Document and Entity Information
Document and Entity Information Document - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 22, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Entity File Number | 1-8966 | |
Entity Registrant Name | SJW GROUP | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 77-0066628 | |
Entity Address, Address Line One | 110 West Taylor Street, | |
Entity Address, City or Town | San Jose, | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 95110 | |
City Area Code | (408) | |
Local Phone Number | 279-7800 | |
Entity Listing, Description | Common stock, par value $0.001 per share | |
Trading Symbol | SJW | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 28,442,139 | |
Entity Central Index Key | 0000766829 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Document Transition Report | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | ||||
REVENUE | $ 102,965 | $ 99,086 | $ 180,647 | $ 174,128 |
Production Expenses: | ||||
Purchased water | 26,381 | 23,712 | 40,043 | 39,128 |
Power | 1,493 | 1,624 | 2,653 | 2,892 |
Groundwater extraction charges | 9,100 | 9,919 | 15,963 | 19,451 |
Other production expenses | 5,159 | 4,626 | 10,258 | 8,838 |
Total production expenses | 42,133 | 39,881 | 68,917 | 70,309 |
Administrative and general | 13,408 | 11,958 | 25,699 | 23,526 |
Maintenance | 4,729 | 4,596 | 9,054 | 9,056 |
Property taxes and other non-income taxes | 3,848 | 3,450 | 7,976 | 7,316 |
Depreciation and amortization | 15,101 | 13,656 | 30,246 | 27,239 |
Merger related expenses | 1,775 | 2,746 | 4,376 | 6,552 |
Total operating expense | 80,994 | 76,287 | 146,268 | 143,998 |
OPERATING INCOME | 21,971 | 22,799 | 34,379 | 30,130 |
OTHER (EXPENSE) INCOME: | ||||
Interest on long-term debt and other interest expense | (6,714) | (6,084) | (12,505) | (12,136) |
Pension non-service cost | (907) | (595) | (1,828) | (1,178) |
Unrealized gain (loss) on California Water Service Group stock | 0 | 140 | 0 | (527) |
Interest income on money market fund | 2,342 | 0 | 4,174 | 0 |
Gain on sale of real estate investments | 745 | 0 | 745 | 0 |
Other, net | 517 | 679 | 907 | 1,355 |
Income before income taxes | 17,954 | 16,939 | 25,872 | 17,644 |
Provision for income taxes | 4,192 | 4,068 | 6,237 | 3,488 |
NET INCOME BEFORE NONCONTROLLING INTEREST | 13,762 | 12,871 | 19,635 | 14,156 |
Less net income attributable to the noncontrolling interest | 224 | 0 | 224 | 0 |
SJW GROUP NET INCOME | 13,538 | 12,871 | 19,411 | 14,156 |
SJW GROUP COMPREHENSIVE INCOME | $ 13,538 | $ 12,871 | $ 19,411 | $ 14,156 |
SJW GROUP EARNINGS PER SHARE | ||||
Basic (usd per share) | $ 0.48 | $ 0.63 | $ 0.68 | $ 0.69 |
Diluted (usd per share) | 0.47 | 0.62 | 0.68 | 0.68 |
DIVIDENDS PER SHARE | $ 0.30 | $ 0.28 | $ 0.60 | $ 0.56 |
WEIGHTED AVERAGE SHARES OUTSTANDING | ||||
Basic (shares) | 28,440,221 | 20,592,014 | 28,431,764 | 20,576,757 |
Diluted (shares) | 28,526,022 | 20,732,127 | 28,516,927 | 20,716,665 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Utility plant: | ||
Land | $ 18,303 | $ 18,296 |
Depreciable plant and equipment | 1,870,156 | 1,833,051 |
Construction in progress | 100,350 | 68,765 |
Intangible assets | 15,799 | 15,799 |
Utility plant, gross | 2,004,608 | 1,935,911 |
Less accumulated depreciation and amortization | 635,005 | 607,090 |
Utility plant, net | 1,369,603 | 1,328,821 |
Real estate investments | 56,473 | 56,336 |
Less accumulated depreciation and amortization | 12,925 | 12,327 |
Total | 43,548 | 44,009 |
Cash and cash equivalents: | ||
Cash | 9,849 | 8,722 |
Money market fund | 412,000 | 412,000 |
Accounts receivable: | ||
Customers, net of allowances for uncollectible accounts | 24,350 | 19,154 |
Income tax | 1,397 | 1,888 |
Other | 2,456 | 1,203 |
Accrued unbilled utility revenue | 32,800 | 27,974 |
Current regulatory assets, net | 15,904 | 26,910 |
Other current assets | 5,163 | 4,871 |
Current assets | 503,919 | 502,722 |
OTHER ASSETS: | ||
Net regulatory assets, less current portion | 81,746 | 76,715 |
Other | 4,834 | 4,122 |
Other assets | 86,580 | 80,837 |
Assets | 2,003,650 | 1,956,389 |
Stockholders’ equity: | ||
Common stock, $0.001 par value; authorized 36,000,000 shares; issued and outstanding shares 28,442,139 on June 30, 2019 and 28,404,316 on December 31, 2018 | 28 | 28 |
Additional paid-in capital | 497,633 | 495,366 |
Retained earnings | 396,334 | 393,918 |
Total stockholders’ equity | 893,995 | 889,312 |
Long-term debt, less current portion | 510,859 | 431,424 |
Capitalization, Long-term Debt and Equity | 1,404,854 | 1,320,736 |
CURRENT LIABILITIES: | ||
Line of credit | 55,000 | 100,000 |
Accrued groundwater extraction charges, purchased water and power | 17,625 | 13,694 |
Accounts payable | 28,253 | 24,937 |
Accrued interest | 7,972 | 7,132 |
Accrued property taxes and other non-income taxes | 1,042 | 1,926 |
Accrued payroll | 5,573 | 7,181 |
Other current liabilities | 11,593 | 9,115 |
Current liabilities | 127,058 | 163,985 |
DEFERRED INCOME TAXES | 76,983 | 79,651 |
ADVANCES FOR CONSTRUCTION | 83,454 | 80,610 |
CONTRIBUTIONS IN AID OF CONSTRUCTION | 168,515 | 168,243 |
POSTRETIREMENT BENEFIT PLANS | 72,432 | 70,490 |
REGULATORY LIABILITY | 57,901 | 59,149 |
OTHER NONCURRENT LIABILITIES | 12,453 | 13,525 |
COMMITMENTS AND CONTINGENCIES | 0 | 0 |
Capitalization and liabilities | $ 2,003,650 | $ 1,956,389 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (usd per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (shares) | 36,000,000 | 36,000,000 |
Common stock, shares issued (shares) | 28,442,139 | 28,404,316 |
Common stock, shares outstanding (shares) | 28,442,139 | 28,404,316 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity Statement - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] | Noncontrolling Interest [Member] |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative effect of change in accounting principle, net of tax effect | $ 0 | $ 2,203 | $ (2,203) | |||
Beginning balance at Dec. 31, 2017 | 463,209 | $ 21 | $ 84,866 | 376,119 | 2,203 | $ 0 |
Beginning balance (in shares) at Dec. 31, 2017 | 20,520,856 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income before noncontrolling interest | 1,285 | 1,285 | 0 | |||
Share-based compensation | 457 | 487 | (30) | |||
Issuance of restricted and deferred stock units | (2,020) | (2,020) | ||||
Issuance of restricted and deferred stock units (in shares) | 51,442 | |||||
Employee stock purchase plan | 653 | 653 | ||||
Employee stock purchase plan (in shares) | 12,838 | |||||
Dividends paid | (5,754) | (5,754) | ||||
Ending balance at Mar. 31, 2018 | 457,830 | $ 21 | 83,986 | 373,823 | 0 | 0 |
Ending balance (in shares) at Mar. 31, 2018 | 20,585,136 | |||||
Beginning balance at Dec. 31, 2017 | 463,209 | $ 21 | 84,866 | 376,119 | 2,203 | 0 |
Beginning balance (in shares) at Dec. 31, 2017 | 20,520,856 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income before noncontrolling interest | 14,156 | |||||
Ending balance at Jun. 30, 2018 | 465,294 | $ 21 | 84,375 | 380,898 | 0 | 0 |
Ending balance (in shares) at Jun. 30, 2018 | 20,594,486 | |||||
Beginning balance at Mar. 31, 2018 | 457,830 | $ 21 | 83,986 | 373,823 | 0 | 0 |
Beginning balance (in shares) at Mar. 31, 2018 | 20,585,136 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income before noncontrolling interest | 12,871 | 12,871 | 0 | |||
Share-based compensation | 362 | 392 | (30) | |||
Issuance of restricted and deferred stock units | (3) | (3) | ||||
Issuance of restricted and deferred stock units (in shares) | 9,350 | |||||
Dividends paid | (5,766) | (5,766) | ||||
Ending balance at Jun. 30, 2018 | 465,294 | $ 21 | 84,375 | 380,898 | 0 | 0 |
Ending balance (in shares) at Jun. 30, 2018 | 20,594,486 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative effect of change in accounting principle, net of tax effect | 97 | 97 | ||||
Beginning balance at Dec. 31, 2018 | $ 889,312 | $ 28 | 495,366 | 393,918 | 0 | 0 |
Beginning balance (in shares) at Dec. 31, 2018 | 28,404,316 | 28,404,316 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income before noncontrolling interest | $ 5,873 | 5,873 | 0 | |||
Share-based compensation | 870 | 886 | (16) | |||
Issuance of restricted and deferred stock units | (132) | (132) | ||||
Issuance of restricted and deferred stock units (in shares) | 14,312 | |||||
Employee stock purchase plan | 811 | 811 | ||||
Employee stock purchase plan (in shares) | 15,932 | |||||
Common stock issuance cost | (10) | (10) | ||||
Dividends paid | (8,528) | (8,528) | ||||
Ending balance at Mar. 31, 2019 | 888,293 | $ 28 | 496,921 | 391,344 | 0 | 0 |
Ending balance (in shares) at Mar. 31, 2019 | 28,434,560 | |||||
Beginning balance at Dec. 31, 2018 | $ 889,312 | $ 28 | 495,366 | 393,918 | 0 | 0 |
Beginning balance (in shares) at Dec. 31, 2018 | 28,404,316 | 28,404,316 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income before noncontrolling interest | $ 19,635 | |||||
Ending balance at Jun. 30, 2019 | $ 893,995 | $ 28 | 497,633 | 396,334 | 0 | 0 |
Ending balance (in shares) at Jun. 30, 2019 | 28,442,139 | 28,442,139 | ||||
Beginning balance at Mar. 31, 2019 | $ 888,293 | $ 28 | 496,921 | 391,344 | 0 | 0 |
Beginning balance (in shares) at Mar. 31, 2019 | 28,434,560 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income before noncontrolling interest | 13,762 | 13,538 | 224 | |||
Distribution to noncontrolling interest | (224) | (224) | ||||
Share-based compensation | 702 | 718 | (16) | |||
Issuance of restricted and deferred stock units | (6) | (6) | ||||
Issuance of restricted and deferred stock units (in shares) | 7,579 | |||||
Dividends paid | (8,532) | (8,532) | ||||
Ending balance at Jun. 30, 2019 | $ 893,995 | $ 28 | $ 497,633 | $ 396,334 | $ 0 | $ 0 |
Ending balance (in shares) at Jun. 30, 2019 | 28,442,139 | 28,442,139 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity Parenthetical - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||
Cumulative effect of change in accounting principle, taxes | $ 33 | $ 1,507 |
DIVIDENDS PER SHARE | $ 0.60 | $ 0.56 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
OPERATING ACTIVITIES: | ||
Net income before noncontrolling interest | $ 19,635 | $ 14,156 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 31,576 | 28,389 |
Deferred income taxes | (2,939) | (2,129) |
Stock-based compensation | 1,604 | 879 |
Unrealized loss on California Water Service Group stock | 0 | 527 |
Gain on sale of real estate investments | (745) | 0 |
Loss on sale of California Water Service Group stock | 0 | 87 |
Changes in operating assets and liabilities: | ||
Accounts receivable and accrued unbilled utility revenue | (11,275) | (9,359) |
Accounts payable and other current liabilities | 830 | 1,414 |
Accrued groundwater extraction charges, purchased water and power | 3,931 | 4,173 |
Tax payable and receivable, and other accrued taxes | (41) | 5,607 |
Postretirement benefits | 1,942 | 2,388 |
Regulatory assets and liability related to balancing and memorandum accounts | 6,237 | 1,399 |
Other changes, net | (998) | (2,105) |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 49,757 | 45,426 |
INVESTING ACTIVITIES: | ||
Company-funded | (62,330) | (62,091) |
Contributions in aid of construction | (7,800) | (3,091) |
Additions to real estate investments | (137) | (123) |
Payments to retire utility plant, net of salvage | (3,009) | (2,787) |
Proceeds from sale of real estate investments | 745 | 0 |
Proceeds from sale of California Water Service Group stock | 0 | 714 |
NET CASH USED IN INVESTING ACTIVITIES | (72,531) | (67,378) |
FINANCING ACTIVITIES: | ||
Borrowings on line of credit | 66,000 | 34,000 |
Repayments of line of credit | (111,000) | 0 |
Long-term borrowings | 80,000 | 0 |
Payment to noncontrolling interest | (224) | 0 |
Debt issuance and broker fee costs | (847) | 0 |
Dividends paid | (17,060) | (11,520) |
Receipts of advances and contributions in aid of construction | 7,836 | 4,560 |
Refunds of advances for construction | (1,390) | (1,251) |
Other changes, net | 586 | (2,710) |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 23,901 | 23,079 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 1,127 | 1,127 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 420,722 | 7,799 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 421,849 | 8,926 |
Cash paid during the period for: | ||
Interest | 13,332 | 13,240 |
Income taxes | 9,581 | 420 |
Supplemental disclosure of non-cash activities: | ||
Change in accrued payables for construction costs capitalized | 2,348 | 1,657 |
Utility property installed by developers | $ (109) | $ 565 |
General
General | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GENERAL | General In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments (consisting only of normal, recurring adjustments) necessary for a fair presentation of the results for the interim periods. The unaudited interim financial information has been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and in accordance with the instructions for Form 10-Q and Rule 10-01 of Regulation S-X promulgated by the Securities and Exchange Commission (the “SEC”). The Notes to Consolidated Financial Statements in SJW Group’s 2018 Annual Report on Form 10-K should be read with the accompanying unaudited condensed consolidated financial statements. Recently Adopted Accounting Pronouncements In February 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-02, “Leases (Topic 842),” as amended, which supersedes the lease requirements in “Leases (Topic 840).” This ASU generally requires lessees to recognize operating and financing lease liabilities and corresponding right-of-use assets on the Consolidated Balance Sheets and to provide enhanced disclosures surrounding the amount, timing and uncertainty of cash flows arising from leasing arrangements. ASU 2016-02 also makes some changes to lessor accounting and aligns with the new revenue recognition guidance. SJW Group adopted the new standard effective January 1, 2019, on a modified retrospective basis and did not restate comparative periods. SJW Group also elected the package of practical expedients permitted under the transition guidance and combined lease and non-lease components. In addition, SJW Group kept leases with an initial term of 12 months or less off the Consolidated Balance Sheets and recognized the associated lease payments in the Consolidated Statements of Comprehensive Income on a straight-line basis over the lease term. The adoption of this standard did not have a material impact on SJW Group’s consolidated financial statements. Revenue Water sales are seasonal in nature and influenced by weather conditions. The timing of precipitation and climatic conditions can cause seasonal water consumption by customers to vary significantly. Due to the seasonal nature of the water business, the operating results for interim periods are not indicative of the operating results for a 12-month period. Revenue is generally higher in the warm, dry summer months when water usage and sales are greater, and lower in the winter months when cooler temperatures and increased rainfall curtail water usage and sales. 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. The Santa Clara Valley Water District (“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. Further, SCVWD has maintained a conservation target of 20% . In 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 California Public Utilities Commission (“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 Water Conservation Memorandum Account (“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 Accounting Standards Codification (“ASC”) Topic 980 - “Regulated Operations,” subtopic 605-25 are met. For further discussion, please see Note 8 and Note 9. The major streams of revenue for SJW Group are as follows: Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Revenue from contracts with customers $ 104,299 98,443 $ 183,227 174,312 Alternative revenue programs, net - WCMA (327 ) 3,933 (2,306 ) 3,601 Other balancing and memorandum accounts revenue, net (2,376 ) (4,611 ) (3,009 ) (6,447 ) Rental income 1,369 1,321 2,735 2,662 $ 102,965 99,086 $ 180,647 174,128 Earnings per Share Basic earnings per share is calculated using income available to common stockholders, divided by the weighted average number of shares outstanding during the period. 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 restricted common stock awards under SJW Group’s Long-Term Incentive Plan (as amended, the “Incentive Plan”) and shares potentially issuable under the Employee Stock Purchase Plan (“ESPP”). For the three months ended June 30, 2019 and 2018 , 2,217 and 2,094 anti-dilutive restricted common stock units were excluded from the dilutive earnings per share calculation, respectively. For the six months ended June 30, 2019 and 2018 , 9,634 and 3,256 anti-dilutive restricted common stock units were excluded from the dilutive earnings per share calculation, respectively. Utility Plant Depreciation A portion of depreciation expense is allocated to administrative and general expense. For the three months ended June 30, 2019 and 2018 , the amounts allocated to administrative and general expense were $673 and $572 , respectively. For the six months ended June 30, 2019 , and 2018 , the amounts allocated to administrative and general expense were $1,330 and $1,150 |
Equity Plans
Equity Plans | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
EQUITY PLANS | Equity Plans SJW Group accounts for stock-based compensation based on the grant date fair value of awards issued to employees in accordance with FASB ASC Topic 718 - “Compensation - Stock Compensation,” which requires the measurement and recognition of compensation expense based on the estimated fair value of stock-based payment awards. The Incentive 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. The types of awards included in the Incentive Plan are restricted stock awards, restricted stock units, performance shares, or other share-based awards. As of June 30, 2019 , 157,063 shares are issuable upon the exercise of outstanding restricted stock units and deferred restricted stock units and an additional 823,597 shares are available for award issuances under the Incentive Plan. In addition, shares are issued to employees under the company’s ESPP. Stock compensation costs charged to income are recognized on a straight-line basis over the requisite service period. A summary of compensation costs charged to income, proceeds from the exercise of any stock options and similar instruments and the tax benefit realized from any 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 three and six months ended June 30, 2019 , and 2018 . Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Adjustments to additional paid-in capital and common stock for: Compensation costs charged to income: ESPP $ — — $ 143 115 Restricted stock and deferred restricted stock 718 392 1,461 764 Total compensation costs charged to income $ 718 392 $ 1,604 879 ESPP proceeds $ — — $ 811 653 Stock, Restricted Stock and Deferred Restricted Stock On January 2, 2019 , service-based restricted stock units covering an aggregate of 17,451 shares of common stock of SJW Group were granted to certain officers of SJW Group and its subsidiaries. The units vest in three equal successive installments upon completion of each year of service with no dividend equivalent rights. Share-based compensation expense of $51.28 per unit which was based on the award grant date fair value is being recognized over the service period beginning in 2019. On January 29, 2019 , 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 9,882 that will vest based on the actual attainment of specified performance goals measured in two separate tranches over the period from January 1, 2019, to December 31, 2019, and January 1, 2019, to December 31, 2020, each covering 50% of the target shares, and continued service through December 31, 2019, and December 31, 2020, respectively. 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 allow for pro-rata vesting, based on actual performance and number of months in service over the performance period, in the event an officer’s employment terminates under specific circumstances prior to the end of the performance period. The awards have no market conditions and the stock-based compensation expense of $57.12 and $55.97 per unit for each of the two tranches which was based on the award grant date fair values are being recognized assuming the performance goals will be attained. On January 29, 2019 , 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 9,043 that will vest based on the actual attainment of specified performance goals over the period from January 1, 2019, to December 31, 2021 and continued service through December 31, 2021. 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 allow for pro-rata vesting, based on actual performance and number of months in service over the performance period, in the event an officer’s employment terminates under specific circumstances prior to the end of the performance period. The awards have no market conditions and the stock-based compensation expense of $54.84 per unit which was based on the award grant date fair value is being recognized assuming the performance goals will be attained. On January 29, 2019 , performance-based restricted stock units were granted to certain officers of SJW Group covering a target number of shares of SJW Group’s common stock equal to 9,437 that will vest based on continued service and attainment of specified performance goals over the period from January 1, 2019, to December 31, 2021. 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 awards allow for pro-rata vesting, based on actual performance and number of months in service over the performance period, in the event an officer’s employment terminates under specific circumstances prior to the end of the performance period. 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 being recognized at $70.47 per unit. If such goals are not met, no compensation cost will be recognized and any recognized compensation cost will be reversed. On April 24, 2019 , restricted stock units covering an aggregate of 9,114 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 $60.30 per unit, which is based on the award grant date fair value, is being recognized over the service period beginning in 2019. As of June 30, 2019 , the total unrecognized compensation costs related to restricted and deferred restricted stock plans amounted to $4,138 . This cost is expected to be recognized over a weighted-average period of 1.42 years. 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 common stock have been reserved for issuance under the ESPP. SJW Group’s recorded expenses were $65 and $141 for the three and six months ended June 30, 2019 , respectively, and $62 and $132 for the three and six months ended June 30, 2018 , respectively, related to the ESPP. The total unrecognized compensation costs related to the semi-annual offering period that ends July 31, 2019 , for the ESPP is approximately $25 . This cost is expected to be recognized during the third quarter of 2019. |
Real Estate Investments
Real Estate Investments | 6 Months Ended |
Jun. 30, 2019 | |
Real Estate Investments, Net [Abstract] | |
REAL ESTATE INVESTMENTS | Real Estate Investments The major components of real estate investments as of June 30, 2019 , and December 31, 2018 , are as follows: June 30, December 31, Land $ 13,262 13,262 Buildings and improvements 43,211 43,074 Subtotal 56,473 56,336 Less: accumulated depreciation and amortization 12,925 12,327 Total $ 43,548 44,009 Depreciation and amortization is computed using the straight-line method over the estimated useful lives of the assets, ranging from 7 to 39 years . Substantially all of the real estate investments relate to assets that are currently subject to operating leases. On April 6, 2017, 444 West Santa Clara Street, L.P. sold all of its interest in the commercial building and land the partnership owned and operated. In connection with this sale, the partnership was required to deposit $750 into an escrow account for estimated repairs to the creek next to the land the partnership sold. On April 22, 2019, all creek repairs were completed and a reimbursement of $745 was provided to the partnership. 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 the creek reimbursement of $521 and $224 , respectively, on the transaction. |
Defined Benefit Plan
Defined Benefit Plan | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
DEFINED BENEFIT PLAN | Defined Benefit Plan San Jose Water Company sponsors a noncontributory defined benefit retirement 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 on compensation credits and interest credits for each employee. Officers hired before March 31, 2008, are eligible to receive additional retirement benefits under the Executive Supplemental Retirement Plan, and officers hired on or after March 31, 2008, are eligible to receive additional retirement benefits under the Cash Balance Executive Supplemental Retirement Plan. Both plans are non-qualified plans in which only officers and other designated members of management may participate. 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 components of net periodic benefit costs for San Jose Water Company’s retirement plan, its Executive Supplemental Retirement Plan, Cash Balance Executive Supplemental Retirement Plan and Social Welfare Plan for the three and six months ended June 30, 2019 , and 2018 are as follows: Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Service cost $ 1,479 1,607 $ 2,958 3,203 Interest cost 2,113 1,876 4,225 3,753 Other cost 1,117 1,145 2,235 2,278 Expected return on assets (2,310 ) (2,426 ) (4,619 ) (4,853 ) $ 2,399 2,202 $ 4,799 4,381 The components of net periodic benefit cost have been recorded in the consolidated statements of comprehensive income as follows: Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Other production expenses $ 370 426 $ 740 849 Administrative and general expense 851 902 1,689 1,797 Maintenance expense 271 279 542 557 Pension non-service costs 907 595 1,828 1,178 $ 2,399 2,202 $ 4,799 4,381 The following tables summarize the fair values of plan assets by major categories as of June 30, 2019 , and December 31, 2018 : Fair Value Measurements at June 30, 2019 Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Significant Unobservable Inputs Asset Category Benchmark Total (Level 1) (Level 2) (Level 3) Cash and cash equivalents — $ 7,723 $ 7,723 $ — $ — Actively Managed (a): All Cap Equity Russell 3000 Value 6,461 6,426 35 — U.S. Large Cap Equity Russell 1000, Russell 1000 Growth, Russell 1000 Value 57,375 57,375 — — U.S. Mid Cap Equity Russell Mid Cap, Russell Mid Cap Growth, Russell Mid Cap Value 10,202 10,202 — — U.S. Small Cap Equity Russell 2000, Russell 2000 Growth, Russell 2000 Value 10,385 10,385 — — Non-U.S. Large Cap Equity MSCI EAFE 5,767 5,767 — — REIT NAREIT - Equity REIT’S 7,137 — 7,137 — Fixed Income (b) (b) 47,489 — 47,489 — Total $ 152,539 $ 97,878 $ 54,661 $ — 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 and cash 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, 2018 Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Significant Unobservable Inputs Asset Category Benchmark Total (Level 1) (Level 2) (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 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 and cash 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 $8,337 to the pension plans and Social Welfare Plan. For the three and six months ended June 30, 2019 , San Jose Water Company has made $2,294 contributions to such plans. |
Segment and Non-Tariffed Busine
Segment and Non-Tariffed Business Reporting | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT AND NONTARIFFED BUSINESS REPORTING | Segment and Non-Tariffed Business 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 (“CLWSC”), 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 Connecticut Water Service, Inc. (“CTWS”) proposed merger (see discussion on the proposed merger at Note 11). 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 and CLWSC, 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 Three Months Ended June 30, 2019 Water Utility Services Real Estate Services All Other* SJW Group Regulated Non-tariffed Non-tariffed Non-tariffed Regulated Non-tariffed Total Operating revenue $ 99,773 1,823 1,369 — 99,773 3,192 102,965 Operating expense 75,564 1,356 1,008 3,066 75,564 5,430 80,994 Operating income (loss) 24,209 467 361 (3,066 ) 24,209 (2,238 ) 21,971 Net income (loss) 13,662 336 662 (1,122 ) 13,662 (124 ) 13,538 Depreciation and amortization 14,698 105 298 — 14,698 403 15,101 Senior note and other interest expense 6,170 — — 544 6,170 544 6,714 Income tax expense (benefit) in net income 4,154 130 220 (312 ) 4,154 38 4,192 Assets $ 1,537,404 6,149 46,510 413,587 1,537,404 466,246 2,003,650 For Three Months Ended June 30, 2018 Water Utility Services Real Estate Services All Other* SJW Group Regulated Non-tariffed Non-tariffed Non-tariffed Regulated Non-tariffed Total Operating revenue $ 95,798 1,967 1,321 — 95,798 3,288 99,086 Operating expense 70,642 1,278 891 3,476 70,642 5,645 76,287 Operating income (loss) 25,156 689 430 (3,476 ) 25,156 (2,357 ) 22,799 Net income (loss) 15,022 497 296 (2,944 ) 15,022 (2,151 ) 12,871 Depreciation and amortization 13,272 85 299 — 13,272 384 13,656 Senior note, mortgage and other interest expense 5,540 — — 544 5,540 544 6,084 Income tax expense (benefit) in net income 4,650 193 92 (867 ) 4,650 (582 ) 4,068 Assets $ 1,449,714 3,768 46,756 (117 ) 1,449,714 50,407 1,500,121 For Six Months Ended June 30, 2019 Water Utility Services Real Estate Services All Other* SJW Group Regulated Non-tariffed Non-tariffed Non-tariffed Regulated Non-tariffed Total Operating revenue $ 174,920 2,992 2,735 — 174,920 5,727 180,647 Operating expense 136,149 2,197 1,899 6,023 136,149 10,119 146,268 Operating income (loss) 38,771 795 836 (6,023 ) 38,771 (4,392 ) 34,379 Net income (loss) 19,762 572 980 (1,903 ) 19,762 (351 ) 19,411 Depreciation and amortization 29,447 202 597 — 29,447 799 30,246 Senior note and other interest expense 11,390 — — 1,115 11,390 1,115 12,505 Income tax expense (benefit) in net income 6,230 222 350 (565 ) 6,230 7 6,237 Assets $ 1,537,404 6,149 46,510 413,587 1,537,404 466,246 2,003,650 For Six Months Ended June 30, 2018 Water Utility Services Real Estate Services All Other* SJW Group Regulated Non-tariffed Non-tariffed Non-tariffed Regulated Non-tariffed Total Operating revenue $ 168,151 3,315 2,662 — 168,151 5,977 174,128 Operating expense 132,343 2,166 1,740 7,749 132,343 11,655 143,998 Operating income (loss) 35,808 1,149 922 (7,749 ) 35,808 (5,678 ) 30,130 Net income (loss) 19,817 828 652 (7,141 ) 19,817 (5,661 ) 14,156 Depreciation and amortization 26,473 168 598 — 26,473 766 27,239 Senior note and other interest expense 11,048 — — 1,088 11,048 1,088 12,136 Income tax expense (benefit) in net income 5,142 322 186 (2,162 ) 5,142 (1,654 ) 3,488 Assets $ 1,449,714 3,768 46,756 (117 ) 1,449,714 50,407 1,500,121 * The “All Other” category includes the accounts of SJW Group and Hydro Sub, Inc. on a stand-alone basis. For the three and six months ended June 30, 2019 , and 2018 , Hydro Sub, Inc. had no recorded revenue or expenses and as of June 30, 2019 , and 2018 |
Long-Term Liabilities and Bank
Long-Term Liabilities and Bank Borrowings | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Liabilities and Bank Borrowings | Long-Term Liabilities and Bank Borrowings SJW Group’s contractual obligations and commitments include senior notes, mortgages, and other obligations. San Jose Water Company, a subsidiary of SJW Group, has received advance deposit payments from its customers on certain construction projects. Refunds of the advance deposit payments constitute an obligation of San Jose Water Company solely. On March 28, 2019, San Jose Water Company entered into a Note Purchase Agreement (the “Note Purchase Agreement”) with certain affiliates of MetLife, Inc., Brighthouse Financial, Inc. and New York Life Insurance (collectively the “Purchasers”), pursuant to which the company sold an aggregate principal amount of $80,000 of its 4.29% Senior Notes, Series M (the “Notes”) to the Purchasers. The Notes are unsecured obligations of San Jose Water Company, due on April 1, 2049. Interest is payable semi-annually in arrears on April 1st and October 1st of each year. The Note Purchase Agreement contains customary affirmative and negative covenants for as long as the Notes are outstanding. The Notes are also subject to customary events of default, the occurrence of which may result in all of the Notes then outstanding becoming immediately due and payable. The closing occurred simultaneously with the signing of the Note Purchase Agreement. |
Fair Value Measurement
Fair Value Measurement | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT | Fair Value Measurement The following instruments are not measured at fair value on SJW Group’s condensed consolidated balance sheets as of June 30, 2019 , but require disclosure of their fair values: cash and cash equivalents, a money market fund, accounts receivable and accounts payable. The estimated fair value of such instruments as of June 30, 2019 , approximates their carrying value as reported on the condensed consolidated balance sheets. The fair value was determined using the income approach based on the present value of estimated future cash flows. There have been no changes in valuation techniques during the three and six months ended June 30, 2019 . 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 pension plan assets is discussed in Note 4. The fair value of SJW Group’s long-term debt was approximately $592,728 and $490,148 as of June 30, 2019 , and December 31, 2018 , 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 book value of the long-term debt was $510,859 and $431,424 as of June 30, 2019 , and December 31, 2018 , respectively. The fair value of long-term debt would be categorized as Level 2 in the fair value hierarchy. Financial instruments that are potentially subject to concentration of credit risk consist primarily of a short-term money market fund. The money market fund is managed by a reputable financial institution. As of June 30, 2019 , and December 31, 2018 , the company no longer held any equity investments in California Water Service Group which was categorized as Level 1 of the fair value hierarchy. For the three and six months ended June 30, 2018 , SJW Group recognized an unrealized gain of $140 and an unrealized loss of $527 due to the change in fair value of the company’s investment in California Water Service Group. During the six months ended June 30, 2018 , SJW Group sold 17,660 shares of California Water Service Group for $714 , before fees of $2 . SJW Group recognized a loss on the sale of the stock of approximately $87 and tax benefit of approximately $24 , for a net loss of $63 |
Regulatory Rate Filings
Regulatory Rate Filings | 6 Months Ended |
Jun. 30, 2019 | |
Regulated Operations [Abstract] | |
Regulatory Rate Filings | Regulatory Rate Filings California Regulatory Affairs 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 included 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 and to implement surcharges to recover $27,045 of under-collections from memorandum and balancing accounts. This was approved on December 28, 2018, and new rates became effective January 1, 2019. On June 19, 2019, the CPUC issued its final decision resolving the remaining issues in the GRC. Decision 19-06-010 denied the WRAM/SRM and authorized the recovery of the Hydro Generation Research, Development and Demonstration Memorandum Account balance of $1,243 . San Jose Water Company is required to file a Tier 3 advice letter to recover this amount via a surcharge over a three-year period. Tier 3 advice letters typically require a higher level of review and formal resolution by the Commissioners for approval. The CPUC is expected to issue a decision in the third quarter of 2019. On July 20, 2018, the CPUC issued OII No. 18-07-007 concerning SJW Group’s merger with Connecticut Water Service, Inc. A Scoping Memorandum was issued on September 7, 2018, which identified the issues to be considered in the proceeding as to whether the proposed merger is subject to CPUC approval and to evaluate the merger’s likely impacts within California. On September 14, 2018, SJW Group and San Jose Water Company submitted joint comments in response to the issues identified 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. On March 4, 2019, the CPUC suspended this proceeding due to SJW Group’s announcement of its intention to file a new merger approval application with the Connecticut Public Utilities Regulatory Authority (“PURA”). On April 3, 2019, SJW Group and Connecticut Water Service, Inc. jointly filed a new merger application with PURA. 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 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 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, and refunds began on March 11, 2019. On April 22, 2019, the CPUC dismissed Complaint 17-07-009 citing the relief provided in Advice Letter No. 530 and the current OII on this matter. The Complainant filed an appeal with the CPUC to dispute the dismissal. This appeal is still pending before the 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. 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. 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 believed its potential loss was limited to the refund amount agreed to in the partial GRC settlement of $2,020 . Such amount was refunded to customers through Advice Letter No. 530 which was effective February 8, 2019. A prehearing conference on the matter was concluded on January 7, 2019, and a scoping memorandum outlining the remaining part of the proceeding scheduled was issued on February 11, 2019. The scoping memorandum outlined the following issues to be determined: (1) Did San Jose Water Company overbill its customers for water service during the period from January 1987 to June 2011, (2) If San Jose Water Company overbilled its customers during the above period, should the Commission fine San Jose Water Company or impose some other form of penalty on it, and (3) Is this action subject to any statute of limitations including, but not limited to, Section 736 of the Public Utilities Code. On March 8, 2019, the assigned CPUC commissioner issued a scoping ruling in the OII confirming the scope determined at the prehearing conference. On March 18, 2019, witnesses for CPED and for the customer group Water Rate Advocates for Transparency, Equity, and Sustainability (“WRATES”) submitted testimony in the OII. The CPED witness updated their refund calculation to approximately $1,847 for the years 1987 to 2011. The WRATES witnesses supported refunds both for those years and for the alleged double-billing but did not propose specific refund amounts. Both CPED and WRATES witnesses supported imposition of a penalty. San Jose Water Company submitted its rebuttal testimony on April 8, 2019, challenging the claim that any overcharging had occurred and that additional customer refunds or credits were appropriate. San Jose Water Company ’ s rebuttal testimony corrected an error in CPED’s calculation, indicating that if refunds or credits were required they should not exceed $1,757 for the years 1987 to 2011. In sur-rebuttal testimony, CPED accepted that correction. An evidentiary hearing was held on June 3, 2019. On July 24, 2019, San Jose Water Company and CPED jointly filed a motion for CPUC approval of a Settlement Agreement (“Agreement”) over San Jose Water Company’s past customer billing practices. The Agreement requires the company to pay approximately $2,100 in customer credits, consisting of $1,757 for refunds during the period from 1987 to 2011 and an additional $350 in customer credits to low income water customers, and invest $5,000 in utility plant that is not allowed an investment return or rate recovery. San Jose Water Company has recorded the $2,100 customer credit expense as an offset to revenues in the accompanying June 30, 2019, Condensed Consolidated Statements of Comprehensive Income. The $5,000 commitment to invest in utility plant will be recognized as plant in service on the company’s financial statements once invested. The Agreement is subject to final approval by the CPUC which is expected in the third quarter of 2019. On February 28, 2019, San Jose Water Company filed Advice Letter No. 531 with the CPUC requesting to adjust the Utilities Reimbursement Account User Fees as directed by CPUC Resolution M-4839. The reimbursement fee was reduced from 1.40% to 1.23% . This request was approved and the new fee became effective on April 1, 2019. On March 29, 2019, San Jose Water Company filed Advice Letter No. 532 with the CPUC requesting authorization to recover the $9,020 balance in its WCMA for the period of January 1, 2018, through December 31, 2018. This advice letter is pending before the CPUC. Texas Regulatory Affairs The Public Utilities Commission of Texas (“PUCT”) directed CLWSC (as well as other Class A water utilities in Texas) to quantify all of the impacts of the passage of the Tax Cuts and Jobs Act (H.R. 1) (“Tax Act”) on December 22, 2017 and make rate adjustments reflecting such impacts on a prospective basis. PUCT Order 47945-36 as amended by Order 47945-41 requires the water utilities to record a regulatory liability that reflects (1) the difference between the revenues collected under existing rates and the revenues that would have been collected had the existing rates been set using the recently approved federal income tax rates; and (2) the balance of excess accumulated deferred federal income taxes that now exists because of the decrease in the federal income tax rate from 35% to 21% . A rate proposal reflecting these tax changes was submitted for PUCT ’ s review on April 19, 2018. CLWSC subsequently amended its filing on April 30, 2018 to update the customer notice, and to replace estimates for April with recorded April 2018 information. This filing will return to the ratepayers the difference between the revenues collected under the existing rates and what water rates would have been using the 21% |
Balancing and Memorandum Accoun
Balancing and Memorandum Accounts | 6 Months Ended |
Jun. 30, 2019 | |
Regulated Operations [Abstract] | |
BALANCING AND MEMORANDUM ACCOUNTS | Balancing and Memorandum Accounts San Jose Water Company has established balancing accounts 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 to 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 WCMA or Tax Act memorandum accounts. 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, if any. 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. Based on ASC Topic 980-605-25, San Jose Water Company recognized a regulatory assets of $1,320 and $568 due to lost revenues accumulated in the 2019 WCMA account for the three and six months ended June 30, 2019 , respectively. Of the $1,320 and $568 recognized in the 2019 WCMA account for the three and six months ended June 30, 2019 , respectively, a reserve of $11 was recorded which is the estimated amount that will not be collected within the 24-month period, as required by the guidance. The amounts have been reflected in the 2019 WCMA balance shown in the table below. San Jose Water Company recognized a regulatory assets of $4,118 and $3,410 due to lost revenues accumulated in the 2018 WCMA account for the three and six months ended June 30, 2018 , respectively. Of the $4,118 and $3,410 recognized in the 2018 WCMA account for the three and six months ended June 30, 2018 , respectively, a reserve of $407 was recorded which is the estimated amount that will not be collected within the 24-month period, as required by the guidance. Activity for the three and six months ended June 30, 2019 , represents interest and reserve activity on the accumulated balance. For the three and six months ended June 30, 2019 , a reserve of $94 and $174 , respectively, was recorded. The amounts have been reflected in the 2018 WCMA balance shown in the table below. Cost of capital memorandum account was approved by the CPUC on March 14, 2018. The account tracks the difference between current water rates and the lower rates adopted in the cost of capital decision on March 22, 2018. San Jose Water Company recorded a regulatory liability of $198 and $1,363 in the cost of capital memorandum account for the three and six months ended June 30, 2018 , with a corresponding reduction to revenue. Activity for the three and six months ended June 30, 2019 , respectively, represents interest activity on the accumulated balance. The amount has been reflected in the cost of capital memorandum account balance shown in the table below. The CPUC has directed San Jose Water Company to establish a memorandum account to capture the impact of the Tax Act on its regulated revenue requirement. The CPUC has indicated that any benefit from implementing the new law should ultimately be passed on to ratepayers. Accordingly, San Jose Water Company recorded a regulatory liability of $4,563 and $5,496 in the tax memorandum account for the three and six months ended June 30, 2018 , respectively, with a corresponding reduction to revenue. Activity for the three and six months ended June 30, 2019 , represents interest activity on the accumulated balance. The amount has been reflected in the tax memorandum account balance shown in the table below. Three months ended June 30, 2019 Three months ended June 30, 2018 Beginning Balance Regulatory Asset Increase (Decrease) Refunds (Collections) Adjustments Ending Balance Beginning Balance Regulatory Asset Increase (Decrease) Refunds (Collections) Adjustments Ending Balance Revenue accounts: 2014-2017 WCMA* $ 6,912 — (1,597 ) 5,315 $ 7,055 220 2 7,277 2018 WCMA* 8,997 (39 ) — 8,958 (708 ) 3,711 — 3,003 2019 WCMA* (752 ) 1,309 — 557 — — — — 2012 General Rate Case true-up 10,152 — (2,421 ) 7,731 11,320 — 4 11,324 Cost of capital memorandum account (1,532 ) (8 ) — (1,540 ) (1,309 ) (198 ) — (1,507 ) Tax memorandum account (6,545 ) (40 ) — (6,585 ) (933 ) (4,563 ) — (5,496 ) All others 6,249 2,031 (1,088 ) 7,192 4,251 422 2 4,675 Total revenue accounts $ 23,481 3,253 (5,106 ) 21,628 $ 19,676 (408 ) 8 19,276 Cost-recovery accounts: Water supply costs 8,217 (1,058 ) (1,247 ) 5,912 8,197 1,190 — 9,387 Pension (1,237 ) 199 805 (233 ) (2,298 ) 161 — (2,137 ) All others 1,015 3 (148 ) 870 — — — — Total cost-recovery accounts $ 7,995 (856 ) (590 ) 6,549 $ 5,899 1,351 — 7,250 Total $ 31,476 2,397 (5,696 ) 28,177 $ 25,575 943 8 26,526 Six months ended June 30, 2019 Six months ended June 30, 2018 Beginning Balance Regulatory Asset Increase (Decrease) Refunds (Collections) Adjustments Ending Balance Beginning Balance Regulatory Asset Increase (Decrease) Refunds (Collections) Adjustments Ending Balance Revenue accounts: 2014-2017 WCMA* $ 7,750 — (2,435 ) 5,315 $ 6,679 596 2 7,277 2018 WCMA* 9,386 (428 ) — 8,958 — 3,003 — 3,003 2019 WCMA* — 557 — 557 — — — — 2012 General Rate Case true-up 11,328 96 (3,693 ) 7,731 11,320 — 4 11,324 Cost of capital memorandum account (1,523 ) (17 ) — (1,540 ) (144 ) (1,363 ) — (1,507 ) Tax memorandum account (6,504 ) (81 ) — (6,585 ) — (5,496 ) — (5,496 ) All others 5,112 3,738 (1,658 ) 7,192 3,851 822 2 4,675 Total revenue accounts $ 25,549 3,865 (7,786 ) 21,628 $ 21,706 (2,438 ) 8 19,276 Cost-recovery accounts: Water supply costs 9,617 (1,803 ) (1,902 ) 5,912 8,679 708 — 9,387 Pension (1,843 ) 383 1,227 (233 ) (2,459 ) 322 — (2,137 ) All others 1,090 6 (226 ) 870 — — — — Total cost-recovery accounts $ 8,864 (1,414 ) (901 ) 6,549 $ 6,220 1,030 — 7,250 Total $ 34,413 2,451 (8,687 ) 28,177 $ 27,926 (1,408 ) 8 26,526 * As of June 30, 2019 , the reserve balance for the 2019 WCMA was $11 which has been included in the balance above. As of June 30, 2019 , and 2018 , the reserve balances for the 2018 WCMA was $174 and $407 , respectively, which has been included in the balances above. As of June 30, 2018 , the reserve balance for the 2017 WCMA was $938 which has been included in the balance above. As of June 30, 2019 , the total balance in San Jose Water Company’s balancing and memorandum accounts combined, including interest, that has not been recorded into the financial statements was a net under-collection of $1,230 . All balancing accounts and memorandum-type accounts not included for recovery or refund in the current general rate case will be reviewed by the CPUC in San Jose Water Company’s next general rate case or at the time an individual account balance reaches a threshold of 2% |
Regulatory Assets and Liabiliti
Regulatory Assets and Liabilities | 6 Months Ended |
Jun. 30, 2019 | |
Regulatory Assets and Liabilities Disclosure [Abstract] | |
Regulatory Assets and Liabilities | Regulatory Assets and Liabilities Regulatory assets and liabilities are comprised of the following as of June 30, 2019 , and December 31, 2018 : June 30, 2019 December 31, 2018 Regulatory assets: Postretirement pensions and other medical benefits $ 66,233 66,233 Balancing and memorandum accounts, net 28,177 34,413 Other, net 3,240 2,979 Total regulatory assets, net in Consolidated Balance Sheets 97,650 103,625 Less: current regulatory asset, net 15,904 26,910 Total regulatory assets, net, less current portion $ 81,746 76,715 Regulatory liability: Income tax temporary differences, net $ 57,901 59,149 Total regulatory liability in Consolidated Balance Sheets $ 57,901 59,149 |
SJW Group and CTWS Merger Agree
SJW Group and CTWS Merger Agreement | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
SJW GROUP AND CTWS MERGER AGREEMENT | SJW Group and CTWS 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 (the “Merger”). On August 5, 2018, SJW Group, Hydro Sub, Inc. and CTWS entered into a Second Amended and Restated Agreement & Plan of Merger (as amended, 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 CTWS since the date of the Merger Agreement, which has not been ameliorated or cured. On December 3, 2018, PURA issued a proposed final decision denying the application by SJW Group and CTWS for approval of the Merger. 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. 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, on April 3, 2019, SJW Group and CTWS filed a new application with PURA for approval of the Merger. In support of the new application, SJW Group has made certain regulatory commitments, which are subject to PURA approval, that are designed to demonstrate that the Merger is in the public interest, including many which go beyond those included in the previous application. In this regard, the new application includes a commitment for CTWS’s Connecticut utilities not to file a general rate case for new base rates to become effective prior to January 1, 2021, as well as a provision for a bill credit for customers. In addition, SJW Group has committed that CTWS’s Connecticut utilities will not seek recovery, in rates, of the merger premium or other costs incurred in connection with the Merger. With respect to current CTWS's Connecticut employees, the new application provides that there will be no layoffs as a result of the Merger and that, for at least three years following completion of the Merger, CTWS’s Connecticut utilities will maintain their current combined staffing levels. To enhance the independence and local control of CTWS and its Connecticut utilities, the new application provides that each of their boards of directors will have a majority of independent directors and a majority of directors who reside in New England. SJW Group has also committed to certain “ring-fencing” measures to enhance CTWS’s separateness from SJW Group and to mitigate the risk that CTWS would be negatively impacted in the event of a bankruptcy or other adverse financial developments affecting SJW Group or its current affiliates, including the creation of a special purpose entity to hold SJW Group’s interest in CTWS. In addition, the new application provides that CTWS and its Connecticut utilities will be subject to a limitation on dividends in the event of certain credit rating downgrades or if payment of a dividend could result in CTWS being unable to maintain its weighted average consolidated equity ratio at or above a specified minimum. Additional commitments cover maintenance of Connecticut Water’s headquarters in Connecticut, environmental measures, operational matters, customer service and additional measures to support local control. On July 3, 2019, SJW Group and CTWS entered into a settlement with the Department of Energy and Environmental Protection and the Office of Consumer Counsel which modifies and adds commitments that will provide additional, direct long-term customer and environmental benefits, enhance local control and provide supplemental financial protections to customers. The revised commitments include converting to a one-time credit from a credit paid out over a one-year period, the addition of a customer credit provided to customers over a ten-year period, additional customer protections, numerous environmental commitments that have been enhanced or added and the addition of a most favored nations clause with respect to Maine. Such most favored nations provision would guarantee that any additional commitments made by SJW Group and CTWS to the Maine Public Utilities Commission (“MPUC”) in connection with the Merger application would also be included in the PURA commitments in Connecticut. PURA has scheduled a hearing on July 26, 2019, to review the application and is expected to issue a final decision by September 4, 2019. On December 20, 2018, the 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 intended to file for merger approval with MPUC during the second quarter of 2019. On May 3, 2019 Maine Water Company filed a new application for MPUC approval of the Merger. The application is consistent with the PURA application and Maine Water Company has agreed to regulatory commitments similar and proportional to those made in the PURA application, where applicable. Since May 3, 2019 the parties have engaged in discovery and preliminary settlement negotiations. The Maine Office of Public Advocate has retained a consultant to review the Merger; his testimony was filed on July 10, 2019. In addition, because the prior clearance of the Merger under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the “HSR Act”) was due to expire on April 27, 2019, SJW Group withdrew its prior HSR filing and refiled for clearance under the HSR Act on April 4, 2019. The Federal Trade Commission’s Premerger Notification Office granted early termination of the new HSR Act waiting period on April 15, 2019, extending the expiration to April, 15, 2020. 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 condition and results of operations of SJW Group. For a description of certain risk factors related to the Merger, please see Part II, “Risk Factors” in SJW Group’s Form 10-Q in which these notes to financial statements are included, as well as Item 1A, “Risk Factors” in SJW Group’s Form 10-K for the year ended December 31, 2018. |
Legal Proceedings
Legal Proceedings | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
LEGAL PROCEEDINGS | Legal Proceedings 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 granted the parties’ motion to stay on November 14, 2018. On November 20, 2018, the plaintiffs filed an opening brief in support of their fee application. The initial stay of proceedings expired on February 28, 2019. On March 1, 2019, the court granted the parties’ motion to continue the stay and ordered that the stay was to continue until May 29, 2019. On May 29, 2019, the court granted the parties’ motion to continue the stay and such stay was further extended until September 11, 2019. Pursuant to the agreement in principle to settle the litigation, the complaints will be dismissed at such time when the transaction closes. 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 each case, in the United States District Court for the District of Connecticut against CTWS and the CTWS board of directors. The complaints allege that the preliminary proxy statement issued in connection with the Merger omitted material information in violation of Sections 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 Sections 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. CTWS has entered into an agreement in principle to settle and release all claims that were or could have been alleged by the plaintiffs. The settlements provide for the dismissal of the actions subject to, among other things, CTWS making certain additional disclosures, which CTWS included in the definitive proxy statement in connection with the Merger. 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 customer credits to customers totaling $2,020 . That amount was refunded to customers pursuant to San Jose Water Company’s Advice Letter No. 530, effective February 8, 2019. See discussion on the matter in Note 8, “Regulatory Rate Filings.” On July 24, 2019, San Jose Water Company and CPED jointly filed a motion for CPUC approval of a Settlement Agreement (“Agreement”) over San Jose Water Company’s past customer billing practices. The Agreement requires the company to pay approximately $2,100 in customer credits, consisting of $1,757 for refunds during the period from 1987 to 2011 and an additional $350 in customer credits to low income water customers, and invest $5,000 in utility plant that is not allowed an investment return or rate recovery. San Jose Water Company has recorded the $2,100 customer credit expense as an offset to revenues in the accompanying June 30, 2019, Condensed Consolidated Statements of Comprehensive Income. The $5,000 commitment to invest in utility plant will be recognized as plant in service on the company’s financial statements once invested. The Agreement is subject to final approval by the CPUC which is expected in the third quarter of 2019. 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. |
General (Policies)
General (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting, Policy | The unaudited interim financial information has been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and in accordance with the instructions for Form 10-Q and Rule 10-01 of Regulation S-X promulgated by the Securities and Exchange Commission (the “SEC”). The Notes to Consolidated Financial Statements in SJW Group’s 2018 Annual Report on Form 10-K should be read with the accompanying unaudited condensed consolidated financial statements. |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Recently Adopted Accounting Pronouncements In February 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-02, “Leases (Topic 842),” as amended, which supersedes the lease requirements in “Leases (Topic 840).” This ASU generally requires lessees to recognize operating and financing lease liabilities and corresponding right-of-use assets on the Consolidated Balance Sheets and to provide enhanced disclosures surrounding the amount, timing and uncertainty of cash flows arising from leasing arrangements. ASU 2016-02 also makes some changes to lessor accounting and aligns with the new revenue recognition guidance. SJW Group adopted the new standard effective January 1, 2019, on a modified retrospective basis and did not restate comparative periods. SJW Group also elected the package of practical expedients permitted under the transition guidance and combined lease and non-lease components. In addition, SJW Group kept leases with an initial term of 12 months or less off the Consolidated Balance Sheets and recognized the associated lease payments in the Consolidated Statements of Comprehensive Income on a straight-line basis over the lease term. The adoption of this standard did not have a material impact on SJW Group’s consolidated financial statements. |
Revenue Recognition, Policy | Revenue Water sales are seasonal in nature and influenced by weather conditions. The timing of precipitation and climatic conditions can cause seasonal water consumption by customers to vary significantly. Due to the seasonal nature of the water business, the operating results for interim periods are not indicative of the operating results for a 12-month period. Revenue is generally higher in the warm, dry summer months when water usage and sales are greater, and lower in the winter months when cooler temperatures and increased rainfall curtail water usage and sales. 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. The Santa Clara Valley Water District (“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. Further, SCVWD has maintained a conservation target of 20% . In 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 California Public Utilities Commission (“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 Water Conservation Memorandum Account (“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 Accounting Standards Codification (“ASC”) Topic 980 - “Regulated Operations,” subtopic 605-25 are met. For further discussion, please see Note 8 and Note 9. The major streams of revenue for SJW Group are as follows: Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Revenue from contracts with customers $ 104,299 98,443 $ 183,227 174,312 Alternative revenue programs, net - WCMA (327 ) 3,933 (2,306 ) 3,601 Other balancing and memorandum accounts revenue, net (2,376 ) (4,611 ) (3,009 ) (6,447 ) Rental income 1,369 1,321 2,735 2,662 $ 102,965 99,086 $ 180,647 174,128 |
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 period. 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 restricted common stock awards under SJW Group’s Long-Term Incentive Plan (as amended, the “Incentive Plan”) and shares potentially issuable under the Employee Stock Purchase Plan (“ESPP”). |
Utility Plant Depreciation, Policy | A portion of depreciation expense is allocated to administrative and general expense. |
General Revenue (Tables)
General Revenue (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Major Streams of Revenue | The major streams of revenue for SJW Group are as follows: Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Revenue from contracts with customers $ 104,299 98,443 $ 183,227 174,312 Alternative revenue programs, net - WCMA (327 ) 3,933 (2,306 ) 3,601 Other balancing and memorandum accounts revenue, net (2,376 ) (4,611 ) (3,009 ) (6,447 ) Rental income 1,369 1,321 2,735 2,662 $ 102,965 99,086 $ 180,647 174,128 |
Equity Plans (Tables)
Equity Plans (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 any stock options and similar instruments and the tax benefit realized from any 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 three and six months ended June 30, 2019 , and 2018 . Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Adjustments to additional paid-in capital and common stock for: Compensation costs charged to income: ESPP $ — — $ 143 115 Restricted stock and deferred restricted stock 718 392 1,461 764 Total compensation costs charged to income $ 718 392 $ 1,604 879 ESPP proceeds $ — — $ 811 653 |
Real Estate Investments (Tables
Real Estate Investments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Real Estate Investments, Net [Abstract] | |
Schedule of Real Estate Investments | The major components of real estate investments as of June 30, 2019 , and December 31, 2018 , are as follows: June 30, December 31, Land $ 13,262 13,262 Buildings and improvements 43,211 43,074 Subtotal 56,473 56,336 Less: accumulated depreciation and amortization 12,925 12,327 Total $ 43,548 44,009 |
Defined Benefit Plan (Tables)
Defined Benefit Plan (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | The components of net periodic benefit cost have been recorded in the consolidated statements of comprehensive income as follows: Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Other production expenses $ 370 426 $ 740 849 Administrative and general expense 851 902 1,689 1,797 Maintenance expense 271 279 542 557 Pension non-service costs 907 595 1,828 1,178 $ 2,399 2,202 $ 4,799 4,381 The components of net periodic benefit costs for San Jose Water Company’s retirement plan, its Executive Supplemental Retirement Plan, Cash Balance Executive Supplemental Retirement Plan and Social Welfare Plan for the three and six months ended June 30, 2019 , and 2018 are as follows: Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Service cost $ 1,479 1,607 $ 2,958 3,203 Interest cost 2,113 1,876 4,225 3,753 Other cost 1,117 1,145 2,235 2,278 Expected return on assets (2,310 ) (2,426 ) (4,619 ) (4,853 ) $ 2,399 2,202 $ 4,799 4,381 |
Schedule of Allocation of Plan Assets | The following tables summarize the fair values of plan assets by major categories as of June 30, 2019 , and December 31, 2018 : Fair Value Measurements at June 30, 2019 Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Significant Unobservable Inputs Asset Category Benchmark Total (Level 1) (Level 2) (Level 3) Cash and cash equivalents — $ 7,723 $ 7,723 $ — $ — Actively Managed (a): All Cap Equity Russell 3000 Value 6,461 6,426 35 — U.S. Large Cap Equity Russell 1000, Russell 1000 Growth, Russell 1000 Value 57,375 57,375 — — U.S. Mid Cap Equity Russell Mid Cap, Russell Mid Cap Growth, Russell Mid Cap Value 10,202 10,202 — — U.S. Small Cap Equity Russell 2000, Russell 2000 Growth, Russell 2000 Value 10,385 10,385 — — Non-U.S. Large Cap Equity MSCI EAFE 5,767 5,767 — — REIT NAREIT - Equity REIT’S 7,137 — 7,137 — Fixed Income (b) (b) 47,489 — 47,489 — Total $ 152,539 $ 97,878 $ 54,661 $ — 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 and cash 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, 2018 Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Significant Unobservable Inputs Asset Category Benchmark Total (Level 1) (Level 2) (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 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 and cash 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. |
Segment and Non-Tariffed Busi_2
Segment and Non-Tariffed Business Reporting (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 Three Months Ended June 30, 2019 Water Utility Services Real Estate Services All Other* SJW Group Regulated Non-tariffed Non-tariffed Non-tariffed Regulated Non-tariffed Total Operating revenue $ 99,773 1,823 1,369 — 99,773 3,192 102,965 Operating expense 75,564 1,356 1,008 3,066 75,564 5,430 80,994 Operating income (loss) 24,209 467 361 (3,066 ) 24,209 (2,238 ) 21,971 Net income (loss) 13,662 336 662 (1,122 ) 13,662 (124 ) 13,538 Depreciation and amortization 14,698 105 298 — 14,698 403 15,101 Senior note and other interest expense 6,170 — — 544 6,170 544 6,714 Income tax expense (benefit) in net income 4,154 130 220 (312 ) 4,154 38 4,192 Assets $ 1,537,404 6,149 46,510 413,587 1,537,404 466,246 2,003,650 For Three Months Ended June 30, 2018 Water Utility Services Real Estate Services All Other* SJW Group Regulated Non-tariffed Non-tariffed Non-tariffed Regulated Non-tariffed Total Operating revenue $ 95,798 1,967 1,321 — 95,798 3,288 99,086 Operating expense 70,642 1,278 891 3,476 70,642 5,645 76,287 Operating income (loss) 25,156 689 430 (3,476 ) 25,156 (2,357 ) 22,799 Net income (loss) 15,022 497 296 (2,944 ) 15,022 (2,151 ) 12,871 Depreciation and amortization 13,272 85 299 — 13,272 384 13,656 Senior note, mortgage and other interest expense 5,540 — — 544 5,540 544 6,084 Income tax expense (benefit) in net income 4,650 193 92 (867 ) 4,650 (582 ) 4,068 Assets $ 1,449,714 3,768 46,756 (117 ) 1,449,714 50,407 1,500,121 For Six Months Ended June 30, 2019 Water Utility Services Real Estate Services All Other* SJW Group Regulated Non-tariffed Non-tariffed Non-tariffed Regulated Non-tariffed Total Operating revenue $ 174,920 2,992 2,735 — 174,920 5,727 180,647 Operating expense 136,149 2,197 1,899 6,023 136,149 10,119 146,268 Operating income (loss) 38,771 795 836 (6,023 ) 38,771 (4,392 ) 34,379 Net income (loss) 19,762 572 980 (1,903 ) 19,762 (351 ) 19,411 Depreciation and amortization 29,447 202 597 — 29,447 799 30,246 Senior note and other interest expense 11,390 — — 1,115 11,390 1,115 12,505 Income tax expense (benefit) in net income 6,230 222 350 (565 ) 6,230 7 6,237 Assets $ 1,537,404 6,149 46,510 413,587 1,537,404 466,246 2,003,650 For Six Months Ended June 30, 2018 Water Utility Services Real Estate Services All Other* SJW Group Regulated Non-tariffed Non-tariffed Non-tariffed Regulated Non-tariffed Total Operating revenue $ 168,151 3,315 2,662 — 168,151 5,977 174,128 Operating expense 132,343 2,166 1,740 7,749 132,343 11,655 143,998 Operating income (loss) 35,808 1,149 922 (7,749 ) 35,808 (5,678 ) 30,130 Net income (loss) 19,817 828 652 (7,141 ) 19,817 (5,661 ) 14,156 Depreciation and amortization 26,473 168 598 — 26,473 766 27,239 Senior note and other interest expense 11,048 — — 1,088 11,048 1,088 12,136 Income tax expense (benefit) in net income 5,142 322 186 (2,162 ) 5,142 (1,654 ) 3,488 Assets $ 1,449,714 3,768 46,756 (117 ) 1,449,714 50,407 1,500,121 * The “All Other” category includes the accounts of SJW Group and Hydro Sub, Inc. on a stand-alone basis. For the three and six months ended June 30, 2019 , and 2018 , Hydro Sub, Inc. had no recorded revenue or expenses and as of June 30, 2019 , and 2018 |
Balancing and Memorandum Acco_2
Balancing and Memorandum Accounts (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Regulated Operations [Abstract] | |
Public Utilities General Disclosures | The amount has been reflected in the tax memorandum account balance shown in the table below. Three months ended June 30, 2019 Three months ended June 30, 2018 Beginning Balance Regulatory Asset Increase (Decrease) Refunds (Collections) Adjustments Ending Balance Beginning Balance Regulatory Asset Increase (Decrease) Refunds (Collections) Adjustments Ending Balance Revenue accounts: 2014-2017 WCMA* $ 6,912 — (1,597 ) 5,315 $ 7,055 220 2 7,277 2018 WCMA* 8,997 (39 ) — 8,958 (708 ) 3,711 — 3,003 2019 WCMA* (752 ) 1,309 — 557 — — — — 2012 General Rate Case true-up 10,152 — (2,421 ) 7,731 11,320 — 4 11,324 Cost of capital memorandum account (1,532 ) (8 ) — (1,540 ) (1,309 ) (198 ) — (1,507 ) Tax memorandum account (6,545 ) (40 ) — (6,585 ) (933 ) (4,563 ) — (5,496 ) All others 6,249 2,031 (1,088 ) 7,192 4,251 422 2 4,675 Total revenue accounts $ 23,481 3,253 (5,106 ) 21,628 $ 19,676 (408 ) 8 19,276 Cost-recovery accounts: Water supply costs 8,217 (1,058 ) (1,247 ) 5,912 8,197 1,190 — 9,387 Pension (1,237 ) 199 805 (233 ) (2,298 ) 161 — (2,137 ) All others 1,015 3 (148 ) 870 — — — — Total cost-recovery accounts $ 7,995 (856 ) (590 ) 6,549 $ 5,899 1,351 — 7,250 Total $ 31,476 2,397 (5,696 ) 28,177 $ 25,575 943 8 26,526 Six months ended June 30, 2019 Six months ended June 30, 2018 Beginning Balance Regulatory Asset Increase (Decrease) Refunds (Collections) Adjustments Ending Balance Beginning Balance Regulatory Asset Increase (Decrease) Refunds (Collections) Adjustments Ending Balance Revenue accounts: 2014-2017 WCMA* $ 7,750 — (2,435 ) 5,315 $ 6,679 596 2 7,277 2018 WCMA* 9,386 (428 ) — 8,958 — 3,003 — 3,003 2019 WCMA* — 557 — 557 — — — — 2012 General Rate Case true-up 11,328 96 (3,693 ) 7,731 11,320 — 4 11,324 Cost of capital memorandum account (1,523 ) (17 ) — (1,540 ) (144 ) (1,363 ) — (1,507 ) Tax memorandum account (6,504 ) (81 ) — (6,585 ) — (5,496 ) — (5,496 ) All others 5,112 3,738 (1,658 ) 7,192 3,851 822 2 4,675 Total revenue accounts $ 25,549 3,865 (7,786 ) 21,628 $ 21,706 (2,438 ) 8 19,276 Cost-recovery accounts: Water supply costs 9,617 (1,803 ) (1,902 ) 5,912 8,679 708 — 9,387 Pension (1,843 ) 383 1,227 (233 ) (2,459 ) 322 — (2,137 ) All others 1,090 6 (226 ) 870 — — — — Total cost-recovery accounts $ 8,864 (1,414 ) (901 ) 6,549 $ 6,220 1,030 — 7,250 Total $ 34,413 2,451 (8,687 ) 28,177 $ 27,926 (1,408 ) 8 26,526 * As of June 30, 2019 , the reserve balance for the 2019 WCMA was $11 which has been included in the balance above. As of June 30, 2019 , and 2018 , the reserve balances for the 2018 WCMA was $174 and $407 , respectively, which has been included in the balances above. As of June 30, 2018 , the reserve balance for the 2017 WCMA was $938 which has been included in the balance above. |
Regulatory Assets and Liabili_2
Regulatory Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Regulatory Assets and Liabilities Disclosure [Abstract] | |
Schedule of Regulatory Assets | Regulatory assets and liabilities are comprised of the following as of June 30, 2019 , and December 31, 2018 : June 30, 2019 December 31, 2018 Regulatory assets: Postretirement pensions and other medical benefits $ 66,233 66,233 Balancing and memorandum accounts, net 28,177 34,413 Other, net 3,240 2,979 Total regulatory assets, net in Consolidated Balance Sheets 97,650 103,625 Less: current regulatory asset, net 15,904 26,910 Total regulatory assets, net, less current portion $ 81,746 76,715 Regulatory liability: Income tax temporary differences, net $ 57,901 59,149 Total regulatory liability in Consolidated Balance Sheets $ 57,901 59,149 |
General - Additional Informatio
General - Additional Information (Details) | Jun. 14, 2016 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Water reduction target goal (percent) | 20.00% |
General - Schedule of Major Str
General - Schedule of Major Streams of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Revenue from contracts with customers | $ 104,299 | $ 98,443 | $ 183,227 | $ 174,312 |
Alternative revenue programs, net - WCMA | (327) | 3,933 | (2,306) | 3,601 |
Other balancing and memorandum accounts revenue, net | (2,376) | (4,611) | (3,009) | (6,447) |
Rental income | 1,369 | 1,321 | 2,735 | 2,662 |
Total revenues | $ 102,965 | $ 99,086 | $ 180,647 | $ 174,128 |
General - Earnings Per Share (D
General - Earnings Per Share (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Restricted Stock and Stock Options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive restricted common stock units excluded from computation of earnings per share (shares) | 2,217 | 2,094 | 9,634 | 3,256 |
General - Depreciation (Details
General - Depreciation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
General and Administrative Expense | ||||
Public Utility, Property, Plant and Equipment [Line Items] | ||||
Depreciation | $ 673 | $ 572 | $ 1,330 | $ 1,150 |
Equity Plans (Details)
Equity Plans (Details) $ / shares in Units, $ in Thousands | Apr. 24, 2019$ / sharesshares | Jan. 29, 2019$ / sharesshares | Jan. 02, 2019vesting_installment$ / sharesshares | Jun. 30, 2019USD ($)shares | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)shares | Jun. 30, 2018USD ($) | Mar. 14, 2018$ / shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Compensation costs charged to income: | $ | $ 718 | $ 392 | $ 1,604 | $ 879 | ||||
Restricted stock and deferred restricted stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Compensation costs charged to income: | $ | 718 | 392 | $ 1,461 | 764 | ||||
Recognition period for unrecognized compensation cost | 1 year 5 months 1 day | |||||||
Unrecognized compensation costs | $ | $ 4,138 | $ 4,138 | ||||||
Key officers | Restricted Stock Units (RSUs) | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of equity instruments granted (shares) | 17,451 | |||||||
Number of equal successive installments for vesting of stock awards (vesting installments) | vesting_installment | 3 | |||||||
Grant date fair value of equity instruments granted (usd per share) | $ / shares | $ 51.28 | |||||||
Key officers | Performance Shares | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of equity instruments granted (shares) | 9,882 | |||||||
Key officers | Performance Shares | Minimum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Target vesting percentage | 0.00% | |||||||
Key officers | Performance Shares | Maximum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Target vesting percentage | 150.00% | |||||||
Key officers | Performance Shares 2 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of equity instruments granted (shares) | 9,043 | |||||||
Grant date fair value of equity instruments granted (usd per share) | $ / shares | $ 54.84 | |||||||
Key officers | Performance Shares 2 | Minimum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Target vesting percentage | 0.00% | |||||||
Key officers | Performance Shares 2 | Maximum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Target vesting percentage | 150.00% | |||||||
Key officers | Performance Shares 3 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of equity instruments granted (shares) | 9,437 | |||||||
Grant date fair value of equity instruments granted (usd per share) | $ / shares | $ 70.47 | |||||||
Key officers | Performance Shares 3 | Minimum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Target vesting percentage | 0.00% | |||||||
Key officers | Performance Shares 3 | Maximum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Target vesting percentage | 200.00% | |||||||
Director [Member] | Performance Shares 3 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of equity instruments granted (shares) | 9,114 | |||||||
Grant date fair value of equity instruments granted (usd per share) | $ / shares | $ 60.30 | |||||||
Incentive Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Remaining shares available for issuance under the Incentive Plan (shares) | 823,597 | 823,597 | ||||||
Shares issuable upon exercise of Incentive Plan awards (shares) | 157,063 | |||||||
Employee Stock Purchase Plan (ESPP) | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Compensation costs charged to income: | $ | $ 0 | 0 | $ 143 | 115 | ||||
ESPP proceeds | $ | $ 0 | 0 | $ 811 | 653 | ||||
Purchase price of common stock under ESPP (percent) | 85.00% | |||||||
Maximum percentage of base compensation employees can designate for stock purchases under ESPP (percent) | 10.00% | 10.00% | ||||||
Plan expense | $ | $ 65 | $ 62 | $ 141 | $ 132 | ||||
Unrecognized compensation costs | $ | $ 25 | $ 25 | ||||||
Employee Stock Purchase Plan (ESPP) | Common Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares authorized for issuance under the plan (shares) | 400,000 | 400,000 | ||||||
CTWS [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Business Combination, Consideration Transferred, Acquiree's Common Shares Converted In Cash Per Share | $ / shares | $ 70 | |||||||
Share-based Compensation Award, Tranche One [Member] | Key officers | Performance Shares | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Grant date fair value of equity instruments granted (usd per share) | $ / shares | $ 57.12 | |||||||
Share-based Compensation Award, Tranche Two [Member] | Key officers | Performance Shares | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Grant date fair value of equity instruments granted (usd per share) | $ / shares | $ 55.97 |
Real Estate Investments (Detail
Real Estate Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Schedule of Investments [Line Items] | |||||
Land | $ 13,262 | $ 13,262 | $ 13,262 | ||
Buildings and improvements | 43,211 | 43,211 | 43,074 | ||
Subtotal | 56,473 | 56,473 | 56,336 | ||
Less accumulated depreciation and amortization | 12,925 | 12,925 | 12,327 | ||
Total | 43,548 | 43,548 | $ 44,009 | ||
Restricted Cash | $ 750 | $ 750 | |||
Proceeds from Sale of Real Estate Held-for-investment | 745 | ||||
Ownership Percentage by Parent | 70.00% | 70.00% | |||
Gain on sale of real estate investments | 745 | $ 0 | $ 745 | $ 0 | |
Minimum | |||||
Schedule of Investments [Line Items] | |||||
Estimated useful life | 7 years | ||||
Maximum | |||||
Schedule of Investments [Line Items] | |||||
Estimated useful life | 39 years | ||||
Parent [Member] | |||||
Schedule of Investments [Line Items] | |||||
Gain on sale of real estate investments | 521 | ||||
Noncontrolling Interest [Member] | |||||
Schedule of Investments [Line Items] | |||||
Gain on sale of real estate investments | $ 224 |
Defined Benefit Plan (Details)
Defined Benefit Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | ||||
Net Periodic Benefit Cost - Comprehensive Income Presentation [Abstract] | ||||||||
Other production expenses | $ 370 | $ 426 | $ 740 | $ 849 | ||||
Administrative and general expense | 851 | 902 | 1,689 | 1,797 | ||||
Maintenance expense | 271 | 279 | 542 | 557 | ||||
Pension non-service costs | 907 | 595 | 1,828 | 1,178 | ||||
Components of Net Periodic Benefit Cost [Abstract] | ||||||||
Service cost | 1,479 | 1,607 | 2,958 | 3,203 | ||||
Interest cost | 2,113 | 1,876 | 4,225 | 3,753 | ||||
Other cost | 1,117 | 1,145 | 2,235 | 2,278 | ||||
Expected return on assets | (2,310) | (2,426) | (4,619) | (4,853) | ||||
Net periodic benefit cost | 2,399 | $ 2,202 | 4,799 | $ 4,381 | ||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 152,539 | 152,539 | $ 133,459 | |||||
Employer Contributions [Abstract] | ||||||||
Estimated employer contributions for the current fiscal year | 8,337 | 8,337 | ||||||
Defined Contribution Plan, Employer Discretionary Contribution Amount | 2,294 | |||||||
Quoted Prices in Active Markets for Identical Assets | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 97,878 | 97,878 | 82,677 | |||||
Significant Observable Inputs | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 54,661 | 54,661 | 50,782 | |||||
Significant Unobservable Inputs | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | $ 0 | $ 0 | 0 | |||||
Equity Securities [Member] | ||||||||
Plan Assets [Abstract] | ||||||||
Target plan asset allocations | 55.00% | 55.00% | ||||||
Fixed Income Securities | ||||||||
Plan Assets [Abstract] | ||||||||
Target plan asset allocations | 45.00% | 45.00% | ||||||
Cash and cash equivalents | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | $ 7,723 | $ 7,723 | 8,136 | |||||
Cash and cash equivalents | Quoted Prices in Active Markets for Identical Assets | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 7,723 | 7,723 | 8,136 | |||||
Cash and cash equivalents | Significant Observable Inputs | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 0 | 0 | 0 | |||||
Cash and cash equivalents | Significant Unobservable Inputs | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 0 | 0 | 0 | |||||
Actively Managed | All Cap Equity | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 6,461 | [1] | 6,461 | [1] | 5,670 | [2] | ||
Actively Managed | All Cap Equity | Quoted Prices in Active Markets for Identical Assets | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 6,426 | [1] | 6,426 | [1] | 5,632 | [2] | ||
Actively Managed | All Cap Equity | Significant Observable Inputs | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 35 | [1] | 35 | [1] | 38 | [2] | ||
Actively Managed | All Cap Equity | Significant Unobservable Inputs | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 0 | [1] | 0 | [1] | 0 | [2] | ||
Actively Managed | U.S. Large Cap Equity | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 57,375 | [1] | 57,375 | [1] | 47,040 | [2] | ||
Actively Managed | U.S. Large Cap Equity | Quoted Prices in Active Markets for Identical Assets | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 57,375 | [1] | 57,375 | [1] | 47,040 | [2] | ||
Actively Managed | U.S. Large Cap Equity | Significant Observable Inputs | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 0 | [1] | 0 | [1] | 0 | [2] | ||
Actively Managed | U.S. Large Cap Equity | Significant Unobservable Inputs | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 0 | [1] | 0 | [1] | 0 | [2] | ||
Actively Managed | U.S. Mid Cap Equity | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 10,202 | [1] | 10,202 | [1] | 8,372 | [2] | ||
Actively Managed | U.S. Mid Cap Equity | Quoted Prices in Active Markets for Identical Assets | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 10,202 | [1] | 10,202 | [1] | 8,372 | [2] | ||
Actively Managed | U.S. Mid Cap Equity | Significant Observable Inputs | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 0 | [1] | 0 | [1] | 0 | [2] | ||
Actively Managed | U.S. Mid Cap Equity | Significant Unobservable Inputs | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 0 | [1] | 0 | [1] | 0 | [2] | ||
Actively Managed | U.S. Small Cap Equity | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 10,385 | [1] | 10,385 | [1] | 8,528 | [2] | ||
Actively Managed | U.S. Small Cap Equity | Quoted Prices in Active Markets for Identical Assets | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 10,385 | [1] | 10,385 | [1] | 8,528 | [2] | ||
Actively Managed | U.S. Small Cap Equity | Significant Observable Inputs | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 0 | [1] | 0 | [1] | 0 | [2] | ||
Actively Managed | U.S. Small Cap Equity | Significant Unobservable Inputs | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 0 | [1] | 0 | [1] | 0 | [2] | ||
Actively Managed | Non-U.S. Large Cap Equity | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 5,767 | [1] | 5,767 | [1] | 4,969 | [2] | ||
Actively Managed | Non-U.S. Large Cap Equity | Quoted Prices in Active Markets for Identical Assets | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 5,767 | [1] | 5,767 | [1] | 4,969 | [2] | ||
Actively Managed | Non-U.S. Large Cap Equity | Significant Observable Inputs | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 0 | [1] | 0 | [1] | 0 | [2] | ||
Actively Managed | Non-U.S. Large Cap Equity | Significant Unobservable Inputs | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 0 | [1] | 0 | [1] | 0 | [2] | ||
Actively Managed | REIT | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 7,137 | [1] | 7,137 | [1] | 5,889 | [2] | ||
Actively Managed | REIT | Quoted Prices in Active Markets for Identical Assets | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 0 | [1] | 0 | [1] | 0 | [2] | ||
Actively Managed | REIT | Significant Observable Inputs | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 7,137 | [1] | 7,137 | [1] | 5,889 | [2] | ||
Actively Managed | REIT | Significant Unobservable Inputs | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 0 | [1] | 0 | [1] | 0 | [2] | ||
Fixed Income | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 47,489 | [3] | 47,489 | [3] | 44,855 | [4] | ||
Fixed Income | Quoted Prices in Active Markets for Identical Assets | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 0 | [3] | 0 | [3] | 0 | [4] | ||
Fixed Income | Significant Observable Inputs | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | 47,489 | [3] | 47,489 | [3] | 44,855 | [4] | ||
Fixed Income | Significant Unobservable Inputs | ||||||||
Plan Assets [Abstract] | ||||||||
Fair value of plan assets | $ 0 | [3] | $ 0 | [3] | $ 0 | [4] | ||
[1] | Actively managed portfolio of securities with the goal to exceed the stated benchmark performance. | |||||||
[2] | Actively managed portfolio of securities with the goal to exceed the stated benchmark performance. | |||||||
[3] | 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. | |||||||
[4] | 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. |
Segment and Non-Tariffed Busi_3
Segment and Non-Tariffed Business Reporting (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)subsidiaryreportable_segment | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | ||
Segment Reporting Information [Line Items] | ||||||
Number of subsidiaries | subsidiary | 4 | |||||
Number of reportable business segments | reportable_segment | 2 | |||||
Operating revenue | $ 102,965 | $ 99,086 | $ 180,647 | $ 174,128 | ||
Operating expense | 80,994 | 76,287 | 146,268 | 143,998 | ||
Operating income (loss) | 21,971 | 22,799 | 34,379 | 30,130 | ||
Net income (loss) | 13,538 | 12,871 | 19,411 | 14,156 | ||
Depreciation and amortization | 15,101 | 13,656 | 30,246 | 27,239 | ||
Senior note and other interest expense | 6,714 | 6,084 | 12,505 | 12,136 | ||
Income tax expense (benefit) in net income | 4,192 | 4,068 | 6,237 | 3,488 | ||
Assets | 2,003,650 | 1,500,121 | 2,003,650 | 1,500,121 | $ 1,956,389 | |
Water Utility Services | Regulated | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating revenue | 99,773 | 95,798 | 174,920 | 168,151 | ||
Operating expense | 75,564 | 70,642 | 136,149 | 132,343 | ||
Operating income (loss) | 24,209 | 25,156 | 38,771 | 35,808 | ||
Net income (loss) | 13,662 | 15,022 | 19,762 | 19,817 | ||
Depreciation and amortization | 14,698 | 13,272 | 29,447 | 26,473 | ||
Senior note and other interest expense | 6,170 | 5,540 | 11,390 | 11,048 | ||
Income tax expense (benefit) in net income | 4,154 | 4,650 | 6,230 | 5,142 | ||
Assets | 1,537,404 | 1,449,714 | 1,537,404 | 1,449,714 | ||
Water Utility Services | Non-tariffed | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating revenue | 1,823 | 1,967 | 2,992 | 3,315 | ||
Operating expense | 1,356 | 1,278 | 2,197 | 2,166 | ||
Operating income (loss) | 467 | 689 | 795 | 1,149 | ||
Net income (loss) | 336 | 497 | 572 | 828 | ||
Depreciation and amortization | 105 | 85 | 202 | 168 | ||
Senior note and other interest expense | 0 | 0 | 0 | 0 | ||
Income tax expense (benefit) in net income | 130 | 193 | 222 | 322 | ||
Assets | 6,149 | 3,768 | 6,149 | 3,768 | ||
Real Estate Services | Non-tariffed | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating revenue | 1,369 | 1,321 | 2,735 | 2,662 | ||
Operating expense | 1,008 | 891 | 1,899 | 1,740 | ||
Operating income (loss) | 361 | 430 | 836 | 922 | ||
Net income (loss) | 662 | 296 | 980 | 652 | ||
Depreciation and amortization | 298 | 299 | 597 | 598 | ||
Senior note and other interest expense | 0 | 0 | 0 | 0 | ||
Income tax expense (benefit) in net income | 220 | 92 | 350 | 186 | ||
Assets | 46,510 | 46,756 | 46,510 | 46,756 | ||
All Other | Non-tariffed | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating revenue | [1] | 0 | 0 | 0 | 0 | |
Operating expense | [1] | 3,066 | 3,476 | 6,023 | 7,749 | |
Operating income (loss) | [1] | (3,066) | (3,476) | (6,023) | (7,749) | |
Net income (loss) | [1] | (1,122) | (2,944) | (1,903) | (7,141) | |
Depreciation and amortization | [1] | 0 | 0 | 0 | 0 | |
Senior note and other interest expense | [1] | 544 | 544 | 1,115 | 1,088 | |
Income tax expense (benefit) in net income | [1] | (312) | (867) | (565) | (2,162) | |
Assets | [1] | 413,587 | (117) | 413,587 | (117) | |
SJW Group | Regulated | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating revenue | 99,773 | 95,798 | 174,920 | 168,151 | ||
Operating expense | 75,564 | 70,642 | 136,149 | 132,343 | ||
Operating income (loss) | 24,209 | 25,156 | 38,771 | 35,808 | ||
Net income (loss) | 13,662 | 15,022 | 19,762 | 19,817 | ||
Depreciation and amortization | 14,698 | 13,272 | 29,447 | 26,473 | ||
Senior note and other interest expense | 6,170 | 5,540 | 11,390 | 11,048 | ||
Income tax expense (benefit) in net income | 4,154 | 4,650 | 6,230 | 5,142 | ||
Assets | 1,537,404 | 1,449,714 | 1,537,404 | 1,449,714 | ||
SJW Group | Non-tariffed | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating revenue | 3,192 | 3,288 | 5,727 | 5,977 | ||
Operating expense | 5,430 | 5,645 | 10,119 | 11,655 | ||
Operating income (loss) | (2,238) | (2,357) | (4,392) | (5,678) | ||
Net income (loss) | (124) | (2,151) | (351) | (5,661) | ||
Depreciation and amortization | 403 | 384 | 799 | 766 | ||
Senior note and other interest expense | 544 | 544 | 1,115 | 1,088 | ||
Income tax expense (benefit) in net income | 38 | (582) | 7 | (1,654) | ||
Assets | $ 466,246 | $ 50,407 | $ 466,246 | $ 50,407 | ||
[1] | * The “All Other” category includes the accounts of SJW Group and Hydro Sub, Inc. on a stand-alone basis |
Long-Term Liabilities and Ban_2
Long-Term Liabilities and Bank Borrowings Long-Term Liabilities and Bank Borrowings (Details) $ in Thousands | Mar. 28, 2019USD ($) |
Long-Term Liabilities and Bank Borrowings [Abstract] | |
Principal Debt Sold | $ 80,000 |
Debt Instrument, Interest Rate, Stated Percentage | 4.29% |
Fair Value Measurement (Details
Fair Value Measurement (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term debt | $ 510,859 | $ 510,859 | $ 431,424 | ||
Unrealized gain (loss) on California Water Service Group stock | 0 | $ 140 | 0 | $ (527) | |
Available for Sale Marketable Security, Shares Sold | 17,660 | ||||
Proceeds from sale of California Water Service Group stock | 0 | $ 714 | |||
Fees Incurred on Sale of Available for Sale Securities | 2 | ||||
Gain (loss) on sale of California Water Service Group stock | (87) | ||||
Available for Sales Securities, Tax on Realized Gain | (24) | ||||
Debt and Equity Securities, Gain (Loss) | $ (63) | ||||
Significant Observable Inputs | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term debt, fair value | $ 592,728 | $ 592,728 | $ 490,148 |
Regulatory Rate Filings (Detail
Regulatory Rate Filings (Details) - USD ($) | Apr. 08, 2019 | Apr. 01, 2019 | Mar. 19, 2019 | Jan. 01, 2019 | Sep. 14, 2018 | Jun. 30, 2019 | Jul. 26, 2019 | Jun. 19, 2019 | Mar. 29, 2019 | Feb. 08, 2019 | Jan. 04, 2018 | Jun. 06, 2017 |
Public Utilities, General Disclosures [Line Items] | ||||||||||||
Regulatory Rate Filings, Requested Rate Increase, Year One | $ 34,288,000 | |||||||||||
Regulatory Rate Filings, Requested Rate Increase as Percentage of Total Revenue at Time of Request, Year One | 9.76% | |||||||||||
Regulatory Rate Filings, Requested Rate Increase, Year Two | $ 14,232,000 | |||||||||||
Regulatory Rate Filings, Proposed Rate Increase, Percent of Authorized Revenue, Year Two | 3.70% | |||||||||||
Regulatory Rate Filings, Requested Rate Increase, Year Three | $ 20,582,000 | |||||||||||
Regulatory Rate Filings, Requested Rate Increase, Percent of Authorized Revenue, Year Three | 5.17% | |||||||||||
Memorandum Account, Requested Recovery | $ 20,725,000 | |||||||||||
CPED Calculated Double-Billing Refund | $ 4,935,000 | |||||||||||
Public Utilities, Approved Reimbursement Fee, Percentage | 1.23% | 1.40% | ||||||||||
Minimum | ||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||
CPED Proposed Penalty, Per Offense, Per Day | 500 | |||||||||||
Maximum | ||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||
CPED Proposed Penalty, Per Offense, Per Day | 50,000 | |||||||||||
Advice Letter No. 528/528A [Member] | ||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||
Public Utilities, Approved Rate Decrease, Amount | $ 16,378,000 | |||||||||||
Public Utilities, Approved Rate Increase (Decrease), Percentage | 4.55% | |||||||||||
Approved Balancing and Memorandum Accounts, Net | $ 27,045,000 | |||||||||||
Decision No. 19-06-010 [Member] | ||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||
Approved Balancing and Memorandum Accounts, Net | $ 1,243,000 | |||||||||||
Advice Letter No. 510 [Member] | ||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||
Requested Service Charge Refund | $ 1,794,000 | |||||||||||
Advice Letter No. 530 [Member] | ||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||
Approved Service Charge Refund | $ 2,020,000 | |||||||||||
CPED Calculated Refund 2014-2016 | ||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||
CPED Calculated Service Charge Refund | 2,061,000 | |||||||||||
CPED Calculated Refund 1987-2013 | ||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||
CPED Calculated Service Charge Refund | $ 1,990,000 | |||||||||||
CPED Calculated Refund 1987-2011 [Member] | ||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||
CPED Calculated Service Charge Refund | $ 1,757,000 | $ 1,847,000 | ||||||||||
2018 WCMA [Member] | Advice Letter No. 532 [Member] | ||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||
Memorandum Account, Requested Recovery | $ 9,020,000 | |||||||||||
Subsequent Event [Member] | OII No. 18-09-003 Settlement Agreement [Member] | ||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||
Customer Credit Refund | $ 350,000 | |||||||||||
Utility Plant Investment Commitment | 5,000,000 | |||||||||||
Subsequent Event [Member] | OII No. 18-09-003 Settlement Agreement [Member] | Minimum | ||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||
Customer Credit Refund | 1,757,000 | |||||||||||
Subsequent Event [Member] | OII No. 18-09-003 Settlement Agreement [Member] | Maximum | ||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||
Customer Credit Refund | $ 2,100,000 |
Balancing and Memorandum Acco_3
Balancing and Memorandum Accounts (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Balancing and Memorandum Revenue Account [Roll Forward] | |||||
Beginning Balance | $ 23,481 | $ 19,676 | $ 25,549 | $ 21,706 | |
Regulatory Asset Increase (Decrease) | 3,253 | (408) | 3,865 | (2,438) | |
Refunds (Collections) Adjustments | (5,106) | 8 | (7,786) | 8 | |
Ending Balance | 21,628 | 19,276 | 21,628 | 19,276 | |
Balancing and Memorandum Cost Recovery Account [Roll Forward] | |||||
Beginning Balance | 7,995 | 5,899 | 8,864 | 6,220 | |
Regulatory Asset Increase (Decrease) | (856) | 1,351 | (1,414) | 1,030 | |
Refunds (Collections) Adjustments | (590) | 0 | (901) | 0 | |
Ending Balance | 6,549 | 7,250 | 6,549 | 7,250 | |
Balancing and Memorandum Account [Roll Forward] | |||||
Beginning Balance | 31,476 | 25,575 | 34,413 | 27,926 | |
Regulatory Asset Increase (Decrease) | 2,397 | 943 | 2,451 | (1,408) | |
Refunds (Collections) | (5,696) | 8 | (8,687) | 8 | |
Ending Balance | 28,177 | 26,526 | 28,177 | 26,526 | |
Total balance, net under-collection amount | $ 1,230 | $ 1,230 | |||
Authorized revenue, threshold percentage | 2.00% | 2.00% | |||
2014-2017 WCMA | |||||
Balancing and Memorandum Revenue Account [Roll Forward] | |||||
Beginning Balance | [1] | $ 6,912 | 7,055 | $ 7,750 | 6,679 |
Regulatory Asset Increase (Decrease) | [1] | 0 | 220 | 0 | 596 |
Refunds (Collections) Adjustments | [1] | (1,597) | 2 | (2,435) | 2 |
Ending Balance | [1] | 5,315 | 7,277 | 5,315 | 7,277 |
2018 WCMA | |||||
Public Utilities, General Disclosures [Line Items] | |||||
Regulatory liability, due to sales in excess of authorized usage | 4,118 | 3,410 | |||
Reserve recorded | 94 | 174 | |||
Balancing and Memorandum Revenue Account [Roll Forward] | |||||
Beginning Balance | [1] | 8,997 | (708) | 9,386 | 0 |
Regulatory Asset Increase (Decrease) | [1] | (39) | 3,711 | (428) | 3,003 |
Refunds (Collections) Adjustments | [1] | 0 | 0 | 0 | 0 |
Ending Balance | [1] | 8,958 | 3,003 | 8,958 | 3,003 |
2019 WCMA | |||||
Public Utilities, General Disclosures [Line Items] | |||||
Regulatory liability, due to sales in excess of authorized usage | 1,320 | 568 | |||
Balancing and Memorandum Revenue Account [Roll Forward] | |||||
Beginning Balance | [1] | (752) | 0 | 0 | 0 |
Regulatory Asset Increase (Decrease) | [1] | 1,309 | 0 | 557 | 0 |
Refunds (Collections) Adjustments | [1] | 0 | 0 | 0 | 0 |
Ending Balance | [1] | 557 | 0 | 557 | 0 |
2012 General Rate Case true-up | |||||
Balancing and Memorandum Revenue Account [Roll Forward] | |||||
Beginning Balance | 10,152 | 11,320 | 11,328 | 11,320 | |
Regulatory Asset Increase (Decrease) | 0 | 0 | 96 | 0 | |
Refunds (Collections) Adjustments | (2,421) | 4 | (3,693) | 4 | |
Ending Balance | 7,731 | 11,324 | 7,731 | 11,324 | |
Cost of capital memorandum account | |||||
Balancing and Memorandum Revenue Account [Roll Forward] | |||||
Beginning Balance | (1,532) | (1,309) | (1,523) | (144) | |
Regulatory Asset Increase (Decrease) | (8) | (198) | (17) | (1,363) | |
Refunds (Collections) Adjustments | 0 | 0 | 0 | 0 | |
Ending Balance | (1,540) | (1,507) | (1,540) | (1,507) | |
Tax memorandum account | |||||
Balancing and Memorandum Revenue Account [Roll Forward] | |||||
Beginning Balance | (6,545) | (933) | (6,504) | 0 | |
Regulatory Asset Increase (Decrease) | (40) | (4,563) | (81) | (5,496) | |
Refunds (Collections) Adjustments | 0 | 0 | 0 | 0 | |
Ending Balance | (6,585) | (5,496) | (6,585) | (5,496) | |
All others | |||||
Balancing and Memorandum Revenue Account [Roll Forward] | |||||
Beginning Balance | 6,249 | 4,251 | 5,112 | 3,851 | |
Regulatory Asset Increase (Decrease) | 2,031 | 422 | 3,738 | 822 | |
Refunds (Collections) Adjustments | (1,088) | 2 | (1,658) | 2 | |
Ending Balance | 7,192 | 4,675 | 7,192 | 4,675 | |
Balancing and Memorandum Cost Recovery Account [Roll Forward] | |||||
Beginning Balance | 1,015 | 0 | 1,090 | 0 | |
Regulatory Asset Increase (Decrease) | 0 | 6 | 0 | ||
Refunds (Collections) Adjustments | 0 | (226) | 0 | ||
Ending Balance | 870 | 0 | 870 | 0 | |
Water supply costs | |||||
Balancing and Memorandum Cost Recovery Account [Roll Forward] | |||||
Beginning Balance | 8,217 | 8,197 | 9,617 | 8,679 | |
Regulatory Asset Increase (Decrease) | (1,058) | 1,190 | (1,803) | 708 | |
Refunds (Collections) Adjustments | (1,247) | 0 | (1,902) | 0 | |
Ending Balance | 5,912 | 9,387 | 5,912 | 9,387 | |
Pension | |||||
Balancing and Memorandum Cost Recovery Account [Roll Forward] | |||||
Beginning Balance | (1,237) | (2,298) | (1,843) | (2,459) | |
Regulatory Asset Increase (Decrease) | 199 | 161 | 383 | 322 | |
Refunds (Collections) Adjustments | 805 | 0 | 1,227 | 0 | |
Ending Balance | (233) | (2,137) | (233) | (2,137) | |
2018 WCMA Reserve Recorded | |||||
Public Utilities, General Disclosures [Line Items] | |||||
WCMA Reserve | 174 | 407 | 174 | 407 | |
Regulatory liability, due to sales in excess of authorized usage | 0 | 407 | |||
2017 WCMA Reserve Recorded | |||||
Public Utilities, General Disclosures [Line Items] | |||||
WCMA Reserve | $ 938 | $ 938 | |||
2019 WCMA Reserve Recorded | |||||
Public Utilities, General Disclosures [Line Items] | |||||
WCMA Reserve | 11 | 11 | |||
Regulatory liability, due to sales in excess of authorized usage | $ 0 | $ 11 | |||
[1] | As of June 30, 2019 , the reserve balance for the 2019 WCMA was $11 which has been included in the balance above. As of June 30, 2019 , and 2018 , the reserve balances for the 2018 WCMA was $174 and $407 , respectively, which has been included in the balances above. As of June 30, 2018 , the reserve balance for the 2017 WCMA was $938 which has been included in the balance above. |
Regulatory Assets and Liabili_3
Regulatory Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Regulatory Assets [Line Items] | ||
Net Regulatory Assets | $ 97,650 | $ 103,625 |
Less: current regulatory asset, net | 15,904 | 26,910 |
Total regulatory assets, net, less current portion | 81,746 | 76,715 |
Total regulatory liability in Consolidated Balance Sheets | 57,901 | 59,149 |
Deferred Income Tax Charge [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory Liabilities | 57,901 | 59,149 |
Postretirement pensions and other medical benefits | ||
Regulatory Assets [Line Items] | ||
Regulatory assets: | 66,233 | 66,233 |
Balancing and memorandum accounts, net | ||
Regulatory Assets [Line Items] | ||
Regulatory assets: | 28,177 | 34,413 |
Other, net | ||
Regulatory Assets [Line Items] | ||
Regulatory assets: | $ 3,240 | $ 2,979 |
SJW Group and Connecticut Water
SJW Group and Connecticut Water Service Merger Agreement (Details) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
Business Combinations [Abstract] | ||
SJW Group common stock, par value (usd per share) | $ 0.001 | $ 0.001 |
Legal Proceedings Narrative (De
Legal Proceedings Narrative (Details) - USD ($) $ in Thousands | Jul. 26, 2019 | Feb. 08, 2019 |
Advice Letter No. 530 [Member] | ||
Loss Contingencies [Line Items] | ||
Approved Service Charge Refund | $ 2,020 | |
Subsequent Event [Member] | OII No. 18-09-003 Settlement Agreement [Member] | ||
Loss Contingencies [Line Items] | ||
Customer Credit Refund | $ 350 | |
Utility Plant Investment Commitment | 5,000 | |
Maximum | Subsequent Event [Member] | OII No. 18-09-003 Settlement Agreement [Member] | ||
Loss Contingencies [Line Items] | ||
Customer Credit Refund | 2,100 | |
Minimum | Subsequent Event [Member] | OII No. 18-09-003 Settlement Agreement [Member] | ||
Loss Contingencies [Line Items] | ||
Customer Credit Refund | $ 1,757 |