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)	2015			2014			2015			2014
Water
Land	$	15,299		$	15,423		$	15,299		$	15,423
Intangible assets	34,830			34,063			34,848			34,081
Source of water supply	86,914			80,614			86,914			80,614
Pumping	161,668			155,802			161,668			155,802
Water treatment	72,238			71,519			72,238			71,519
Transmission and distribution	941,651			894,789			941,651			894,789
General	115,424			110,864			126,438			121,552
	1,428,024			1,363,074			1,439,056			1,373,780
Electric
Transmission and distribution	66,121			60,035			66,121			60,035
Generation	12,563			12,547			12,563			12,547
General (1)	9,797			9,054			9,797			9,054
	88,481			81,636			88,481			81,636

Less — accumulated depreciation	(522,749		)	(494,000		)	(529,698		)	(500,239		)
Construction work in progress	62,360			48,170			62,955			48,343
Net utility plant	$	1,056,116		$	998,880		$	1,060,794		$	1,003,520

(1) Includes intangible assets of $1.2 million for the years ended December 31, 2015 and 2014 for studies performed in association with the electricity segment of the Registrant’s operations.

As of December 31, 2015 and 2014, intangible assets consist of the following:



	Weighted Average Amortization	GSWC December 31,						AWR December 31,
(dollars in thousands)	Period	2015			2014			2015			2014
Intangible assets:
Conservation	30 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	14 years	18,044			17,277			18,044			17,277
Total intangible assets		35,664			34,897			36,235			35,468
Less — accumulated amortization		(26,196		)	(24,373		)	(26,291		)	(24,456		)
Intangible assets, net of amortization		$	9,468		$	10,524		$	9,944		$	11,012

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, 2015 and 2014.

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

For the years ended December 31, 2015, 2014 and 2013, amortization of intangible assets was $1.8 million, $1.9 million and $1.9 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
2016	$	1,772
2017	1,741
2018	1,732
2019	1,499
2020	1,374
Total	$	8,118

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, 2015 and 2014:



(dollars in thousands)	GSWC
Obligation at December 31, 2013	$	3,095
Additional liabilities incurred	6
Liabilities settled	(66		)
Accretion	199
Obligation at December 31, 2014	$	3,234
Additional liabilities incurred	7
Liabilities settled	—
Accretion	209
Revision of previous estimates	707
Obligation at December 31, 2015	$	4,157

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.