Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2022 | Jul. 29, 2022 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-14431 | |
Entity Registrant Name | American States Water Co | |
Entity Incorporation, State or Country Code | CA | |
Entity Tax Identification Number | 95-4676679 | |
Entity Address, Address Line One | 630 E. Foothill Blvd | |
Entity Address, City or Town | San Dimas | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 91773-1212 | |
City Area Code | 909 | |
Local Phone Number | 394-3600 | |
Title of 12(b) Security | Common shares | |
Trading Symbol | AWR | |
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 (in shares) | 36,956,824 | |
Entity Central Index Key | 0001056903 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
GOLDEN STATE WATER COMPANY | ||
Entity Information [Line Items] | ||
Entity File Number | 001-12008 | |
Entity Registrant Name | Golden State Water Co | |
Entity Incorporation, State or Country Code | CA | |
Entity Tax Identification Number | 95-1243678 | |
Entity Address, Address Line One | 630 E. Foothill Blvd | |
Entity Address, City or Town | San Dimas | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 91773-1212 | |
City Area Code | 909 | |
Local Phone Number | 394-3600 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 170 | |
Entity Central Index Key | 0000092116 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment | ||
Regulated utility plant, at cost | $ 2,242,589 | $ 2,183,183 |
Non-utility property, at cost | 37,813 | 37,085 |
Total | 2,280,402 | 2,220,268 |
Less - Accumulated depreciation | (596,915) | (594,264) |
Net property, plant and equipment | 1,683,487 | 1,626,004 |
Other Property and Investments | ||
Goodwill | 1,116 | 1,116 |
Other property and investments | 35,527 | 40,806 |
Total other property and investments | 36,643 | 41,922 |
Current Assets | ||
Cash and cash equivalents | 10,825 | 4,963 |
Accounts receivable - customers, less allowance for doubtful accounts | 27,119 | 34,416 |
Unbilled receivable | 24,811 | 27,147 |
Receivable from the U.S. government (Note 2) | 23,110 | 27,827 |
Other accounts receivable, less allowance for doubtful accounts | 3,972 | 6,510 |
Income taxes receivable | 94 | 236 |
Materials and supplies, at weighted average cost | 13,151 | 12,163 |
Regulatory assets — current | 10,325 | 8,897 |
Prepayments and other current assets | 8,458 | 5,317 |
Unrealized gains on purchased power contracts | 8,114 | 4,441 |
Contract assets (Note 2) | 8,991 | 6,135 |
Total current assets | 138,970 | 138,052 |
Other Assets | ||
Unbilled revenue — receivable from the U.S. government | 8,064 | 9,671 |
Receivable from the U.S. government (Note 2) | 50,050 | 51,991 |
Contract assets (Note 2) | 5,186 | 3,452 |
Operating lease right-of-use assets | 9,617 | 10,479 |
Regulatory assets | 2,263 | 3,182 |
Other | 15,366 | 16,230 |
Total other assets | 90,546 | 95,005 |
Total Assets | 1,949,646 | 1,900,983 |
Capitalization | ||
Common stock, value, issued | 259,656 | 258,442 |
Earnings reinvested in the business | 434,569 | 427,505 |
Total common shareholders’ equity | 694,225 | 685,947 |
Long-term debt | 446,940 | 412,176 |
Total capitalization | 1,141,165 | 1,098,123 |
Current Liabilities | ||
Notes payable to bank | 223,500 | 31,000 |
Long-term debt — current | 394 | 377 |
Accounts payable | 71,929 | 65,902 |
Income taxes payable | 3,350 | 4,662 |
Accrued other taxes | 13,847 | 17,137 |
Accrued employee expenses | 13,160 | 16,256 |
Accrued interest | 4,944 | 4,545 |
Regulatory liabilities | 3,444 | 1,896 |
Contract liabilities (Note 2) | 322 | 257 |
Operating lease liabilities | 1,968 | 2,044 |
Other | 11,878 | 11,498 |
Total current liabilities | 348,736 | 155,574 |
Other Credits | ||
Notes payable to bank | 0 | 174,500 |
Advances for construction | 65,403 | 66,727 |
Contributions in aid of construction - net | 146,578 | 147,482 |
Deferred income taxes | 142,340 | 140,290 |
Regulatory liabilities | 20,382 | 32,979 |
Unamortized investment tax credits | 1,117 | 1,153 |
Accrued pension and other postretirement benefits | 61,764 | 61,365 |
Operating lease liabilities | 8,095 | 8,920 |
Other | 14,066 | 13,870 |
Total other credits | 459,745 | 647,286 |
Commitments and Contingencies (Note 9) | ||
Total Capitalization and Liabilities | $ 1,949,646 | $ 1,900,983 |
Consolidated Balance Sheets (Parenthetical) | ||
Common Stock, Par Value (in usd per share) | $ 0 | $ 0 |
Common Stock, Shares Authorized (in shares) | 60,000,000 | 60,000,000 |
Common Stock, Shares, Outstanding (in shares) | 36,956,027 | 36,936,285 |
GSWC | ||
Property, Plant and Equipment | ||
Total | $ 2,076,132 | $ 2,022,417 |
Less - Accumulated depreciation | (522,743) | (522,672) |
Net property, plant and equipment | 1,553,389 | 1,499,745 |
Other Property and Investments | ||
Total other property and investments | 33,386 | 38,659 |
Current Assets | ||
Cash and cash equivalents | 3,458 | 525 |
Accounts receivable - customers, less allowance for doubtful accounts | 25,118 | 31,870 |
Unbilled receivable | 19,566 | 20,525 |
Other accounts receivable, less allowance for doubtful accounts | 2,524 | 3,791 |
Materials and supplies, at weighted average cost | 5,536 | 5,384 |
Regulatory assets — current | 10,325 | 8,897 |
Prepayments and other current assets | 6,353 | 4,223 |
Total current assets | 72,880 | 75,215 |
Other Assets | ||
Operating lease right-of-use assets | 9,210 | 10,439 |
Other | 14,422 | 14,424 |
Total other assets | 23,632 | 24,863 |
Total Assets | 1,683,287 | 1,638,482 |
Capitalization | ||
Common stock, value, issued | 357,616 | 356,530 |
Earnings reinvested in the business | 255,541 | 259,156 |
Total common shareholders’ equity | 613,157 | 615,686 |
Long-term debt | 412,118 | 412,176 |
Total capitalization | 1,025,275 | 1,027,862 |
Current Liabilities | ||
Intercompany payable to Parent | 102,399 | 0 |
Long-term debt — current | 394 | 377 |
Accounts payable | 60,194 | 50,627 |
Income taxes payable | 4,420 | 2,972 |
Accrued other taxes | 12,453 | 14,960 |
Accrued employee expenses | 10,506 | 12,867 |
Accrued interest | 4,252 | 4,210 |
Operating lease liabilities | 1,846 | 2,029 |
Other | 10,947 | 10,505 |
Total current liabilities | 207,411 | 98,547 |
Other Credits | ||
Intercompany payable to Parent | 0 | 49,280 |
Advances for construction | 65,383 | 66,707 |
Contributions in aid of construction - net | 146,578 | 145,848 |
Deferred income taxes | 133,902 | 132,314 |
Regulatory liabilities | 20,382 | 32,979 |
Unamortized investment tax credits | 1,117 | 1,153 |
Accrued pension and other postretirement benefits | 61,499 | 61,170 |
Operating lease liabilities | 7,819 | 8,891 |
Other | 13,921 | 13,731 |
Total other credits | 450,601 | 512,073 |
Commitments and Contingencies (Note 9) | ||
Total Capitalization and Liabilities | $ 1,683,287 | $ 1,638,482 |
Consolidated Balance Sheets (Parenthetical) | ||
Common Stock, Par Value (in usd per share) | $ 0 | $ 0 |
Common Stock, Shares Authorized (in shares) | 1,000 | 1,000 |
Common Stock, Shares, Outstanding (in shares) | 170 | 170 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Accounts Receivable, Allowance for Credit Loss, Current | $ 7,746 | $ 3,516 |
Other accounts receivable, allowance for doubtful accounts | $ 53 | $ 53 |
Common Stock, Shares Authorized (in shares) | 60,000,000 | 60,000,000 |
Common Stock, Shares, Outstanding (in shares) | 36,956,027 | 36,936,285 |
Common Stock, Par Value (in usd per share) | $ 0 | $ 0 |
GOLDEN STATE WATER COMPANY | ||
Accounts Receivable, Allowance for Credit Loss, Current | $ 7,086 | $ 3,168 |
Other accounts receivable, allowance for doubtful accounts | $ 53 | $ 53 |
Common Stock, Shares Authorized (in shares) | 1,000 | 1,000 |
Common Stock, Shares, Outstanding (in shares) | 170 | 170 |
Common Stock, Par Value (in usd per share) | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Operating Revenues | ||||
Water | $ 90,856 | $ 91,633 | $ 164,762 | $ 166,662 |
Electric | 8,217 | 8,108 | 20,109 | 19,647 |
Contracted services | 23,534 | 28,673 | 46,306 | 59,165 |
Total operating revenues | 122,607 | 128,414 | 231,177 | 245,474 |
Operating Expenses | ||||
Water purchased | 19,963 | 20,916 | 37,811 | 36,155 |
Power purchased for pumping | 2,930 | 2,861 | 5,304 | 5,006 |
Groundwater production assessment | 4,865 | 5,220 | 9,076 | 9,660 |
Power purchased for resale | 1,347 | 2,130 | 6,513 | 5,328 |
Supply cost balancing accounts | (457) | (3,086) | (6,800) | (5,513) |
Other operation | 9,665 | 8,534 | 18,332 | 16,751 |
Administrative and general | 20,464 | 20,630 | 43,436 | 42,683 |
Depreciation and amortization | 10,171 | 9,770 | 20,285 | 19,330 |
Maintenance | 3,572 | 3,267 | 6,712 | 5,929 |
Property and other taxes | 5,452 | 5,273 | 11,305 | 11,213 |
ASUS construction | 10,318 | 15,052 | 20,521 | 30,756 |
Total operating expenses | 88,290 | 90,567 | 172,495 | 177,298 |
Operating Income | 34,317 | 37,847 | 58,682 | 68,176 |
Other Income and Expenses | ||||
Interest expense | (6,309) | (6,032) | (11,915) | (12,290) |
Interest income | 437 | 348 | 720 | 803 |
Other, net | (2,289) | 1,875 | (2,708) | 2,531 |
Total other income and expenses, net | (8,161) | (3,809) | (13,903) | (8,956) |
Income before income tax expense | 26,156 | 34,038 | 44,779 | 59,220 |
Income tax expense | 6,205 | 7,462 | 10,666 | 13,376 |
Net Income | $ 19,951 | $ 26,576 | $ 34,113 | $ 45,844 |
Basic Earnings Per Common Share | ||||
Weighted Average Number of Common Shares Outstanding (in shares) | 36,956 | 36,916 | 36,950 | 36,907 |
Basic Earnings Per Common Share (in dollars per share) | $ 0.54 | $ 0.72 | $ 0.92 | $ 1.24 |
Fully Diluted Earnings Per Share | ||||
Weighted Average Number of Diluted Shares (in shares) | 37,039 | 37,007 | 37,029 | 36,993 |
Fully Diluted Earnings Per Common Share (in dollars per share) | $ 0.54 | $ 0.72 | $ 0.92 | $ 1.24 |
Dividends Declared Per Common Share (in dollars per share) | $ 0.365 | $ 0.335 | $ 0.730 | $ 0.670 |
GOLDEN STATE WATER COMPANY | ||||
Operating Revenues | ||||
Water | $ 90,856 | $ 91,633 | $ 164,762 | $ 166,662 |
Total operating revenues | 90,856 | 91,633 | 164,762 | 166,662 |
Operating Expenses | ||||
Water purchased | 19,963 | 20,916 | 37,811 | 36,155 |
Power purchased for pumping | 2,930 | 2,861 | 5,304 | 5,006 |
Groundwater production assessment | 4,865 | 5,220 | 9,076 | 9,660 |
Supply cost balancing accounts | (1,500) | (3,411) | (6,567) | (6,331) |
Other operation | 7,281 | 6,376 | 13,635 | 12,189 |
Administrative and general | 13,987 | 13,861 | 29,583 | 28,296 |
Depreciation and amortization | 8,553 | 8,213 | 17,098 | 16,275 |
Maintenance | 2,511 | 2,356 | 4,667 | 4,096 |
Property and other taxes | 4,555 | 4,464 | 9,445 | 9,480 |
Total operating expenses | 63,145 | 60,856 | 120,052 | 114,826 |
Operating Income | 27,711 | 30,777 | 44,710 | 51,836 |
Other Income and Expenses | ||||
Interest expense | (5,464) | (5,643) | (10,700) | (11,441) |
Interest income | 146 | 179 | 237 | 266 |
Other, net | (2,402) | 1,604 | (3,000) | 2,255 |
Total other income and expenses, net | (7,720) | (3,860) | (13,463) | (8,920) |
Income before income tax expense | 19,991 | 26,917 | 31,247 | 42,916 |
Income tax expense | 5,103 | 5,957 | 7,792 | 9,725 |
Net Income | $ 14,888 | $ 20,960 | $ 23,455 | $ 33,191 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGE IN COMMON SHAREHOLDERS' EQUITY Statement - USD ($) $ in Thousands | Total | Common Shares | Reinvested Earnings in the Business | GOLDEN STATE WATER COMPANY | GOLDEN STATE WATER COMPANY Common Shares | GOLDEN STATE WATER COMPANY Reinvested Earnings in the Business |
Beginning Balance (in shares) at Dec. 31, 2020 | 36,889,000 | 170 | ||||
Beginning balances at Dec. 31, 2020 | $ 641,673 | $ 256,666 | $ 385,007 | $ 583,298 | $ 354,906 | $ 228,392 |
Add: | ||||||
Net income | 19,268 | 19,268 | 12,231 | 12,231 | ||
Exercise of stock options and other issuance of Common Shares (in shares) | 24,000 | |||||
Exercise of stock options and other issuances of Common Shares | 0 | $ 0 | ||||
Stock-based compensation, net of taxes paid from shares withheld from employees related to net share settlements (Note 4) | 813 | 813 | 782 | 782 | ||
Dividend equivalent rights on stock-based awards not paid in cash | 49 | $ 49 | 45 | $ 45 | ||
Deduct: | ||||||
Dividends on Common Shares | 12,361 | 12,361 | 12,400 | 12,400 | ||
Dividend equivalent rights on stock-based awards not paid in cash | 49 | 49 | 45 | 45 | ||
Ending Balances (in shares) at Mar. 31, 2021 | 36,913,000 | 170 | ||||
Ending balances at Mar. 31, 2021 | 649,393 | $ 257,528 | 391,865 | 583,911 | $ 355,733 | 228,178 |
Beginning Balance (in shares) at Dec. 31, 2020 | 36,889,000 | 170 | ||||
Beginning balances at Dec. 31, 2020 | 641,673 | $ 256,666 | 385,007 | 583,298 | $ 354,906 | 228,392 |
Add: | ||||||
Net income | $ 45,844 | 33,191 | ||||
Exercise of stock options and other issuance of Common Shares (in shares) | 42,668 | |||||
Ending Balances (in shares) at Jun. 30, 2021 | 36,932,000 | 170 | ||||
Ending balances at Jun. 30, 2021 | $ 664,134 | $ 258,101 | 406,033 | 592,950 | $ 356,251 | 236,699 |
Beginning Balance (in shares) at Mar. 31, 2021 | 36,913,000 | 170 | ||||
Beginning balances at Mar. 31, 2021 | 649,393 | $ 257,528 | 391,865 | 583,911 | $ 355,733 | 228,178 |
Add: | ||||||
Net income | 26,576 | 26,576 | 20,960 | 20,960 | ||
Exercise of stock options and other issuance of Common Shares (in shares) | 19,000 | |||||
Exercise of stock options and other issuances of Common Shares | 0 | $ 0 | ||||
Stock-based compensation, net of taxes paid from shares withheld from employees related to net share settlements (Note 4) | 531 | 531 | 479 | 479 | ||
Dividend equivalent rights on stock-based awards not paid in cash | 42 | $ 42 | 39 | $ 39 | ||
Deduct: | ||||||
Dividends on Common Shares | 12,366 | 12,366 | 12,400 | 12,400 | ||
Dividend equivalent rights on stock-based awards not paid in cash | 42 | 42 | 39 | 39 | ||
Ending Balances (in shares) at Jun. 30, 2021 | 36,932,000 | 170 | ||||
Ending balances at Jun. 30, 2021 | 664,134 | $ 258,101 | 406,033 | 592,950 | $ 356,251 | 236,699 |
Beginning Balance (in shares) at Dec. 31, 2021 | 36,936,000 | 170 | ||||
Beginning balances at Dec. 31, 2021 | 685,947 | $ 258,442 | 427,505 | 615,686 | $ 356,530 | 259,156 |
Add: | ||||||
Net income | 14,162 | 14,162 | 8,567 | 8,567 | ||
Exercise of stock options and other issuance of Common Shares (in shares) | 20,000 | |||||
Exercise of stock options and other issuances of Common Shares | 0 | $ 0 | ||||
Stock-based compensation, net of taxes paid from shares withheld from employees related to net share settlements (Note 4) | 801 | 801 | 742 | 742 | ||
Dividend equivalent rights on stock-based awards not paid in cash | 41 | $ 41 | 39 | $ 39 | ||
Deduct: | ||||||
Dividends on Common Shares | 13,485 | 13,485 | 13,500 | 13,500 | ||
Dividend equivalent rights on stock-based awards not paid in cash | 41 | 41 | 39 | 39 | ||
Ending Balances (in shares) at Mar. 31, 2022 | 36,956,000 | 170 | ||||
Ending balances at Mar. 31, 2022 | 687,425 | $ 259,284 | 428,141 | 611,495 | $ 357,311 | 254,184 |
Beginning Balance (in shares) at Dec. 31, 2021 | 36,936,000 | 170 | ||||
Beginning balances at Dec. 31, 2021 | 685,947 | $ 258,442 | 427,505 | 615,686 | $ 356,530 | 259,156 |
Add: | ||||||
Net income | $ 34,113 | 23,455 | ||||
Exercise of stock options and other issuance of Common Shares (in shares) | 19,742 | |||||
Ending Balances (in shares) at Jun. 30, 2022 | 36,956,000 | 170 | ||||
Ending balances at Jun. 30, 2022 | $ 694,225 | $ 259,656 | 434,569 | 613,157 | $ 357,616 | 255,541 |
Beginning Balance (in shares) at Mar. 31, 2022 | 36,956,000 | 170 | ||||
Beginning balances at Mar. 31, 2022 | 687,425 | $ 259,284 | 428,141 | 611,495 | $ 357,311 | 254,184 |
Add: | ||||||
Net income | 19,951 | 19,951 | 14,888 | 14,888 | ||
Stock-based compensation, net of taxes paid from shares withheld from employees related to net share settlements (Note 4) | 338 | 338 | 274 | 274 | ||
Dividend equivalent rights on stock-based awards not paid in cash | 34 | $ 34 | 31 | $ 31 | ||
Deduct: | ||||||
Dividends on Common Shares | 13,489 | 13,489 | 13,500 | 13,500 | ||
Dividend equivalent rights on stock-based awards not paid in cash | 34 | 34 | 31 | 31 | ||
Ending Balances (in shares) at Jun. 30, 2022 | 36,956,000 | 170 | ||||
Ending balances at Jun. 30, 2022 | $ 694,225 | $ 259,656 | $ 434,569 | $ 613,157 | $ 357,616 | $ 255,541 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOW - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash Flows From Operating Activities: | ||
Net income | $ 34,113 | $ 45,844 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 20,475 | 19,520 |
Provision for doubtful accounts | 549 | 548 |
Deferred income taxes and investment tax credits | (152) | 353 |
Stock-based compensation expense | 2,183 | 2,379 |
Loss (gain) on investments held in a trust | 5,171 | (2,208) |
Other — net | 178 | 215 |
Changes in assets and liabilities: | ||
Accounts receivable — customers | 2,455 | (2,087) |
Unbilled receivable | 3,943 | (2,128) |
Other accounts receivable | 2,538 | (1,001) |
Receivables from the U.S. government | 6,658 | (3,584) |
Materials and supplies | (988) | (154) |
Prepayments and other assets | (1,215) | (1,997) |
Contract assets | (4,590) | (1,316) |
Regulatory assets | (8,404) | (8,802) |
Accounts payable | 1,509 | 2,266 |
Income taxes receivable/payable | (1,170) | (7,437) |
Contract liabilities | 65 | (1,112) |
Accrued pension and other postretirement benefits | 83 | 3,595 |
Other liabilities | (6,496) | (1,750) |
Net cash provided | 56,905 | 41,144 |
Cash Flows From Investing Activities: | ||
Capital expenditures | (76,552) | (76,147) |
Other investing activities | 136 | 64 |
Net cash used | (76,416) | (76,083) |
Cash Flows From Financing Activities: | ||
Receipt of advances for and contributions in aid of construction | 4,111 | 6,837 |
Refunds on advances for construction | (3,174) | (2,922) |
Retirement or repayments of long-term debt | (205) | (28,156) |
Proceeds from the issuance of long-term debt, net of issuance costs | 34,820 | 0 |
Net change in notes payable to banks | 18,000 | 53,800 |
Dividends paid | (26,974) | (24,727) |
Other financing activities | 1,205 | 1,271 |
Net cash provided | 25,373 | 3,561 |
Net change in cash and cash equivalents | 5,862 | (31,378) |
Cash and cash equivalents, beginning of period | 4,963 | 36,737 |
Cash and cash equivalents, end of period | 10,825 | 5,359 |
Non-cash transactions: | ||
Accrued payables for investment in utility plant | 37,373 | 27,758 |
Property installed by developers and conveyed | 255 | 3,401 |
GOLDEN STATE WATER COMPANY | ||
Cash Flows From Operating Activities: | ||
Net income | 23,455 | 33,191 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 17,230 | 16,404 |
Provision for doubtful accounts | 488 | 490 |
Deferred income taxes and investment tax credits | (122) | 328 |
Stock-based compensation expense | 1,964 | 2,190 |
Loss (gain) on investments held in a trust | 5,171 | (2,208) |
Other — net | 164 | 170 |
Changes in assets and liabilities: | ||
Accounts receivable — customers | 2,316 | (2,282) |
Unbilled receivable | 959 | (1,172) |
Other accounts receivable | 1,267 | 734 |
Materials and supplies | (152) | (174) |
Prepayments and other assets | (1,072) | (485) |
Regulatory assets | (8,035) | (8,489) |
Accounts payable | 4,200 | 3,999 |
Intercompany receivable/payable | (834) | (15) |
Income taxes receivable/payable | 1,448 | (4,080) |
Accrued pension and other postretirement benefits | 13 | 3,523 |
Other liabilities | (5,235) | (2,075) |
Net cash provided | 43,225 | 40,049 |
Cash Flows From Investing Activities: | ||
Capital expenditures | (66,984) | (63,809) |
Note receivable from AWR parent | 0 | (23,000) |
Receipt of payment of note receivable from AWR parent | 0 | 23,000 |
Other investing activities | 123 | 60 |
Net cash used | (66,861) | (63,749) |
Cash Flows From Financing Activities: | ||
Receipt of advances for and contributions in aid of construction | 4,051 | 6,814 |
Refunds on advances for construction | (3,174) | (2,922) |
Retirement or repayments of long-term debt | (205) | (28,156) |
Net change in intercompany borrowings | 54,000 | 43,000 |
Dividends paid | (27,000) | (24,800) |
Other financing activities | 1,103 | 1,155 |
Net cash provided | 26,569 | (7,219) |
Net change in cash and cash equivalents | 2,933 | (30,919) |
Cash and cash equivalents, beginning of period | 525 | 35,578 |
Cash and cash equivalents, end of period | 3,458 | 4,659 |
Non-cash transactions: | ||
Accrued payables for investment in utility plant | 36,023 | 26,231 |
Property installed by developers and conveyed | $ 255 | $ 3,401 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Nature of Operations : American States Water Company (“AWR”) is the parent company of Golden State Water Company (“GSWC”), Bear Valley Electric Service, Inc. ("BVESI"), and American States Utility Services, Inc. (“ASUS”) (and its wholly owned subsidiaries: Fort Bliss Water Services Company (“FBWS”), Terrapin Utility Services, Inc. (“TUS”), Old Dominion Utility Services, Inc. (“ODUS”), Palmetto State Utility Services, Inc. (“PSUS”), Old North Utility Services, Inc. (“ONUS”), Emerald Coast Utility Services, Inc. ("ECUS"), and Fort Riley Utility Services, Inc. ("FRUS")). The subsidiaries of ASUS are collectively referred to as the “Military Utility Privatization Subsidiaries”. AWR, through its wholly owned subsidiaries, serves over one million people in nine states. GSWC and BVESI are both California public utilities. GSWC is engaged in the purchase, production, distribution and sale of water throughout California serving approximately 263,000 customer connections. BVESI distributes electricity in several San Bernardino County mountain communities in California serving approximately 24,700 customer connections. The California Public Utilities Commission (“CPUC”) regulates GSWC’s and BVESI's businesses in matters including properties, rates, services, facilities, and transactions between GSWC, BVESI, and their affiliates. ASUS, through its wholly owned subsidiaries, operates, maintains and performs construction activities (including renewal and replacement capital work) on water and/or wastewater systems at various U.S. military bases pursuant to initial 50-year firm fixed-price contracts. These contracts are subject to annual economic price adjustments and modifications for changes in circumstances, changes in laws and regulations, and additions to the contract value for new construction of facilities at the military bases. There is no direct regulatory oversight by the CPUC over AWR or the operations, rates or services provided by ASUS or any of its wholly owned subsidiaries. Basis of Presentation : The consolidated financial statements and notes thereto are presented in a combined report filed by two separate Registrants: AWR and GSWC. References in this report to “Registrant” are to AWR and GSWC, collectively, unless otherwise specified. AWR owns all of the outstanding common shares of GSWC, BVESI and ASUS. ASUS owns all of the outstanding common stock of the Military Utility Privatization Subsidiaries. The consolidated financial statements of AWR include the accounts of AWR and its subsidiaries. These financial statements are prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP"). Intercompany transactions and balances have been eliminated in the AWR consolidated financial statements. The consolidated financial statements included herein have been prepared by Registrant, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The December 31, 2021 condensed consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by GAAP. The preparation of the consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. In the opinion of management, all adjustments consisting of normal, recurring items, and estimates necessary for a fair statement of the results for the interim periods have been made. It is suggested that these consolidated financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in the Form 10-K for the year ended December 31, 2021 filed with the SEC. Related Party Transactions and Financing Activities : GSWC, BVESI and ASUS provide and/or receive various support services to and from their parent, AWR, and among themselves. GSWC has allocated certain corporate office administrative and general costs to its affiliates, BVESI and ASUS, using allocation factors approved by the CPUC. GSWC allocated corporate office administrative and general costs to the electric segment of approximately $592,000 and $679,000 during the three months ended June 30, 2022 and 2021, respectively, and $1.4 million and $1.5 million during the six month periods ended June 30, 2022 and 2021. GSWC allocated corporate office administrative and general costs to ASUS of approximately $1.1 million and $1.3 million during the three months ended June 30, 2022 and 2021, respectively, and $2.7 million and $2.8 million during the six months ended June 30, 2022 and 2021, respectively. AWR borrows under a credit facility and provides funds to GSWC and ASUS in support of their operations through intercompany borrowing agreements. The interest rate charged to GSWC and ASUS is sufficient to cover AWR’s interest expense under the credit facility. On April 22, 2022, the credit facility was amended to increase the borrowing capacity from $200.0 million to $280.0 million. The amendment also changed the benchmark interest rate from the London Interbank Offered Rate ("LIBOR") to the Secured Overnight Financing Rate ("SOFR"). The change in benchmark rates has not had a material impact on its financing costs. This credit agreement expires in May 2023. Accordingly, as of June 30, 2022, the outstanding balances under this credit facility have been classified as a current liability in AWR's Consolidated Balance Sheet. Management expects to renew and extend this facility prior to its expiration date. In addition, Registrant expects to issue long-term debt through GSWC prior to May 2023, and use the debt proceeds to pay off portions of the outstanding borrowings under this facility prior to its expiration. As of June 30, 2022, there was $223.5 million outstanding under this facility. BVESI has a separate $35.0 million revolving credit facility, which was amended in December 2021 to reduce the interest rate and fees charged, as well as to extend the maturity date by a year to July 1, 2024. Under the terms of the credit agreement, BVESI has the option to increase the facility by an additional $15.0 million, subject to lender approval. Interest rates under this facility are currently based on LIBOR. Under the terms of the December 2021 amendment, upon discontinuation of the LIBOR benchmark rate in 2023, the lender may replace LIBOR with a benchmark interest rate such as SOFR. BVESI does not believe the change from LIBOR to a new benchmark rate will have a material impact on its financing costs. The CPUC requires BVESI to completely pay off all borrowings under its revolving credit facility within a 24-month period. On April 28, 2022, BVESI completed the issuance of $35.0 million in unsecured private placement notes consisting of $17.5 million at a coupon rate of 4.548% due April 28, 2032 and $17.5 million at a coupon rate of 4.949% due April 28, 2037. Interest on these notes is payable semiannually, and the covenant requirements under these notes are similar to the terms of BVESI's revolving credit facility. BVESI used the proceeds from the notes to pay down amounts outstanding under its credit facility, thus complying with the CPUC's 24-month rule. As of June 30, 2022, there were no outstanding borrowings under this facility. AWR has intercompany borrowing arrangements with its subsidiaries. All intercompany borrowing agreements expire concurrent with the expiration of AWR's credit facility in May 2023. AWR intends to execute new intercompany borrowing agreements with its subsidiaries consistent with a new credit facility. Accordingly, as of June 30, 2022, the $102.4 million intercompany outstanding borrowings of GSWC from AWR have been classified as a current liability in GSWC's Consolidated Balance Sheet. GSWC expects to issue long-term debt prior to May 2023 and use the proceeds to pay down its intercompany borrowings from AWR. AWR intends to use the proceeds from GSWC to pay down amounts outstanding under its credit facility. COVID-19 Impact : GSWC, BVESI and ASUS have continued their operations throughout the COVID-19 pandemic given that their water, wastewater and electric utility services are deemed essential. AWR and its subsidiaries continue to monitor the guidance provided by federal, state, and local health authorities and other government officials. While continuing to monitor transmission rates in California and other variables, employees have returned to company offices. During 2022, GSWC and BVESI continue to incur incremental costs in excess of their revenue requirements, primarily related to delinquent customer accounts receivable, due to the lingering effects of the pandemic that are being tracked in COVID-19-related memorandum accounts and recorded as regulatory assets (Note 3). As a result, the amounts recorded in the COVID-19-related memorandum accounts have not impacted GSWC's or BVESI's earnings. Thus far, the COVID-19 pandemic has not had a material impact on ASUS's current operations. Accounting Pronouncements to Be Adopted in 2022 : In November 2021, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2021-10 Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance |
Revenues
Revenues | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues Most of Registrant's revenues are derived from contracts with customers, including tariff-based revenues from its regulated utilities at GSWC and BVESI. ASUS's initial 50-year firm fixed-price contracts with the U.S. government are considered service concession arrangements under ASC 853, Service Concession Arrangements . Accordingly, the services under these contracts are accounted for under Topic 606 —Revenue from Contracts with Customers, and the water and/or wastewater systems are not recorded as Property, Plant and Equipment on Registrant’s balance sheets. Although GSWC and BVESI have a diversified base of residential, commercial, industrial, and other customers, revenues derived from residential and commercial customers generally account for approximately 90% of total water and electric revenues. Most of ASUS's revenues are from the U.S. government. For the three and six months ended June 30, 2022 and 2021, disaggregated revenues from contracts with customers by segment were as follows: Three Months Ended June 30, Six Months Ended June 30, (dollar in thousands) 2022 2021 2022 2021 Water: Tariff-based revenues $ 83,612 $ 86,687 $ 156,110 $ 160,975 Surcharges (cost-recovery activities) 797 975 1,346 1,509 Other 571 523 1,089 1,040 Water revenues from contracts with customers 84,980 88,185 158,545 163,524 WRAM under-collection (alternative revenue program) 5,876 3,448 6,217 3,138 Total water revenues 90,856 91,633 164,762 166,662 Electric: Tariff-based revenues 8,381 8,330 20,933 20,007 Surcharges (cost-recovery activities) 32 44 59 246 Electric revenues from contracts with customers 8,413 8,374 20,992 20,253 BRRAM over-collection (alternative revenue program) (196) (266) (883) (606) Total electric revenues 8,217 8,108 20,109 19,647 Contracted services: Water 14,175 18,765 27,721 37,648 Wastewater 9,359 9,908 18,585 21,517 Contracted services revenues from contracts with customers 23,534 28,673 46,306 59,165 Total AWR revenues $ 122,607 $ 128,414 $ 231,177 $ 245,474 The opening and closing balances of the receivable from the U.S. government, contract assets, and contract liabilities from contracts with customers, which are related entirely to ASUS, were as follows: (dollar in thousands) June 30, 2022 December 31, 2021 Unbilled receivables $ 12,354 $ 14,835 Receivable from the U.S. government $ 73,160 $ 79,818 Contract assets $ 14,177 $ 9,587 Contract liabilities $ 322 $ 257 Contract Assets - Contract assets are those of ASUS and consist of unbilled revenues recognized from work-in-progress construction projects, where the right to payment is conditional on something other than the passage of time. The classification of this asset as current or noncurrent is based on the timing of when ASUS expects to bill these amounts. Contract Liabilities - Contract liabilities are those of ASUS and consist of billings in excess of revenue recognized. The classification of this liability as current or noncurrent is based on the timing of when ASUS expects to recognize revenue. Revenues for the three and six months ended June 30, 2022, which were included in contract liabilities at the beginning of the period were not material. Contracted services revenues recognized during the three and six months ended June 30, 2022 from performance obligations satisfied in previous periods were not material. |
Regulatory Matters
Regulatory Matters | 6 Months Ended |
Jun. 30, 2022 | |
Regulated Operations [Abstract] | |
Regulatory Matters | Regulatory Matters In accordance with accounting principles for rate-regulated enterprises, GSWC and BVESI record regulatory assets, which represent probable future recovery of costs from customers through the ratemaking process, and regulatory liabilities, which represent probable future refunds that are to be credited to customers through the ratemaking process. At June 30, 2022, GSWC and BVESI had approximately $62.6 million of regulatory liabilities, net of regulatory assets, not accruing carrying costs. Of this amount, (i) $76.4 million of regulatory liabilities are excess deferred income taxes arising from the lower federal income tax rate due to the Tax Cuts and Jobs Act ("Tax Act") enacted in December 2017 that are being refunded to customers, (ii) $4.7 million of regulatory liabilities are from flowed-through deferred income taxes, (iii) $25.3 million of net regulatory assets relates to the underfunded position in GSWC's pension and other retirement obligations (not including the two-way pension balancing accounts), and (iv) an $8.1 million regulatory liability related to a memorandum account authorized by the CPUC to track unrealized gains and losses on BVESI's purchase power contracts over the term of the contracts. The remainder relates to other items that do not provide for or incur carrying costs. Regulatory assets represent costs incurred by GSWC and/or BVESI for which they have received or expect to receive rate recovery in the future. In determining the probability of costs being recognized in other periods, GSWC and BVESI consider regulatory rules and decisions, past practices, and other facts or circumstances that would indicate if recovery is probable. If the CPUC determines that a portion of either GSWC’s or BVESI's assets are not recoverable in customer rates, the applicable utility must determine if it has suffered an asset impairment that requires it to write down the asset's value. Regulatory assets are offset against regulatory liabilities within each ratemaking area. Amounts expected to be collected or refunded in the next twelve months have been classified as current assets and current liabilities by ratemaking area. Regulatory assets, less regulatory liabilities, included in the consolidated balance sheets are as follows: (dollars in thousands) June 30, December 31, GSWC Water Revenue Adjustment Mechanism and Modified Cost Balancing Account $ 24,115 $ 13,326 Pensions and other post-retirement obligations (Note 8) 24,633 25,212 COVID-19 memorandum accounts 5,593 1,663 Excess deferred income taxes (72,531) (73,000) Flow-through taxes, net (4,347) (5,552) Other regulatory assets 17,961 16,949 Various refunds to customers (5,481) (2,680) Total GSWC $ (10,057) $ (24,082) BVESI Derivative unrealized gain (Note 5) (8,114) (4,441) Other regulatory assets 15,705 13,916 Various refunds to customers (8,772) (8,189) Total AWR $ (11,238) $ (22,796) Regulatory matters are discussed in the consolidated financial statements and the notes thereto included in the Company's Form 10-K for the year ended December 31, 2021 filed with the SEC. The discussion below focuses on significant matters and developments since December 31, 2021. Water General Rate Case: In July 2020, GSWC filed a general rate case application for all of its water regions and its general office. This general rate case will determine new water rates for the years 2022–2024. In November 2021, GSWC and the Public Advocates Office at the CPUC ("Public Advocates") filed with the CPUC a joint motion to adopt a settlement agreement between GSWC and Public Advocates on this general rate case application. The settlement agreement, if approved, resolves all issues related to the 2022 annual revenue requirement in the general rate case application, leaving only three unresolved issues. Due to the delay in finalizing the water general rate case, water revenues billed and recorded for the first half of 2022 were based on 2021 adopted rates, pending a final decision by the CPUC in this general rate case application. When approved, the new rates will be retroactive to January 1, 2022, and cumulative adjustments will be recorded in the quarter in which the new rates are approved by the CPUC. Cost of Capital Proceeding: GSWC filed a cost of capital application in May 2021 currently pending CPUC approval. Hearings on this proceeding occurred in May 2022 and briefs were filed in June 2022. Based on management's analysis of this regulatory proceeding and associated accounting to date, for the three and six months ended June 30, 2022, GSWC reduced revenues by $1.7 million and $3.1 million, respectively, and recorded a corresponding regulatory liability for revenues subject to refund based on its best estimate at this time, which includes primarily the impact of GSWC’s lower cost of debt requested in its application. However, at this time, management cannot predict the ultimate outcome of the cost of capital application and the associated impact on 2022 revenues. Changes in estimates will be made, if necessary, as more information in this proceeding becomes available. A proposed decision on this proceeding is expected in the second half of 2022. Alternative-Revenue Programs: GSWC currently records the difference between what it bills its water customers and that which is authorized by the CPUC using the Water Revenue Adjustment Mechanism ("WRAM") and the Modified Cost Balancing Account (“MCBA”) accounts approved by the CPUC. The over- or under-collection of the WRAM is aggregated with the MCBA over- or under-collection for the corresponding ratemaking area and bears interest at the current 90-day commercial paper rate. During the six months ended June 30, 2022, GSWC recorded additional net under-collections in the WRAM/MCBA accounts of approximately $13.1 million, based on 2021 authorized amounts, pending a final decision on the water general rate case. Once the CPUC issues a final decision on the general rate case, the WRAM and MCBA amounts recorded in 2022 will be updated to reflect the authorized 2022 amounts. Surcharges and surcredits have been implemented for all pre-2022 WRAM/MCBA balances. As required by the accounting guidance for alternative revenue programs, GSWC is required to collect its WRAM balances within 24 months following the year in which an under-collection is recorded. As of June 30, 2022, there were no WRAM under-collections that were estimated to be collected over more than 24 months. COVID-19 Memorandum Accounts : During 2022, GSWC and BVESI continue to experience delinquent customer accounts receivable due to the lingering effects of the COVID-19 pandemic, resulting in both GSWC and BVESI increasing their allowances for doubtful accounts during the three and six months ended June 30, 2022. The CPUC has authorized GSWC and BVESI to track incremental costs, including bad debt expense, in excess of what is included in their respective revenue requirements incurred as a result of the pandemic in COVID-19-related memorandum accounts, such as a Catastrophic Event Memorandum Account ("CEMA"), which is to be filed with the CPUC for future recovery. As of June 30, 2022, GSWC and BVESI had approximately $5.6 million and $652,000, respectively, in regulatory asset accounts related to bad debt expense in excess of their revenue requirements, the purchase of personal protective equipment, additional incurred printing costs, and other incremental COVID-19-related costs. CEMA and other emergency-type memorandum accounts are well-established cost recovery mechanisms authorized as a result of a state/federal declared emergency, and are therefore recognized as regulatory assets for future recovery. As a result, the amounts recorded in the COVID-19-related memorandum accounts have not impacted GSWC's or BVESI's earnings. Thus far, the COVID-19 pandemic has not had a material impact on ASUS's current operations. The CPUC's moratoriums on service disconnections for nonpayment for water and electric customers have ended and service disconnections due to nonpayment have resumed, with disconnections for residential customers resuming in June 2022. Furthermore, in January 2022, GSWC received $9.5 million in COVID relief funds through the California Water and Wastewater Arrearage Payment Program to provide assistance to customers for their water debt accrued during the COVID-19 pandemic by remitting federal funds that the state received from the American Rescue Plan Act of 2021 to the utility on behalf of eligible customers. GSWC applied these funds to its delinquent customers' eligible balances. In February 2022, BVESI received $321,000 from the state of California for similar customer relief funding for unpaid electric customer bills incurred during the pandemic. The CPUC requires that amounts tracked in GSWC's and BVESI's COVID-19 memorandum accounts for unpaid customer bills be first offset by any (i) federal and state relief for water or electric utility bill debt, and (ii) customer payments through payment plan arrangements, prior to receiving recovery from customers at large. After these offsets are made, GSWC will file with the CPUC for recovery of the remaining balance. BVESI intends to include the remaining balance in its COVID-19 memorandum account for recovery once all alternative sources of funding have been exhausted and credited to eligible customer accounts. Other BVESI Regulatory Assets: Vegetation Management, Wildfire Mitigation Plans and Legislation In August 2019, the CPUC issued a final decision on the electric general rate case, which set new rates through the year 2022. Among other things, the decision authorized BVESI to record incremental costs related to vegetation management, such as costs for increased minimum clearances around electric power lines, in a CPUC-approved memorandum account for future recovery. As of June 30, 2022, BVESI had approximately $6.9 million in incremental vegetation management costs recorded as a regulatory asset, which it intends to include for recovery in its next general rate case application scheduled to be filed with the CPUC in August 2022 to set new rates for the years 2023 through 2026. The incremental costs related to vegetation management included in the memorandum account will be subject to review during the general rate case proceeding. California legislation enacted in September 2018 requires all investor-owned electric utilities to submit an annual wildfire mitigation plan ("WMP") to the CPUC for approval. The WMP must include a utility's plans on constructing, maintaining, and operating its electrical lines and equipment to minimize the risk of catastrophic wildfire. In September 2021, the CPUC approved BVESI's most recent WMP submission. Capital expenditures and other costs incurred as a result of the WMP are subject to CPUC audit. As a result, the CPUC’s Wildfire Safety Division (now part of the California Natural Resources Agency effective July 1, 2021) engaged an independent accounting firm to conduct examinations of the expenses and capital investments identified in the 2019 and 2020 WMPs for each of the investor-owned electric utilities, including BVESI. As of June 30, 2022, BVESI has approximately $3.5 million related to expenses accumulated in its WMP memorandum accounts that have been recognized as regulatory assets for future recovery. In December 2021, the independent accounting firm issued its final examination report, which contains the auditors' results and recommendations. While the final report did not identify any findings of inappropriate costs included in the WMP memorandum accounts under review, the report suggested that the CPUC should evaluate whether some of the costs recorded in the WMP memorandum accounts are incremental to what is being recovered in customer rates when BVESI seeks recovery in a future proceeding. At this time, BVESI considers the auditor's examination complete and does not expect further developments. All capital expenditures and other costs incurred through June 30, 2022 as a result of BVESI's WMPs are not currently in rates and are expected to be filed for future recovery in BVESI's next general rate case application in August 2022. These costs will be subject to review during the general rate case proceeding and the CPUC may refer to the recommendations of the independent auditor’s report at this time. BVESI Winter Storm Regulatory Asset BVESI activated a CEMA account to track the incremental costs incurred in response to a severe winter storm that occurred in February 2019 and which resulted in the declaration of an emergency by the governor of California. Incremental costs of approximately $449,000 were included in the CEMA account and recorded as a regulatory asset. BVESI subsequently filed for recovery of these costs. In May 2021, the CPUC issued a decision denying BVESI’s request for recovery, claiming that BVESI did not adequately demonstrate that the costs incurred were incremental and beyond costs already included in BVESI’s revenue requirement. The decision allowed BVESI to file a new application on the issue of incrementality. In October 2021, BVESI filed a new application to continue pursuing recovery since BVESI believes the storm costs were incremental and beyond what was included in its revenue requirement. As a result, the costs in this CEMA account remain a regulatory asset at June 30, 2022 since BVESI continues to believe the incremental costs were properly tracked and included in the CEMA account and, therefore, are probable of recovery. In June 2022, BVESI filed its briefs with the CPUC in regards to this matter. At this time, management cannot predict the final outcome of this proceeding. If BVESI does not ultimately prevail in obtaining recovery, it will result in a charge to earnings from the write-off of this CEMA regulatory asset of approximately $449,000. Other Regulatory Assets : |
Earnings per Share_Capital Stoc
Earnings per Share/Capital Stock | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings per Share/Capital Stock | Earnings per Share/Capital Stock In accordance with the accounting guidance for participating securities and earnings per share (“EPS”), Registrant uses the “two-class” method of computing EPS. The “two-class” method is an earnings allocation formula that determines EPS for each class of common stock and participating security. AWR has participating securities related to restricted stock units that earn dividend equivalents on an equal basis with AWR’s Common Shares, and that have been issued under AWR's stock incentive plans for employees and the non-employee directors stock plans. In applying the “two-class” method, undistributed earnings are allocated to both common shares and participating securities. The following is a reconciliation of Registrant’s net income and weighted average Common Shares outstanding used for calculating basic net income per share: Basic: For The Three Months Ended For The Six Months Ended (in thousands, except per share amounts) 2022 2021 2022 2021 Net income $ 19,951 $ 26,576 $ 34,113 $ 45,844 Less: (a) Distributed earnings to common shareholders 13,489 12,366 26,974 24,727 Distributed earnings to participating securities 36 35 67 65 Undistributed earnings 6,426 14,175 7,072 21,052 (b) Undistributed earnings allocated to common shareholders 6,409 14,135 7,055 20,997 Undistributed earnings allocated to participating securities 17 40 17 55 Total income available to common shareholders, basic (a)+(b) $ 19,898 $ 26,501 $ 34,029 $ 45,724 Weighted average Common Shares outstanding, basic 36,956 36,916 36,950 36,907 Basic earnings per Common Share $ 0.54 $ 0.72 $ 0.92 $ 1.24 Diluted EPS is based upon the weighted average number of Common Shares, including both outstanding shares and shares potentially issuable in connection with restricted stock units granted under AWR’s stock incentive plans for employees and the non-employee directors stock plans, and net income. There were no options outstanding as of June 30, 2022 and 2021 under these plans. At June 30, 2022 and 2021, there were 100,820 and 107,772 restricted stock units outstanding, respectively, including performance shares awarded to officers of the Registrant. The following is a reconciliation of Registrant’s net income and weighted average Common Shares outstanding for calculating diluted net income per share: Diluted: For The Three Months Ended For The Six Months Ended (in thousands, except per share amounts) 2022 2021 2022 2021 Common shareholders earnings, basic $ 19,898 $ 26,501 $ 34,029 $ 45,724 Undistributed earnings for dilutive stock-based awards 17 40 17 55 Total common shareholders earnings, diluted $ 19,915 $ 26,541 $ 34,046 $ 45,779 Weighted average common shares outstanding, basic 36,956 36,916 36,950 36,907 Stock-based compensation (1) 83 91 79 86 Weighted average common shares outstanding, diluted 37,039 37,007 37,029 36,993 Diluted earnings per Common Share $ 0.54 $ 0.72 $ 0.92 $ 1.24 . (1) All of the 100,820 and 107,772 restricted stock units at June 30, 2022 and 2021, respectively, were included in the calculation of diluted EPS for the three and six months ended June 30, 2022 and 2021. During the six months ended June 30, 2022 and 2021, AWR issued 19,742 and 42,668 of common shares related to restricted stock units, respectively. During the six months ended June 30, 2022 and 2021, AWR paid $1.2 million and $1.3 million, respectively, to taxing authorities on employees' behalf for shares withheld related to net share settlements. During the six months ended June 30, 2022 and 2021, GSWC paid $1.1 million and $1.2 million, respectively, to taxing authorities on employees' behalf for shares withheld related to net share settlements. These payments are included in the stock-based compensation caption of the statements of equity. During the three months ended June 30, 2022 and 2021, AWR paid quarterly dividends of approximately $13.5 million, or $0.365 per share, and $12.4 million, or $0.335 per share, respectively. During the six months ended June 30, 2022 and 2021, AWR paid quarterly dividends of approximately $27.0 million, or $0.730 per share, and $24.7 million, or $0.670 per share, respectively. During the three months ended June 30, 2022 and 2021, GSWC paid dividends of $13.5 million and $12.4 million, respectively, to AWR during these periods. During the six months ended June 30, 2022 and 2021, GSWC paid dividends of $27.0 million and $24.8 million, respectively, to AWR during these periods. |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments BVESI purchases power under long-term contracts at a fixed cost depending on the amount of power and the period during which the power may be purchased under such contracts. These contracts provide power at a fixed cost over approximately three BVESI's purchase power contracts are subject to the accounting guidance for derivatives and require mark-to-market derivative accounting. Among other things, the CPUC authorized the use of a regulatory asset and liability memorandum account to offset the mark-to-market entries required by the accounting guidance. Accordingly, all unrealized gains and losses generated from the purchased power contracts are deferred on a monthly basis into a non-interest bearing regulatory memorandum account that tracks the changes in fair value of the derivative throughout the terms of the contracts. As a result, these unrealized gains and losses did not impact AWR’s earnings. As of June 30, 2022, there was an $8.1 million unrealized gain recorded as an asset with a corresponding regulatory liability in the same amount recorded in the memorandum account for the purchased power contracts. The notional volume of derivatives remaining under these long-term contracts as of June 30, 2022 was 283,665 megawatt hours. The accounting guidance for fair value measurements applies to all financial assets and financial liabilities that are measured and reported on a fair value basis. Under the accounting guidance, BVESI has made fair value measurements that are classified and disclosed in one of the following three categories: Level 1 : Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 : Quoted prices in markets that are not active or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; or Level 3 : Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). To value the contracts, Registrant utilizes various inputs that include quoted market prices for energy over the duration of the contracts. The market prices used to determine the fair value for this derivative instrument were estimated based on independent sources such as broker quotes and publications that are not observable in or corroborated by the market. When such inputs have a significant impact on the measurement of fair value, the instruments are categorized as Level 3. Accordingly, the valuation of the derivatives on Registrant’s purchased power contract has been classified as Level 3 for all periods presented. The following table presents changes in the fair value of the Level 3 derivatives for the three and six months ended June 30, 2022 and 2021. The change in fair value was due to an increase in energy prices during the three and six months ended June 30, 2022. For The Three Months Ended For The Six Months Ended (dollars in thousands) 2022 2021 2022 2021 Fair value at beginning of the period $ 7,020 $ 1,224 $ 4,441 $ (1,537) Unrealized gains on purchased power contracts 1,094 1,586 3,673 4,347 Fair value at end of the period $ 8,114 $ 2,810 $ 8,114 $ 2,810 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments For cash and cash equivalents, accounts receivable, accounts payable and short-term debt, the carrying amount is assumed to approximate fair value due to the short-term nature of these items. Investments held in a Rabbi Trust for the supplemental executive retirement plan ("SERP") are measured at fair value and totaled $26.3 million as of June 30, 2022 and $31.5 million as of December 31, 2021. All equity investments in the Rabbi Trust are Level 1 investments in mutual funds. The investments held in the Rabbi Trust are included in "Other Property and Investments" on Registrant's balance sheets. The table below estimates the fair value of long-term debt held by AWR. At June 30, 2022, the amount includes $35.0 million of new debt issued in April 2022 by BVESI, which approximates fair value. As of December 31, 2021, all outstanding long-term debt was held by GSWC. The fair values as of June 30, 2022 and December 31, 2021 were determined using rates for similar financial instruments of the same duration utilizing Level 2 methods and assumptions. Changes in the assumptions will produce different results. June 30, 2022 December 31, 2021 (dollars in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Financial liabilities: Long-term debt—AWR (1) $ 450,583 $ 442,106 $ 415,788 $ 490,852 ___________________ (1) Excludes debt issuance costs of approximately $3.2 million. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesAWR's effective income tax rate (“ETR”) was 23.7% and 21.9% for the three months ended June 30, 2022 and 2021, respectively, and was 23.8% and 22.6% for the six months ended June 30, 2022 and 2021, respectively. GSWC's ETR was 25.5% and 22.1% for the three months ended June 30, 2022 and 2021, respectively, and was 24.9% and 22.7% for the six months ended June 30, 2022 and 2021, respectively.The AWR and GSWC effective tax rates differed from the federal corporate statutory tax rate of 21% primarily due to (i) state taxes; (ii) permanent differences, including the excess tax benefits from share-based payments, which were reflected in the income statements and resulted in a reduction to income tax expense during the three and six months ended June 30, 2022 and 2021; (iii) the ongoing amortization of the excess deferred income tax liability; and (iv) differences between book and taxable income that are treated as flow-through adjustments in accordance with regulatory requirements (principally from plant, rate-case, and compensation-related items). As a regulated utility, GSWC treats certain temporary differences as flow-through in computing its income tax expense consistent with the income tax method used in its CPUC-jurisdiction ratemaking. Flow-through items either increase or decrease tax expense and thus impact the ETR. |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2022 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The components of net periodic benefit costs for Registrant’s pension plan, postretirement medical benefit plan and SERP for the three and six months ended June 30, 2022 and 2021 were as follows: For The Three Months Ended June 30, Pension Benefits Other SERP (dollars in thousands) 2022 2021 2022 2021 2022 2021 Components of Net Periodic Benefits Cost: Service cost $ 1,342 $ 1,625 $ 33 $ 40 $ 298 $ 348 Interest cost 1,856 1,712 16 31 256 229 Expected return on plan assets (3,290) (3,134) (147) (134) — — Amortization of prior service cost 109 109 — — — — Amortization of actuarial (gain) loss — 993 (412) (287) 145 419 Net periodic benefits costs under accounting standards 17 1,305 (510) (350) 699 996 Regulatory adjustment - deferred — (351) — — — — Total expense (benefit) recognized, before surcharges and allocation to overhead pool $ 17 $ 954 $ (510) $ (350) $ 699 $ 996 For The Six Months Ended June 30, Pension Benefits Other SERP (dollars in thousands) 2022 2021 2022 2021 2022 2021 Components of Net Periodic Benefits Cost: Service cost $ 2,822 $ 3,250 $ 66 $ 80 $ 596 $ 696 Interest cost 3,700 3,424 32 62 512 458 Expected return on plan assets (6,582) (6,268) (294) (268) — — Amortization of prior service cost 218 218 — — — — Amortization of actuarial (gain) loss — 1,986 (824) (574) 290 838 Net periodic benefits costs under accounting standards 158 2,610 (1,020) (700) 1,398 1,992 Regulatory adjustment - deferred — (702) — — — — Total expense (benefit) recognized, before surcharges and allocation to overhead pool $ 158 $ 1,908 $ (1,020) $ (700) $ 1,398 $ 1,992 For the pension plan obligation, Registrant used a discount rate of 2.89% as of December 31, 2021 to determine the projected benefit obligation (“PBO”) of $259.8 million. Discount rates as of June 30, 2022 are approximately 186-basis points higher than those used as of December 31, 2021 based on recent changes in market interest-rate conditions. A 186-basis point increase in the assumed discount rate would have decreased the PBO as of December 31, 2021 by approximately 22% or $58.2 million, which decreases the underfunded status of the pension plan. However, this decrease in the underfunded status caused by the higher discount rate would be largely offset by the decrease in the fair value of plan assets since December 31, 2021 resulting from current market conditions and related volatility experienced thus far in 2022. In 2022, Registrant expects to contribute approximately $3.1 million to its pension plan. As authorized by the CPUC in the water and electric general rate case decisions, GSWC and BVESI each utilize two-way balancing accounts to track differences between the forecasted annual pension expenses in rates, or expected to be in rates, and the actual annual expense recorded in accordance with the accounting guidance for pension costs. GSWC’s actual pension expense was lower than the amounts included in water customer rates for the three and six months ended June 30, 2022. During the three and six months ended June 30, 2021, GSWC's actual pension expense was higher than the amounts included in water customer rates by $351,000 and $702,000, respectively. BVESI's actual expense was lower than the amounts included in electric customer rates for all periods presented. As of June 30, 2022, GSWC and BVESI had over-collections in their two-way pension balancing accounts of $635,000 and $246,000, respectively, included as part of regulatory assets and liabilities (Note 3). |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Environmental Clean-Up and Remediation : GSWC has been involved in environmental remediation and cleanup at one of its plant sites that contained an underground storage tank which was used to store gasoline for its vehicles. This tank was removed from the ground in July 1990 along with the dispenser and ancillary piping. Since then, GSWC has been involved in various remediation activities at this site. Analysis indicates that off-site monitoring wells may be necessary to document effectiveness of remediation. As of June 30, 2022, the total amount spent to clean up and remediate GSWC’s plant facility was approximately $6.1 million, of which $1.5 million has been paid by the State of California Underground Storage Tank Fund. Amounts paid by GSWC have been included in rate base and approved by the CPUC for recovery. As of June 30, 2022, GSWC has a regulatory asset and an accrued liability for the estimated additional cost of $1.3 million to complete the cleanup at the site. The estimate includes costs for two years of continued activities of groundwater cleanup and monitoring, future soil treatment and site-closure-related activities. The ultimate cost may vary as there are many unknowns in remediation of underground gasoline spills and this is an estimate based on currently available information. Management also believes it is probable that the estimated additional costs will be approved in rate base by the CPUC. Other Litigation : Registrant is also subject to other ordinary routine litigation incidental to its business, some of which may include claims for compensatory and punitive damages. Management believes that rate recovery, proper insurance coverage and reserves are in place to insure against, among other things, property, general liability, employment, and workers’ compensation claims incurred in the ordinary course of business. Insurance coverage may not cover certain claims involving punitive damages. Registrant does not believe the outcome from any pending suits or administrative proceedings will have a material effect on Registrant's consolidated results of operations, financial position, or cash flows. |
Business Segments
Business Segments | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments AWR has three reportable segments: water, electric and contracted services. GSWC has one segment, water. On a stand-alone basis, AWR has no material assets or liabilities other than its equity investments in its subsidiaries, note payables to its subsidiaries and deferred taxes. All of GSWC's and BVESI's business activities are conducted in California. Activities of ASUS and its subsidiaries are conducted in California, Florida, Georgia, Kansas, Maryland, New Mexico, North Carolina, South Carolina, Texas and Virginia. Some of ASUS’s wholly owned subsidiaries are regulated by the state in which the subsidiary primarily conducts water and/or wastewater operations. Fees charged for operations and maintenance and renewal and replacement services are based upon the terms of the contracts with the U.S. government, which have been filed, as appropriate, with the commissions in the states in which ASUS’s subsidiaries are incorporated. The tables below set forth information relating to AWR’s operating segments and AWR Parent. The utility plant amounts are net of respective accumulated provisions for depreciation. Capital additions reflect capital expenditures paid in cash, excluding U.S. government- and third-party contractor-funded capital expenditures for ASUS, and property installed by developers and conveyed to GSWC or BVESI. As Of And For The Three Months Ended June 30, 2022 Contracted AWR Consolidated (dollars in thousands) Water Electric Services Parent AWR Operating revenues $ 90,856 $ 8,217 $ 23,534 $ — $ 122,607 Operating income (loss) 27,711 2,038 4,571 (3) 34,317 Interest expense, net 5,318 295 (102) 361 5,872 Net property, plant and equipment 1,553,389 111,394 18,704 — 1,683,487 Depreciation and amortization expense (1) 8,553 686 932 — 10,171 Income tax expense (benefit) 5,103 215 1,108 (221) 6,205 Capital additions 35,519 5,306 557 — 41,382 As Of And For The Three Months Ended June 30, 2021 Contracted AWR Consolidated (dollars in thousands) Water Electric Services Parent AWR Operating revenues $ 91,633 $ 8,108 $ 28,673 $ — $ 128,414 Operating income (loss) 30,777 1,795 5,278 (3) 37,847 Interest expense, net 5,464 88 (88) 220 5,684 Net property, plant and equipment 1,450,519 98,496 21,618 — 1,570,633 Depreciation and amortization expense (1) 8,213 642 915 — 9,770 Income tax expense (benefit) 5,957 458 1,271 (224) 7,462 Capital additions 31,985 6,416 653 — 39,054 As Of And For The Six Months Ended June 30, 2022 Contracted AWR Consolidated (dollars in thousands) Water Electric Services Parent AWR Operating revenues $ 164,762 $ 20,109 $ 46,306 $ — $ 231,177 Operating income (loss) 44,710 5,636 8,341 (5) 58,682 Interest expense, net 10,463 408 (237) 561 11,195 Net property, plant and equipment 1,553,389 111,394 18,704 — 1,683,487 Depreciation and amortization expense (1) 17,098 1,340 1,847 — 20,285 Income tax expense (benefit) 7,792 1,167 2,052 (345) 10,666 Capital additions 66,984 8,774 794 — 76,552 As Of And For The Six Months Ended June 30, 2021 Contracted AWR Consolidated (dollars in thousands) Water Electric Services Parent AWR Operating revenues $ 166,662 $ 19,647 $ 59,165 $ — $ 245,474 Operating income (loss) 51,836 5,243 11,102 (5) 68,176 Interest expense, net 11,175 174 (317) 455 11,487 Net property, plant and equipment 1,450,519 98,496 21,618 — 1,570,633 Depreciation and amortization expense (1) 16,275 1,281 1,774 — 19,330 Income tax expense (benefit) 9,725 1,342 2,662 (353) 13,376 Capital additions 63,809 11,198 1,140 — 76,147 (1) Depreciation computed on GSWC’s and BVESI's transportation equipment is recorded in other operating expenses and totaled $95,000 and $94,000 for the three months ended June 30, 2022 and 2021, respectively, and totaled $189,000 for the six months ended June 30, 2022 and 2021, respectively. The following table reconciles total net property, plant and equipment (a key figure for ratemaking) to total consolidated assets (in thousands): June 30, 2022 2021 Total net property, plant and equipment $ 1,683,487 $ 1,570,633 Other assets 266,159 271,725 Total consolidated assets $ 1,949,646 $ 1,842,358 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies: (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Accounting | Nature of Operations : American States Water Company (“AWR”) is the parent company of Golden State Water Company (“GSWC”), Bear Valley Electric Service, Inc. ("BVESI"), and American States Utility Services, Inc. (“ASUS”) (and its wholly owned subsidiaries: Fort Bliss Water Services Company (“FBWS”), Terrapin Utility Services, Inc. (“TUS”), Old Dominion Utility Services, Inc. (“ODUS”), Palmetto State Utility Services, Inc. (“PSUS”), Old North Utility Services, Inc. (“ONUS”), Emerald Coast Utility Services, Inc. ("ECUS"), and Fort Riley Utility Services, Inc. ("FRUS")). The subsidiaries of ASUS are collectively referred to as the “Military Utility Privatization Subsidiaries”. AWR, through its wholly owned subsidiaries, serves over one million people in nine states. GSWC and BVESI are both California public utilities. GSWC is engaged in the purchase, production, distribution and sale of water throughout California serving approximately 263,000 customer connections. BVESI distributes electricity in several San Bernardino County mountain communities in California serving approximately 24,700 customer connections. The California Public Utilities Commission (“CPUC”) regulates GSWC’s and BVESI's businesses in matters including properties, rates, services, facilities, and transactions between GSWC, BVESI, and their affiliates. ASUS, through its wholly owned subsidiaries, operates, maintains and performs construction activities (including renewal and replacement capital work) on water and/or wastewater systems at various U.S. military bases pursuant to initial 50-year firm fixed-price contracts. These contracts are subject to annual economic price adjustments and modifications for changes in circumstances, changes in laws and regulations, and additions to the contract value for new construction of facilities at the military bases. There is no direct regulatory oversight by the CPUC over AWR or the operations, rates or services provided by ASUS or any of its wholly owned subsidiaries. Basis of Presentation : The consolidated financial statements and notes thereto are presented in a combined report filed by two separate Registrants: AWR and GSWC. References in this report to “Registrant” are to AWR and GSWC, collectively, unless otherwise specified. AWR owns all of the outstanding common shares of GSWC, BVESI and ASUS. ASUS owns all of the outstanding common stock of the Military Utility Privatization Subsidiaries. The consolidated financial statements of AWR include the accounts of AWR and its subsidiaries. These financial statements are prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP"). Intercompany transactions and balances have been eliminated in the AWR consolidated financial statements. The consolidated financial statements included herein have been prepared by Registrant, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The December 31, 2021 condensed consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by GAAP. The preparation of the consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. In the opinion of management, all adjustments consisting of normal, recurring items, and estimates necessary for a fair statement of the results for the interim periods have been made. It is suggested that these consolidated financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in the Form 10-K for the year ended December 31, 2021 filed with the SEC. |
Related Party Transactions and Financing Activities | Related Party Transactions and Financing Activities : GSWC, BVESI and ASUS provide and/or receive various support services to and from their parent, AWR, and among themselves. GSWC has allocated certain corporate office administrative and general costs to its affiliates, BVESI and ASUS, using allocation factors approved by the CPUC. GSWC allocated corporate office administrative and general costs to the electric segment of approximately $592,000 and $679,000 during the three months ended June 30, 2022 and 2021, respectively, and $1.4 million and $1.5 million during the six month periods ended June 30, 2022 and 2021. GSWC allocated corporate office administrative and general costs to ASUS of approximately $1.1 million and $1.3 million during the three months ended June 30, 2022 and 2021, respectively, and $2.7 million and $2.8 million during the six months ended June 30, 2022 and 2021, respectively. AWR borrows under a credit facility and provides funds to GSWC and ASUS in support of their operations through intercompany borrowing agreements. The interest rate charged to GSWC and ASUS is sufficient to cover AWR’s interest expense under the credit facility. On April 22, 2022, the credit facility was amended to increase the borrowing capacity from $200.0 million to $280.0 million. The amendment also changed the benchmark interest rate from the London Interbank Offered Rate ("LIBOR") to the Secured Overnight Financing Rate ("SOFR"). The change in benchmark rates has not had a material impact on its financing costs. This credit agreement expires in May 2023. Accordingly, as of June 30, 2022, the outstanding balances under this credit facility have been classified as a current liability in AWR's Consolidated Balance Sheet. Management expects to renew and extend this facility prior to its expiration date. In addition, Registrant expects to issue long-term debt through GSWC prior to May 2023, and use the debt proceeds to pay off portions of the outstanding borrowings under this facility prior to its expiration. As of June 30, 2022, there was $223.5 million outstanding under this facility. BVESI has a separate $35.0 million revolving credit facility, which was amended in December 2021 to reduce the interest rate and fees charged, as well as to extend the maturity date by a year to July 1, 2024. Under the terms of the credit agreement, BVESI has the option to increase the facility by an additional $15.0 million, subject to lender approval. Interest rates under this facility are currently based on LIBOR. Under the terms of the December 2021 amendment, upon discontinuation of the LIBOR benchmark rate in 2023, the lender may replace LIBOR with a benchmark interest rate such as SOFR. BVESI does not believe the change from LIBOR to a new benchmark rate will have a material impact on its financing costs. The CPUC requires BVESI to completely pay off all borrowings under its revolving credit facility within a 24-month period. On April 28, 2022, BVESI completed the issuance of $35.0 million in unsecured private placement notes consisting of $17.5 million at a coupon rate of 4.548% due April 28, 2032 and $17.5 million at a coupon rate of 4.949% due April 28, 2037. Interest on these notes is payable semiannually, and the covenant requirements under these notes are similar to the terms of BVESI's revolving credit facility. BVESI used the proceeds from the notes to pay down amounts outstanding under its credit facility, thus complying with the CPUC's 24-month rule. As of June 30, 2022, there were no outstanding borrowings under this facility. |
COVID-19 Impact | COVID-19 Impact : GSWC, BVESI and ASUS have continued their operations throughout the COVID-19 pandemic given that their water, wastewater and electric utility services are deemed essential. AWR and its subsidiaries continue to monitor the guidance provided by federal, state, and local health authorities and other government officials. While continuing to monitor transmission rates in California and other variables, employees have returned to company offices. During 2022, GSWC and BVESI continue to incur incremental costs in excess of their revenue requirements, primarily related to delinquent customer accounts receivable, due to the lingering effects of the pandemic that are being tracked in COVID-19-related memorandum accounts and recorded as regulatory assets (Note 3). As a result, the amounts recorded in the COVID-19-related memorandum accounts have not impacted GSWC's or BVESI's earnings. Thus far, the COVID-19 pandemic has not had a material impact on ASUS's current operations. |
Recently Issued Accounting Pronouncements | Accounting Pronouncements to Be Adopted in 2022 : In November 2021, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2021-10 Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance |
Revenues (Tables)
Revenues (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | For the three and six months ended June 30, 2022 and 2021, disaggregated revenues from contracts with customers by segment were as follows: Three Months Ended June 30, Six Months Ended June 30, (dollar in thousands) 2022 2021 2022 2021 Water: Tariff-based revenues $ 83,612 $ 86,687 $ 156,110 $ 160,975 Surcharges (cost-recovery activities) 797 975 1,346 1,509 Other 571 523 1,089 1,040 Water revenues from contracts with customers 84,980 88,185 158,545 163,524 WRAM under-collection (alternative revenue program) 5,876 3,448 6,217 3,138 Total water revenues 90,856 91,633 164,762 166,662 Electric: Tariff-based revenues 8,381 8,330 20,933 20,007 Surcharges (cost-recovery activities) 32 44 59 246 Electric revenues from contracts with customers 8,413 8,374 20,992 20,253 BRRAM over-collection (alternative revenue program) (196) (266) (883) (606) Total electric revenues 8,217 8,108 20,109 19,647 Contracted services: Water 14,175 18,765 27,721 37,648 Wastewater 9,359 9,908 18,585 21,517 Contracted services revenues from contracts with customers 23,534 28,673 46,306 59,165 Total AWR revenues $ 122,607 $ 128,414 $ 231,177 $ 245,474 |
Contract with Customer, Asset and Liability | The opening and closing balances of the receivable from the U.S. government, contract assets, and contract liabilities from contracts with customers, which are related entirely to ASUS, were as follows: (dollar in thousands) June 30, 2022 December 31, 2021 Unbilled receivables $ 12,354 $ 14,835 Receivable from the U.S. government $ 73,160 $ 79,818 Contract assets $ 14,177 $ 9,587 Contract liabilities $ 322 $ 257 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Regulated Operations [Abstract] | |
Schedule of regulatory assets, less regulatory liabilities in the consolidated balance sheets for continuing operations | Regulatory assets, less regulatory liabilities, included in the consolidated balance sheets are as follows: (dollars in thousands) June 30, December 31, GSWC Water Revenue Adjustment Mechanism and Modified Cost Balancing Account $ 24,115 $ 13,326 Pensions and other post-retirement obligations (Note 8) 24,633 25,212 COVID-19 memorandum accounts 5,593 1,663 Excess deferred income taxes (72,531) (73,000) Flow-through taxes, net (4,347) (5,552) Other regulatory assets 17,961 16,949 Various refunds to customers (5,481) (2,680) Total GSWC $ (10,057) $ (24,082) BVESI Derivative unrealized gain (Note 5) (8,114) (4,441) Other regulatory assets 15,705 13,916 Various refunds to customers (8,772) (8,189) Total AWR $ (11,238) $ (22,796) |
Earnings per Share_Capital St_2
Earnings per Share/Capital Stock (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliation of Registrant's net income and weighted average Common Shares outstanding for calculating basic net income per share | The following is a reconciliation of Registrant’s net income and weighted average Common Shares outstanding used for calculating basic net income per share: Basic: For The Three Months Ended For The Six Months Ended (in thousands, except per share amounts) 2022 2021 2022 2021 Net income $ 19,951 $ 26,576 $ 34,113 $ 45,844 Less: (a) Distributed earnings to common shareholders 13,489 12,366 26,974 24,727 Distributed earnings to participating securities 36 35 67 65 Undistributed earnings 6,426 14,175 7,072 21,052 (b) Undistributed earnings allocated to common shareholders 6,409 14,135 7,055 20,997 Undistributed earnings allocated to participating securities 17 40 17 55 Total income available to common shareholders, basic (a)+(b) $ 19,898 $ 26,501 $ 34,029 $ 45,724 Weighted average Common Shares outstanding, basic 36,956 36,916 36,950 36,907 Basic earnings per Common Share $ 0.54 $ 0.72 $ 0.92 $ 1.24 |
Schedule of reconciliation of Registrant's net income and weighted average Common Shares outstanding for calculating diluted net income per share | The following is a reconciliation of Registrant’s net income and weighted average Common Shares outstanding for calculating diluted net income per share: Diluted: For The Three Months Ended For The Six Months Ended (in thousands, except per share amounts) 2022 2021 2022 2021 Common shareholders earnings, basic $ 19,898 $ 26,501 $ 34,029 $ 45,724 Undistributed earnings for dilutive stock-based awards 17 40 17 55 Total common shareholders earnings, diluted $ 19,915 $ 26,541 $ 34,046 $ 45,779 Weighted average common shares outstanding, basic 36,956 36,916 36,950 36,907 Stock-based compensation (1) 83 91 79 86 Weighted average common shares outstanding, diluted 37,039 37,007 37,029 36,993 Diluted earnings per Common Share $ 0.54 $ 0.72 $ 0.92 $ 1.24 . (1) All of the 100,820 and 107,772 restricted stock units at June 30, 2022 and 2021, respectively, were included in the calculation of diluted EPS for the three and six months ended June 30, 2022 and 2021. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | The following table presents changes in the fair value of the Level 3 derivatives for the three and six months ended June 30, 2022 and 2021. The change in fair value was due to an increase in energy prices during the three and six months ended June 30, 2022. For The Three Months Ended For The Six Months Ended (dollars in thousands) 2022 2021 2022 2021 Fair value at beginning of the period $ 7,020 $ 1,224 $ 4,441 $ (1,537) Unrealized gains on purchased power contracts 1,094 1,586 3,673 4,347 Fair value at end of the period $ 8,114 $ 2,810 $ 8,114 $ 2,810 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments: (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of estimates of the fair value of long-term debt | The table below estimates the fair value of long-term debt held by AWR. At June 30, 2022, the amount includes $35.0 million of new debt issued in April 2022 by BVESI, which approximates fair value. As of December 31, 2021, all outstanding long-term debt was held by GSWC. The fair values as of June 30, 2022 and December 31, 2021 were determined using rates for similar financial instruments of the same duration utilizing Level 2 methods and assumptions. Changes in the assumptions will produce different results. June 30, 2022 December 31, 2021 (dollars in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Financial liabilities: Long-term debt—AWR (1) $ 450,583 $ 442,106 $ 415,788 $ 490,852 ___________________ (1) Excludes debt issuance costs of approximately $3.2 million. |
Employee Benefit Plans_ (Tables
Employee Benefit Plans: (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of components of net periodic benefit costs, before allocation to the overhead pool, for Registrant's pension plan, postretirement plan, and SERP | The components of net periodic benefit costs for Registrant’s pension plan, postretirement medical benefit plan and SERP for the three and six months ended June 30, 2022 and 2021 were as follows: For The Three Months Ended June 30, Pension Benefits Other SERP (dollars in thousands) 2022 2021 2022 2021 2022 2021 Components of Net Periodic Benefits Cost: Service cost $ 1,342 $ 1,625 $ 33 $ 40 $ 298 $ 348 Interest cost 1,856 1,712 16 31 256 229 Expected return on plan assets (3,290) (3,134) (147) (134) — — Amortization of prior service cost 109 109 — — — — Amortization of actuarial (gain) loss — 993 (412) (287) 145 419 Net periodic benefits costs under accounting standards 17 1,305 (510) (350) 699 996 Regulatory adjustment - deferred — (351) — — — — Total expense (benefit) recognized, before surcharges and allocation to overhead pool $ 17 $ 954 $ (510) $ (350) $ 699 $ 996 For The Six Months Ended June 30, Pension Benefits Other SERP (dollars in thousands) 2022 2021 2022 2021 2022 2021 Components of Net Periodic Benefits Cost: Service cost $ 2,822 $ 3,250 $ 66 $ 80 $ 596 $ 696 Interest cost 3,700 3,424 32 62 512 458 Expected return on plan assets (6,582) (6,268) (294) (268) — — Amortization of prior service cost 218 218 — — — — Amortization of actuarial (gain) loss — 1,986 (824) (574) 290 838 Net periodic benefits costs under accounting standards 158 2,610 (1,020) (700) 1,398 1,992 Regulatory adjustment - deferred — (702) — — — — Total expense (benefit) recognized, before surcharges and allocation to overhead pool $ 158 $ 1,908 $ (1,020) $ (700) $ 1,398 $ 1,992 |
Business Segments (Tables)
Business Segments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of reporting segments information | The tables below set forth information relating to AWR’s operating segments and AWR Parent. The utility plant amounts are net of respective accumulated provisions for depreciation. Capital additions reflect capital expenditures paid in cash, excluding U.S. government- and third-party contractor-funded capital expenditures for ASUS, and property installed by developers and conveyed to GSWC or BVESI. As Of And For The Three Months Ended June 30, 2022 Contracted AWR Consolidated (dollars in thousands) Water Electric Services Parent AWR Operating revenues $ 90,856 $ 8,217 $ 23,534 $ — $ 122,607 Operating income (loss) 27,711 2,038 4,571 (3) 34,317 Interest expense, net 5,318 295 (102) 361 5,872 Net property, plant and equipment 1,553,389 111,394 18,704 — 1,683,487 Depreciation and amortization expense (1) 8,553 686 932 — 10,171 Income tax expense (benefit) 5,103 215 1,108 (221) 6,205 Capital additions 35,519 5,306 557 — 41,382 As Of And For The Three Months Ended June 30, 2021 Contracted AWR Consolidated (dollars in thousands) Water Electric Services Parent AWR Operating revenues $ 91,633 $ 8,108 $ 28,673 $ — $ 128,414 Operating income (loss) 30,777 1,795 5,278 (3) 37,847 Interest expense, net 5,464 88 (88) 220 5,684 Net property, plant and equipment 1,450,519 98,496 21,618 — 1,570,633 Depreciation and amortization expense (1) 8,213 642 915 — 9,770 Income tax expense (benefit) 5,957 458 1,271 (224) 7,462 Capital additions 31,985 6,416 653 — 39,054 As Of And For The Six Months Ended June 30, 2022 Contracted AWR Consolidated (dollars in thousands) Water Electric Services Parent AWR Operating revenues $ 164,762 $ 20,109 $ 46,306 $ — $ 231,177 Operating income (loss) 44,710 5,636 8,341 (5) 58,682 Interest expense, net 10,463 408 (237) 561 11,195 Net property, plant and equipment 1,553,389 111,394 18,704 — 1,683,487 Depreciation and amortization expense (1) 17,098 1,340 1,847 — 20,285 Income tax expense (benefit) 7,792 1,167 2,052 (345) 10,666 Capital additions 66,984 8,774 794 — 76,552 As Of And For The Six Months Ended June 30, 2021 Contracted AWR Consolidated (dollars in thousands) Water Electric Services Parent AWR Operating revenues $ 166,662 $ 19,647 $ 59,165 $ — $ 245,474 Operating income (loss) 51,836 5,243 11,102 (5) 68,176 Interest expense, net 11,175 174 (317) 455 11,487 Net property, plant and equipment 1,450,519 98,496 21,618 — 1,570,633 Depreciation and amortization expense (1) 16,275 1,281 1,774 — 19,330 Income tax expense (benefit) 9,725 1,342 2,662 (353) 13,376 Capital additions 63,809 11,198 1,140 — 76,147 (1) Depreciation computed on GSWC’s and BVESI's transportation equipment is recorded in other operating expenses and totaled $95,000 and $94,000 for the three months ended June 30, 2022 and 2021, respectively, and totaled $189,000 for the six months ended June 30, 2022 and 2021, respectively. |
Schedule of reconciliation of total utility plant (a key figure for rate-making) to total consolidated assets | The following table reconciles total net property, plant and equipment (a key figure for ratemaking) to total consolidated assets (in thousands): June 30, 2022 2021 Total net property, plant and equipment $ 1,683,487 $ 1,570,633 Other assets 266,159 271,725 Total consolidated assets $ 1,949,646 $ 1,842,358 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies: (Details) | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2022 USD ($) state | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) state customer registrant | Jun. 30, 2021 USD ($) | Apr. 28, 2022 USD ($) | Apr. 22, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Summary of significant accounting policies | |||||||
Number of customers | customer | 1,000,000 | ||||||
Number of States in which Entity Operates | state | 9 | 9 | |||||
Number of registrants filing combined report | registrant | 2 | ||||||
Parent Company | Syndicated Revolving Credit Facility member [Member] | |||||||
Summary of significant accounting policies | |||||||
Notes Payable, Noncurrent | $ 223,500,000 | $ 223,500,000 | |||||
ASUS | |||||||
Summary of significant accounting policies | |||||||
Payments to affiliate for corporate office administrative and general costs | 1,100,000 | $ 1,300,000 | 2,700,000 | $ 2,800,000 | |||
BVESI | |||||||
Summary of significant accounting policies | |||||||
Payments to affiliate for corporate office administrative and general costs | 592,000 | $ 679,000 | 1,400,000 | $ 1,500,000 | |||
Maximum borrowing capacity on line of credit | 35,000,000 | 35,000,000 | |||||
Incremental expansion of borrowing capacity | 15,000,000 | $ 15,000,000 | |||||
Debt instrument term | 24 months | ||||||
BVESI | Syndicated Revolving Credit Facility member [Member] | |||||||
Summary of significant accounting policies | |||||||
Notes Payable, Noncurrent | 0 | $ 0 | |||||
BVESI | Unsecured Private Placement Notes | |||||||
Summary of significant accounting policies | |||||||
Debt Instrument, Face Amount | $ 35,000,000 | ||||||
BVESI | Senior Notes Due 2032 | |||||||
Summary of significant accounting policies | |||||||
Debt Instrument, Face Amount | $ 17,500,000 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.548% | ||||||
BVESI | Senior Notes Due 2037 | |||||||
Summary of significant accounting policies | |||||||
Debt Instrument, Face Amount | $ 17,500,000 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.949% | ||||||
BVESI | Electric: | |||||||
Summary of significant accounting policies | |||||||
Number of customers | customer | 24,700 | ||||||
GSWC | |||||||
Summary of significant accounting policies | |||||||
Intercompany payable to Parent | $ 102,399,000 | $ 102,399,000 | $ 0 | ||||
GSWC | Water: | |||||||
Summary of significant accounting policies | |||||||
Number of customers | customer | 263,000 | ||||||
Maximum | Parent Company | Revolving Credit Facility | |||||||
Summary of significant accounting policies | |||||||
Line of Credit Facility, Current Borrowing Capacity | $ 280,000,000 | ||||||
Minimum | Parent Company | Revolving Credit Facility | |||||||
Summary of significant accounting policies | |||||||
Line of Credit Facility, Current Borrowing Capacity | $ 200,000,000 |
Revenues - Narrative (Details)
Revenues - Narrative (Details) $ in Billions | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Disaggregation of Revenue [Line Items] | |
Revenue, remaining performance obligation, amount | $ 3.3 |
ASUS | Minimum | |
Disaggregation of Revenue [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 32 years |
ASUS | Maximum | |
Disaggregation of Revenue [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 46 years |
Contracted services: | ASUS | |
Disaggregation of Revenue [Line Items] | |
Period of fixed price contracts to operate and maintain water systems at various military bases | 50 years |
Electric: | Golden State Water Company and Bear Valley Electric Service Inc. | Sales | Customer Concentration Risk | |
Disaggregation of Revenue [Line Items] | |
Concentration risk, percentage | 90% |
Water Service Utility Operations [Member] | GSWC | Sales | Customer Concentration Risk | |
Disaggregation of Revenue [Line Items] | |
Concentration risk, percentage | 90% |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Total operating revenues | $ 122,607 | $ 128,414 | $ 231,177 | $ 245,474 |
GOLDEN STATE WATER COMPANY | ||||
Disaggregation of Revenue [Line Items] | ||||
Total operating revenues | 90,856 | 91,633 | 164,762 | 166,662 |
Water: | GOLDEN STATE WATER COMPANY | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer, excluding assessed tax | 84,980 | 88,185 | 158,545 | 163,524 |
Total operating revenues | 90,856 | 91,633 | 164,762 | 166,662 |
Electric: | BVESI | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer, excluding assessed tax | 8,413 | 8,374 | 20,992 | 20,253 |
Total operating revenues | 8,217 | 8,108 | 20,109 | 19,647 |
Contracted services: | ASUS | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer, excluding assessed tax | 23,534 | 28,673 | 46,306 | 59,165 |
Tariff-based revenues | Water: | GOLDEN STATE WATER COMPANY | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer, excluding assessed tax | 83,612 | 86,687 | 156,110 | 160,975 |
Tariff-based revenues | Electric: | BVESI | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer, excluding assessed tax | 8,381 | 8,330 | 20,933 | 20,007 |
Surcharges (cost-recovery activities) | Water: | GOLDEN STATE WATER COMPANY | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer, excluding assessed tax | 797 | 975 | 1,346 | 1,509 |
Surcharges (cost-recovery activities) | Electric: | BVESI | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer, excluding assessed tax | 32 | 44 | 59 | 246 |
Other | Water: | GOLDEN STATE WATER COMPANY | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer, excluding assessed tax | 571 | 523 | 1,089 | 1,040 |
WRAM under-collection (alternative revenue program) | Water: | GOLDEN STATE WATER COMPANY | ||||
Disaggregation of Revenue [Line Items] | ||||
Alternative revenue programs, net | 5,876 | 3,448 | 6,217 | 3,138 |
WRAM under-collection (alternative revenue program) | Electric: | BVESI | ||||
Disaggregation of Revenue [Line Items] | ||||
Alternative revenue programs, net | (196) | (266) | (883) | (606) |
Water | Contracted services: | ASUS | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer, excluding assessed tax | 14,175 | 18,765 | 27,721 | 37,648 |
Wastewater | Contracted services: | ASUS | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer, excluding assessed tax | $ 9,359 | $ 9,908 | $ 18,585 | $ 21,517 |
Revenues - Assets and Liabiliti
Revenues - Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Unbilled receivable | $ 24,811 | $ 27,147 |
ASUS | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Unbilled receivable | 12,354 | 14,835 |
Receivable from the U.S. government | 73,160 | 79,818 |
Contract assets | 14,177 | 9,587 |
Contract liabilities | $ 322 | $ 257 |
Regulatory Matters - Narrative
Regulatory Matters - Narrative (Details) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | |
Regulatory matters: | ||
Regulatory asset not accruing carrying costs | $ (62,600,000) | $ (62,600,000) |
Regulatory asset amount billed to customers as surcharges | $ 0 | |
GSWC | ||
Regulatory matters: | ||
Number of unresolved issues for 2022-2024 water General Rate Case | 3 | 3 |
Regulatory asset-CEMA | $ 5,600,000 | $ 5,600,000 |
Relief funding | 9,500,000 | 9,500,000 |
GSWC | Cost of capital proceeding | ||
Regulatory matters: | ||
Revenue impact due to lower cost of debt | 1,700,000 | 3,100,000 |
BVESI | ||
Regulatory matters: | ||
Regulatory asset-CEMA | 652,000 | 652,000 |
Relief funding | 321,000 | 321,000 |
Regulatory Asset -incremental vegetation management costs | 6,900,000 | 6,900,000 |
Regulatory asset-Wildfire mitigation Plans ( WMP) | 3,500,000 | 3,500,000 |
Regulatory asset CEMA - Storm | 449,000 | 449,000 |
Excess deferred income taxes | ||
Regulatory matters: | ||
Regulatory asset not accruing carrying costs | (76,400,000) | (76,400,000) |
Flow-through taxes, net | ||
Regulatory matters: | ||
Regulatory asset not accruing carrying costs | (4,700,000) | (4,700,000) |
Pensions and other post-retirement obligations (Note 8) | ||
Regulatory matters: | ||
Regulatory asset not accruing carrying costs | (25,300,000) | (25,300,000) |
Derivative unrealized gain (Note 5) | ||
Regulatory matters: | ||
Regulatory asset not accruing carrying costs | $ (8,100,000) | (8,100,000) |
Water Revenue Adjustment Mechanism and Modified Cost Balancing Account | ||
Regulatory matters: | ||
Increase (decrease) in other regulatory assets | $ 13,100,000 | |
Regulatory asset recovery periods | 24 months | |
Water Revenue Adjustment Mechanism and Modified Cost Balancing Account | GSWC | ||
Regulatory matters: | ||
Commercial paper, term | 90 days |
Regulatory Matters - Schedule o
Regulatory Matters - Schedule of Regulatory Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Capital expenditure approved | $ (11,238) | $ (22,796) |
GSWC | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Capital expenditure approved | (10,057) | (24,082) |
GSWC | Various refunds to customers | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Capital expenditure approved | (5,481) | (2,680) |
BVESI | Various refunds to customers | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Capital expenditure approved | (8,772) | (8,189) |
Water Revenue Adjustment Mechanism and Modified Cost Balancing Account | GSWC | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Capital expenditure approved | 24,115 | 13,326 |
Pensions and other post-retirement obligations (Note 8) | GSWC | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Capital expenditure approved | 24,633 | 25,212 |
COVID-19 memorandum accounts | GSWC | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Capital expenditure approved | 5,593 | 1,663 |
Excess deferred income taxes | GSWC | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Capital expenditure approved | (72,531) | (73,000) |
Flow-through taxes, net | GSWC | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Capital expenditure approved | (4,347) | (5,552) |
Other regulatory assets | GSWC | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Capital expenditure approved | 17,961 | 16,949 |
Other regulatory assets | BVESI | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Capital expenditure approved | 15,705 | 13,916 |
Derivative unrealized gain (Note 5) | BVESI | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Capital expenditure approved | $ (8,114) | $ (4,441) |
Earnings per Share_Capital St_3
Earnings per Share/Capital Stock - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Capital stock | ||||
Options outstanding (in shares) | 0 | 0 | 0 | 0 |
Exercise of stock options and other issuance of Common Shares (in shares) | 19,742 | 42,668 | ||
Payment, Tax Withholding, Share-based Payment Arrangement | $ (1,205) | $ (1,271) | ||
Dividends paid | $ 26,974 | $ 24,727 | ||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.365 | $ 0.335 | $ 0.730 | $ 0.670 |
Parent Company | ||||
Capital stock | ||||
Dividends paid | $ 13,500 | $ 12,400 | $ 27,000 | $ 24,700 |
GSWC | ||||
Capital stock | ||||
Payment, Tax Withholding, Share-based Payment Arrangement | (1,103) | (1,155) | ||
Dividends paid | $ 13,500 | $ 12,400 | $ 27,000 | $ 24,800 |
Restricted Stock | ||||
Capital stock | ||||
Restricted stock units outstanding (in shares) | 100,820 | 107,772 | 100,820 | 107,772 |
Earnings per Share_Capital St_4
Earnings per Share/Capital Stock - Schedule of EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Basic: | ||||||
Net income | $ 19,951 | $ 14,162 | $ 26,576 | $ 19,268 | $ 34,113 | $ 45,844 |
Less: Distributed earnings to common shareholders | 13,489 | 12,366 | 26,974 | 24,727 | ||
Less: Distributed earnings to participating securities | 36 | 35 | 67 | 65 | ||
Undistributed earnings | 6,426 | 14,175 | 7,072 | 21,052 | ||
Undistributed earnings allocated to common shareholders | 6,409 | 14,135 | 7,055 | 20,997 | ||
Undistributed earnings allocated to participating securities | 17 | 40 | 17 | 55 | ||
Common shareholders earnings, basic | $ 19,898 | $ 26,501 | $ 34,029 | $ 45,724 | ||
Weighted average Common Shares outstanding, basic (in shares) | 36,956 | 36,916 | 36,950 | 36,907 | ||
Basic earnings per Common Share (in dollars per share) | $ 0.54 | $ 0.72 | $ 0.92 | $ 1.24 | ||
Diluted: | ||||||
Common shareholders earnings, basic | $ 19,898 | $ 26,501 | $ 34,029 | $ 45,724 | ||
Undistributed earnings for dilutive stock-based awards | 17 | 40 | 17 | 55 | ||
Total common shareholders earnings, diluted | $ 19,915 | $ 26,541 | $ 34,046 | $ 45,779 | ||
Weighted average Common Shares outstanding, basic (in shares) | 36,956 | 36,916 | 36,950 | 36,907 | ||
Stock-based compensation (in shares) | 83 | 91 | 79 | 86 | ||
Weighted Average Number of Diluted Shares (in shares) | 37,039 | 37,007 | 37,029 | 36,993 | ||
Diluted earnings per Common Share (in dollars per share) | $ 0.54 | $ 0.72 | $ 0.92 | $ 1.24 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) $ in Thousands | 6 Months Ended | |||||
Jun. 30, 2022 USD ($) MWh | Mar. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jun. 30, 2021 USD ($) | Mar. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
BVESI | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Description of derivative activity volume | MWh | 283,665 | |||||
Commodity Contract | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs | $ 8,100 | |||||
Commodity Contract | BVESI | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs | $ 8,114 | $ 7,020 | $ 4,441 | $ 2,810 | $ 1,224 | $ (1,537) |
Minimum | Commodity Contract | BVESI | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Term of derivative contract | 3 years | |||||
Maximum | Commodity Contract | BVESI | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Term of derivative contract | 5 years |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Fair Value (Details) - Commodity Contract - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value at end of the period | $ 8,100 | $ 8,100 | ||
BVESI | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value at beginning of the period | 7,020 | $ 1,224 | 4,441 | $ (1,537) |
Unrealized gains on purchased power contracts | 1,094 | 1,586 | 3,673 | 4,347 |
Fair value at end of the period | $ 8,114 | $ 2,810 | $ 8,114 | $ 2,810 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Mutual Funds | Fair Value, Inputs, Level 1 | ||
Fair value of financial instruments | ||
Long-term debt-GSWC | $ 26.3 | $ 31.5 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments: (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Apr. 28, 2022 | Dec. 31, 2021 |
Fair value of financial instruments | |||
Unamortized Debt Issuance Expense | $ 3,200 | ||
Reported Value Measurement | |||
Fair value of financial instruments | |||
Long-term Debt, Fair Value | 450,583 | ||
Estimate of Fair Value Measurement | |||
Fair value of financial instruments | |||
Long-term Debt, Fair Value | $ 442,106 | ||
GOLDEN STATE WATER COMPANY | Reported Value Measurement | |||
Fair value of financial instruments | |||
Long-term Debt, Fair Value | $ 415,788 | ||
GOLDEN STATE WATER COMPANY | Estimate of Fair Value Measurement | |||
Fair value of financial instruments | |||
Long-term Debt, Fair Value | $ 490,852 | ||
BVESI | Unsecured Private Placement Notes | |||
Fair value of financial instruments | |||
Debt Instrument, Face Amount | $ 35,000 |
Income Taxes_ (Details)
Income Taxes: (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
GSWC | ||||
Effective income tax rate | ||||
ETRs ( as a percent) | 25.50% | 22.10% | 24.90% | 22.70% |
Parent | ||||
Effective income tax rate | ||||
ETRs ( as a percent) | 23.70% | 21.90% | 23.80% | 22.60% |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Net Periodic Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Components of Net Periodic Benefits Cost: | ||||
Regulatory adjustment - deferred | $ (8,404) | $ (8,802) | ||
Pension Benefits | ||||
Components of Net Periodic Benefits Cost: | ||||
Service cost | $ 1,342 | $ 1,625 | 2,822 | 3,250 |
Interest cost | 1,856 | 1,712 | 3,700 | 3,424 |
Expected return on plan assets | (3,290) | (3,134) | (6,582) | (6,268) |
Amortization of prior service cost | 109 | 109 | 218 | 218 |
Amortization of actuarial (gain) loss | 0 | 993 | 0 | 1,986 |
Net periodic benefits costs under accounting standards | 17 | 1,305 | 158 | 2,610 |
Regulatory adjustment - deferred | 0 | (351) | 0 | (702) |
Total expense (benefit) recognized, before surcharges and allocation to overhead pool | 17 | 954 | 158 | 1,908 |
Other Postretirement Benefits | ||||
Components of Net Periodic Benefits Cost: | ||||
Service cost | 33 | 40 | 66 | 80 |
Interest cost | 16 | 31 | 32 | 62 |
Expected return on plan assets | (147) | (134) | (294) | (268) |
Amortization of prior service cost | 0 | 0 | 0 | 0 |
Amortization of actuarial (gain) loss | (412) | (287) | (824) | (574) |
Net periodic benefits costs under accounting standards | (510) | (350) | (1,020) | (700) |
Regulatory adjustment - deferred | 0 | 0 | 0 | 0 |
Total expense (benefit) recognized, before surcharges and allocation to overhead pool | (510) | (350) | (1,020) | (700) |
SERP | ||||
Components of Net Periodic Benefits Cost: | ||||
Service cost | 298 | 348 | 596 | 696 |
Interest cost | 256 | 229 | 512 | 458 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of prior service cost | 0 | 0 | 0 | 0 |
Amortization of actuarial (gain) loss | 145 | 419 | 290 | 838 |
Net periodic benefits costs under accounting standards | 699 | 996 | 1,398 | 1,992 |
Regulatory adjustment - deferred | 0 | 0 | 0 | 0 |
Total expense (benefit) recognized, before surcharges and allocation to overhead pool | $ 699 | $ 996 | $ 1,398 | $ 1,992 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Increase (Decrease) in Regulatory Assets and Liabilities | $ 8,404 | $ 8,802 | |||
GSWC | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Increase (Decrease) in Regulatory Assets and Liabilities | 8,035 | 8,489 | |||
Pension Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 2.89% | ||||
Defined Benefit Plan, Benefit Obligation | $ 259,800 | $ 259,800 | |||
'Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate, Increase (Decrease) | 1.86% | ||||
Expected contributions in current fiscal year | 3,100 | $ 3,100 | |||
Increase (Decrease) in Regulatory Assets and Liabilities | 0 | $ 351 | 0 | 702 | |
Pension Benefits | GSWC | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Regulatory adjustment — deferred | (635) | (635) | |||
Pension Benefits | BVESI | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Regulatory adjustment — deferred | $ (246) | $ (246) | |||
Pension Benefits | Water Service Utility Operations [Member] | GSWC | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Increase (Decrease) in Regulatory Assets and Liabilities | $ 351 | $ 702 | |||
Pension Benefits | Pro Forma | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Sensitivity Analysis For Defined Benefit Plan, Benefit Obligation, Impact Of 86 Basis Point Increase In Discount Rate, Percent | 22% | 22% | |||
Sensitivity Analysis For Defined Benefit Plan, Benefit Obligation, Impact Of 89 Basis Point Increase In Discount Rate, Amount | $ 58,200 | $ 58,200 |
Contingencies (Details)
Contingencies (Details) - Environmental Clean-Up and Remediation - GOLDEN STATE WATER COMPANY $ in Millions | 6 Months Ended |
Jun. 30, 2022 USD ($) item | |
Loss Contingencies [Line Items] | |
Number Of Plant Facility | item | 1 |
Environmental Remediation Expense | $ 6.1 |
Amount spent in clean-up and remediation activities [Abstract] | 1.5 |
Accrued liability for the estimated additional cost to complete the clean-up at the site | $ 1.3 |
Term estimate for the environmental cleanup | 2 years |
Business Segments - Narrative (
Business Segments - Narrative (Details) | 6 Months Ended |
Jun. 30, 2022 segment item | |
GSWC | |
Details of reportable segment | |
Number of reportable segments | item | 1 |
Parent Company | |
Details of reportable segment | |
Number of reportable segments | segment | 3 |
Business Segments - Schedule of
Business Segments - Schedule of Business Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Details of reportable segment | |||||
Operating revenues | $ 122,607 | $ 128,414 | $ 231,177 | $ 245,474 | |
Operating income (loss) | 34,317 | 37,847 | 58,682 | 68,176 | |
Interest expense, net | 5,872 | 5,684 | 11,195 | 11,487 | |
Net property, plant and equipment | 1,683,487 | 1,570,633 | 1,683,487 | 1,570,633 | $ 1,626,004 |
Depreciation and amortization | 10,171 | 9,770 | 20,285 | 19,330 | |
Income tax expense | 6,205 | 7,462 | 10,666 | 13,376 | |
Capital additions | 41,382 | 39,054 | 76,552 | 76,147 | |
AWR | Intersegment Eliminations | |||||
Details of reportable segment | |||||
Operating revenues | 0 | 0 | 0 | 0 | |
Operating income (loss) | (3) | (3) | (5) | (5) | |
Interest expense, net | 361 | 220 | 561 | 455 | |
Net property, plant and equipment | 0 | 0 | 0 | 0 | |
Depreciation and amortization | 0 | 0 | 0 | 0 | |
Income tax expense | (221) | (224) | (345) | (353) | |
Capital additions | 0 | 0 | 0 | 0 | |
GOLDEN STATE WATER COMPANY | |||||
Details of reportable segment | |||||
Operating revenues | 90,856 | 91,633 | 164,762 | 166,662 | |
Operating income (loss) | 27,711 | 30,777 | 44,710 | 51,836 | |
Net property, plant and equipment | 1,553,389 | 1,553,389 | $ 1,499,745 | ||
Depreciation and amortization | 8,553 | 8,213 | 17,098 | 16,275 | |
Income tax expense | 5,103 | 5,957 | 7,792 | 9,725 | |
GOLDEN STATE WATER COMPANY | Water Service Utility Operations [Member] | |||||
Details of reportable segment | |||||
Operating revenues | 90,856 | 91,633 | 164,762 | 166,662 | |
GOLDEN STATE WATER COMPANY | Reportable Legal Entities | Water Service Utility Operations [Member] | |||||
Details of reportable segment | |||||
Operating revenues | 90,856 | 91,633 | 164,762 | 166,662 | |
Operating income (loss) | 27,711 | 30,777 | 44,710 | 51,836 | |
Interest expense, net | 5,318 | 5,464 | 10,463 | 11,175 | |
Net property, plant and equipment | 1,553,389 | 1,450,519 | 1,553,389 | 1,450,519 | |
Depreciation and amortization | 8,553 | 8,213 | 17,098 | 16,275 | |
Income tax expense | 5,103 | 5,957 | 7,792 | 9,725 | |
Capital additions | 35,519 | 31,985 | 66,984 | 63,809 | |
BVESI | Electric: | |||||
Details of reportable segment | |||||
Operating revenues | 8,217 | 8,108 | 20,109 | 19,647 | |
BVESI | Reportable Legal Entities | Electric: | |||||
Details of reportable segment | |||||
Operating revenues | 8,217 | 8,108 | 20,109 | 19,647 | |
Operating income (loss) | 2,038 | 1,795 | 5,636 | 5,243 | |
Interest expense, net | 295 | 88 | 408 | 174 | |
Net property, plant and equipment | 111,394 | 98,496 | 111,394 | 98,496 | |
Depreciation and amortization | 686 | 642 | 1,340 | 1,281 | |
Income tax expense | 215 | 458 | 1,167 | 1,342 | |
Capital additions | 5,306 | 6,416 | 8,774 | 11,198 | |
ASUS | Reportable Legal Entities | Contracted services: | |||||
Details of reportable segment | |||||
Operating revenues | 23,534 | 28,673 | 46,306 | 59,165 | |
Operating income (loss) | 4,571 | 5,278 | 8,341 | 11,102 | |
Interest expense, net | (102) | (88) | (237) | (317) | |
Net property, plant and equipment | 18,704 | 21,618 | 18,704 | 21,618 | |
Depreciation and amortization | 932 | 915 | 1,847 | 1,774 | |
Income tax expense | 1,108 | 1,271 | 2,052 | 2,662 | |
Capital additions | 557 | 653 | 794 | 1,140 | |
Golden State Water Company and Bear Valley Electric Service Inc. | |||||
Details of reportable segment | |||||
Public Utilities Property Plant and Equipment Depreciation on Transportation Equipment | $ 95 | $ 94 | $ 189 | $ 189 |
Business Segments - Schedule _2
Business Segments - Schedule of PPE (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 |
Segment Reporting [Abstract] | |||
Total net property, plant and equipment | $ 1,683,487 | $ 1,626,004 | $ 1,570,633 |
Other assets | 266,159 | 271,725 | |
Total Assets | $ 1,949,646 | $ 1,900,983 | $ 1,842,358 |