Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 25, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
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 | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Trading Symbol | SJW | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 31,427,284 | |
Entity Central Index Key | 0000766829 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
REVENUE | $ 137,296 | $ 124,302 |
Production Expenses: | ||
Purchased water | 22,418 | 19,217 |
Power | 2,199 | 3,080 |
Groundwater extraction charges | 10,359 | 13,928 |
Other production expenses | 12,043 | 10,123 |
Total production expenses | 47,019 | 46,348 |
Administrative and general | 24,344 | 24,205 |
Maintenance | 6,058 | 6,695 |
Property taxes and other non-income taxes | 8,401 | 8,309 |
Depreciation and amortization | 26,296 | 27,606 |
Gain on sale of nonutility properties | 0 | (5,450) |
Total operating expense | 112,118 | 107,713 |
OPERATING INCOME | 25,178 | 16,589 |
OTHER (EXPENSE) INCOME: | ||
Interest on long-term debt and other interest expense | (15,772) | (13,729) |
Pension non-service cost | (64) | 949 |
Other, net | 3,266 | 995 |
Income before income taxes | 12,608 | 4,804 |
Provision for income taxes | 1,078 | 1,067 |
NET INCOME | 11,530 | 3,737 |
Other comprehensive income (loss), net | 93 | (181) |
COMPREHENSIVE INCOME | $ 11,623 | $ 3,556 |
EARNINGS PER SHARE | ||
Basic (usd per share) | $ 0.37 | $ 0.12 |
Diluted (usd per share) | 0.37 | 0.12 |
DIVIDENDS PER SHARE (usd per share) | $ 0.38 | $ 0.36 |
WEIGHTED AVERAGE SHARES OUTSTANDING | ||
Basic (shares) | 30,936,476 | 30,224,135 |
Diluted (shares) | 31,040,897 | 30,335,974 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Utility plant: | ||
Land | $ 40,820 | $ 39,982 |
Depreciable plant and equipment | 3,706,176 | 3,661,285 |
Construction in progress | 121,309 | 116,851 |
Intangible assets | 35,947 | 35,959 |
Total utility plant | 3,904,252 | 3,854,077 |
Less accumulated depreciation and amortization | 1,250,101 | 1,223,760 |
Net utility plant | 2,654,151 | 2,630,317 |
Real estate investments and nonutility properties | 1,388 | 58,033 |
Less accumulated depreciation and amortization | 190 | 17,158 |
Net real estate investments and nonutility properties | 1,198 | 40,875 |
Cash and cash equivalents: | ||
Cash | 23,333 | 12,344 |
Accounts receivable: | ||
Customers, net of allowances for uncollectible accounts of $5,851 and $5,753 on March 31, 2023 and December 31, 2022, respectively | 56,468 | 59,172 |
Other | 5,145 | 5,560 |
Accrued unbilled utility revenue | 40,437 | 45,722 |
Assets held for sale | 40,850 | 0 |
Prepaid expenses | 11,380 | 9,753 |
Current regulatory assets, net | 10,019 | 16,068 |
Other current assets | 6,216 | 6,095 |
Total current assets | 193,848 | 154,714 |
OTHER ASSETS: | ||
Net regulatory assets, less current portion | 127,339 | 127,275 |
Investments | 15,923 | 14,819 |
Goodwill | 640,311 | 640,311 |
Other | 19,728 | 24,313 |
Total other assets | 803,301 | 806,718 |
Total assets | 3,652,498 | 3,632,624 |
Stockholders’ equity: | ||
Common stock, $0.001 par value; authorized 70,000,000 shares; issued and outstanding shares 31,427,124 on March 31, 2023 and 30,801,912 on December 31, 2022 | 31 | 31 |
Additional paid-in capital | 692,742 | 651,004 |
Retained earnings | 458,142 | 458,356 |
Accumulated other comprehensive income | 1,570 | 1,477 |
Total stockholders’ equity | 1,152,485 | 1,110,868 |
Long-term debt, less current portion | 1,520,362 | 1,491,965 |
Capitalization, long-term debt and equity | 2,672,847 | 2,602,833 |
CURRENT LIABILITIES: | ||
Lines of credit | 72,433 | 159,578 |
Current portion of long-term debt | 44,274 | 4,360 |
Accrued groundwater extraction charges, purchased water and power | 11,739 | 19,707 |
Accounts payable | 25,974 | 29,581 |
Accrued interest | 19,071 | 13,907 |
Accrued payroll | 9,076 | 11,908 |
Income tax payable | 4,608 | 2,696 |
Other current liabilities | 25,790 | 22,913 |
Total current liabilities | 212,965 | 264,650 |
DEFERRED INCOME TAXES | 220,111 | 218,155 |
ADVANCES FOR CONSTRUCTION | 137,668 | 137,696 |
CONTRIBUTIONS IN AID OF CONSTRUCTION | 327,016 | 323,668 |
POSTRETIREMENT BENEFIT PLANS | 55,914 | 59,738 |
OTHER NONCURRENT LIABILITIES | 25,977 | 25,884 |
COMMITMENTS AND CONTINGENCIES | ||
Total capitalization and liabilities | $ 3,652,498 | $ 3,632,624 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
CURRENT ASSETS: | ||
Allowance for uncollectible accounts | $ 5,851 | $ 5,753 |
CAPITALIZATION: | ||
Common stock, par value (usd per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (shares) | 70,000,000 | 70,000,000 |
Common stock, shares issued (shares) | 31,427,124 | 30,801,912 |
Common stock, shares outstanding (shares) | 31,427,124 | 30,801,912 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning balance (in shares) at Dec. 31, 2021 | 30,181,348 | ||||
Beginning balance at Dec. 31, 2021 | $ 1,034,519 | $ 30 | $ 606,392 | $ 428,260 | $ (163) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 3,737 | 3,737 | |||
Unrealized gain (loss) on investment, net of taxes | (181) | (181) | |||
Stock-based compensation | 1,532 | 1,552 | (20) | ||
Issuance of restricted and deferred stock units (in shares) | 37,879 | ||||
Issuance of restricted and deferred stock units | (1,269) | (1,269) | |||
Employee stock purchase plan (in shares) | 17,918 | ||||
Employee stock purchase plan | 1,049 | 1,049 | |||
Common stock issuance, net of costs | (87) | (87) | |||
Dividends paid | (10,882) | (10,882) | |||
Ending balance (in shares) at Mar. 31, 2022 | 30,237,145 | ||||
Ending balance at Mar. 31, 2022 | $ 1,028,418 | $ 30 | 607,637 | 421,095 | (344) |
Beginning balance (in shares) at Dec. 31, 2022 | 30,801,912 | 30,801,912 | |||
Beginning balance at Dec. 31, 2022 | $ 1,110,868 | $ 31 | 651,004 | 458,356 | 1,477 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 11,530 | 11,530 | |||
Unrealized gain (loss) on investment, net of taxes | 93 | 93 | |||
Stock-based compensation | 1,177 | 1,199 | (22) | ||
Issuance of restricted and deferred stock units (in shares) | 38,776 | ||||
Issuance of restricted and deferred stock units | (1,538) | (1,538) | |||
Employee stock purchase plan (in shares) | 16,410 | ||||
Employee stock purchase plan | 1,080 | 1,080 | |||
Common stock issuance, net of costs (in shares) | 570,026 | ||||
Common stock issuance, net of costs | 40,997 | 40,997 | |||
Dividends paid | $ (11,722) | (11,722) | |||
Ending balance (in shares) at Mar. 31, 2023 | 31,427,124 | 31,427,124 | |||
Ending balance at Mar. 31, 2023 | $ 1,152,485 | $ 31 | $ 692,742 | $ 458,142 | $ 1,570 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||
Unrealized income (loss) on investment, tax expense (benefit) | $ 0 | $ 67 |
Dividends per share (usd per share) | $ 0.38 | $ 0.36 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
OPERATING ACTIVITIES: | ||
Net income | $ 11,530 | $ 3,737 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 26,842 | 28,081 |
Deferred income taxes | 1,052 | 2,264 |
Stock-based compensation | 1,199 | 1,552 |
Allowance for equity funds used during construction | (180) | (510) |
Gain on sale of nonutility property | 0 | (5,450) |
Changes in operating assets and liabilities: | ||
Accounts receivable and accrued unbilled utility revenue | 8,177 | 4,311 |
Accounts payable and other current liabilities | (650) | (1,635) |
Accrued groundwater extraction charges, purchased water and power | (7,968) | 2,140 |
Tax receivable and payable, and other accrued taxes | 1,727 | 1,135 |
Postretirement benefits | 1,667 | 1,230 |
Regulatory assets and liabilities excluding income tax temporary differences, net and postretirement benefits | 8,367 | 5,124 |
Other changes, net | (1,156) | 3,315 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 50,607 | 45,294 |
INVESTING ACTIVITIES: | ||
Company-funded | (52,384) | (43,727) |
Contributions in aid of construction | (2,703) | (4,782) |
Payments to retire utility plant, net of salvage | (167) | (1,087) |
Other changes, net | 225 | 154 |
NET CASH USED IN INVESTING ACTIVITIES | (55,029) | (49,442) |
FINANCING ACTIVITIES: | ||
Borrowings on line of credit | 12,238 | 15,377 |
Repayments on line of credit | (99,383) | (2,375) |
Long-term borrowings | 70,000 | 0 |
Repayments of long-term borrowings | (956) | (1,172) |
Issuance of common stock, net of issuance costs | 40,997 | 0 |
Dividends paid | (11,722) | (10,882) |
Receipts of advances and contributions in aid of construction | 5,597 | 10,044 |
Refunds of advances for construction | (589) | (595) |
Other changes, net | (771) | (279) |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 15,411 | 10,118 |
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 10,989 | 5,970 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD | 12,344 | 12,119 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD | 23,333 | 18,089 |
LESS RESTRICTED CASH, END OF PERIOD | 0 | 602 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 23,333 | 17,487 |
Cash paid during the period for: | ||
Interest | 12,062 | 11,127 |
Income taxes | 198 | 165 |
Supplemental disclosure of non-cash activities: | ||
Accrued payables for additions to utility plant | 19,906 | 20,472 |
Utility property installed by developers | $ 656 | $ 546 |
General
General | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [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 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 Notes to Consolidated Financial Statements in SJW Group’s 2022 Annual Report on Form 10-K should be read with the accompanying unaudited condensed consolidated financial statements. SJW Group is a holding company with five wholly-owned subsidiaries: San Jose Water Company (“SJWC”), SJWNE LLC, SJWTX, Inc., SJW Land Company, and SJWTX Holdings, Inc. SJWNE LLC is the holding company for Connecticut Water Service, Inc. (“CTWS”) whose wholly-subsidiaries are The Connecticut Water Company (“Connecticut Water”), The Maine Water Company (“Maine Water”), New England Water Utility Services, Inc. (“NEWUS”), and Chester Realty, Inc. SJWC, Connecticut Water, SJWTX, Inc. doing business as The Texas Water Company (“Texas Water”), Maine Water and NEWUS are referred to as “Water Utility Services”. SJW Land Company and Chester Realty, Inc. are collectively referred to as “Real Estate Services.” 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 precipitation curtail water usage resulting in lower sales. The major streams of revenue for SJW Group are as follows: Three months ended March 31, 2023 2022 Revenue from contracts with customers $ 135,836 121,777 Alternative revenue programs, net (1,391) (1,927) Other balancing and memorandum accounts, net 1,795 2,430 Other regulatory mechanisms, net (391) 666 Rental income 1,447 1,356 $ 137,296 124,302 Real Estate Investments and Nonutility Properties The major components of real estate investments and nonutility properties as of March 31, 2023, and December 31, 2022, are as follows: March 31, December 31, Land $ 918 12,615 Buildings and improvements 470 45,418 Subtotal 1,388 58,033 Less: accumulated depreciation and amortization 190 17,158 Total $ 1,198 40,875 In March 2023, SJW Land Company entered into a broker agreement to sell its warehouse buildings and land property located in Knoxville, Tennessee. The company reclassified the Tennessee properties from held-and-used to held-for-sale at March 31, 2023. The company’s intention is to complete the sale of these assets within a twelve month period. The company recorded the Tennessee properties at the lower of their carrying value or estimated fair value less cost to sell, and also stopped recording depreciation on assets held for sale. The company's broker provided the estimated fair value of the Tennessee properties and we subtracted the estimated costs to sell from that calculated fair value. The resulting net fair value of the Tennessee properties exceeded their carrying value, and accordingly no impairment was recorded. The sale of the Tennessee properties does not represent a strategic shift that has or will have a major effect on SJW Group; therefore, the sale does not qualify for treatment as a discontinued operation. The Tennessee warehouse buildings and land property is included in SJW Group’s “Real Estate Services” reportable segment in Note 9 , “Segment and Non-Tariffed Business Reporting.” The following represents the major components of the Tennessee warehouse building and land property recorded in assets held-for-sale on the condensed consolidated balance sheets as of March 31, 2023: March 31, Land $ 13,170 Buildings and improvements 44,950 Subtotal 58,120 Less: accumulated depreciation and amortization 17,270 Total $ 40,850 On February 15, 2022, the California Public Utilities Commission (“CPUC”) review on a SJWC nonutility property sold in October 2021 was completed and the deferred gain of $5,442 was recognized as gain on sale in the first quarter of 2022. Fair Value Measurement The following instruments are not measured at fair value on SJW Group’s condensed consolidated balance sheets as of March 31, 2023, but require disclosure of their fair values: cash and cash equivalents, accounts receivable and accounts payable. The estimated fair value of such instruments as of March 31, 2023, approximates their carrying value as reported on the condensed consolidated balance sheets. There have been no changes in valuation techniques during the three months ended March 31, 2023. 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 SJW Group’s long-term debt was approximately $1,383,468 and $1,294,354 as of March 31, 2023, and December 31, 2022, 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 long-term debt was $1,564,636 and $1,496,325 as of March 31, 2023, and December 31, 2022, respectively. The fair value of long-term debt would be categorized as Level 2 in the fair value hierarchy. CTWS’s additional retirement benefits under the supplemental executive retirement plans and retirement contracts are funded by investment assets held by a Rabbi Trust. The fair value of the money market funds, mutual funds and fixed income investments in the Rabbi Trust was $2,848 and $2,809 as of March 31, 2023, and December 31, 2022, respectively, and are categorized as Level 1 in the fair value hierarchy. Earnings per Share |
Regulatory Matters
Regulatory Matters | 3 Months Ended |
Mar. 31, 2023 | |
Regulated Operations [Abstract] | |
Regulatory Matters | Regulatory Matters Regulatory assets, net are comprised of the following as of March 31, 2023, and December 31, 2022: March 31, 2023 December 31, 2022 Regulatory assets: Income tax temporary differences, net $ 46,601 43,434 Postretirement pensions and other postretirement benefits 31,021 31,493 Business combinations debt premium, net 16,761 17,396 Monterey Water Revenue Adjustment Mechanism (“MWRAM”) 14,171 10,864 Water Conservation Memorandum Account (“WCMA”) (7,150) (5,039) 2022 General Rate Case Interim Memorandum Account 18,716 20,650 Cost recovery accounts 11,308 16,545 All other balancing and memorandum accounts 3,267 2,749 Water Revenue Adjustment (“WRA”) (7,283) (4,488) Other, net 9,946 9,739 Total regulatory assets, net in Condensed Consolidated Balance Sheets 137,358 143,343 Less: current regulatory assets, net 10,019 16,068 Total regulatory assets, net, less current portion $ 127,339 127,275 SJWC has established balancing accounts for the purpose of tracking the under-collection or over-collection associated with expense changes and revenue authorized by the CPUC to offset those expense changes. In 2022, SJWC’s general rate case decision approved the use of the Full Cost Balancing Account to track the water supply costs and energy consumption. The MWRAM balancing account tracks the difference between the revenue received for actual metered sales through the tiered volumetric rate and the revenue that would have been received with the same actual metered sales if a uniform rate would have been in effect. SJWC 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. The WCMA allows SJWC to track lost revenue, net of related water costs, associated with reduced sales due to water conservation and associated calls for water use reductions. SJWC records the lost revenue captured in the WCMA balancing accounts. Drought surcharges collected are used to offset the revenue losses tracked in the WCMA. All balancing accounts and memorandum accounts not included for recovery or refund in the current general rate case will be reviewed by the CPUC in SJWC’s next general rate case or at the time an individual account balance reaches a threshold of 2% of authorized revenue, whichever occurs first. Connecticut Water has established WRA, a decoupling mechanism, to mitigate risk associated with changes in demand. The WRA is used to reconcile actual water demands with the demands projected in the most recent general rate case and allows the company to implement a surcharge or surcredit as necessary to recover or refund the revenues approved in the general rate case. The WRA allows the company to defer, as a regulatory asset or liability, the amount by which actual revenues deviate from the revenues allowed in the most recent general rate proceedings. As of March 31, 2023, and December 31, 2022, SJW Group’s regulatory assets, net, not earning a return primarily included postretirement pensions and the unfunded amount of other medical benefits, and business combination debt premiums, net. The total amount of regulatory assets, net not earning a return at March 31, 2023, and December 31, 2022, either by interest on the regulatory asset/liability or as a component of rate base at the allowed rate of return was $51,002 and $52,066, respectively. |
Capitalization
Capitalization | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Capitalization | Capitalization In March 2023, SJW Group entered into an Amendment No. 1 to the equity distribution agreement (the “Equity Distribution Agreement”), dated November 17, 2021, between the Company and J.P. Morgan Securities LLC, Janney Montgomery Scott LLC, RBC Capital Markets, LLC and Wells Fargo Securities, LLC (each a “Sales Agent” and, collectively, the “Sales Agents”), pursuant to which the Company increased the aggregate gross sales price of shares of the Company’s common stock, $0.001 par value per share, that may be sold under the Equity Distribution Agreement from $100,000 to $240,000. For the three months ended March 31, 2023, SJW Group issued and sold a total of 547,820 shares of common stock with a weighted average price of $76.10 per share and received approximately $40,997 in net proceeds under the Equity Distribution Agreement. Since the inception of the Equity Distribution Agreement, SJW Group has issued and sold 1,432,671 shares of common stock with a weighted average price of $74.46 for a total net proceeds of $104,429 and has $133,323 remaining |
Bank Borrowings and Long-Term L
Bank Borrowings and Long-Term Liabilities | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Bank Borrowings and Long-Term Liabilities | Bank Borrowings and Long-Term Liabilities SJW Group’s contractual obligations and commitments include senior notes, bank term loans, revenue bonds, state revolving fund loans and other obligations. Water Utility Services has received advance deposit payments from its customers and developers on certain construction projects. The refunds of the advance deposit payments constitute an obligation of the respective entities. Long-term Financing Agreements |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the three months ended March 31, 2023, and 2022, income tax expense was $1,078 and $1,067, respectively. The effective consolidated income tax rates were 9% and 22% for the three months ended March 31, 2023 and 2022, respectively. The lower effective tax rate for the three months ended March 31, 2023, was primarily due to discrete tax items. SJW Group unrecognized tax benefits, before the impact of deductions of state taxes, excluding interest and penalties, of approximately $9,203 and $9,004 as of March 31, 2023, and December 31, 2022, respectively. SJW Group currently does not expect uncertain tax positions to change significantly over the next 12 months, except in the case of a lapse of the statute of limitations. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and ContingenciesSJW Group is subject to ordinary routine litigation incidental to its business. There are no pending legal proceedings to which SJW Group or any of its subsidiaries is a party, or to which any of its properties is the subject, that are expected to have a material effect on SJW Group’s business, financial position, results of operations or cash flows. |
Benefit Plans
Benefit Plans | 3 Months Ended |
Mar. 31, 2023 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Benefit PlansSJW Group maintains noncontributory defined benefit pension plans for its eligible employees. SJWC and CTWS employees hired before March 31, 2008, and January 1, 2009, respectively, are entitled to benefits under the pension plans based on the employee’s years of service and compensation. For SJWC employees hired on or after March 31, 2008, benefits are determined using a cash balance formula based upon compensation credits and interest credits for each employee. Starting in 2023, Texas Water employees are also eligible to participate under SJWC’s cash balance plan. Certain CTWS employees hired before March 1, 2012, and covered by a plan merged into the CTWS plan in 2013 are also entitled to benefits based on the employee’s years of service and compensation. CTWS employees hired on or after January 1, 2009, are entitled to an additional 1.5% of eligible compensation to their company sponsored savings plan. SJW Group does not have multi-employer plans. In addition, senior management hired before March 31, 2008 for SJWC and January 1, 2009 for CTWS, are eligible to receive additional retirement benefits under supplemental executive retirement plans and retirement contracts. SJWC’s senior management hired on or after March 31, 2008, are eligible to receive additional retirement benefits under SJWC’s Cash Balance Executive Supplemental Retirement Plan. The supplemental retirement plans and Cash Balance Executive Supplemental Retirement Plan are non-qualified plans in which only senior management and other designated members of management may participate. SJW Group also provides health care and life insurance benefits for retired employees under employer-sponsored postretirement benefits that are not pension plans. The components of net periodic benefit costs for the defined benefit plans and other postretirement benefits for the three months ended March 31, 2023, and 2022 are as follows: Three months ended March 31, 2023 2022 Service cost $ 2,052 2,652 Interest cost 3,874 2,860 Expected return on assets (4,286) (5,043) Unrecognized actuarial loss 466 1,164 Amortization of prior service cost 4 4 Total $ 2,110 1,637 In 2023, SJW Group expects to make required and discretionary cash contributions of up to $8,120 to the pension plans and other postretirement benefits. For the three months ended March 31, 2023, SJW Group has made no contributions to such plans. |
Equity Plans
Equity Plans | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Equity Plans | Equity Plans 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. SJW Group also maintains stock plans in connection with its acquisition of CTWS which are no longer granting new stock awards. In addition, shares are issued to employees under the ESPP that was approved by SJW Group stockholders. As of March 31, 2023, 160,381 shares are issuable upon the vesting of outstanding restricted stock units and deferred restricted stock units and an additional 573,558 shares are available for award issuances under the Incentive Plan. On April 26, 2023, SJW Group adopted the successor plans for the Incentive Plan and ESPP (collectively, the “Predecessor Plans”) to replace the Predecessor Plans. The Incentive Plan terminated on April 23, 2023 and ESPP will terminate on July 31, 2023. The 2023 Long-Term Incentive Plan reserves for a total of 1,142,000 shares of SJW Group’s common stock for issuance to 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 SJW Group and its subsidiaries. The 2023 Employee Stock Purchase Plan reserves for a total of 500,000 shares of SJW Group’s common stock for issuance for eligible employees to purchase common stock at a discount through accumulated payroll deductions. Remaining reserves for both of the Predecessor Plans will be terminated with the adoption of the successor plans. A summary of compensation costs charged to income and proceeds from the exercise of restricted stock and similar instruments that are recorded to additional paid-in capital and common stock, by award type, are presented below for the three months ended March 31, 2023, and 2022: Three months ended March 31, 2023 2022 Compensation costs charged to income: ESPP $ 191 185 Restricted stock and deferred restricted stock 1,008 1,367 Total compensation costs charged to income $ 1,199 1,552 ESPP proceeds $ 1,080 1,049 Restricted Stock and Deferred Restricted Stock For the three months ended March 31, 2023, and 2022, SJW Group granted under the Incentive Plan 27,732 and 31,399, respectively, one year and three year service-based restricted stock awards with a weighted-average grant date fair value per unit of $77.88 and $68.37, respectively. For the three months ended March 31, 2023, and 2022, SJW Group granted under the Incentive Plan 31,345 and 33,621 target units, respectively, performance-based and market-based restricted stock awards granted with a weighted-average grant date fair value per unit of $80.05 and $70.35, respectively. Based upon actual attainment relative to the target performance metric, the number of shares issuable can range between 0% to 150% of the target number of shares for performance-based restricted stock awards, or between 0% and 200% of the target number of shares for market-based restricted stock awards. As of March 31, 2023, the total unrecognized compensation costs related to restricted and deferred restricted stock plans was $7,537. This cost is expected to be recognized over a weighted-average period of 2.26 years. Employee Stock Purchase Plan SJW Group’s recorded expenses for its ESPP were $90 and $93 for the three months ended March 31, 2023 and 2022, respectively. The total unrecognized compensation costs related to the semi-annual offering period that ends July 31, 2023, for the ESPP is approximately $133. This cost is expected to be recognized during the second and third quarters of 2023. |
Segment and Non-Tariffed Busine
Segment and Non-Tariffed Business Reporting | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment and Non-Tariffed Business Reporting | Segment and Non-Tariffed Business ReportingSJW Group is a holding company with five subsidiaries: (i) SJWC, a water utility operation with both regulated and non-tariffed businesses, (ii) Texas Water, a regulated water and non-tariffed wastewater 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, (iv) SJWNE LLC, a holding company for CTWS and its subsidiaries, Connecticut Water, Maine Water, NEWUS and Chester Realty, Inc., and (v) SJWTX Holdings, Inc. which was formed for the purpose of effecting a corporate reorganization of the water utility operations in Texas. 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 executive staff. The first segment provides water utility and utility-related services to its customers through SJW Group’s subsidiaries, SJWC, Connecticut Water, Texas Water, Maine Water, and NEWUS together referred to as “Water Utility Services”. The second segment consists of property management and investment activity conducted by SJW Land Company and Chester Realty, Inc., referred to as “Real Estate Services.” 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, such as goodwill, 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 March 31, 2023 Water Utility Services Real Estate Services All Other (1) SJW Group Regulated Non-tariffed Non-tariffed Non-tariffed Regulated Non-tariffed Total Operating revenue $ 133,272 2,577 1,447 — 133,272 4,024 137,296 Operating expense 108,867 1,414 899 938 108,867 3,251 112,118 Operating income (loss) 24,405 1,163 548 (938) 24,405 773 25,178 Net income (loss) 13,222 618 425 (2,735) 13,222 (1,692) 11,530 Depreciation and amortization 25,686 84 303 223 25,686 610 26,296 Interest on long-term debt and other interest expense 10,547 — — 5,225 10,547 5,225 15,772 Provision (benefit) for income taxes 2,724 323 142 (2,111) 2,724 (1,646) 1,078 Assets $ 3,552,767 3,967 43,660 52,104 3,552,767 99,731 3,652,498 For Three Months Ended March 31, 2022 Water Utility Services Real Estate Services All Other (1) SJW Group Regulated Non-tariffed Non-tariffed Non-tariffed Regulated Non-tariffed Total Operating revenue $ 120,518 2,428 1,356 — 120,518 3,784 124,302 Operating expense 101,451 3,979 909 1,374 101,451 6,262 107,713 Operating income (loss) 19,067 (1,551) 447 (1,374) 19,067 (2,478) 16,589 Net income (loss) 9,715 (1,317) 308 (4,969) 9,715 (5,978) 3,737 Depreciation and amortization 24,511 2,572 300 223 24,511 3,095 27,606 Interest on long-term debt and other interest expense 8,763 — — 4,966 8,763 4,966 13,729 Provision (benefit) for income taxes 2,020 (437) 103 (619) 2,020 (953) 1,067 Assets $ 3,403,006 4,139 44,361 60,370 3,403,006 108,870 3,511,876 ____________________ |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | AcquisitionsOn January 13, 2023, Texas Water reached agreements to acquire KT Water Development Ltd. and KT Water Resource L.P. for the purchase price of $7,338 and $53,500, respectively. KT Water Development Ltd. is an investor-owned water utility providing water to approximately 1,725 people through over 570 service connections in the Rockwall Ranch subdivision in southern Comal County, Texas. KT Water Resources L.P. is a privately-held company formed to develop wholesale water supplies for the fast-growing utilities of Comal County, Texas. The transaction is expected to close in the third quarter of 2023, pending the Public Utility Commission of Texas approval of the KT Water Development Ltd. acquisition. |
General (Policies)
General (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Accounting | The unaudited interim financial information has been prepared in accordance with accounting principles generally accepted in the United States of America 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 Notes to Consolidated Financial Statements in SJW Group’s 2022 Annual Report on Form 10-K should be read with the accompanying unaudited condensed consolidated financial statements. |
Revenue | 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 precipitation curtail water usage resulting in lower sales. |
Fair Value Measurement | Fair Value MeasurementThe following instruments are not measured at fair value on SJW Group’s condensed consolidated balance sheets as of March 31, 2023, but require disclosure of their fair values: cash and cash equivalents, accounts receivable and accounts payable. The estimated fair value of such instruments as of March 31, 2023, approximates their carrying value as reported on the condensed consolidated balance sheets. There have been no changes in valuation techniques during the three months ended March 31, 2023. 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. |
Earnings per Share | Earnings per ShareBasic 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”), shares potentially issuable under the performance stock plans assumed through the business combination with CTWS, and shares potentially issuable under the Employee Stock Purchase Plan (“ESPP”). |
General (Tables)
General (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Major Streams of Revenue | The major streams of revenue for SJW Group are as follows: Three months ended March 31, 2023 2022 Revenue from contracts with customers $ 135,836 121,777 Alternative revenue programs, net (1,391) (1,927) Other balancing and memorandum accounts, net 1,795 2,430 Other regulatory mechanisms, net (391) 666 Rental income 1,447 1,356 $ 137,296 124,302 |
Schedule of Real Estate Investments and Nonutility Properties | The major components of real estate investments and nonutility properties as of March 31, 2023, and December 31, 2022, are as follows: March 31, December 31, Land $ 918 12,615 Buildings and improvements 470 45,418 Subtotal 1,388 58,033 Less: accumulated depreciation and amortization 190 17,158 Total $ 1,198 40,875 March 31, Land $ 13,170 Buildings and improvements 44,950 Subtotal 58,120 Less: accumulated depreciation and amortization 17,270 Total $ 40,850 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Regulated Operations [Abstract] | |
Schedule of Regulatory Assets, Net | Regulatory assets, net are comprised of the following as of March 31, 2023, and December 31, 2022: March 31, 2023 December 31, 2022 Regulatory assets: Income tax temporary differences, net $ 46,601 43,434 Postretirement pensions and other postretirement benefits 31,021 31,493 Business combinations debt premium, net 16,761 17,396 Monterey Water Revenue Adjustment Mechanism (“MWRAM”) 14,171 10,864 Water Conservation Memorandum Account (“WCMA”) (7,150) (5,039) 2022 General Rate Case Interim Memorandum Account 18,716 20,650 Cost recovery accounts 11,308 16,545 All other balancing and memorandum accounts 3,267 2,749 Water Revenue Adjustment (“WRA”) (7,283) (4,488) Other, net 9,946 9,739 Total regulatory assets, net in Condensed Consolidated Balance Sheets 137,358 143,343 Less: current regulatory assets, net 10,019 16,068 Total regulatory assets, net, less current portion $ 127,339 127,275 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | The components of net periodic benefit costs for the defined benefit plans and other postretirement benefits for the three months ended March 31, 2023, and 2022 are as follows: Three months ended March 31, 2023 2022 Service cost $ 2,052 2,652 Interest cost 3,874 2,860 Expected return on assets (4,286) (5,043) Unrecognized actuarial loss 466 1,164 Amortization of prior service cost 4 4 Total $ 2,110 1,637 |
Equity Plans (Tables)
Equity Plans (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Compensation Costs Charged to Income and Proceeds from the Exercise of Any Restricted Stock and Similar Instruments that are Recorded to Additional Paid-In Capital and Common Stock, by Award Type | A summary of compensation costs charged to income and proceeds from the exercise of restricted stock and similar instruments that are recorded to additional paid-in capital and common stock, by award type, are presented below for the three months ended March 31, 2023, and 2022: Three months ended March 31, 2023 2022 Compensation costs charged to income: ESPP $ 191 185 Restricted stock and deferred restricted stock 1,008 1,367 Total compensation costs charged to income $ 1,199 1,552 ESPP proceeds $ 1,080 1,049 |
Segment and Non-Tariffed Busi_2
Segment and Non-Tariffed Business Reporting (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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, such as goodwill, 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 March 31, 2023 Water Utility Services Real Estate Services All Other (1) SJW Group Regulated Non-tariffed Non-tariffed Non-tariffed Regulated Non-tariffed Total Operating revenue $ 133,272 2,577 1,447 — 133,272 4,024 137,296 Operating expense 108,867 1,414 899 938 108,867 3,251 112,118 Operating income (loss) 24,405 1,163 548 (938) 24,405 773 25,178 Net income (loss) 13,222 618 425 (2,735) 13,222 (1,692) 11,530 Depreciation and amortization 25,686 84 303 223 25,686 610 26,296 Interest on long-term debt and other interest expense 10,547 — — 5,225 10,547 5,225 15,772 Provision (benefit) for income taxes 2,724 323 142 (2,111) 2,724 (1,646) 1,078 Assets $ 3,552,767 3,967 43,660 52,104 3,552,767 99,731 3,652,498 For Three Months Ended March 31, 2022 Water Utility Services Real Estate Services All Other (1) SJW Group Regulated Non-tariffed Non-tariffed Non-tariffed Regulated Non-tariffed Total Operating revenue $ 120,518 2,428 1,356 — 120,518 3,784 124,302 Operating expense 101,451 3,979 909 1,374 101,451 6,262 107,713 Operating income (loss) 19,067 (1,551) 447 (1,374) 19,067 (2,478) 16,589 Net income (loss) 9,715 (1,317) 308 (4,969) 9,715 (5,978) 3,737 Depreciation and amortization 24,511 2,572 300 223 24,511 3,095 27,606 Interest on long-term debt and other interest expense 8,763 — — 4,966 8,763 4,966 13,729 Provision (benefit) for income taxes 2,020 (437) 103 (619) 2,020 (953) 1,067 Assets $ 3,403,006 4,139 44,361 60,370 3,403,006 108,870 3,511,876 ____________________ |
General - Narrative (Details)
General - Narrative (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 subsidiary | Mar. 31, 2022 USD ($) | |
Accounting Policies [Abstract] | ||
Number of subsidiaries | subsidiary | 5 | |
Gain on sale of real estate investments | $ | $ 5,442 |
General - Major Streams of Reve
General - Major Streams of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Accounting Policies [Abstract] | ||
Revenue from contracts with customers | $ 135,836 | $ 121,777 |
Alternative revenue programs, net | (1,391) | (1,927) |
Other balancing and memorandum accounts, net | 1,795 | 2,430 |
Other regulatory mechanisms, net | (391) | 666 |
Rental income | 1,447 | 1,356 |
Total revenues | $ 137,296 | $ 124,302 |
General - Schedule of Real Esta
General - Schedule of Real Estate Investments and Nonutility Properties (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Schedule of Investments [Line Items] | ||
Land | $ 918 | $ 12,615 |
Buildings and improvements | 470 | 45,418 |
Subtotal | 1,388 | 58,033 |
Less accumulated depreciation and amortization | 190 | 17,158 |
Net real estate investments and nonutility properties | 1,198 | $ 40,875 |
Warehouse Building | ||
Schedule of Investments [Line Items] | ||
Land | 13,170 | |
Buildings and improvements | 44,950 | |
Subtotal | 58,120 | |
Less accumulated depreciation and amortization | 17,270 | |
Net real estate investments and nonutility properties | $ 40,850 |
General - Fair Value Measuremen
General - Fair Value Measurement (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, book value | $ 1,564,636 | $ 1,496,325 |
Fair Value, Inputs, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 1,383,468 | 1,294,354 |
Fair Value, Inputs, Level 1 | Supplemental Employee Retirement Plan | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of plan assets | $ 2,848 | $ 2,809 |
General - Earnings per Share (D
General - Earnings per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Restricted Stock Units (RSUs) | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive restricted common stock units excluded from computation of earnings per share (in shares) | 8,855 | 10,860 |
Regulatory Matters - Regulatory
Regulatory Matters - Regulatory Assets, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Regulatory Assets [Line Items] | ||
Total regulatory assets, net in Condensed Consolidated Balance Sheets | $ 137,358 | $ 143,343 |
Less: current regulatory assets, net | 10,019 | 16,068 |
Total regulatory assets, net, less current portion | 127,339 | 127,275 |
Income tax temporary differences, net | ||
Regulatory Assets [Line Items] | ||
Total regulatory assets, net in Condensed Consolidated Balance Sheets | 46,601 | 43,434 |
Postretirement pensions and other postretirement benefits | ||
Regulatory Assets [Line Items] | ||
Total regulatory assets, net in Condensed Consolidated Balance Sheets | 31,021 | 31,493 |
Business combinations debt premium, net | ||
Regulatory Assets [Line Items] | ||
Total regulatory assets, net in Condensed Consolidated Balance Sheets | 16,761 | 17,396 |
Monterey Water Revenue Adjustment Mechanism (“MWRAM”) | ||
Regulatory Assets [Line Items] | ||
Total regulatory assets, net in Condensed Consolidated Balance Sheets | 14,171 | 10,864 |
Water Conservation Memorandum Account (“WCMA”) | ||
Regulatory Assets [Line Items] | ||
Total regulatory assets, net in Condensed Consolidated Balance Sheets | (7,150) | (5,039) |
2022 General Rate Case Interim Memorandum Account | ||
Regulatory Assets [Line Items] | ||
Total regulatory assets, net in Condensed Consolidated Balance Sheets | 18,716 | 20,650 |
Cost recovery accounts | ||
Regulatory Assets [Line Items] | ||
Total regulatory assets, net in Condensed Consolidated Balance Sheets | 11,308 | 16,545 |
All other balancing and memorandum accounts | ||
Regulatory Assets [Line Items] | ||
Total regulatory assets, net in Condensed Consolidated Balance Sheets | 3,267 | 2,749 |
Water Revenue Adjustment (“WRA”) | ||
Regulatory Assets [Line Items] | ||
Total regulatory assets, net in Condensed Consolidated Balance Sheets | (7,283) | (4,488) |
Other, net | ||
Regulatory Assets [Line Items] | ||
Total regulatory assets, net in Condensed Consolidated Balance Sheets | $ 9,946 | $ 9,739 |
Regulatory Matters - Narrative
Regulatory Matters - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Regulated Operations [Abstract] | ||
Authorized revenue, threshold percentage | 2% | |
Regulatory assets, net not earning a return | $ 51,002 | $ 52,066 |
Capitalization (Details)
Capitalization (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 16 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2023 | Feb. 28, 2023 | Dec. 31, 2022 | |
Subsidiary, Sale of Stock [Line Items] | ||||
Common stock, par value (usd per share) | $ 0.001 | $ 0.001 | $ 0.001 | |
At The Market Offering Member | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Common stock, par value (usd per share) | $ 0.001 | $ 0.001 | ||
Aggregate gross sales price (up to) | $ 240,000 | $ 240,000 | $ 100,000 | |
Shares issued in offering (shares) | 547,820 | 1,432,671 | ||
Weighted average price per share (usd per share) | $ 76.10 | $ 74.46 | ||
Net proceeds from stock offering | $ 40,997 | $ 104,429 | ||
Total equity distribution | $ 133,323 | $ 133,323 |
Bank Borrowings and Long-Term_2
Bank Borrowings and Long-Term Liabilities (Details) - San Jose Water Company - 4.85% Senior Note, Series P - Senior Notes $ in Thousands | Jul. 31, 2022 USD ($) |
Debt Instrument [Line Items] | |
Aggregate principal amount | $ 70,000 |
Interest rate | 4.85% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |||
Provision (benefit) for income taxes | $ 1,078 | $ 1,067 | |
Effective consolidated income tax rate | 9% | 22% | |
Unrecognized tax benefits | $ 9,203 | $ 9,004 |
Benefit Plans - Narrative (Deta
Benefit Plans - Narrative (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Employer plan contributions | $ 0 |
Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Estimated employer contributions for the remainder of fiscal year | $ 8,120 |
CTWS Employees | |
Defined Benefit Plan Disclosure [Line Items] | |
Rate of compensation increase | 1.50% |
Benefit Plans - Schedule of Net
Benefit Plans - Schedule of Net Benefit Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Retirement Benefits [Abstract] | ||
Service cost | $ 2,052 | $ 2,652 |
Interest cost | 3,874 | 2,860 |
Expected return on assets | (4,286) | (5,043) |
Unrecognized actuarial loss | 466 | 1,164 |
Amortization of prior service cost | 4 | 4 |
Total | $ 2,110 | $ 1,637 |
Equity Plans - Narrative (Detai
Equity Plans - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Apr. 26, 2023 | |
Restricted stock and deferred restricted stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation costs | $ 7,537 | ||
Recognition period for unrecognized compensation cost | 2 years 3 months 3 days | ||
Performance Shares | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Target vesting percentage | 0% | ||
Performance Shares | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Target vesting percentage | 150% | ||
Market-based RSU | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Target vesting percentage | 0% | ||
Market-based RSU | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Target vesting percentage | 200% | ||
Incentive Plan | Subsequent Event | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Remaining shares available for issuance (in shares) | 1,142,000 | ||
Incentive Plan | Restricted stock and deferred restricted stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares issuable upon exercise of incentive plan awards (in shares) | 160,381 | ||
Remaining shares available for issuance (in shares) | 573,558 | ||
Number of equity instruments granted (in shares) | 27,732 | 31,399 | |
Service-based restricted stock vesting period | 1 year | 3 years | |
Grant date fair value of equity instruments granted (usd per share) | $ 77.88 | $ 68.37 | |
Incentive Plan | Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of equity instruments granted (in shares) | 31,345 | 33,621 | |
Grant date fair value of equity instruments granted (usd per share) | $ 80.05 | $ 70.35 | |
ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation costs | $ 133 | ||
Plan expense | $ 90 | $ 93 | |
ESPP | Subsequent Event | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Remaining shares available for issuance (in shares) | 500,000 |
Equity Plans - Schedule of Comp
Equity Plans - Schedule of Compensation Costs Charged to Income and Proceeds from the Exercise of Any Restricted Stock and Similar Instruments that are Recorded to Additional Paid-In Capital and Common Stock, by Award Type (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation costs charged to income: | $ 1,199 | $ 1,552 |
Restricted stock and deferred restricted stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation costs charged to income: | 1,008 | 1,367 |
ESPP | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation costs charged to income: | 191 | 185 |
ESPP proceeds | $ 1,080 | $ 1,049 |
Segment and Non-Tariffed Busi_3
Segment and Non-Tariffed Business Reporting - Narrative (Details) | 3 Months Ended |
Mar. 31, 2023 subsidiary | |
Segment Reporting [Abstract] | |
Number of subsidiaries | 5 |
Segment and Non-Tariffed Busi_4
Segment and Non-Tariffed Business Reporting - Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | |||
Operating revenue | $ 137,296 | $ 124,302 | |
Operating expense | 112,118 | 107,713 | |
Operating income (loss) | 25,178 | 16,589 | |
Net income (loss) | 11,530 | 3,737 | |
Depreciation and amortization | 26,296 | 27,606 | |
Interest on long-term debt and other interest expense | 15,772 | 13,729 | |
Provision (benefit) for income taxes | 1,078 | 1,067 | |
Assets | 3,652,498 | 3,511,876 | $ 3,632,624 |
Water Utility Services | Regulated | |||
Segment Reporting Information [Line Items] | |||
Operating revenue | 133,272 | 120,518 | |
Operating expense | 108,867 | 101,451 | |
Operating income (loss) | 24,405 | 19,067 | |
Net income (loss) | 13,222 | 9,715 | |
Depreciation and amortization | 25,686 | 24,511 | |
Interest on long-term debt and other interest expense | 10,547 | 8,763 | |
Provision (benefit) for income taxes | 2,724 | 2,020 | |
Assets | 3,552,767 | 3,403,006 | |
Water Utility Services | Non-tariffed | |||
Segment Reporting Information [Line Items] | |||
Operating revenue | 2,577 | 2,428 | |
Operating expense | 1,414 | 3,979 | |
Operating income (loss) | 1,163 | (1,551) | |
Net income (loss) | 618 | (1,317) | |
Depreciation and amortization | 84 | 2,572 | |
Interest on long-term debt and other interest expense | 0 | 0 | |
Provision (benefit) for income taxes | 323 | (437) | |
Assets | 3,967 | 4,139 | |
Real Estate Services | Non-tariffed | |||
Segment Reporting Information [Line Items] | |||
Operating revenue | 1,447 | 1,356 | |
Operating expense | 899 | 909 | |
Operating income (loss) | 548 | 447 | |
Net income (loss) | 425 | 308 | |
Depreciation and amortization | 303 | 300 | |
Interest on long-term debt and other interest expense | 0 | 0 | |
Provision (benefit) for income taxes | 142 | 103 | |
Assets | 43,660 | 44,361 | |
All Other | Non-tariffed | |||
Segment Reporting Information [Line Items] | |||
Operating revenue | 0 | 0 | |
Operating expense | 938 | 1,374 | |
Operating income (loss) | (938) | (1,374) | |
Net income (loss) | (2,735) | (4,969) | |
Depreciation and amortization | 223 | 223 | |
Interest on long-term debt and other interest expense | 5,225 | 4,966 | |
Provision (benefit) for income taxes | (2,111) | (619) | |
Assets | 52,104 | 60,370 | |
SJW Group | Regulated | |||
Segment Reporting Information [Line Items] | |||
Operating revenue | 133,272 | 120,518 | |
Operating expense | 108,867 | 101,451 | |
Operating income (loss) | 24,405 | 19,067 | |
Net income (loss) | 13,222 | 9,715 | |
Depreciation and amortization | 25,686 | 24,511 | |
Interest on long-term debt and other interest expense | 10,547 | 8,763 | |
Provision (benefit) for income taxes | 2,724 | 2,020 | |
Assets | 3,552,767 | 3,403,006 | |
SJW Group | Non-tariffed | |||
Segment Reporting Information [Line Items] | |||
Operating revenue | 4,024 | 3,784 | |
Operating expense | 3,251 | 6,262 | |
Operating income (loss) | 773 | (2,478) | |
Net income (loss) | (1,692) | (5,978) | |
Depreciation and amortization | 610 | 3,095 | |
Interest on long-term debt and other interest expense | 5,225 | 4,966 | |
Provision (benefit) for income taxes | (1,646) | (953) | |
Assets | $ 99,731 | $ 108,870 |
Acquisitions (Details)
Acquisitions (Details) - Texas Water $ in Thousands | Jan. 13, 2023 USD ($) people serviceConnection |
KT Water Development Ltd | |
Business Acquisition [Line Items] | |
Business combination, purchase price | $ 7,338 |
Number of people served from acquisition | people | 1,725 |
KT Water Development Ltd | Southern Comal County, Texas | |
Business Acquisition [Line Items] | |
Number of service connections from acquisition | serviceConnection | 570 |
KT Water Resource L. P. | |
Business Acquisition [Line Items] | |
Business combination, purchase price | $ 53,500 |