidated balance sheets. The fair value of such financial instruments are determined using the income approach based on the present value of estimated future cash flows. The fair value of these instruments would be categorized as Level 2 in the fair value hierarchy, with the exception of cash and cash equivalents, which would be categorized as Level 1. The fair value of investment in California Water Service Group Stock is discussed in Note 1, long-term debt in Note 4 and pension plan assets in Note 9. Financial instruments that are potentially subject to concentration of credit risk is primarily cash and cash equivalents which primarily consists of a short-term money market fund. The money market fund is managed by a reputable financial institution. |
Investment in Caifornia Water Service Group Policy | SJW Group’s investment in California Water Service Group was accounted for under FASB ASC Topic 320—“Investments—Debt and Equity Securities,” as an available-for-sale marketable security. The investment was recorded on the Consolidated Balance Sheet at its quoted market price with the change in unrealized gain or loss reported, net of tax, as a component of other expense (income) with the adoption of ASU 2016-01 on January 1, 2018. Prior to adoption, the changes in unrealized gain or loss, net of tax, were reported as a component of other comprehensive income. |
Balancing and Memorandum Accounts Policy | For California, the CPUC has established a balancing account mechanism for the purpose of tracking the under-collection or over-collection associated with expense changes and the revenue authorized by the CPUC to offset those expense changes. San Jose Water Company also maintains memorandum accounts t o track revenue impacts due to catastrophic events, certain unforeseen water quality expenses related to new federal and state water quality standards, energy efficiency, water conservation, water tariffs, and other approved activities or as directed by the CPUC such as the memorandum account for the T ax Act. Balancing and memorandum accounts are recognized by San Jose Water Company when it is probable that future recovery of previously incurred costs or future refunds that are to be credited to customers will occur through the ratemaking process. In addition, in the case of special revenue programs such as the Water Conservation Memorandum Account (“WCMA”), San Jose Water Company follows the requirements of ASC Topic 980-605-25—“Alternative Revenue Programs” in determining revenue recognition, including the requirement that such revenues will be collected within 24 months of the year-end in which the revenue is recorded. A reserve is recorded for amounts SJW Group estimates will not be collected within the 24-month period. This reserve is based on an estimate of actual usage over the recovery period, offset by applicable drought surcharges. In assessing the probability criteria for balancing and memorandum accounts between general rate cases, San Jose Water Company considers evidence that may exist prior to CPUC authorization that would satisfy ASC Topic 980 subtopic 340-25 recognition criteria. Such evidence may include regulatory rules and decisions, past practices, and other facts and circumstances that would indicate that recovery or refund is probable. When such evidence provides sufficient support, the balances are recorded in SJW Group’s financial statements. |
Regulatory Assets and Liabilities Policy | Generally accepted accounting principles for water utilities include the recognition of regulatory assets and liabilities as permitted by ASC Topic 980. In accordance with ASC Topic 980, Water Utility Services, to the extent applicable, records deferred costs and credits on the balance sheet as regulatory assets and liabilities when it is probable that these costs and credits will be recognized in the ratemaking process in a period different from when the costs and credits are incurred. Accounting for such costs and credits is based on management’s judgment and prior historical ratemaking practices, and it occurs when management determines that it is probable that these costs and credits will be recognized in the future revenue of Water Utility Services through the ratemaking process. The regulatory assets and liabilities recorded by Water Utility Services, in particular, San Jose Water Company, primarily relate to the recognition of deferred income taxes for ratemaking versus tax accounting purposes, balancing and memorandum accounts, postretirement pension benefits, medical costs, accrued benefits for vacation and asset retirement obligations that have not yet been passed through in rates. The Company adjusts the related asset and liabilities for these items through its regulatory asset and liability accounts at year-end, except for certain postretirement benefit costs and balancing and memorandum accounts which are adjusted monthly. The Company expects to recover regulatory assets related to plant depreciation income tax temporary differences over the average lives of the plant assets of between 5 to 75 years. Rate-regulated enterprises are required to charge a regulatory asset to earnings if and when that asset no longer meets the criteria for being recorded as a regulatory asset. San Jose Water Company continually evaluates the recoverability of regulatory assets by assessing whether the amortization of the balance over the remaining life can be recovered through expected and undiscounted future cash flows. |
Income Tax Policy | Income taxes are accounted for using the asset and liability method. Deferred tax assets and liabilities are recognized for the effect of temporary differences between financial and tax reporting. Deferred tax assets and liabilities are measured using current tax rates in effect. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. |
Regulatory Income Taxes Policy | To the extent permitted by the CPUC, investment tax credits resulting from utility plant additions are deferred and amortized over the estimated useful lives of the related property. |
Advances for Construction and Contributions in Aid of Construction Policy | Contributions in aid of construction represent funds received from developers that are not refundable under applicable regulations. Depreciation applicable to utility plant constructed with these contributions is charged to contributions in aid of construction. Customer advances and contributions in aid of construction received subsequent to 1986 and prior to June 12, 1996 generally must be included in federal taxable income. Taxes paid relating to advances and contributions are recorded as deferred tax assets for financial reporting purposes and are amortized over 40 years for advances and over the tax depreciable life of the related asset for contributions. Receipts subsequent to June 12, 1996 are generally exempt from federal taxable income, unless specifically prescribed under treasury regulations. Advances and contributions received subsequent to 1991 and prior to 1997 are included in California state taxable income. |
Asset Retirement Obligations Policy | SJW Group’s asset retirement obligation is recorded as a liability included in other non-current liabilities. It reflects principally the retirement costs of wells and other anticipated clean-up costs, which by law, must be remediated upon retirement. Retirement costs have historically been recovered through rates at the time of retirement. As a result, the liability is offset by a regulatory asset. |
Revenue Recognition Policy | On January 1, 2018, SJW Group adopted FASB Accounting Standards Codification (“ASC”) Topic 606 - “Revenue from Contracts with Customers.” In accordance with Topic 606, management has determined that the company has principally four categories of revenues. The first category, revenue from contracts with customers, represents metered revenue of Water Utility Services which includes billings to customers based on meter readings plus an estimate of water used between the customers’ last meter reading and the end of the accounting period. SJW Group satisfies its performance obligation upon delivery of water to the customer at which time the customer consumes the benefits provided by the company. The customer is typically billed on a bi-monthly basis after water delivery has occurred. The customer is charged both a service charge which is based upon meter size and covers a portion of the fixed costs of furnishing water to the customer and a consumption charge based on actual water usage. Unbilled revenue from the last meter reading date to the end of the accounting period is estimated based on the most recent usage patterns, production records and the effective tariff rates. As the company has the right to bill for services that it has provided, SJW Group estimates the dollar value of deliveries during the unbilled period and recognizes the associated revenue. Actual results could differ from those estimates, which may result in an adjustment to revenue when billed in a subsequent period. The second category, rental income, represents lease rental income from SJW Land Company tenants. The tenants pay monthly in accordance with lease agreements and SJW Group recognizes the income ratably over the lease term as this is the most representative of the pattern in which the benefit is expected to be derived from SJW Group’s underlying asset. The third and fourth revenue categories are other balancing and memorandum accounts and alternative revenue programs. Both are scoped out of Topic 606 and are accounted for under FASB ASC Topic 980 - “Regulated Operations.” Balancing and memorandum accounts are recognized by San Jose Water Company when it is probable that future recovery of previously incurred costs or future refunds that are to be credited to customers will occur through the ratemaking process. In addition, in the case of special revenue programs such as the WCMA, San Jose Water Company follows the requirements of ASC Topic 980-605-25, “Alternative Revenue Programs” in determining revenue recognition, including the requirement that such revenues will be collected within 24 months of the year-end in which the revenue is recorded. A reserve is recorded for amounts SJW Group estimates will not be collected within the 24-month period. This reserve is based on an estimate of actual usage over the recovery period, offset by applicable drought surcharges. In assessing the probability criteria for balancing and memorandum accounts between general rate cases, San Jose Water Company considers evidence that may exist prior to CPUC authorization that would satisfy ASC Topic 980 subtopic 340-25 recognition criteria. Such evidence may include regulatory rules and decisions, past practices, and other facts and circumstances that would indicate that recovery or refund is probable. When such evidence provides sufficient support, the balances are recorded in SJW Group’s financial statements. From 2014 to 2016, California was in a severe drought. In response to the drought, the State Water Resources Control Board (the “State Water Board”) imposed mandatory water use restrictions and conservation targets. SCVWD, San Jose Water Company’s principal water supplier, also mandated water use restrictions along with conservation targets at levels higher than the State Water Board. While the Governor of California declared the drought over on April 7, 2017, the State Water Board made certain water use restrictions permanent while SCVWD maintained a conservation target at 20% . On May 31, 2018, Governor Edmund G. Brown signed into law Assembly Bill 1668 and Senate Bill 606. Both bills set an initial limit for indoor water use of 55 gallons per person per day by 2022 and reduced the limit further to 50 gallons per person per day by 2030. Implementation details remain to be developed as to how local water providers will meet this mandate as well as to how the CPUC will direct its regulated utilities to comply. To encourage conservation, San Jose Water Company received approval from the CPUC to implement a Mandatory Conservation Revenue Adjustment Memorandum Account in 2014. This account was subsequently replaced with a WCMA. The WCMA allows San Jose Water Company to track lost revenue, net of related water costs, associated with reduced sales due to water conservation and associated calls for water use reductions. San Jose Water Company records the lost revenue captured in the WCMA regulatory accounts once the revenue recognition requirements of FASB ASC Topic 980 - “Regulated Operations,” subtopic 605-25 are met. For further discussion, please see “Balancing and Memorandum Accounts” in Note 1. The major streams of revenue for SJW Group are as follows: 2018 2017 2016 Revenue from contracts with customers 389,302 $ 381,777 328,249 Alternative revenue programs, net - WCMA 10,456 12,584 9,981 Other balancing and memorandum accounts revenue, net (1) (7,541 ) (10,838 ) (5,241 ) Rental income 5,482 5,702 6,717 397,699 $ 389,225 339,706 ___________________________________ (1) For year ended December 31, 2018 , $2,643 of amounts related to cost-recovery balancing accounts which upon adoption of Topic 606 are recorded as capitalized costs rather than revenue until recovery is approved by the CPUC. Prior to adoption of Topic 606, these amounts were recorded as revenue. For further discussion, please see “Balancing and Memorandum Accounts” above. Revenue also includes a surcharge collected from regulated customers that is paid to the CPUC. This surcharge is recorded both in operating revenues and administrative and general expenses. For the years ended December 31, 2018 , 2017 and 2016 , the surcharge was $5,013 , $5,017 and $3,770 , respectively. |
Share-based Payment Policy | SJW Group utilizes the Monte Carlo valuation model, which requires the use of subjective assumptions, to compute the fair value of market-vesting restricted stock units. The compensation cost charged to income is recognized on a straight-line basis over the requisite service period, which is the vesting period. |
Maintenance Expense Policy | Planned major maintenance projects are charged to expense as incurred. |
Earnings Per Share Policy | Basic earnings per share is calculated using income available to common stockholders, divided by the weighted average number of shares outstanding during the year. The two-class method in computing basic earnings per share is not used because the number of participating securities as defined in FASB ASC Topic 260—“Earnings Per Share” is not significant. The two-class method is an earnings allocation formula that determines earnings per share for each class of common stock and participating security. Diluted earnings per share is calculated using income available to common stockholders divided by the weighted average number of shares of common stock including both shares outstanding and shares potentially issuable in connection with deferred restricted common stock awards under SJW Group’s Long-Term Incentive Plan and shares potentially issuable under the Employee Stock Purchase Plans. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Property, Plant and Equipment | The major components of depreciable plant and equipment as of December 31, 2018 and 2017 are as follows: 2018 2017 Equipment $ 335,358 307,938 Transmission and distribution 1,375,821 1,295,690 Office buildings and other structures 121,872 110,600 Total depreciable plant and equipment $ 1,833,051 1,714,228 Depreciation is computed using the straight-line method over the estimated remaining service lives of groups of assets, ranging from 5 to 75 years . The estimated service lives of depreciable plant and equipment are as follows: Useful Lives Equipment 5 to 35 years Transmission and distribution plant 35 to 75 years Office buildings and other structures 7 to 50 years |
Schedule of Real Estate Investments | The major components of real estate investments as of December 31, 2018 and 2017 are as follows: 2018 2017 Land $ 13,262 13,262 Buildings and improvements 43,074 42,951 Total real estate investment $ 56,336 56,213 |
Schedule of Future Minimum Rental Payments for Operating Leases | The following schedule shows the future minimum rental payments to be received from third parties under operating leases that have remaining noncancelable lease terms in excess of one year as of December 31, 2018 : Year ending December 31: Rental Revenue 2019 $ 4,432 2020 4,513 2021 2,644 2022 1,184 2023 1,198 Thereafter 5,565 |
Schedule of Balancing and Memorandum Accounts | San Jose Water Company met the recognition requirements for certain of its balancing and memorandum accounts and certain amounts subject to balancing and memorandum accounts and recorded revenue and regulatory assets as follows: For the year ended December 31, 2018 Beginning Balance Regulatory Asset Increase (Decrease) Refunds (Collections) Adjustments Surcharge Offset and Other Ending Balance Revenue accounts: 2014 - 2016 WCMA 191 (116 ) 4 — 79 2017 WCMA 6,489 1,182 — — 7,671 2018 WCMA — 9,386 — — 9,386 2012 General Rate Case true-up 11,319 — 9 — 11,328 2015 General Rate Case true-up 115 — 3 — 118 Cost of capital memorandum accounts (144 ) (1,379 ) — — (1,523 ) Tax memorandum account — (6,504 ) — — (6,504 ) All others 3,735 1,258 1 — 4,994 Total revenue accounts $ 21,705 3,827 17 — 25,549 Cost-recovery accounts: Water supply costs 8,679 939 (1 ) — 9,617 Pension (2,459 ) 614 2 — (1,843 ) All others — 1,090 — — 1,090 Total cost-recovery accounts $ 6,220 2,643 1 — 8,864 Total $ 27,925 6,470 18 — 34,413 For the year ended December 31, 2017 Beginning Balance Regulatory Asset Increase (Decrease) Refunds (Collections) Adjustments Surcharge Offset and Other Ending Balance Revenue accounts: 2014 - 2016 WCMA 1,589 4,758 (4,704 ) (1,452 ) 191 2017 WCMA — 12,530 — (6,041 ) 6,489 2012 General Rate Case true-up 20,682 — (9,363 ) — 11,319 2015 General Rate Case true-up 5,528 — (5,413 ) — 115 Cost of capital memorandum accounts (817 ) — 673 — (144 ) Drought surcharges (7,688 ) — (765 ) 8,453 — Cost-recovery accounts 3,181 3,815 (776 ) — 6,220 All others 3,434 1,084 (858 ) 75 3,735 Total $ 25,909 22,187 (21,206 ) 1,035 27,925 For the year ended December 31, 2016 Beginning Balance Regulatory Asset Increase (Decrease) Refunds (Collections) Adjustments Surcharge Offset and Other Ending Balance Revenue accounts: 2014 - 2016 WCMA 8,316 17,107 (7,126 ) (16,708 ) 1,589 2012 General Rate Case true-up 33,070 — (12,388 ) — 20,682 2015 General Rate Case true-up — 8,767 (3,239 ) — 5,528 Cost of capital memorandum accounts (1,440 ) 3 620 — (817 ) Drought surcharges (359 ) — (24,037 ) 16,708 (7,688 ) Cost-recovery accounts 2,219 2,740 (1,778 ) — 3,181 All others 3,400 1,270 (1,236 ) — 3,434 Total $ 45,206 29,887 (49,184 ) — 25,909 |
Schedule of Regulatory Assets and Liabilities | Regulatory assets and liabilities are comprised of the following as of December 31: 2018 2017 Regulatory assets: Postretirement pensions and other medical benefits $ 66,233 $ 68,556 Balancing and memorandum accounts, net 34,413 27,925 Other, net 2,979 3,073 Total regulatory assets, net in Consolidated Balance Sheets $ 103,625 99,554 Less: current regulatory asset, net 26,910 — Total regulatory assets, net, less current portion $ 76,715 99,554 Regulatory liability: Income tax temporary differences, net $ 59,149 62,476 Total regulatory liability in Consolidated Balance Sheets $ 59,149 62,476 |
Schedule of Estimated Refunds of Advances for Construction and Contributions in Aid of Construction | Estimated refunds for the next five years and thereafter are shown below: Estimated Refunds 2019 $ 2,818 2020 2,818 2021 2,818 2022 2,818 2023 2,806 Thereafter 51,257 |
Schedule of Asset Retirement Obligations | December 31, 2018 and 2017 , the asset retirement obligation is as follows: 2018 2017 Retirement obligation $ 4,803 5,231 Discount rate 6 % 6 % Regulatory asset, present value, recorded as a liability $ 942 1,184 |
Disaggregation of Revenue | The major streams of revenue for SJW Group are as follows: 2018 2017 2016 Revenue from contracts with customers 389,302 $ 381,777 328,249 Alternative revenue programs, net - WCMA 10,456 12,584 9,981 Other balancing and memorandum accounts revenue, net (1) (7,541 ) (10,838 ) (5,241 ) Rental income 5,482 5,702 6,717 397,699 $ 389,225 339,706 ___________________________________ (1) For year ended December 31, 2018 , $2,643 of amounts related to cost-recovery balancing accounts which upon adoption of Topic 606 are recorded as capitalized costs rather than revenue until recovery is approved by the CPUC. Prior to adoption of Topic 606, these amounts were recorded as revenue. For further discussion, please see “Balancing and Memorandum Accounts” above. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt as of December 31 was as follows: Description Due Date 2018 2017 Senior notes, San Jose Water Company: Series A 8.58% 2022 $ 20,000 20,000 Series B 7.37% 2024 30,000 30,000 Series C 9.45% 2020 10,000 10,000 Series D 7.15% 2026 15,000 15,000 Series E 6.81% 2028 15,000 15,000 Series F 7.20% 2031 20,000 20,000 Series G 5.93% 2033 20,000 20,000 Series H 5.71% 2037 20,000 20,000 Series I 5.93% 2037 20,000 20,000 Series J 6.54% 2024 10,000 10,000 Series K 6.75% 2039 20,000 20,000 Series L 5.14% 2044 50,000 50,000 SJWTX, Inc. Series A 6.27% 2036 15,000 15,000 SJW Group Series A 4.35% 2021 50,000 50,000 Total senior notes $ 315,000 315,000 California Pollution Control Financing Authority Revenue Bonds 5.10%, San Jose Water Company 2040 50,000 50,000 California Pollution Control Financing Authority Revenue Bonds 4.75%, San Jose Water Company 2046 70,000 70,000 Total debt $ 435,000 435,000 Less: Unamortized debt issuance costs related to debt above 3,576 3,908 Current portion — — Total long-term debt, less current portion $ 431,424 431,092 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The components of income tax expense were: 2018 2017 2016 Current: Federal $ 14,485 29,377 21,651 State 5,066 6,452 7,088 Deferred: Federal (7,702 ) (1,174 ) 6,119 State (1,784 ) 738 (1,316 ) $ 10,065 35,393 33,542 |
Schedule of Effective Income Tax Rate Reconciliation | The following table reconciles income tax expense to the amount computed by applying the federal statutory rate to income before income taxes of $48,832 , $96,493 and $86,381 in 2018 , 2017 and 2016 : 2018 2017 2016 “Expected” federal income tax $ 10,255 33,773 30,233 Increase (decrease) in taxes attributable to: State taxes, net of federal income tax benefit 3,420 4,986 4,874 Dividend received deduction (4 ) (18 ) (21 ) Uncertain tax positions 24 12 16 Tangible Property Regulations (899 ) (1,159 ) (1,184 ) Tax reform - rate change impact on deferred taxes — (2,357 ) — Reversal of excess deferred taxes recognized in regulatory liability (1,383 ) — — Stock-based compensation (1,602 ) (552 ) — Noncontrolling interest income — (664 ) — Other items, net 254 1,372 (376 ) $ 10,065 35,393 33,542 |
Schedule of Deferred Tax Assets and Liabilities | The components of the net deferred tax liability as of December 31 was as follows: 2018 2017 Deferred tax assets: Advances and contributions $ 14,592 12,036 Unamortized investment tax credit 418 441 Pensions and postretirement benefits 20,439 21,807 California franchise tax 981 1,278 Merger related expenses 4,527 — Tax related net regulatory liability 16,212 17,166 Other 3,336 3,440 Total deferred tax assets $ 60,505 56,168 Deferred tax liabilities: Utility plant $ 114,731 114,695 Pension and postretirement benefits 18,534 19,184 Investment in California Water Service Group stock — 1,199 Deferred gain and other-property related 5,753 5,640 Debt reacquisition costs 170 204 Other 968 1,041 Total deferred tax liabilities $ 140,156 141,963 Net deferred tax liabilities $ 79,651 85,795 |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2018 2017 2016 Balance at beginning of year $ 1,307 $ 1,132 $ 755 Increase related to tax positions taken during a prior year, including interest 75 185 397 Reductions related to tax positions taken in a prior year, including interest — (10 ) (20 ) Balance at end of year $ 1,382 $ 1,307 $ 1,132 |
Summary of Income Tax Examinations | SJW Group files U.S. federal income tax returns and income tax returns in various states. SJW Group is no longer subject to tax examination for fiscal years prior to 2015 for federal purposes and 2014 for state purposes. The open tax years for the jurisdictions in which SJW Group files are as follows: Jurisdiction Years Open Federal 2015 - 2017 California 2014 - 2017 Arizona 2014 - 2016 Tennessee 2015 - 2017 Texas 2014 - 2017 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finitie-Lived Intangible Assets | The costs of intangible assets as of December 31, 2018 and 2017 are as follows: 2018 2017 Concession fees $ 6,800 6,800 Other intangibles 8,999 7,613 Intangible assets 15,799 14,413 Less: Accumulated amortization Concession fees 5,780 5,508 Other intangibles 2,960 2,585 Net intangible assets $ 7,059 6,320 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Schedule of Assumptions Used | Net periodic cost for the defined benefit plans and other postretirement benefits was calculated using the following weighted-average assumptions: Pension Benefits Other Benefits 2018 2017 2016 2018 2017 2016 % % % % % % Discount rate 3.52 4.04 4.24 3.45 3.93 4.10 Expected return on plan assets 7.00 7.00 7.00 7.00 7.00 7.00 Rate of compensation increase 4.00 4.00 4.00 N/A N/A N/A Benefit obligations for the defined benefit plans and other postretirement benefits were calculated using the following weighted-average assumptions as of December 31: Pension Benefits Other Benefits 2018 2017 2018 2017 % % % % Discount rate 4.16 3.52 4.09 3.45 Rate of compensation increase 4.00 4.00 N/A N/A |
Schedule of Net Benefit Costs | Net periodic costs for the defined benefit plans and other postretirement benefits for the years ended December 31 was as follows: Pension Benefits Other Benefits 2018 2017 2016 2018 2017 2016 Components of net periodic benefit cost Service cost $ 5,790 4,699 4,447 $ 616 529 527 Interest cost 6,879 6,993 6,830 627 634 655 Expected return on assets (9,255 ) (7,888 ) (7,288 ) (450 ) (376 ) (292 ) Amortization of prior service cost 51 94 376 197 198 197 Recognized actuarial loss 3,986 3,844 3,527 321 273 316 Net periodic benefit cost $ 7,451 7,742 7,892 $ 1,311 1,258 1,403 The components of net periodic benefit cost have been recorded in the consolidated statements of comprehensive income as follows: Pension Benefits Other Benefits 2018 2017 2016 2018 2017 2016 Net periodic benefit cost recorded on income statement Other production expenses 1,534 1,231 1,165 163 139 138 Administrative and general expense 3,249 2,632 2,490 346 296 295 Maintenance expense 1,007 836 792 107 94 94 Pension non-service costs 1,661 3,043 3,445 695 729 876 $ 7,451 7,742 7,892 $ 1,311 1,258 1,403 |
Schedule of Net Funded Status | The projected benefit obligations and the funded status of San Jose Water Company’s defined benefit pension and other postretirement plans as of December 31 were as follows: Pension Benefits Other Benefits 2018 2017 2018 2017 Change in benefit obligation Benefit obligation at beginning of year $ 196,207 174,097 $ 18,003 16,461 Service cost 5,790 4,699 616 529 Interest cost 6,879 6,993 627 634 Actuarial (gain)/loss (14,447 ) 16,552 (988 ) 1,124 Implicit rate subsidy — — (207 ) (196 ) Benefits paid (6,552 ) (6,134 ) (562 ) (549 ) Benefit obligation at end of year $ 187,877 196,207 $ 17,489 18,003 Change in plan assets Fair value of assets at beginning of year $ 133,360 113,895 $ 6,804 5,366 Actual return on plan assets (7,700 ) 17,298 (262 ) 736 Employer contributions 8,502 8,301 629 702 Benefits paid (6,552 ) (6,134 ) (1,322 ) — Fair value of plan assets at end of year 127,610 133,360 5,849 6,804 Funded status at end of year $ (60,267 ) (62,847 ) $ (11,640 ) (11,199 ) |
Schedule of Amounts Recognized in Balance Sheet | The amounts recognized on the balance sheet as of December 31 were as follows: Pension Benefits Other Benefits 2018 2017 2018 2017 Current liabilities $ 1,323 1,099 $ 94 86 Noncurrent liabilities 58,944 61,748 11,546 11,113 $ 60,267 62,847 $ 11,640 11,199 |
Schedule of Regulatory Asset Recorded on the Projected Benefit Obligation of the Postretirement Benefit Plans | San Jose Water Company recorded a regulatory asset on the projected benefit obligation of the postretirement benefit plans as follows: 2018 2017 Funded status of obligation $ 71,907 74,046 Accrued benefit cost (5,674 ) (5,490 ) Regulatory asset, amount to be recovered in future rates $ 66,233 68,556 |
Schedule of Allocation of Plan Assets | Plan assets as of December 31 were as follows: Pension Benefits Other Benefits 2018 2017 2018 2017 Fair value of assets at end of year: Debt securities $ 42,654 42,784 $ 2,200 1,710 33 % 32 % 38 % 25 % Equity securities 77,053 83,352 3,416 4,111 60 % 63 % 58 % 60 % Cash and equivalents 7,903 7,224 233 983 6 % 5 % 4 % 14 % Total $ 127,610 133,360 $ 5,849 6,804 The following tables summarize the fair values of plan assets by major categories as of December 31, 2018 and 2017 : Fair Value Measurements at December 31, 2018 Asset Category Benchmark Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 8,136 $ 8,136 $ — $ — Actively Managed (a): All Cap Equity Russell 3000 Value 5,670 5,632 38 — U.S. Large Cap Equity Russell 1000, Russell 1000 Growth, Russell 1000 Value 47,040 47,040 — — U.S. Mid Cap Equity Russell Mid Cap, Russell Mid Cap Growth, Russell Mid Cap Value 8,372 8,372 — — U.S. Small Cap Equity Russell 2000, Russell 2000 Growth, Russell 2000 Value, Russell 2500 8,528 8,528 — — Non-U.S. Large Cap Equity MSCI EAFE 4,969 4,969 — — REIT NAREIT—Equity REIT’s 5,889 — 5,889 — Fixed Income (b) (b) 44,855 — 44,855 — Total $ 133,459 $ 82,677 $ 50,782 $ — ___________________________________ The Plan has a current target allocation of 55% invested in a diversified array of equity securities to provide long-term capital appreciation and 45% invested in a diversified array of fixed income securities to provide preservation of capital plus generation of income. (a) Actively managed portfolio of securities with the goal to exceed the stated benchmark performance. (b) Actively managed portfolio of fixed income securities with the goal to exceed the Barclays 1-5 Year Government/Credit, Barclays Intermediate Government/Credit, and Merrill Lynch Preferred Stock Fixed Rate. Fair Value Measurements at December 31, 2017 Asset Category Benchmark Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 8,207 $ 8,207 $ — $ — Actively Managed (a): All Cap Equity Russell 3000 Value 6,413 6,376 37 — U.S. Large Cap Equity Russell 1000, Russell 1000 Growth, Russell 1000 Value 50,351 50,351 — — U.S. Mid Cap Equity Russell Mid Cap, Russell Mid Cap Growth, Russell Mid Cap Value 9,358 9,358 — — U.S. Small Cap Equity Russell 2000, Russell 2000 Growth, Russell 2000 Value 8,725 8,725 — — Non-U.S. Large Cap Equity MSCI EAFE 5,973 5,973 — — REIT NAREIT—Equity REIT’s 6,143 — 6,143 — Fixed Income (b) (b) 44,994 — 44,994 — Total $ 140,164 $ 88,990 $ 51,174 $ — ___________________________________ The Plan has a current target allocation of 55% invested in a diversified array of equity securities to provide long-term capital appreciation and 45% invested in a diversified array of fixed income securities to provide preservation of capital plus generation of income. (a) Actively managed portfolio of securities with the goal to exceed the stated benchmark performance. (b) Actively managed portfolio of fixed income securities with the goal to exceed the Barclays 1-5 Year Government/Credit, Barclays Intermediate Government/Credit, and Merrill Lynch Preferred Stock Fixed Rate. |
Schedule of Expected Benefit Payments | Benefits expected to be paid in the next five years and in the aggregate for the five years thereafter are: Pension Plan Other Postretirement Benefit Plan 2019 $ 7,235 $ 851 2020 7,550 852 2021 8,013 903 2022 8,419 951 2023 8,886 992 2024 - 2027 50,695 5,366 |
Equity Plans (Tables)
Equity Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | A summary of compensation costs charged to income, proceeds from the exercise of stock options and similar instruments and the tax benefit realized from stock options and similar instruments exercised, that are recorded to additional paid-in capital and common stock, by award type, are presented below for the years ended December 31: 2018 2017 2016 Compensation costs charged to income: ESPP $ 242 214 168 Restricted stock and deferred restricted stock 1,875 2,429 1,523 Total compensation costs charged to income $ 2,117 2,643 1,691 Proceeds from the exercise of stock options and similar instruments: ESPP 1,371 1,215 954 Total proceeds from the exercise of stock options and similar instruments $ 1,371 1,215 954 Excess tax benefits realized from share options exercised and stock issuance: Restricted stock and deferred restricted stock — — 203 Total excess tax benefits realized from share options exercised and stock issuance $ — — 203 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | A summary of SJW Group’s restricted and deferred restricted stock awards as of December 31, 2018 , and changes during the year ended December 31, 2018 , are presented below: Units Weighted- Average Grant- Date Fair Value Outstanding as of January 1, 2018 190,496 $ 27.81 Issued 58,211 $ 50.29 Exercised (143,614 ) $ 28.41 Forfeited or expired — $ — Outstanding as of December 31, 2018 105,093 $ 37.73 Shares vested as of December 31, 2018 45,912 $ 16.46 |
Schedule of Nonvested Restricted Stock Units Activity | A summary of the status of SJW Group’s nonvested restricted and deferred restricted stock awards as of December 31, 2018 , and changes during the year ended December 31, 2018 , are presented below: Units Weighted- Average Grant- Date Fair Value Nonvested as of January 1, 2018 87,483 $ 40.89 Granted 58,211 $ 50.29 Vested (86,513 ) $ 35.99 Forfeited — $ — Nonvested as of December 31, 2018 59,181 $ 54.67 |
Segment and Non-Tariffed Busi_2
Segment and Non-Tariffed Businesses Reporting (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following tables set forth information relating to SJW Group’s reportable segments and distribution of regulated and non-tariffed business activities within the reportable segments. Certain allocated assets, revenue and expenses have been included in the reportable segment amounts. Other business activity of SJW Group not included in the reportable segments is included in the “All Other” category. For year ended December 31, 2018 Water Utility Services Real Estate Services All Other (1) SJW Group Regulated Non- tariffed Non- tariffed Non- tariffed Regulated Non- tariffed Total Operating revenue 384,639 7,578 5,482 — 384,639 13,060 397,699 Operating expense 294,536 5,012 3,539 21,172 294,536 29,723 324,259 Operating income (loss) 90,103 2,566 1,943 (21,172 ) 90,103 (16,663 ) 73,440 Net income (loss) 53,181 1,848 885 (17,147 ) 53,181 (14,414 ) 38,767 Depreciation and amortization 53,067 338 1,196 — 53,067 1,534 54,601 Senior note and other interest expense 22,157 — — 2,175 22,157 2,175 24,332 Income tax expense (benefit) in net income 14,826 719 903 (6,383 ) 14,826 (4,761 ) 10,065 Assets 1,492,954 4,489 46,517 412,429 1,492,954 463,435 1,956,389 For year ended December 31, 2017 Water Utility Services Real Estate Services All Other (1) SJW Group Regulated Non- tariffed Non- tariffed Non- tariffed Regulated Non- tariffed Total Operating revenue 376,104 7,419 5,702 — 376,104 13,121 389,225 Operating expense 276,061 4,855 3,688 2,770 276,061 11,313 287,374 Operating income (loss) 100,043 2,564 2,014 (2,770 ) 100,043 1,808 101,851 Net income before noncontrolling interest 47,736 1,137 8,089 4,138 47,736 13,364 61,100 Depreciation and amortization 46,500 572 1,220 — 46,500 1,792 48,292 Senior note, mortgage and other interest expense 20,670 — 60 2,199 20,670 2,259 22,929 Income tax expense in net income 30,127 993 644 3,629 30,127 5,266 35,393 Assets 1,406,221 4,471 47,668 (359 ) 1,406,221 51,780 1,458,001 For year ended December 31, 2016 Water Utility Services Real Estate Services All Other (1) SJW Group Regulated Non- tariffed Non- tariffed Non- tariffed Regulated Non- tariffed Total Operating revenue 326,547 6,442 6,717 — 326,547 13,159 339,706 Operating expense 232,138 4,257 4,074 1,800 232,138 10,131 242,269 Operating income (loss) 94,409 2,185 2,643 (1,800 ) 94,409 3,028 97,437 Net income (loss) 45,594 954 7,406 (1,115 ) 45,594 7,245 52,839 Depreciation and amortization 42,709 480 1,436 — 42,709 1,916 44,625 Senior note, mortgage and other interest expense 18,667 — 912 2,259 18,667 3,171 21,838 Income tax expense in net income 27,902 750 4,235 655 27,902 5,640 33,542 Assets 1,368,886 17,794 54,818 1,878 1,368,886 74,490 1,443,376 ____________________ (1) The “All Other” category includes the accounts of SJW Group and Hydro Sub, Inc. on a stand-alone basis. For the year ended December 31, 2018 , Hydro Sub, Inc. had no recorded revenue or expenses and as of December 31, 2018 , held no assets and incurred no liabilities. For the years ended, December 31, 2017 and 2016 , the “All Other” category includes the accounts of SJW Group on a stand-alone basis. |
Unaudited Quarterly Financial_2
Unaudited Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Summarized quarterly financial data is as follows: 2018 Quarter Ended March June September December Operating revenue $ 75,042 99,086 124,853 98,718 Operating income 7,331 22,799 25,828 17,482 SJW Group net income 1,285 12,871 15,788 8,823 Comprehensive income 1,285 12,871 15,788 8,823 Earnings per share: —Basic 0.06 0.63 0.77 0.38 —Diluted 0.06 0.62 0.76 0.38 Market price range of stock: —High 63.47 68.15 67.29 65.31 —Low 51.96 51.68 56.12 52.63 Dividend per share 0.28 0.28 0.28 0.28 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) $ in Thousands | Nov. 16, 2017USD ($) | Dec. 31, 2018mi²people_served |
Acequia Water Supply Corporation [Member] | ||
Public Utilities, General Disclosures [Line Items] | ||
Ownership percentage in Acequia Water Supply Corporation | 25.00% | |
Minimum [Member] | ||
Public Utilities, General Disclosures [Line Items] | ||
Service area in square miles | mi² | 246 | |
Sales [Member] | Product Concentration Risk [Member] | ||
Public Utilities, General Disclosures [Line Items] | ||
Percentage of revenue derived from sales of water to business and residential customers | 91.00% | |
San Jose Water Company [Member] | ||
Public Utilities, General Disclosures [Line Items] | ||
Number of people served | people_served | 1,000,000 | |
444 West Santa Clara Street, L.P. [Member] | ||
Public Utilities, General Disclosures [Line Items] | ||
Limited partership interest percentage | 70.00% | |
SJWTX,Inc. dba Canyon Lake Water Supply Corporation [Member] | ||
Public Utilities, General Disclosures [Line Items] | ||
Number of people served | people_served | 49,000 | |
Texas Water Alliance Alliance [Member] | ||
Public Utilities, General Disclosures [Line Items] | ||
Proceeds from Sales of Business, Affiliate and Productive Assets | $ 31,000 | |
Purchase and Sales Agreement, Holdback Amount | 3,000 | |
Gain (Loss) on Disposition of Assets | $ 12,501 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Recently Adopted Accounting Principles) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Accounting Standards Update 2016-01 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Effective Income Tax Rate Reconciliation, Share-based Compensation, Excess Tax Benefit, Amount | $ 2,203 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Utility Plant) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Public Utility, Property, Plant and Equipment [Line Items] | |||
Capitalized interest costs | $ 2,856 | $ 2,807 | $ 2,188 |
Construction in progress | 68,765 | 45,851 | |
Major components of depreciable plant and equipment [Abstract] | |||
Equipment | 335,358 | 307,938 | |
Transmission and distribution | 1,375,821 | 1,295,690 | |
Office buildings and other structures | 121,872 | 110,600 | |
Total depreciable plant and equipment | $ 1,833,051 | $ 1,714,228 | |
Estimated Useful Lives of Plant and Equipment [Abstract] | |||
Depreciation expense as percentage of beginning of year balance of depreciable plant | 3.60% | 3.60% | 3.50% |
Minimum [Member] | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 7 years | ||
Estimated Useful Lives of Plant and Equipment [Abstract] | |||
Estimated useful life of equipment | 5 years | ||
Estimated useful life of transmission and distribution plant | 35 years | ||
Estimated useful lives of office buildings and other structures | 7 years | ||
Estimated service lives of assets | 5 years | ||
Useful life of intangible assets | 5 years | ||
Maximum [Member] | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 39 years | ||
Estimated Useful Lives of Plant and Equipment [Abstract] | |||
Estimated useful life of equipment | 35 years | ||
Estimated useful life of transmission and distribution plant | 75 years | ||
Estimated useful lives of office buildings and other structures | 50 years | ||
Estimated service lives of assets | 75 years | ||
Useful life of intangible assets | 70 years | ||
Administrative and general expense | |||
Estimated Useful Lives of Plant and Equipment [Abstract] | |||
Depreciation | $ 2,306 | $ 2,209 | $ 1,670 |
Water Plant [Member] | |||
Estimated Useful Lives of Plant and Equipment [Abstract] | |||
Depreciation | $ 53,031 | $ 46,456 | $ 42,659 |
Building and Building Improvements [Member] | Minimum [Member] | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 7 years | ||
Building and Building Improvements [Member] | Maximum [Member] | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 39 years | ||
Finite-Lived Intangible Assets [Member] | Minimum [Member] | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 7 years | ||
Finite-Lived Intangible Assets [Member] | Maximum [Member] | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 12 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Real Estate Investments) (Details) - USD ($) $ in Thousands | Apr. 06, 2017 | Oct. 13, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Components of Real Estate Investments [Abstract] | |||||
Land | $ 13,262 | $ 13,262 | |||
Buildings and improvements | 43,074 | 42,951 | |||
Total real estate investment | 56,336 | 56,213 | |||
Gain on sale of real estate investments | 0 | 6,903 | $ 10,419 | ||
Operating Leases, Future Minimum Payments Receivable [Abstract] | |||||
2,017 | 4,432 | ||||
2,018 | 4,513 | ||||
2,019 | 2,644 | ||||
2,020 | 1,184 | ||||
2,021 | 1,198 | ||||
Thereafter | $ 5,565 | ||||
CA Undeveloped Land | |||||
Components of Real Estate Investments [Abstract] | |||||
Proceeds from sale of real estate held-for-investment | $ 1,350 | ||||
Gain on sale of real estate investments | 580 | ||||
Selling expense | 14 | ||||
Arizona Warehouse Building | |||||
Components of Real Estate Investments [Abstract] | |||||
Proceeds from sale of real estate held-for-investment | $ 20,000 | ||||
Gain on sale of real estate investments | 9,981 | ||||
Selling expense | $ 112 | ||||
Minimum [Member] | |||||
Components of Real Estate Investments [Abstract] | |||||
Estimated useful life | 7 years | ||||
Maximum [Member] | |||||
Components of Real Estate Investments [Abstract] | |||||
Estimated useful life | 39 years | ||||
Land and Building [Member] | |||||
Assets Leased or Available for Lease [Abstract] | |||||
Assets leased or available for lease | $ 56,090 | $ 55,966 | |||
444 West Santa Clara Street, L.P. [Member] | |||||
Components of Real Estate Investments [Abstract] | |||||
Limited partership interest percentage | 70.00% | ||||
444 West Santa Clara Street, L.P. [Member] | 444 West Santa Clara Street | |||||
Components of Real Estate Investments [Abstract] | |||||
Proceeds from sale of real estate held-for-investment | 11,000 | ||||
Gain on sale of real estate investments | 6,323 | ||||
Selling expense | 1,157 | ||||
Parent [Member] | 444 West Santa Clara Street | |||||
Components of Real Estate Investments [Abstract] | |||||
Gain on sale of real estate investments | 4,427 | ||||
Noncontrolling Interest [Member] | 444 West Santa Clara Street | |||||
Components of Real Estate Investments [Abstract] | |||||
Gain on sale of real estate investments | $ 1,896 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Investment in California Water Service Group) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Public Utilities, General Disclosures [Line Items] | |||
Available for Sale Marketable Security, Shares Held | 0 | ||
Available for Sale Marketable Security, Shares Sold | 100,000 | 159,151 | |
Proceeds from Sale of Debt Securities, Available-for-sale | $ 4,510 | ||
Proceeds from sale of California Water Service Group stock | 4,112 | $ 0 | $ 4,509 |
Fees Incurred on Sale of Available for Sale Securities | 9 | 20 | |
Gain on sale of California Water Service Group stock | 104 | 0 | 3,197 |
Available for Sales Securities, Tax on Realized Gain | 29 | 1,303 | |
Debt and Equity Securities, Gain (Loss) | 75 | 1,894 | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | 0 | 0 | $ 1,742 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Public Utilities, General Disclosures [Line Items] | |||
Available-for-sale Securities | $ 0 | $ 4,535 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies (Regulatory Rate Filings) (Details) - USD ($) | Dec. 04, 2018 | Sep. 14, 2018 | Aug. 25, 2018 | Jul. 31, 2018 | Jul. 01, 2018 | Jan. 01, 2018 | Apr. 03, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Feb. 08, 2019 | Jan. 04, 2018 | Jun. 06, 2017 |
Public Utilities, General Disclosures [Line Items] | ||||||||||||
Public Utilities, Approved Reimbursement Fee, Percentage | 1.40% | 1.44% | ||||||||||
Public Utilities, Requested Equity Capital Structure, Percentage | 8.09% | |||||||||||
Public Utilities, Approved Equity Capital Structure, Percentage | 7.64% | |||||||||||
Requested rate increase for 2019 | $ 34,288,000 | |||||||||||
Balancing and Memorandum Revenue Account, Increase (Decrease) | $ 3,827,000 | |||||||||||
Requested rate increase for 2019 as percentage of total revenue at time of request | 9.76% | |||||||||||
Requested rate increase for 2020 | $ 14,232,000 | |||||||||||
Requested rate increase for 2020 as percentage of total revenue at time of request | 3.70% | |||||||||||
Requested rate increase for 2021 | $ 20,582,000 | |||||||||||
Requested rate increase for 2021 as percentage of total revenue at time of request | 5.17% | |||||||||||
Memorandum Account, Authorized Recovery | $ 20,725,000 | |||||||||||
CPED Calculated Double-Billing Refund | $ 4,935,000 | |||||||||||
SJWTX, Inc. [Member] | ||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||
Public Utilities, Approved Rate Increase (Decrease), Amount | $ 927,000 | |||||||||||
Authorized Regulatory Surcharge, Per Thousand Gallons | $ 1.13 | $ 1.15 | ||||||||||
CPED Calculated Refund 2014-2016 [Member] | ||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||
CPED Calculated Service Charge Refund | 2,061,000 | |||||||||||
CPED Calculated Refund 1987-2013 [Member] | ||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||
CPED Calculated Service Charge Refund | 1,990,000 | |||||||||||
Advice Letter No. 513/513A [Member] | ||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||
Public Utilities, Approved Rate Increase (Decrease), Amount | $ (15,670,000) | |||||||||||
Public Utilities, Approved Rate Increase (Decrease), Percentage | (4.22%) | |||||||||||
Advice Letter No. 518 [Member] | ||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||
Public Utilities, Approved Rate Increase (Decrease), Amount | $ 5,843,000 | |||||||||||
Public Utilities, Approved Rate Increase (Decrease), Percentage | 1.57% | |||||||||||
Advice Letter No. 528/528A [Member] | ||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||
Public Utilities, Requested Rate Increase (Decrease), Amount | $ 16,378,000 | |||||||||||
Public Utilities, Requested Rate Increase (Decrease), Percentage | 4.55% | |||||||||||
Advice Letter No. 522A [Member] | ||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||
Public Utilities, Approved Rate Increase (Decrease), Amount | $ 14,801,000 | |||||||||||
Public Utilities, Approved Rate Increase (Decrease), Percentage | 3.89% | |||||||||||
Advice Letter No. 523 [Member] | ||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||
Public Utilities, Approved Rate Increase (Decrease), Amount | $ (13,732,000) | |||||||||||
Public Utilities, Approved Rate Increase (Decrease), Percentage | (3.75%) | |||||||||||
Advice Letter No. 524 [Member] | ||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||
Public Utilities, Approved Rate Increase (Decrease), Amount | $ (3,155,000) | |||||||||||
Public Utilities, Approved Rate Increase (Decrease), Percentage | (0.83%) | |||||||||||
Advice Letter No. 510 [Member] | ||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||
Requested Service Charge Refund | $ 1,794,000 | |||||||||||
Advice Letter No. 530 [Member] | Subsequent Event [Member] | ||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||
Approved Service Charge Refund | $ (2,020,000) | |||||||||||
Minimum [Member] | ||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||
CPED Proposed Penalty, Per Offense, Per Day | 500 | |||||||||||
Maximum [Member] | ||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||
CPED Proposed Penalty, Per Offense, Per Day | $ 50,000 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies (Balancing and Memorandum Accounts) (Details) - USD ($) | Dec. 28, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Balancing and Memorandum Accounts [Line Items] | ||||
Revenue Accounts, Beginning Balance | $ 21,705,000 | |||
Balancing and Memorandum Revenue Account, Increase (Decrease) | 3,827,000 | |||
Balancing and Memorandum Revenue Account, Refunds (Collections) | 17,000 | |||
Balancing and Memorandum Revenue Account, Surcharge Offset | 0 | $ 0 | $ 0 | |
Revenue Accounts, Ending Balance | 25,549,000 | 21,705,000 | ||
Cost-recovery Accounts, Beginning Balance | 6,220,000 | |||
Balancing and Memorandum Cost Recovery Account, Increase (Decrease) | 2,643,000 | |||
Balancing and Memorandum Cost Recovery Account, Refunds (Collections) | 1,000 | |||
Balancing and Memorandum Cost Recovery Account, Surcharge Offset | 0 | |||
Cost-recovery Accounts, Ending Balance | 8,864,000 | 6,220,000 | ||
Balancing and Memorandum Account, Beginning Balance | 27,925,000 | 25,909,000 | 45,206,000 | |
Balancing and Memorandum Account, Increase (Decrease) | 6,470,000 | 22,187,000 | 29,887,000 | |
Balancing and Memorandum Account, Refunds (Collections), Net | 18,000 | (21,206,000) | (49,184,000) | |
Balancing and Memorandum Account, Surcharge Offset | 0 | 1,035,000 | 0 | |
Balancing and Memorandum Account, Ending Balance | 34,413,000 | 27,925,000 | 25,909,000 | |
Regulatory Balancing and Memorandum Accounts, Net Under-Collected | $ 1,573,000 | |||
Approved Balancing and Memorandum Accounts, Net | $ 27,045,000 | |||
Authorized Regulatory Surcharge, Net | $ 0.5894 | |||
Regulatory Balancing and Memorandum Accounts Review, Authorized Revenue, Threshold Percentage | 2.00% | |||
Cost-Recovery Accounts [Member] | ||||
Schedule of Balancing and Memorandum Accounts [Line Items] | ||||
Revenue Accounts, Beginning Balance | $ 6,220,000 | 3,181,000 | 2,219,000 | |
Balancing and Memorandum Revenue Account, Increase (Decrease) | 3,815,000 | 2,740,000 | ||
Balancing and Memorandum Revenue Account, Refunds (Collections) | (776,000) | (1,778,000) | ||
Revenue Accounts, Ending Balance | 6,220,000 | 3,181,000 | ||
2017 WCMA Reserve Recorded [Member] | ||||
Schedule of Balancing and Memorandum Accounts [Line Items] | ||||
Memorandum Account, Revenue Increase (Reduction) | 0 | (1,169,000) | ||
2014-2016 WCMA [Member] | ||||
Schedule of Balancing and Memorandum Accounts [Line Items] | ||||
Revenue Accounts, Beginning Balance | 191,000 | 1,589,000 | 8,316,000 | |
Balancing and Memorandum Revenue Account, Increase (Decrease) | (116,000) | 4,758,000 | 17,107,000 | |
Balancing and Memorandum Revenue Account, Refunds (Collections) | 4,000 | (4,704,000) | (7,126,000) | |
Balancing and Memorandum Revenue Account, Surcharge Offset | 0 | (1,452,000) | (16,708,000) | |
Revenue Accounts, Ending Balance | 79,000 | 191,000 | 1,589,000 | |
Water supply balancing accounts [Member] | ||||
Schedule of Balancing and Memorandum Accounts [Line Items] | ||||
Cost-recovery Accounts, Beginning Balance | 8,679,000 | |||
Balancing and Memorandum Cost Recovery Account, Increase (Decrease) | 939,000 | |||
Balancing and Memorandum Cost Recovery Account, Refunds (Collections) | (1,000) | |||
Balancing and Memorandum Cost Recovery Account, Surcharge Offset | 0 | |||
Cost-recovery Accounts, Ending Balance | 9,617,000 | 8,679,000 | ||
Drought Surcharges [Member] | ||||
Schedule of Balancing and Memorandum Accounts [Line Items] | ||||
Revenue Accounts, Beginning Balance | 0 | (7,688,000) | (359,000) | |
Balancing and Memorandum Revenue Account, Increase (Decrease) | 0 | 0 | ||
Balancing and Memorandum Revenue Account, Refunds (Collections) | (765,000) | (24,037,000) | ||
Balancing and Memorandum Revenue Account, Surcharge Offset | 8,453,000 | 16,708,000 | ||
Revenue Accounts, Ending Balance | 0 | (7,688,000) | ||
Pension Balancing Account [Member] | ||||
Schedule of Balancing and Memorandum Accounts [Line Items] | ||||
Cost-recovery Accounts, Beginning Balance | (2,459,000) | |||
Balancing and Memorandum Cost Recovery Account, Increase (Decrease) | 614,000 | |||
Balancing and Memorandum Cost Recovery Account, Refunds (Collections) | 2,000 | |||
Balancing and Memorandum Cost Recovery Account, Surcharge Offset | 0 | |||
Cost-recovery Accounts, Ending Balance | (1,843,000) | (2,459,000) | ||
2012 General Rate Case True-up [Member] | ||||
Schedule of Balancing and Memorandum Accounts [Line Items] | ||||
Revenue Accounts, Beginning Balance | 11,319,000 | 20,682,000 | 33,070,000 | |
Balancing and Memorandum Revenue Account, Increase (Decrease) | 0 | 0 | 0 | |
Balancing and Memorandum Revenue Account, Refunds (Collections) | 9,000 | (9,363,000) | (12,388,000) | |
Balancing and Memorandum Revenue Account, Surcharge Offset | 0 | 0 | 0 | |
Revenue Accounts, Ending Balance | 11,328,000 | 11,319,000 | 20,682,000 | |
2015 General Rate Case True-up [Member] | ||||
Schedule of Balancing and Memorandum Accounts [Line Items] | ||||
Revenue Accounts, Beginning Balance | 115,000 | 5,528,000 | 0 | |
Balancing and Memorandum Revenue Account, Increase (Decrease) | 0 | 0 | 8,767,000 | |
Balancing and Memorandum Revenue Account, Refunds (Collections) | 3,000 | (5,413,000) | (3,239,000) | |
Balancing and Memorandum Revenue Account, Surcharge Offset | 0 | 0 | 0 | |
Revenue Accounts, Ending Balance | 118,000 | 115,000 | 5,528,000 | |
Cost of capital [Member] | ||||
Schedule of Balancing and Memorandum Accounts [Line Items] | ||||
Revenue Accounts, Beginning Balance | (144,000) | (817,000) | (1,440,000) | |
Balancing and Memorandum Revenue Account, Increase (Decrease) | (1,379,000) | 0 | 3,000 | |
Balancing and Memorandum Revenue Account, Refunds (Collections) | 0 | 673,000 | 620,000 | |
Balancing and Memorandum Revenue Account, Surcharge Offset | 0 | 0 | 0 | |
Revenue Accounts, Ending Balance | (1,523,000) | (144,000) | (817,000) | |
Other Regulatory Assets [Member] | ||||
Schedule of Balancing and Memorandum Accounts [Line Items] | ||||
Revenue Accounts, Beginning Balance | 3,735,000 | 3,434,000 | 3,400,000 | |
Balancing and Memorandum Revenue Account, Increase (Decrease) | 1,258,000 | 1,084,000 | 1,270,000 | |
Balancing and Memorandum Revenue Account, Refunds (Collections) | 1,000 | (858,000) | (1,236,000) | |
Balancing and Memorandum Revenue Account, Surcharge Offset | 0 | 75,000 | 0 | |
Revenue Accounts, Ending Balance | 4,994,000 | 3,735,000 | 3,434,000 | |
Cost-recovery Accounts, Beginning Balance | 0 | |||
Balancing and Memorandum Cost Recovery Account, Increase (Decrease) | 1,090,000 | |||
Balancing and Memorandum Cost Recovery Account, Refunds (Collections) | 0 | |||
Balancing and Memorandum Cost Recovery Account, Surcharge Offset | 0 | |||
Cost-recovery Accounts, Ending Balance | 1,090,000 | 0 | ||
2017 WCMA [Member] | ||||
Schedule of Balancing and Memorandum Accounts [Line Items] | ||||
Memorandum Account, Revenue Increase (Reduction), Gross | 1,182,000 | |||
Revenue Accounts, Beginning Balance | 6,489,000 | 0 | ||
Balancing and Memorandum Revenue Account, Increase (Decrease) | 1,182,000 | 12,530,000 | ||
Balancing and Memorandum Revenue Account, Refunds (Collections) | 0 | 0 | ||
Balancing and Memorandum Revenue Account, Surcharge Offset | 0 | (6,041,000) | ||
Revenue Accounts, Ending Balance | 7,671,000 | 6,489,000 | $ 0 | |
2018 WCMA [Member] | ||||
Schedule of Balancing and Memorandum Accounts [Line Items] | ||||
Memorandum Account, Revenue Increase (Reduction) | (9,386,000) | |||
Revenue Accounts, Beginning Balance | 0 | |||
Balancing and Memorandum Revenue Account, Increase (Decrease) | 9,386,000 | |||
Balancing and Memorandum Revenue Account, Refunds (Collections) | 0 | |||
Balancing and Memorandum Revenue Account, Surcharge Offset | 0 | |||
Revenue Accounts, Ending Balance | 9,386,000 | 0 | ||
2018 WCMA Reserve Recorded [Member] | ||||
Schedule of Balancing and Memorandum Accounts [Line Items] | ||||
Memorandum Account, Revenue Increase (Reduction) | 0 | |||
Tax memorandum [Member] | ||||
Schedule of Balancing and Memorandum Accounts [Line Items] | ||||
Revenue Accounts, Beginning Balance | 0 | |||
Balancing and Memorandum Revenue Account, Increase (Decrease) | (6,504,000) | |||
Balancing and Memorandum Revenue Account, Refunds (Collections) | 0 | |||
Balancing and Memorandum Revenue Account, Surcharge Offset | 0 | |||
Revenue Accounts, Ending Balance | $ (6,504,000) | $ 0 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies (Schedule of Regulatory Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Regulatory Assets and Liabilities [Abstract] | ||
Net Regulatory Assets | $ 103,625 | $ 99,554 |
Current regulatory assets, net | 26,910 | 0 |
Total regulatory assets, net, less current portion | 76,715 | 99,554 |
Regulatory Liabilities | 59,149 | 62,476 |
Postretirement pensions and other medical benefits [Member] | ||
Regulatory Assets and Liabilities [Abstract] | ||
Regulatory assets | 66,233 | 68,556 |
Balancing and Memorandum Accounts [Member] | ||
Regulatory Assets and Liabilities [Abstract] | ||
Regulatory assets | 34,413 | 27,925 |
Other Regulatory Assets [Member] | ||
Regulatory Assets and Liabilities [Abstract] | ||
Regulatory assets | 2,979 | 3,073 |
Deferred Income Tax Charge | ||
Regulatory Assets and Liabilities [Abstract] | ||
Regulatory Liabilities | $ 59,149 | $ 62,476 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies (Advances for Construction and Contributions in Aid of Construction) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | ||
Refund period for advances for construction received after 1981 | 40 years | |
Estimated Refunds of Advances for Construction [Abstract] | ||
2,016 | $ 2,818 | |
2,017 | 2,818 | |
2,018 | 2,818 | |
2,019 | 2,818 | |
2,020 | 2,806 | |
Thereafter | 51,257 | |
Customer Advances for Construction | 80,610 | $ 83,695 |
Customer Advances for Construction, Non-Refundable | $ 15,275 | |
Amortization period for taxes paid relating to advances and contributions | 40 years |
Summary of Significant Accou_13
Summary of Significant Accounting Policies (Asset Retirement Obligation) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accounting Policies [Abstract] | ||
Retirement obligation | $ 4,803 | $ 5,231 |
Discount rate | 6.00% | 6.00% |
Regulatory asset | $ 942 | $ 1,184 |
Summary of Significant Accou_14
Summary of Significant Accounting Policies (Revenue) (Details) - USD ($) $ in Thousands | Jun. 14, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | ||||
Water Reduction Target Goal, Percentage | 20.00% | |||
Revenue from contracts with customers | $ 389,302 | $ 381,777 | $ 328,249 | |
Alternative revenue programs, net - WCMA | 10,456 | 12,584 | 9,981 | |
Other balancing and memorandum accounts revenue, net | (7,541) | (10,838) | (5,241) | |
Rental income | 5,482 | 5,702 | 6,717 | |
Operating revenue | 397,699 | 389,225 | 339,706 | |
Balancing and Memorandum Cost Recovery Account, Increase (Decrease) | 2,643 | |||
Regulated operating revenue, water surcharge | $ 5,013 | $ 5,017 | $ 3,770 |
Summary of Significant Accou_15
Summary of Significant Accounting Policies (Earnings per Share) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restricted Stock and Stock Options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive restricted common stock units excluded from computation of earnings per share | 5,551 | 4,474 | 6,689,000 |
Capitalization Narrative (Detai
Capitalization Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 05, 2018 | Dec. 03, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Nov. 28, 2018 |
Class of Stock [Line Items] | ||||||
Issuance of common stock, net of issuance costs | $ 411,385 | $ 0 | $ 0 | |||
Common stock, shares authorized | 36,000,000 | 36,000,000 | ||||
Common stock, par value (usd per share) | $ 0.001 | $ 0.001 | ||||
Common stock, shares issued | 28,404,316 | 20,520,856 | ||||
Common stock, shares outstanding | 28,404,316 | 20,520,856 | ||||
Preferred stock, shares authorized | 1,000,000 | 1,000,000 | ||||
Preferred stock, par value (usd per share) | $ 0.001 | $ 0.001 | ||||
Preferred stock, shares outstanding | 0 | 0 | ||||
Preferred stock, shares issued | 0 | 0 | ||||
Underwritten Public Offering [Member] | Common Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Issuance of common stock, net of issuance costs | $ 53,738 | $ 358,256 | ||||
Common stock, par value (usd per share) | $ 0.001 | |||||
Stock Issued During Period, Length of Option to Purchase Overalltement | 30 days | |||||
Common stock issued, shares | 1,012,500 | 6,750,000 |
Lines of Credit Narrative (Deta
Lines of Credit Narrative (Details) | Dec. 31, 2018USD ($) | Nov. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Jun. 01, 2016USD ($) |
Bridge Loan | $ 563,000,000 | $ 975,000,000 | ||
Revolving Credit Facility [Member] | SJW Group [Member] | ||||
Aggregate outstanding balance on lines of credit | $ 100,000,000 | $ 25,000,000 | ||
Unsecured Debt [Member] | Chase Bank, N.A. [Member] | SJW Group [Member] | ||||
Debt covenant interest charge maximum to net Income available to stockholders | 1.75 | |||
Ratio of indebtedness to total capital | 0.666 | |||
Line of Credit [Member] | Revolving Credit Facility [Member] | SJW Group [Member] | ||||
Line of Credit Facility, Interest Rate at Period End | 2.94% | 2.27% | ||
Line of Credit [Member] | Revolving Credit Facility [Member] | Chase Bank, N.A. [Member] | SJW Corp. and SJW Land Company [Member] | ||||
LIne of credit facility, maximum borrowing capacity | $ 15,000,000 | |||
Line of Credit [Member] | Credit Agreement [Member] | Chase Bank, N.A. [Member] | San Jose Water Company [Member] | ||||
LIne of credit facility, maximum borrowing capacity | 125,000,000 | |||
Line of Credit [Member] | Credit Agreement [Member] | Standby Letters of Credit [Member] | Chase Bank, N.A. [Member] | San Jose Water Company [Member] | ||||
LIne of credit facility, maximum borrowing capacity | 10,000,000 | |||
Line of Credit [Member] | SJW Corp Credit Agreement [Member] | Standby Letters of Credit [Member] | Chase Bank, N.A. [Member] | SJW Corp. and SJW Land Company [Member] | ||||
LIne of credit facility, maximum borrowing capacity | 5,000,000 | |||
Line of Credit [Member] | SJWTX Credit Agreement [Member] | Revolving Credit Facility [Member] | Chase Bank, N.A. [Member] | SJW Corp. and SJWTX, Inc. [Member] | ||||
LIne of credit facility, maximum borrowing capacity | 5,000,000 | |||
Line of Credit [Member] | SJWTX Credit Agreement [Member] | Standby Letters of Credit [Member] | Chase Bank, N.A. [Member] | SJW Corp. and SJWTX, Inc. [Member] | ||||
LIne of credit facility, maximum borrowing capacity | $ 1,000,000 |
Long-Term Debt Long-term Debt S
Long-Term Debt Long-term Debt Schedule (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 435,000 | $ 435,000 |
Unamortized Debt Issuance Expense | 3,576 | 3,908 |
Current portion | 0 | 0 |
Long-term debt, less current portion | 431,424 | 431,092 |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 315,000 | 315,000 |
San Jose Water Company [Member] | Senior Notes [Member] | Series A [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 20,000 | 20,000 |
Stated interest rates | 8.58% | |
San Jose Water Company [Member] | Senior Notes [Member] | Series B [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 30,000 | 30,000 |
Stated interest rates | 7.37% | |
San Jose Water Company [Member] | Senior Notes [Member] | Series C [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 10,000 | 10,000 |
Stated interest rates | 9.45% | |
San Jose Water Company [Member] | Senior Notes [Member] | Series D [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 15,000 | 15,000 |
Stated interest rates | 7.15% | |
San Jose Water Company [Member] | Senior Notes [Member] | Series E [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 15,000 | 15,000 |
Stated interest rates | 6.81% | |
San Jose Water Company [Member] | Senior Notes [Member] | Series F [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 20,000 | 20,000 |
Stated interest rates | 7.20% | |
San Jose Water Company [Member] | Senior Notes [Member] | Series G [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 20,000 | 20,000 |
Stated interest rates | 5.93% | |
San Jose Water Company [Member] | Senior Notes [Member] | Series H [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 20,000 | 20,000 |
Stated interest rates | 5.71% | |
San Jose Water Company [Member] | Senior Notes [Member] | Series I [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 20,000 | 20,000 |
Stated interest rates | 5.93% | |
San Jose Water Company [Member] | Senior Notes [Member] | Series J [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 10,000 | 10,000 |
Stated interest rates | 6.54% | |
San Jose Water Company [Member] | Senior Notes [Member] | Series K [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 20,000 | 20,000 |
Stated interest rates | 6.75% | |
San Jose Water Company [Member] | Senior Notes [Member] | Series L [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 50,000 | 50,000 |
Stated interest rates | 5.14% | |
San Jose Water Company [Member] | Public Utility, Bonds [Member] | California Pollution Control Financing Authority Revenue Bonds [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 50,000 | 50,000 |
Stated interest rates | 5.10% | |
San Jose Water Company [Member] | Public Utility, Bonds [Member] | California Pollution Control Financing Authority Revenue Bonds Two [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 70,000 | 70,000 |
Stated interest rates | 4.75% | |
SJW Group [Member] | Senior Notes [Member] | Series A [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 50,000 | 50,000 |
Stated interest rates | 4.35% | |
SJWTX,Inc. dba Canyon Lake Water Supply Corporation [Member] | Senior Notes [Member] | Series A [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 15,000 | $ 15,000 |
Stated interest rates | 6.27% |
Long-Term Debt Narrative (Detai
Long-Term Debt Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Unamortized Debt Issuance Expense | $ (3,576,000) | $ (3,908,000) | |
Long-term debt | 435,000,000 | 435,000,000 | |
Restricted Cash and Cash Equivalents | 0 | 0 | $ 19,001,000 |
Significant Observable Inputs (Level 2) | |||
Fair value of long-term debt | 490,148,000 | 537,646,000 | |
Senior Notes [Member] | |||
Long-term debt | 315,000,000 | 315,000,000 | |
San Jose Water Company [Member] | Public Utility, Bonds [Member] | California Pollution Control Financing Authority Revenue Bonds Two [Member] | |||
Long-term debt | $ 70,000,000 | 70,000,000 | |
Stated interest rates | 4.75% | ||
San Jose Water Company [Member] | Senior Notes [Member] | |||
Ratio of indebtedness to total capital | 0.6666 | ||
Ratio of net income available for interest charges for the trailing 12-month calendar period to interest charges | 1.75 | ||
San Jose Water Company [Member] | Senior Notes [Member] | Series A [Member] | |||
Long-term debt | $ 20,000,000 | 20,000,000 | |
Stated interest rates | 8.58% | ||
San Jose Water Company [Member] | Senior Notes [Member] | Series L [Member] | |||
Long-term debt | $ 50,000,000 | 50,000,000 | |
Stated interest rates | 5.14% | ||
SJW Group [Member] | Senior Notes [Member] | Series A [Member] | |||
Long-term debt | $ 50,000,000 | 50,000,000 | |
Stated interest rates | 4.35% | ||
Ratio of indebtedness to total capital | 0.6666 | ||
Minimum net worth required for compliance | $ 175,000,000 | ||
Cumulative net income, percentage included in net worth for compliance | 30.00% | ||
SJW Group [Member] | Senior Notes [Member] | Series A [Member] | Financial Guarantee [Member] | |||
Ratio of indebtedness to total capital | 0.6666 | ||
Minimum net worth required for compliance | $ 125,000,000 | ||
SJW Group [Member] | Senior Notes [Member] | Series A [Member] | Financial Guarantee [Member] | Minimum [Member] | |||
Cumulative net income, percentage included in net worth for compliance | 30.00% | ||
SJWTX,Inc. dba Canyon Lake Water Supply Corporation [Member] | Senior Notes [Member] | Series A [Member] | |||
Long-term debt | $ 15,000,000 | $ 15,000,000 | |
Stated interest rates | 6.27% | ||
Ratio of indebtedness to total capital | 0.6666 | ||
Ratio of net income available for interest charges for the trailing 12-month calendar period to interest charges | 1.75 |
Long-Term Debt Debt Maturity Sc
Long-Term Debt Debt Maturity Schedule (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Long-term debt | $ 435,000 | $ 435,000 |
444 West Santa Clara Street, L.P. [Member] | ||
Debt Instrument [Line Items] | ||
Limited partership interest percentage | 70.00% | |
San Jose Water Company [Member] | Public Utility, Bonds [Member] | California Pollution Control Financing Authority Revenue Bonds [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 120,000 |
Income Taxes Components of Inco
Income Taxes Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current: | |||
Federal | $ 14,485 | $ 29,377 | $ 21,651 |
State | 5,066 | 6,452 | 7,088 |
Deferred: | |||
Federal | (7,702) | (1,174) | 6,119 |
State | (1,784) | 738 | (1,316) |
Income Tax Expense (Benefit) | $ 10,065 | $ 35,393 | $ 33,542 |
Income Taxes Federal Statutory
Income Taxes Federal Statutory Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Income before income taxes | $ 48,832 | $ 96,493 | $ 86,381 |
Income Tax Statutory Rate Reconciliation [Abstract] | |||
“Expected” federal income tax | 10,255 | 33,773 | 30,233 |
Increase (decrease) in taxes attributable to: | |||
State taxes, net of federal income tax benefit | 3,420 | 4,986 | 4,874 |
Dividend received deduction | (4) | (18) | (21) |
Uncertain tax positions | 24 | 12 | 16 |
Tangible Property Regulations | (899) | (1,159) | (1,184) |
Tax reform - rate change impact on deferred taxes | 0 | (2,357) | 0 |
Reversal of excess deferred taxes recognized in regulatory liability | (1,383) | 0 | 0 |
Stock-based compensation | (1,602) | (552) | 0 |
Noncontrolling interest income | 0 | (664) | 0 |
Other items, net | 254 | 1,372 | (376) |
Income Tax Expense (Benefit) | $ 10,065 | $ 35,393 | $ 33,542 |
Income Taxes Components of Defe
Income Taxes Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Advances and contributions | $ 14,592 | $ 12,036 |
Unamortized investment tax credit | 418 | 441 |
Pensions and postretirement benefits | 20,439 | 21,807 |
California franchise tax | 981 | 1,278 |
Merger related expenses | 4,527 | 0 |
Tax related net regulatory liability | 16,212 | 17,166 |
Other | 3,336 | 3,440 |
Total deferred tax assets | 60,505 | 56,168 |
Deferred tax liabilities: | ||
Utility plant | 114,731 | 114,695 |
Pension and postretirement benefits | 18,534 | 19,184 |
Investment in California Water Service Group stock | 0 | 1,199 |
Deferred gain and other-property related | 5,753 | 5,640 |
Debt reacquisition costs | 170 | 204 |
Other | 968 | 1,041 |
Total deferred tax liabilities | (140,156) | (141,963) |
Net deferred tax liabilities | $ 79,651 | $ 85,795 |
Income Taxes Additional Informa
Income Taxes Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Contingency [Line Items] | ||||
Deferred tax liabilities, period increase (decrease) | $ (6,144) | |||
Unrecognized tax benefits before impact of deductions for state taxes, excluding interest and penalties | $ 1,411 | 1,411 | $ 1,359 | |
Unrecognized tax benefits that would impact effective tax rate | 70 | 70 | 46 | |
Accrued interest expense net of the benefit of tax deductions | 70 | 70 | ||
Cumulative reduction in unrecognized tax benefits, due to lapsing of statutes of limitations | 24 | |||
Other | 968 | 968 | 1,041 | |
Provision for income taxes | 10,065 | 35,393 | $ 33,542 | |
Tax Cuts And Jobs Act Of 2017, Incomplete Accounting, Change In Tax Rate, Deferred Tax Asset, Provisional Income Tax Expense | 2,357 | |||
Tax Cuts And Jobs Act of 2017, Measurement Period Adjustment, Income Tax Expense (Benefit) | 67 | |||
Tax Cuts And Jobs Act Of 2017, Measurement Period Adjustment, Increase (Decrease) Of Regulatory Liability | 455 | |||
Deferred Income Tax Charge | ||||
Income Tax Contingency [Line Items] | ||||
Deferred tax liabilities, period increase (decrease) | 3,342 | |||
Tax Cuts And Jobs Act Of 2017, Incomplete Accounting, Change In Tax Rate, Deferred Tax Asset, Provisional Income Tax Expense | 83,666 | |||
2017 Federal and State Repairs and Maintenance Deduction [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Income tax credits and adjustments | 12,873 | |||
2017 Federal and State Repairs and Maintenance Deduction [Member] | Domestic Tax Authority | ||||
Income Tax Contingency [Line Items] | ||||
Other | $ 2,703 | 2,703 | ||
2017 Federal and State Repairs and Maintenance Deduction [Member] | State and Local Jurisdiction | ||||
Income Tax Contingency [Line Items] | ||||
Provision for income taxes | $ (899) | |||
2016 Federal and State Repairs and Maintenance Deduction [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Income tax credits and adjustments | 20,168 | |||
2016 Federal and State Repairs and Maintenance Deduction [Member] | Domestic Tax Authority | ||||
Income Tax Contingency [Line Items] | ||||
Other | 7,059 | |||
2016 Federal and State Repairs and Maintenance Deduction [Member] | State and Local Jurisdiction | ||||
Income Tax Contingency [Line Items] | ||||
Provision for income taxes | $ (1,159) |
Income Taxes Unrecognized Tax B
Income Taxes Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Balance at beginning of year | $ 1,307 | $ 1,132 | $ 755 |
Increase related to tax positions taken during a prior year, including interest | 75 | 185 | 397 |
Reductions related to tax positions taken in a prior year, including interest | 0 | (10) | (20) |
Balance at end of year | $ 1,382 | $ 1,307 | $ 1,132 |
Income Taxes Tax Years Under Ex
Income Taxes Tax Years Under Examination (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Minimum [Member] | Federal | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2,015 |
Minimum [Member] | California | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2,014 |
Minimum [Member] | Arizona | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2,014 |
Minimum [Member] | Tennessee | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2,015 |
Minimum [Member] | Texas | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2,014 |
Maximum [Member] | Federal | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2,017 |
Maximum [Member] | California | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2,017 |
Maximum [Member] | Arizona | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2,016 |
Maximum [Member] | Tennessee | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2,017 |
Maximum [Member] | Texas | |
Income Tax Examination [Line Items] | |
Open Tax Year | 2,017 |
Intangible Assets Narrative (De
Intangible Assets Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 1997 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets | $ 15,799 | $ 14,413 | ||
Net intangible assets | 7,059 | 6,320 | ||
Amortization of Intangible Assets | 647 | 616 | $ 530 | |
Future Amortization of Intangible Assets | ||||
2,018 | 647 | |||
2,019 | 647 | |||
2,020 | 647 | |||
2,021 | 647 | |||
2,022 | 647 | |||
Concession Fees [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets | 6,800 | 6,800 | ||
Accumulated amortization of intangible assets | 5,780 | 5,508 | ||
Other Intangible Assets [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets | 8,999 | 7,613 | ||
Accumulated amortization of intangible assets | 2,960 | $ 2,585 | ||
Service Agreements [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets | 4,128 | |||
Useful life of intangible assets | 25 years | |||
Infrastructure [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets | 3,831 | |||
Contractual Rights [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets | $ 1,040 | |||
Minimum [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Useful life of intangible assets | 5 years | |||
Maximum [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Useful life of intangible assets | 70 years |
Commitments Narrative (Details)
Commitments Narrative (Details) $ in Thousands, gal in Millions | 1 Months Ended | 12 Months Ended | |||
Nov. 30, 2016 | Dec. 31, 2018USD ($)employeeacre_foot$ / million_gallonsgal | Dec. 31, 2017USD ($)gal | Dec. 31, 2016USD ($)gal | Dec. 31, 1997 | |
Long-term Purchase Commitment [Line Items] | |||||
Purchased water | $ 97,378 | $ 86,456 | $ 72,971 | ||
Reduction in delivery schedule | 10.00% | ||||
Intangible assets | $ 15,799 | $ 14,413 | |||
Collective Bargaining Agreement, Term of Contract | 3 years | ||||
Collective bargaining agreement percent of wage increase for 2017 | 3.50% | ||||
Collective bargaining agreement percent of wage increase for 2018 | 3.00% | ||||
Collective bargaining agreement percent of wage increase for 2019 | 4.00% | ||||
Santa Clara Valley Water District [Member] | |||||
Long-term Purchase Commitment [Line Items] | |||||
Master contract, negotiated term for delivery schedules | 3 years | ||||
Water purchased in millions of gallons | gal | 19,477 | 20,172 | 18,241 | ||
Purchased water | $ 80,243 | $ 76,106 | $ 61,645 | ||
Minimum percent of delivery schedule to be purchased in 2017 | 90.00% | ||||
Minimum volume of water to be purchased in 2017 | gal | 19,775 | ||||
Cost of water to be purchased in 2017 | $ 84,296 | ||||
Current contract water rate | $ / million_gallons | 4.3 | ||||
Service Agreements [Member] | |||||
Long-term Purchase Commitment [Line Items] | |||||
Contract life of agreement with City of Cupertino | 25 years | ||||
Intangible assets | $ 4,128 | ||||
Concession Fees [Member] | |||||
Long-term Purchase Commitment [Line Items] | |||||
Intangible assets | $ 6,800 | $ 6,800 | |||
SJW Group [Member] | |||||
Long-term Purchase Commitment [Line Items] | |||||
Number of employees | employee | 367 | ||||
SJWTX,Inc. dba Canyon Lake Water Supply Corporation [Member] | Guadalupe-Blanco River Authority [Member] | |||||
Long-term Purchase Commitment [Line Items] | |||||
Long-term Purchase Commitment, Minimum Area Required, Next Twelve Months | acre_foot | 6,900 | ||||
Notice period required for contract adjustment | 60 days | ||||
SJWTX,Inc. dba Canyon Lake Water Supply Corporation [Member] | Lower Colorado River Authority [Member] | |||||
Long-term Purchase Commitment [Line Items] | |||||
Long-term Purchase Commitment, Minimum Area Required, Next Twelve Months | acre_foot | 250 | ||||
Executive, Administrative or Supervisory Personnel [Member] | SJW Group [Member] | |||||
Long-term Purchase Commitment [Line Items] | |||||
Number of employees | employee | 132 | ||||
Union Member [Member] | SJW Group [Member] | |||||
Long-term Purchase Commitment [Line Items] | |||||
Number of employees | employee | 235 | ||||
Minimum [Member] | |||||
Long-term Purchase Commitment [Line Items] | |||||
Contract life of agreement with City of Cupertino | 5 years | ||||
Maximum [Member] | |||||
Long-term Purchase Commitment [Line Items] | |||||
Contract life of agreement with City of Cupertino | 70 years |
Contingencies Narrative (Detail
Contingencies Narrative (Details) $ in Thousands | Feb. 08, 2019USD ($) |
Subsequent Event [Member] | Advice Letter No. 530 [Member] | |
Loss Contingencies [Line Items] | |
Approved Service Charge Refund | $ (2,020) |
Benefit Plans Narrative (Detail
Benefit Plans Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2018USD ($)yr | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Pension Plans [Abstract] | |||
Number of compensation years included in benefit calculation | yr | 3 | ||
Expected future working lifetime of participants | 12 years 10 months 28 days | ||
Market gains (losses) | $ (1,388,000) | $ 200,000 | |
Return on investments for past 10 years, percent | 8.49% | ||
Investments benchmark for past 10 years, percent | 8.54% | ||
Return on investments for past five years, percent | 5.00% | ||
Investments benchmark for past five years, percent | 5.16% | ||
Flexible Spending Plan [Abstract] | |||
Annual maximum contribution limit under Health Care Spending Account plan | $ 2,500 | ||
Annual maximum contribution limit under Dependent Care Spending Account plan | 5,000 | ||
Deferral Plan [Abstract] | |||
Employer contributions to deferral plan | $ 1,465,000 | 1,585,000 | $ 1,242,000 |
Fixed Income Funds [Member] | |||
Pension Plans [Abstract] | |||
Target plan asset allocations | 25.00% | ||
Bonds [Member] | |||
Pension Plans [Abstract] | |||
Actual plan asset allocations | 34.00% | ||
Cash and Cash Equivalents [Member] | |||
Pension Plans [Abstract] | |||
Actual plan asset allocations | 6.00% | ||
Equity Securities [Member] | |||
Pension Plans [Abstract] | |||
Actual plan asset allocations | 60.00% | ||
Private Corporation Assets [Member] | |||
Pension Plans [Abstract] | |||
Target plan asset allocations | 5.00% | ||
Minimum [Member] | |||
Pension Plans [Abstract] | |||
Period for performance standards | 3 years | ||
Maximum [Member] | |||
Pension Plans [Abstract] | |||
Period for performance standards | 5 years | ||
Executive Supplemental Retirement Plan [Member] | |||
Pension Plans [Abstract] | |||
Projected benefit obligation | $ 25,380,000 | 24,832,000 | |
Net periodic pension cost | 2,905,000 | 2,186,000 | 1,729,000 |
Executives and Non-employee Directors [Member] | Deferred Compensation Arrangement with Individual, by Type of Compensation, Pension and Other Postretirement Benefits [Member] | |||
Special Deferral Election Plan and Deferral Election Program [Abstract] | |||
Deferrals by executives and non-employee directors | $ 4,244,000 | $ 4,528,000 | $ 4,250,000 |
Benefit Plans Actuarial Calcula
Benefit Plans Actuarial Calculation Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic benefit cost, discount rate | 3.52% | 4.04% | 4.24% |
Net periodic benefit cost, expected return on plan assets | 7.00% | 7.00% | 7.00% |
Net periodic benefit cost, rate of compensation increase | 4.00% | 4.00% | 4.00% |
Benefit obligations, discount rate | 4.16% | 3.52% | |
Benefit obligations, rate of compensation increase | 4.00% | 4.00% | |
Other Postretirement Benefits Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic benefit cost, discount rate | 3.45% | 3.93% | 4.10% |
Net periodic benefit cost, expected return on plan assets | 7.00% | 7.00% | 7.00% |
Benefit obligations, discount rate | 4.09% | 3.45% |
Benefit Plans Net Periodic Bene
Benefit Plans Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 5,790 | $ 4,699 | $ 4,447 |
Interest cost | 6,879 | 6,993 | 6,830 |
Expected return on assets | (9,255) | (7,888) | (7,288) |
Amortization of prior service cost | 51 | 94 | 376 |
Recognized actuarial loss | 3,986 | 3,844 | 3,527 |
Net periodic pension cost | 7,451 | 7,742 | 7,892 |
Other Postretirement Benefits Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 616 | 529 | 527 |
Interest cost | 627 | 634 | 655 |
Expected return on assets | (450) | (376) | (292) |
Amortization of prior service cost | 197 | 198 | 197 |
Recognized actuarial loss | 321 | 273 | 316 |
Net periodic pension cost | 1,311 | 1,258 | 1,403 |
Other production expenses | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic pension cost | 1,534 | 1,231 | 1,165 |
Other production expenses | Other Postretirement Benefits Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic pension cost | 163 | 139 | 138 |
Administrative and general expense | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic pension cost | 3,249 | 2,632 | 2,490 |
Administrative and general expense | Other Postretirement Benefits Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic pension cost | 346 | 296 | 295 |
Maintenance expense | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic pension cost | 1,007 | 836 | 792 |
Maintenance expense | Other Postretirement Benefits Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic pension cost | 107 | 94 | 94 |
Pension non-service costs | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic pension cost | 1,661 | 3,043 | 3,445 |
Pension non-service costs | Other Postretirement Benefits Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic pension cost | $ 695 | $ 729 | $ 876 |
Benefit Plans Reconciliation of
Benefit Plans Reconciliation of Funded Status (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of assets at beginning of year | $ 140,164 | ||
Fair value of assets at end of year | 133,459 | $ 140,164 | |
Pension Plan [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 196,207 | 174,097 | |
Service cost | 5,790 | 4,699 | $ 4,447 |
Interest cost | 6,879 | 6,993 | 6,830 |
Expected return on assets | 9,255 | 7,888 | 7,288 |
Actuarial loss | (14,447) | 16,552 | |
Implicit rate subsidy | 0 | 0 | |
Benefits paid | (6,552) | (6,134) | |
Benefit obligation at end of year | 187,877 | 196,207 | 174,097 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of assets at beginning of year | 133,360 | 113,895 | |
Actual return on plan assets | (7,700) | 17,298 | |
Employer contributions | 8,502 | 8,301 | |
Benefits paid | (6,552) | (6,134) | |
Fair value of assets at end of year | 127,610 | 133,360 | 113,895 |
Funded status at end of year | (60,267) | (62,847) | |
Other Postretirement Benefits Plan [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 18,003 | 16,461 | |
Service cost | 616 | 529 | 527 |
Interest cost | 627 | 634 | 655 |
Expected return on assets | 450 | 376 | 292 |
Actuarial loss | (988) | 1,124 | |
Implicit rate subsidy | (207) | (196) | |
Benefits paid | (562) | (549) | |
Benefit obligation at end of year | 17,489 | 18,003 | 16,461 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of assets at beginning of year | 6,804 | 5,366 | |
Actual return on plan assets | (262) | 736 | |
Employer contributions | 629 | 702 | |
Benefits paid | (1,322) | 0 | |
Fair value of assets at end of year | 5,849 | 6,804 | $ 5,366 |
Funded status at end of year | $ (11,640) | $ (11,199) |
Benefit Plans Amounts Recognize
Benefit Plans Amounts Recognized in Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent liabilities | $ 70,490 | $ 72,841 |
Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current liabilities | 1,323 | 1,099 |
Noncurrent liabilities | 58,944 | 61,748 |
Liabilities | 60,267 | 62,847 |
Other Postretirement Benefits Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current liabilities | 94 | 86 |
Noncurrent liabilities | 11,546 | 11,113 |
Liabilities | $ 11,640 | $ 11,199 |
Benefit Plans Regulatory Asset
Benefit Plans Regulatory Asset (Details) - Postretirement pensions and other medical benefits [Member] - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Funded status of obligation | $ 71,907 | $ 74,046 |
Accrued benefit cost | (5,674) | (5,490) |
Regulatory asset | $ 66,233 | $ 68,556 |
Benefit Plans Plan Assets (Deta
Benefit Plans Plan Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 133,459 | $ 140,164 | |
Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actual plan asset allocations as a percent of toal plan assets | 60.00% | ||
Cash and Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 8,136 | 8,207 | |
Actual plan asset allocations as a percent of toal plan assets | 6.00% | ||
Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 127,610 | 133,360 | $ 113,895 |
Pension Plan [Member] | Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 42,654 | $ 42,784 | |
Actual plan asset allocations as a percent of toal plan assets | 33.00% | 32.00% | |
Pension Plan [Member] | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 77,053 | $ 83,352 | |
Actual plan asset allocations as a percent of toal plan assets | 60.00% | 63.00% | |
Pension Plan [Member] | Cash and Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 7,903 | $ 7,224 | |
Actual plan asset allocations as a percent of toal plan assets | 6.00% | 5.00% | |
Other Postretirement Benefits Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 5,849 | $ 6,804 | $ 5,366 |
Other Postretirement Benefits Plan [Member] | Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 2,200 | $ 1,710 | |
Actual plan asset allocations as a percent of toal plan assets | 38.00% | 25.00% | |
Other Postretirement Benefits Plan [Member] | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 3,416 | $ 4,111 | |
Actual plan asset allocations as a percent of toal plan assets | 58.00% | 60.00% | |
Other Postretirement Benefits Plan [Member] | Cash and Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 233 | $ 983 | |
Actual plan asset allocations as a percent of toal plan assets | 4.00% | 14.00% |
Benefit Plans Fair Value of Pla
Benefit Plans Fair Value of Plan Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 133,459 | $ 140,164 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 82,677 | 88,990 |
Significant Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 50,782 | 51,174 |
Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Cash and Cash Equivalents [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 8,136 | 8,207 |
Cash and Cash Equivalents [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 8,136 | 8,207 |
Cash and Cash Equivalents [Member] | Significant Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Cash and Cash Equivalents [Member] | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 0 | 0 |
Fixed Income Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations | 25.00% | |
Fair value of plan assets | $ 44,855 | 44,994 |
Fixed Income Funds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fixed Income Funds [Member] | Significant Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 44,855 | 44,994 |
Fixed Income Funds [Member] | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 0 | 0 |
Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations | 55.00% | |
Fixed Income Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations | 45.00% | |
All Cap Equity Fund [Member] | Actively Managed Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 5,670 | 6,413 |
All Cap Equity Fund [Member] | Actively Managed Investments [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 5,632 | 6,376 |
All Cap Equity Fund [Member] | Actively Managed Investments [Member] | Significant Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 38 | 37 |
All Cap Equity Fund [Member] | Actively Managed Investments [Member] | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
U.S. Large Cap Equity [Member] | Actively Managed Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 47,040 | 50,351 |
U.S. Large Cap Equity [Member] | Actively Managed Investments [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 47,040 | 50,351 |
U.S. Large Cap Equity [Member] | Actively Managed Investments [Member] | Significant Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
U.S. Large Cap Equity [Member] | Actively Managed Investments [Member] | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
U.S. Mid Cap Equity [Member] | Actively Managed Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 8,372 | 9,358 |
U.S. Mid Cap Equity [Member] | Actively Managed Investments [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 8,372 | 9,358 |
U.S. Mid Cap Equity [Member] | Actively Managed Investments [Member] | Significant Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
U.S. Mid Cap Equity [Member] | Actively Managed Investments [Member] | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
U.S. Small Cap Equity [Member] | Actively Managed Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 8,528 | 8,725 |
U.S. Small Cap Equity [Member] | Actively Managed Investments [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 8,528 | 8,725 |
U.S. Small Cap Equity [Member] | Actively Managed Investments [Member] | Significant Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
U.S. Small Cap Equity [Member] | Actively Managed Investments [Member] | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Non-U.S. Large Cap Equity [Member] | Actively Managed Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 4,969 | 5,973 |
Non-U.S. Large Cap Equity [Member] | Actively Managed Investments [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 4,969 | 5,973 |
Non-U.S. Large Cap Equity [Member] | Actively Managed Investments [Member] | Significant Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Non-U.S. Large Cap Equity [Member] | Actively Managed Investments [Member] | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
REIT [Member] | Actively Managed Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 5,889 | 6,143 |
REIT [Member] | Actively Managed Investments [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
REIT [Member] | Actively Managed Investments [Member] | Significant Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 5,889 | 6,143 |
REIT [Member] | Actively Managed Investments [Member] | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 0 | $ 0 |
Benefit Plans Benefits Expected
Benefit Plans Benefits Expected to be Paid in Next Five Years (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Pension Plan [Member] | |
Expected Future Benefit Payments [Abstract] | |
2,017 | $ 7,235 |
2,018 | 7,550 |
2,019 | 8,013 |
2,020 | 8,419 |
2,021 | 8,886 |
2022 - 2026 | 50,695 |
Other Postretirement Benefits Plan [Member] | |
Expected Future Benefit Payments [Abstract] | |
2,017 | 851 |
2,018 | 852 |
2,019 | 903 |
2,020 | 951 |
2,021 | 992 |
2022 - 2026 | 5,366 |
Maximum [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Estimated required and discretionary employer cash contributions in 2017 | $ 8,411 |
Equity Plans Equity Plans (Deta
Equity Plans Equity Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Summary of Activity under the Plan [Abstract] | |||
Compensation costs charged to income | $ 2,117 | $ 2,643 | $ 1,691 |
Proceeds from the exercise of stock options and similar instruments | 1,371 | 1,215 | 954 |
Adjustment to Additional Paid in Capital, Income Tax Effect from Share-based Compensation, Net | $ 203 | ||
Excess Tax Benefit from Share-based Compensation, Financing Activities | $ 0 | $ 0 | |
Employee Stock Purchase Plan [Abstract] | |||
Shares issued during the period under the plan | 25,907 | 27,743 | 30,214 |
Cash received from employees toward purchases under the plan | $ 1,523 | $ 1,282 | $ 1,060 |
Restricted Stock and Deferred Restricted Stock [Member] | |||
Summary of Activity under the Plan [Abstract] | |||
Compensation costs charged to income | 1,875 | 2,429 | 1,523 |
Adjustment to Additional Paid in Capital, Income Tax Effect from Share-based Compensation, Net | $ 203 | ||
Excess Tax Benefit from Share-based Compensation, Financing Activities | 0 | $ 0 | |
Employee Stock Purchase Plan [Abstract] | |||
Unrecognized compensation cost | $ 1,801 | ||
Deferred Restricted Stock Awards [Member] | |||
Dividend Equivalent Rights [Abstract] | |||
Cumulative dividend equivalent rights converted to deferred restricted stock awards | 79,478 | 77,034 | 74,403 |
Dividend Equivalent Rights [Member] | |||
Dividend Equivalent Rights [Abstract] | |||
Liability for dividend equivalent rights | $ 97 | $ 139 | $ 114 |
Incentive Plan [Member] | |||
Option Indexed to Issuer's Equity [Line Items] | |||
Number of shares reserved for issuance under the plan | 1,800,000 | ||
Maximum number of shares per employee | 600,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued Pursuant To The Plan | 793,811 | 628,546 | 576,074 |
Shares issuable under the plan upon exercise of outstanding awards | 124,275 | 228,885 | 229,972 |
Number of shares available for grant | 881,914 | ||
Employee Stock Purchase Plan [Member] | |||
Summary of Activity under the Plan [Abstract] | |||
Compensation costs charged to income | $ 242 | $ 214 | $ 168 |
Proceeds from the exercise of stock options and similar instruments | $ 1,371 | 1,215 | 954 |
Employee Stock Purchase Plan [Abstract] | |||
Purchase price of common stock to employees under the plan, percent | 85.00% | ||
Maximum amount of base salary employees can designate for share purchase under the plan | 10.00% | ||
Expenses recorded under the plan | $ 265 | $ 229 | $ 185 |
Unrecognized compensation cost | $ 111 | ||
Common Stock [Member] | Employee Stock Purchase Plan [Member] | |||
Option Indexed to Issuer's Equity [Line Items] | |||
Number of shares reserved for issuance under the plan | 400,000 |
Equity Plans Restricted Stock a
Equity Plans Restricted Stock and Deferred Restricted Stock Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 25, 2018 | Jan. 30, 2018 | Apr. 26, 2017 | Dec. 31, 2018 |
Restricted Stock and Deferred Restricted Stock [Member] | ||||
Restricted and Deferred Restricted Stock Awards Outstanding [Roll Forward] | ||||
Outstanding as of January 1, 2016, units | 190,496 | |||
Issued, units | 58,211 | |||
Exercised, units | (143,614) | |||
Forfeited or expired | 0 | |||
Outstanding as of December 31, 2016, units | 105,093 | |||
Shares vested as of December 31, 2016, shares | 45,912 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Weighted Average Grant Date Fair Value [Roll Forward] [Roll Forward] | ||||
Outstanding as of January 1, 2016, wtd avg grant date fair value | $ 27.81 | |||
Issued, wtd avg grant date fair value | 50.29 | |||
Exercised, wtd avg grant date fair value | 28.41 | |||
Forfeited or expired, wtd avg grant date fair value | 0 | |||
Outstanding as od December 31, 2016, wtd avg grant date fair value | 37.73 | |||
Shares vested as of December 31, 2016, wtd avg grant date fair value | $ 16.46 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Nonvested as of January 1, 2016, units | 87,483 | |||
Granted, units | 58,211 | |||
Vested, units | (86,513) | |||
Forfeited, units | 0 | |||
Nonvested as of December 31, 2016, units | 59,181 | |||
Restricted and Deferred Restricted Stock Awards, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||||
Nonvested as of January 1, 2016, wtd avg grant date fair value | $ 40.89 | |||
Granted, wtd avg grant date fair value | 50.29 | |||
Vested, wtd avg grant date fair value | 35.99 | |||
Forfeited, wtd avg grant date fair value | 0 | |||
Nonvested as of December 31, 2016, wtd avg grant date fair value | $ 54.67 | |||
Unrecognized compensation cost | $ 1,801 | |||
Period for recognition of compensation cost | 1 year 2 months 12 days | |||
Officer [Member] | Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Granted, units | 4,081 | |||
Restricted and Deferred Restricted Stock Awards, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Percentage Of Target Number Of Shares Expected To Vest | 150.00% | |||
Officer [Member] | Performance Shares 2 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Granted, units | 5,259 | |||
Restricted and Deferred Restricted Stock Awards, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||||
Granted, wtd avg grant date fair value | $ 55.89 | |||
Officer [Member] | Performance Shares 3 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Granted, units | 6,342 | |||
Restricted and Deferred Restricted Stock Awards, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||||
Granted, wtd avg grant date fair value | $ 63.85 | |||
Officer [Member] | Minimum [Member] | Performance Shares [Member] | ||||
Restricted and Deferred Restricted Stock Awards, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 0.00% | |||
Officer [Member] | Minimum [Member] | Performance Shares 2 [Member] | ||||
Restricted and Deferred Restricted Stock Awards, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Percentage Of Target Number Of Shares Expected To Vest | 50.00% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 0.00% | |||
Officer [Member] | Minimum [Member] | Performance Shares 3 [Member] | ||||
Restricted and Deferred Restricted Stock Awards, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 0.00% | |||
Officer [Member] | Maximum [Member] | Performance Shares [Member] | ||||
Restricted and Deferred Restricted Stock Awards, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||||
Granted, wtd avg grant date fair value | $ 58.02 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 150.00% | |||
Officer [Member] | Maximum [Member] | Performance Shares 2 [Member] | ||||
Restricted and Deferred Restricted Stock Awards, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Percentage Of Target Number Of Shares Expected To Vest | 100.00% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 150.00% | |||
Officer [Member] | Maximum [Member] | Performance Shares 3 [Member] | ||||
Restricted and Deferred Restricted Stock Awards, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 200.00% | |||
Non-employee Board Members [Member] | Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Granted, units | 7,385 | |||
Restricted and Deferred Restricted Stock Awards, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||||
Granted, wtd avg grant date fair value | $ 55.8 |
Segment and Non-Tariffed Busi_3
Segment and Non-Tariffed Business Reporting (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($)subsidiaryreportable_segment | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | ||
Segment Reporting Information [Line Items] | ||||||||||||
Number of Subsidiaries | subsidiary | 4 | |||||||||||
Number of Reportable Segments | reportable_segment | 2 | |||||||||||
Operating revenue | $ 98,718 | $ 124,853 | $ 99,086 | $ 75,042 | $ 93,529 | $ 124,578 | $ 102,073 | $ 69,045 | ||||
Utilities Operating Expense | $ 324,259 | $ 287,374 | $ 242,269 | |||||||||
Operating Income (Loss) | 17,482 | $ 25,828 | $ 22,799 | $ 7,331 | 18,214 | $ 38,245 | $ 30,787 | $ 10,833 | 73,440 | 101,851 | 97,437 | |
Net income before noncontrolling interest | 38,767 | 61,100 | 52,839 | |||||||||
Depreciation and amortization | 54,601 | 48,292 | 44,625 | |||||||||
Provision for income taxes | 10,065 | 35,393 | 33,542 | |||||||||
Assets | 1,956,389 | 1,458,001 | 1,956,389 | 1,458,001 | ||||||||
SJW Corp. [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating revenue | 397,699 | 389,225 | 339,706 | |||||||||
Utilities Operating Expense | 324,259 | 287,374 | 242,269 | |||||||||
Operating Income (Loss) | 73,440 | 101,851 | 97,437 | |||||||||
Net income before noncontrolling interest | 38,767 | 61,100 | 52,839 | |||||||||
Depreciation and amortization | 54,601 | 48,292 | 44,625 | |||||||||
Interest Expense | 24,332 | 22,929 | 21,838 | |||||||||
Provision for income taxes | 10,065 | 35,393 | 33,542 | |||||||||
Assets | 1,956,389 | 1,458,001 | 1,956,389 | 1,458,001 | 1,443,376 | |||||||
Regulated [Member] | Water Utility Services [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating revenue | 384,639 | 376,104 | 326,547 | |||||||||
Utilities Operating Expense | 294,536 | 276,061 | 232,138 | |||||||||
Operating Income (Loss) | 90,103 | 100,043 | 94,409 | |||||||||
Net income before noncontrolling interest | 53,181 | 47,736 | 45,594 | |||||||||
Depreciation and amortization | 53,067 | 46,500 | 42,709 | |||||||||
Interest Expense | 22,157 | 20,670 | 18,667 | |||||||||
Provision for income taxes | 14,826 | 30,127 | 27,902 | |||||||||
Assets | 1,492,954 | 1,406,221 | 1,492,954 | 1,406,221 | 1,368,886 | |||||||
Regulated [Member] | SJW Corp. [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating revenue | 384,639 | 376,104 | 326,547 | |||||||||
Utilities Operating Expense | 294,536 | 276,061 | 232,138 | |||||||||
Operating Income (Loss) | 90,103 | 100,043 | 94,409 | |||||||||
Net income before noncontrolling interest | 53,181 | 47,736 | 45,594 | |||||||||
Depreciation and amortization | 53,067 | 46,500 | 42,709 | |||||||||
Interest Expense | 22,157 | 20,670 | 18,667 | |||||||||
Provision for income taxes | 14,826 | 30,127 | 27,902 | |||||||||
Assets | 1,492,954 | 1,406,221 | 1,492,954 | 1,406,221 | 1,368,886 | |||||||
Nonregulated Operation [Member] | Water Utility Services [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating revenue | 7,578 | 7,419 | 6,442 | |||||||||
Utilities Operating Expense | 5,012 | 4,855 | 4,257 | |||||||||
Operating Income (Loss) | 2,566 | 2,564 | 2,185 | |||||||||
Net income before noncontrolling interest | 1,848 | 1,137 | 954 | |||||||||
Depreciation and amortization | 338 | 572 | 480 | |||||||||
Interest Expense | 0 | 0 | 0 | |||||||||
Provision for income taxes | 719 | 993 | 750 | |||||||||
Assets | 4,489 | 4,471 | 4,489 | 4,471 | 17,794 | |||||||
Nonregulated Operation [Member] | Real Estate Services [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating revenue | 5,482 | 5,702 | 6,717 | |||||||||
Utilities Operating Expense | 3,539 | 3,688 | 4,074 | |||||||||
Operating Income (Loss) | 1,943 | 2,014 | 2,643 | |||||||||
Net income before noncontrolling interest | 885 | 8,089 | 7,406 | |||||||||
Depreciation and amortization | 1,196 | 1,220 | 1,436 | |||||||||
Interest Expense | 0 | 60 | 912 | |||||||||
Provision for income taxes | 903 | 644 | 4,235 | |||||||||
Assets | 46,517 | 47,668 | 46,517 | 47,668 | 54,818 | |||||||
Nonregulated Operation [Member] | All Other [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating revenue | 0 | 0 | 0 | [1] | ||||||||
Utilities Operating Expense | 21,172 | 2,770 | 1,800 | [1] | ||||||||
Operating Income (Loss) | (21,172) | (2,770) | (1,800) | [1] | ||||||||
Net income before noncontrolling interest | (17,147) | 4,138 | (1,115) | [1] | ||||||||
Depreciation and amortization | 0 | 0 | 0 | [1] | ||||||||
Interest Expense | 2,175 | 2,199 | 2,259 | [1] | ||||||||
Provision for income taxes | (6,383) | 3,629 | 655 | [1] | ||||||||
Assets | 412,429 | (359) | 412,429 | (359) | 1,878 | [1] | ||||||
Nonregulated Operation [Member] | SJW Corp. [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating revenue | 13,060 | 13,121 | 13,159 | |||||||||
Utilities Operating Expense | 29,723 | 11,313 | 10,131 | |||||||||
Operating Income (Loss) | (16,663) | 1,808 | 3,028 | |||||||||
Net income before noncontrolling interest | (14,414) | 13,364 | 7,245 | |||||||||
Depreciation and amortization | 1,534 | 1,792 | 1,916 | |||||||||
Interest Expense | 2,175 | 2,259 | 3,171 | |||||||||
Provision for income taxes | (4,761) | 5,266 | 5,640 | |||||||||
Assets | $ 463,435 | $ 51,780 | $ 463,435 | $ 51,780 | $ 74,490 | |||||||
[1] | The “All Other” category includes the accounts of SJW Group and Hydro Sub, Inc. on a stand-alone basis. For the year ended December 31, 2018, Hydro Sub, Inc. had no recorded revenue or expenses and as of December 31, 2018, held no assets and incurred no liabilities. For the years ended, December 31, 2017 and 2016, the “All Other” category includes the accounts of SJW Group on a stand-alone basis. |
SJW Group and CTWS Merger (th_2
SJW Group and CTWS Merger (the “Merger”) (Details) | Mar. 14, 2018$ / shares |
CTWS [Member] | |
Business Acquisition [Line Items] | |
Acquiree's common shares converted in cash (in USD per share) | $ 70 |
Unaudited Quarterly Financial I
Unaudited Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating revenue | $ 98,718 | $ 124,853 | $ 99,086 | $ 75,042 | $ 93,529 | $ 124,578 | $ 102,073 | $ 69,045 | |||
Operating Income (Loss) | 17,482 | 25,828 | 22,799 | 7,331 | 18,214 | 38,245 | 30,787 | 10,833 | $ 73,440 | $ 101,851 | $ 97,437 |
Net income | 8,823 | 15,788 | 12,871 | 1,285 | 17,305 | 19,540 | 18,688 | 3,671 | 38,767 | 59,204 | 52,839 |
Comprehensive income | $ 8,823 | $ 15,788 | $ 12,871 | $ 1,285 | $ 17,732 | $ 19,620 | $ 18,744 | $ 3,787 | $ 38,767 | $ 59,883 | $ 52,052 |
SJW Group earnings per share | |||||||||||
—Basic (in dollars per share) | $ 0.38 | $ 0.77 | $ 0.63 | $ 0.06 | $ 0.84 | $ 0.95 | $ 0.91 | $ 0.18 | $ 1.83 | $ 2.89 | $ 2.59 |
—Diluted (in dollars per share) | 0.38 | 0.76 | 0.62 | 0.06 | 0.84 | 0.94 | 0.90 | 0.18 | $ 1.82 | $ 2.86 | $ 2.57 |
Dividends per share | 0.28 | 0.28 | 0.28 | 0.28 | 0.38 | 0.22 | 0.22 | 0.22 | |||
--- High (in dollars per share) [Member] | |||||||||||
SJW Group earnings per share | |||||||||||
Market Price, Stock | 65.31 | 67.29 | 68.15 | 63.47 | 68.13 | 57.43 | 53 | 55.30 | |||
--- Low (in dollars per share) [Member] | |||||||||||
SJW Group earnings per share | |||||||||||
Market Price, Stock | $ 52.63 | $ 56.12 | $ 51.68 | $ 51.96 | $ 57.60 | $ 48.46 | $ 45.74 | $ 46.13 |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts and Reserves (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SEC Schedule, 12-09, Allowance, Credit Loss [Member] | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning Balance | $ 190 | $ 200 | $ 200 |
Charged to expense | 430 | 399 | 504 |
Accounts written off | (650) | (675) | (681) |
Recoveries of accounts written off | 302 | 266 | 177 |
Ending Balance | 272 | 190 | 200 |
SEC Schedule, 12-09, Reserve, Legal [Member] | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning Balance | 1,892 | 2,105 | 263 |
Charged to expense | 480 | 528 | 2,186 |
Accounts written off | 1 | (245) | (19) |
Payments | (192) | (496) | (325) |
Ending Balance | $ 2,181 | $ 1,892 | $ 2,105 |
Uncategorized Items - sjw-20181
Label | Element | Value |
Cash and Cash Equivalents, at Carrying Value | us-gaap_CashAndCashEquivalentsAtCarryingValue | $ 6,349,000 |
Cash and Cash Equivalents, at Carrying Value | us-gaap_CashAndCashEquivalentsAtCarryingValue | 7,799,000 |
Cash and Cash Equivalents, at Carrying Value | us-gaap_CashAndCashEquivalentsAtCarryingValue | $ 420,722,000 |