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Regulatory Assets and Liabilities | 9 Months Ended
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Sep. 30, 2020
Regulated Operations [Abstract] |
Regulatory Assets and Liabilities | Regulatory Assets and LiabilitiesThe CPUC follows a rate case plan which requires Cal Water to file a GRC for each of its regulated operating districts every three years. In a GRC proceeding, the CPUC not only considers the utility's rate setting requests, but may also consider other issues that affect the utility's rates and operations. The CPUC is generally required to issue its GRC decision prior to the first day of the test year or authorize interim rates. In accordance with the rate case plan, Cal Water filed its 2018 GRC application in July of 2018 requesting rate changes effective January 1, 2020. On October 8, 2019, Cal Water jointly filed a formal settlement agreement for its 2018 GRC with the Public Advocates Office of the CPUC covering the majority of open matters in the case. The key matters not included in the settlement, and which were litigated, were continuation of the WRAM, MCBA, PCBA, and HCBA. On October 14, 2020, an Administrative Law Judge (ALJ) with the CPUC issued a proposed decision that is subject to adoption by the CPUC no earlier than the CPUC’s November 19, 2020 meeting. If adopted as proposed, the decision would approve the settlement reached in October of 2019 by Cal Water and the CPUC’s Public Advocates Office, allow Cal Water to continue its decoupling balancing accounts through 2022, and allow Cal Water to retain its PCBA and HCBA. Under this proposed decision, Cal Water would be authorized to invest $828.0 million in its districts throughout California through 2021. This includes $148 million of water system infrastructure upgrades that would be recovered via the CPUC’s advice letter procedure once those projects are completed. The proposed decision also authorizes total revenue of up to $698.7 million for 2020. The Company determined that the proposed decision provides additional evidence about conditions that existed as of September 30, 2020. As of November 6, 2020, the Company believes it is probable the proposed decision will be adopted by the CPUC without any material variation and accordingly, the Company recorded regulatory assets and associated revenues resulting from the regulatory mechanisms approved in the proposed decision as of September 30, 2020. In the unlikely event that the CPUC does not approve the proposed decision as issued, the Company will need to adjust regulatory asset balances and revenues in the fourth quarter of 2020. Regulatory assets and liabilities were comprised of the following as of September 30, 2020 and December 31, 2019:
| Recovery Period |  | September 30, 2020 |  | December 31, 2019
Regulatory Assets |  |  |  |  |
Pension and retiree group health | Indefinitely |  | $ | 207,828 |  |  | $ | 208,321 |
Property-related temporary differences (tax benefits flowed through to customers) | Indefinitely |  | 107,962 |  |  | 104,931 |
Other accrued benefits | Indefinitely |  | 21,434 |  |  | 20,030 |
Net WRAM and MCBA long-term accounts receivable | 1 - 2 years |  | 40,036 |  |  | 25,465 |
Asset retirement obligations, net | Indefinitely |  | 21,018 |  |  | 19,567 |
Interim rates long-term accounts receivable | 1 year |  | 21,672 |  |  | 4,642 |
Tank coating | 10 years |  | 14,209 |  |  | 13,535 |
Recoverable property losses | 10 years |  | 4,775 |  |  | 5,000 |
PCBA | 1 year |  | 32,819 |  |  | 21,465 |
Other components of net periodic benefit cost | Indefinitely |  | 6,316 |  |  | 5,145 |
Other regulatory assets | Various |  | 6,366 |  |  | 5,221 |
Total Regulatory Assets |  |  | $ | 484,435 |  |  | $ | 433,322 |
Regulatory Liabilities |  |  |  |  |
Future tax benefits due to customers |  |  | $ | 173,048 |  |  | $ | 194,501 |
HCBA |  |  | 7,407 |  |  | 4,271 |
CEBA |  |  | 2,926 |  |  | 2,742 |
Net WRAM and MCBA long-term payable |  |  | 374 |  |  | 211 |
Tax accounting memorandum account |  |  | 711 |  |  | 806 |
Cost of capital memorandum account |  |  | 15 |  |  | 151 |
1,2,3 trichloropropane (TCP) settlement proceeds |  |  | 9,084 |  |  | 8,426 |
Other regulatory liabilities |  |  | 374 |  |  | 305 |
Total Regulatory Liabilities |  |  | $ | 193,939 |  |  | $ | 211,413 |
Short-term regulatory assets and liabilities are excluded from the above table. The short-term regulatory assets were $54.4 million as of September 30, 2020 and $38.2 million as of December 31, 2019. As of September 30, 2020, the short-term regulatory assets primarily consist of net WRAM and MCBA receivables and IRMA receivables. As of December 31, 2019, the short-term regulatory assets primarily consist of net WRAM and MCBA receivables. The short-term portions of regulatory liabilities were $11.0 million as of September 30, 2020 and $4.5 million as of December 31, 2019. The short-term regulatory liabilities as of September 30, 2020, primarily consist of 2015 GRC CEBA refunds and TCJA customer refunds. As of December 31, 2019, the short-term regulatory liabilities primarily consist of TCP settlement proceeds, tax accounting memorandum account refunds, and cost of capital memorandum account refunds.

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