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Regulatory Assets and Liabilities | 3 Months Ended
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Mar. 31, 2023
Regulated Operations [Abstract] |
Regulatory Assets and Liabilities | Regulatory Assets and Liabilities Regulatory assets and liabilities were comprised of the following as of March 31, 2023 and December 31, 2022:
| Recovery Period |  | March 31, 2023 |  | December 31, 2022
Regulatory Assets |  |  |  |  |
Retiree group health | Indefinitely |  | $ | — |  |  | $ | 171 |
Property-related temporary differences (tax benefits flowed through to customers) | Indefinitely |  | 143,546 |  |  | 143,546 |
Other accrued benefits | Indefinitely |  | 25,974 |  |  | 24,946 |
Net WRAM and MCBA long-term accounts receivable | Various |  | 49,243 |  |  | 41,558 |
Asset retirement obligations, net | Indefinitely |  | 25,335 |  |  | 24,548 |
Interim rates memorandum account (IRMA) long-term accounts receivable | 1 - 2 years |  | 3,533 |  |  | 3,682 |
Tank coating | Various |  | 16,507 |  |  | 16,395 |
Recoverable property losses | Various |  | 2,998 |  |  | 3,144 |
PCBA | Various |  | 19,233 |  |  | 19,091 |
General district balancing account receivable | 1 year |  | 383 |  |  | 377 |
Customer assistance program (CAP) and Rate support fund (RSF) accounts receivable | 1 year |  | 3,402 |  |  | 2,965 |
Other regulatory assets | Various |  | 3,109 |  |  | 3,197 |
Total Regulatory Assets |  |  | $ | 293,263 |  |  | $ | 283,620 |
Regulatory Liabilities |  |  |  |  |
Future tax benefits due to customers |  |  | $ | 131,155 |  |  | $ | 131,155 |
Pension and retiree group health |  |  | 58,678 |  |  | 58,678 |
HCBA |  |  | 15,312 |  |  | 14,318 |
PCBA |  |  | 1,999 |  |  | — |
CEBA |  |  | 860 |  |  | 6,036 |
Net WRAM and MCBA long-term payable |  |  | 262 |  |  | 172 |
Other components of net periodic benefit cost |  |  | 4,059 |  |  | 2,475 |
Other regulatory liabilities |  |  | 1,025 |  |  | 845 |
Total Regulatory Liabilities |  |  | $ | 213,350 |  |  | $ | 213,679 |
Short-term regulatory assets and liabilities are excluded from the above table. The short-term regulatory assets were $50.3 million as of March 31, 2023 and $66.8 million as of December 31, 2022. The short-term regulatory assets as of March 31, 2023 primarily consist of net WRAM and MCBA and IRMA receivables. As of December 31, 2022, the short-term regulatory assets primarily consist of net WRAM and MCBA, IRMA, and PCBA receivables. The short-term portions of regulatory liabilities were $17.3 million as of March 31, 2023 and $12.2 million as of December 31, 2022. The short-term regulatory liabilities as of March 31, 2023 primarily consist of TCJA and CEBA liabilities. As of December 31, 2022, the short-term regulatory liabilities primarily consist of TCJA liabilities. Cost of Capital Application On May 3, 2021, after an approved extension from a 2020 due date, Cal Water filed its required application with the CPUC to review its cost of capital for 2022 through 2024. Cal Water currently has an approved return on equity of 9.2%, a cost of debt of 5.51%, and a capital structure of 53.4% equity and 46.6% debt. Cal Water requested a return on equity of 10.35%, a cost of debt of 4.23%, and a capital structure of 53.4% equity and 46.6% debt. The California Public Advocates Office recommended a return on equity of 7.81%, a cost of debt of 4.23%, and a capital structure of 49.4% equity and 50.6% debt. Evidentiary hearings were held in May 2022 and the case was submitted to the CPUC at the end of the second quarter of 2022. In the first quarter of 2023, the CPUC extended its statutory deadline to issue a decision to August 10, 2023. In the event that the CPUC adopts the cost of capital components retroactively to January 1, 2022, Cal Water estimates the reduced cost of debt, if adopted at Cal Water's proposed equity capital structure, would reduce authorized annual revenue by approximately $11.0 million. The actual amount could be different depending on the final cost of equity and capital structure adopted by the CPUC. Cal Water has not reserved for any potential outcome of the proceeding as Cal Water has determined that it is not probable that the proceeding will be approved retroactively to January 1, 2022.

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