Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2014

The major components of depreciable plant and equipment as of December 31, 2014 and 2013 are as follows:



	2014		2013
Equipment	$	242,383	226,557
Transmission and distribution	1,042,794		967,031
Office buildings and other structures	68,595		60,998
Total depreciable plant and equipment	$	1,353,772	1,254,586

Depreciation is computed using the straight-line method over the estimated service lives of the assets, ranging from 5 to 75 years. The estimated service lives of depreciable plant and equipment are as follows:



	Useful Lives
Equipment	5 to 35 years
Transmission and distribution plant	35 to 75 years
Office buildings and other structures	7 to 50 years

Schedule of Real Estate Investments

The major components of real estate investments as of December 31, 2014 and 2013 are as follows:



	2014		2013
Land	$	17,297	18,892
Buildings and improvements	56,168		59,256
Intangibles	329		329
Total real estate investment	$	73,794	78,477

Schedule of Future Minimum Rental Payments for Operating Leases

The following schedule shows the future minimum rental payments to be received from third parties under operating leases that have remaining noncancelable lease terms in excess of one year as of December 31, 2014:



Year ending December 31:	Rental Revenue
2015	$	5,345
2016	5,514
2017	5,612
2018	4,789
2019	3,753
Thereafter	13,691

Schedule of Regulatory Assets and Liabilities

Regulatory assets and liabilities are comprised of the following as of December 31:



	2014		2013
Regulatory assets, net:
Income tax temporary differences, net	$	6,731	8,220
Postretirement pensions and other medical benefits	115,494		62,949
Balancing and memorandum accounts, net	47,061		7,689
Other, net	5,577		4,685
Total regulatory assets, net in Consolidated Balance Sheets	$	174,863	83,543
Less: current regulatory asset, net	16,853		—
Total regulatory assets, net, less current portion	$	158,010	83,543

Schedule of Estimated Refunds of Advances for Construction and Contributions in Aid of Construction

Estimated refunds for the next five years and thereafter are shown below:



	Estimated Refunds
2015	$	2,508
2016	2,508
2017	2,508
2018	2,508
2019	2,508
Thereafter	60,763

Schedule of Asset Retirement Obligations

For the years ended December 31, 2014 and 2013, the asset retirement obligation is as follows:



	2014			2013
Retirement obligation	$	4,355		4,612
Discount rate	6		%	6	%
Present value, recorded as a liability	1,994			1,733
Deferred tax	1,371			1,192
Regulatory asset	$	3,365		2,925

Schedule of Balancing and Memorandum Accounts

San Jose Water Company met the recognition requirements for certain of its balancing and memorandum accounts and certain amounts subject to balancing and memorandum accounts and recorded revenue and regulatory assets as follows:



	For the year ended December 31, 2014
	Beginning Balance			Revenue Increase (Reduction)		Refunds (Collections)		Ending Balance

Memorandum accounts	$	(1,896	)	341		178		(1,377	)

Balancing accounts:
Water supply costs	(2,378		)	3,353		(85	)	890
Pension	9,734			(7,705	)	(617	)	1,412
2012 General Rate Case true-up	—			46,456		(2,056	)	44,400
All others	2,229			(447	)	(46	)	1,736
Total balancing accounts	$	9,585		41,657		(2,804	)	48,438

Total	$	7,689		41,998		(2,626	)	47,061



	For the year ended December 31, 2013
	Beginning Balance			Revenue Increase (Reduction)		Refunds (Collections)		Ending Balance

Memorandum accounts	$	(1,887	)	869		(878	)	(1,896	)

Balancing accounts:
Water supply costs	(1,590		)	(788	)	—		(2,378	)
Pension	6,657			3,077		—		9,734
2012 General Rate Case true-up	—			—		—		—
All others	369			1,860		—		2,229
Total balancing accounts	$	5,436		4,149		—		9,585

Total	$	3,549		5,018		(878	)	7,689



	For the year ended December 31, 2012
	Beginning Balance		Revenue Increase (Reduction)		Refunds (Collections)		Ending Balance

Memorandum accounts	$	5,739	(2,832	)	(4,794	)	(1,887	)

Balancing accounts:
Water supply costs	—		(1,590	)	—		(1,590	)
Pension	—		6,657		—		6,657
2012 General Rate Case true-up	—		—		—		—
All others	—		369		—		369
Total balancing accounts	$	—	5,436		—		5,436

Total	$	5,739	2,604		(4,794	)	3,549