Commitments

GSWC’s Water Supply:

GSWC obtains its water supply from its operating wells and purchases from others, principally member agencies of the Metropolitan Water District of Southern California (“MWD”). MWD is a public agency and quasi-municipal corporation created in 1928 by a vote of the electorates of several Southern California cities. MWD’s primary purpose was and is to provide a supplemental supply of water for domestic and municipal uses and purposes at wholesale rates to its member public agencies. GSWC has connections to MWD’s water distribution facilities and those of other member water agencies. MWD’s principal sources of water are the State Water Project and the Colorado River.

GSWC has contracts to purchase water or water rights for an aggregate amount of $4.4 million as of December 31, 2018. Included in the $4.4 million is a commitment of $2.2 million to lease water rights from a third party under an agreement which expires in 2028. The remaining $2.2 million is for commitments for purchased water with other third parties, which expire through 2038.

GSWC’s estimated future minimum payments under these purchased water supply commitments at December 31, 2018 are as follows (in thousands):



2019	$	407
2020	407
2021	407
2022	407
2023	407
Thereafter	2,410
Total	$	4,445

Bear Valley Electric Service:

Generally, BVES purchases power at a fixed cost, under long-term purchased power contracts, depending on the amount of power and the period during which the power is purchased under such contracts. BVES began taking power pursuant to purchased power contracts approved by the CPUC effective January 1, 2015 at a fixed cost over three and five-year terms depending on the amount of power and period during which the power is purchased under the contracts. The three-year contract expired in 2017. As of December 31, 2018, GSWC's commitment under BVES's remaining contract totaled approximately $5.2 million.

Operating Leases:

Registrant leases equipment and facilities primarily for its Regional and District offices and ASUS operations under non-cancelable operating leases with varying terms, provisions and expiration dates. Rent expense for leases that contain scheduled rent increases are recorded on a straight-line basis. During 2018, 2017 and 2016, Registrant’s consolidated rent expense was approximately $2.5 million, $2.4 million and $2.3 million, respectively. Registrant’s future minimum payments under long-term non-cancelable operating leases at December 31, 2018 are as follows (in thousands):



2019	$	2,818
2020	2,530
2021	1,497
2022	1,007
2023	546
Thereafter	605
Total	$	9,003

There is no material difference between the consolidated operations of AWR and the operations of GSWC in regard to the future minimum payments under long-term non-cancelable operating leases.