Utility Plant and Intangible Assets

The following table shows Registrant’s utility plant by major asset class:



	GSWC December 31,						AWR December 31,
(dollars in thousands)	2014			2013			2014			2013
Water
Land	$	15,423		$	15,423		$	15,423		$	15,423
Intangible assets	34,063			34,001			34,081			34,019
Source of water supply	80,614			75,651			80,614			75,651
Pumping	155,802			147,390			155,802			147,390
Water treatment	71,519			70,947			71,519			70,947
Transmission and distribution	894,789			856,823			894,789			856,823
General	110,864			107,274			121,552			116,346
	1,363,074			1,307,509			1,373,780			1,316,599
Electric
Transmission and distribution	60,035			58,400			60,035			58,400
Generation	12,547			12,547			12,547			12,547
General (1)	9,054			8,413			9,054			8,413
	81,636			79,360			81,636			79,360

Less — accumulated depreciation	(494,000		)	(466,329		)	(500,239		)	(471,665		)
Construction work in progress	48,170			56,754			48,343			57,183
Net utility plant	$	998,880		$	977,294		$	1,003,520		$	981,477

(1) Includes intangible assets of $1.2 million for the years ended December 31, 2014 and 2013 for studies performed in association with the electricity segment of the Registrant’s operations.

As of December 31, 2014 and 2013, intangible assets consist of the following:



	Weighted Average Amortization	GSWC December 31,						AWR December 31,
(dollars in thousands)	Period	2014			2013			2014			2013
Intangible assets:
Conservation	26 years	$	9,496		$	9,496		$	9,496		$	9,496
Water and service rights (2)	30 years	8,124			8,124			8,695			8,695
Water planning studies	13 years	17,277			17,214			17,277			17,214
Total intangible assets		34,897			34,834			35,468			35,405
Less — accumulated amortization		(24,373		)	(22,459		)	(24,456		)	(22,530		)
Intangible assets, net of amortization		$	10,524		$	12,375		$	11,012		$	12,875

Intangible assets not subject to amortization (3)		$	409		$	409		$	427		$	427

(2) Includes intangible assets of $571,000 for contracted services included in "Other Property and Investments" on the consolidated balance sheets as of December 31, 2014 and 2013.

(3) The intangible assets not subject to amortization primarily consist of organization and consent fees.

For the years ended December 31, 2014, 2013 and 2012, amortization of intangible assets was $1.9 million, $1.9 million and $2.4 million, respectively, for AWR and GSWC. Estimated future consolidated amortization expenses related to intangible assets for the succeeding five years are (in thousands):



	Amortization Expense
2015	$	2,441
2016	1,605
2017	1,491
2018	1,491
2019	1,320
Total	$	8,348

There is no material difference between the consolidated operations of AWR and the operations of GSWC in regards to the future amortization expense of intangible assets.

Asset Retirement Obligations:

The following is a reconciliation of the beginning and ending aggregate carrying amount of asset retirement obligations, which are included in “Other Credits” on the balance sheets as of December 31, 2014 and 2013:



(dollars in thousands)	GSWC
Obligation at December 31, 2012	$	3,018
Additional liabilities incurred	11
Liabilities settled	(126		)
Accretion	192
Obligation at December 31, 2013	$	3,095
Additional liabilities incurred	6
Liabilities settled	(66		)
Accretion	199
Obligation at December 31, 2014	$	3,234

Registrant follows the accounting guidance for asset retirement obligations. Because retirement costs have historically been recovered through rates at the time of retirement, upon implementing this guidance, the cumulative effect of the adoption of the authoritative guidance was reflected as a regulatory asset.