Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2015

The major components of depreciable plant and equipment as of December 31, 2015 and 2014 are as follows:



	2015		2014
Equipment	$	254,940	242,383
Transmission and distribution	1,108,659		1,042,794
Office buildings and other structures	74,722		68,595
Total depreciable plant and equipment	$	1,438,321	1,353,772

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, 2015 and 2014 are as follows:



	2015		2014
Land	$	17,297	17,297
Buildings and improvements	57,015		56,168
Intangibles	329		329
Total real estate investment	$	74,641	73,794

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, 2015:



Year ending December 31:	Rental Revenue
2016	$	5,514
2017	5,612
2018	4,789
2019	3,753
2020	3,302
Thereafter	10,389

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, 2015
	Beginning Balance			Revenue Increase (Reduction)		Refunds (Collections)		Surcharge Offset		Ending Balance

Memorandum accounts:
2014 WCMA	$	—		2,981		(37	)	—		2,944
2015 WCMA	—			17,511		—		(12,139	)	5,372
All others	(1,377		)	1,494		477		—		594
Total memorandum accounts	$	(1,377	)	21,986		440		(12,139	)	8,910

Balancing accounts:
Water supply costs	890			2,025		(144	)	—		2,771
Drought surcharges	—			—		(12,498	)	12,139		(359	)
Pension	1,412			(924	)	(1,040	)	—		(552	)
2012 General Rate Case true-up	44,400			1,937		(13,267	)	—		33,070
All others	1,736			(293	)	(77	)	—		1,366
Total balancing accounts	$	48,438		2,745		(27,026	)	12,139		36,296

Total	$	47,061		24,731		(26,586	)	—		45,206



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

Memorandum accounts:
All others	$	(1,896	)	341		178		—	(1,377	)
Total 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)		Surcharge Offset	Ending Balance

Memorandum accounts:
All others	$	(1,887	)	869		(878	)	—	(1,896	)
Total 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
All others	369			1,860		—		—	2,229
Total balancing accounts	$	5,436		4,149		—		—	9,585

Total	$	3,549		5,018		(878	)	—	7,689

Schedule of Regulatory Assets and Liabilities

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



	2015		2014
Regulatory assets:
Income tax temporary differences, net	$	8,184	6,731
Postretirement pensions and other medical benefits	109,168		115,494
Balancing and memorandum accounts, net	45,206		47,061
Other, net	6,005		5,577
Total regulatory assets, net in Consolidated Balance Sheets	$	168,563	174,863
Less: current regulatory asset, net	16,542		16,853
Total regulatory assets, net, less current portion	$	152,021	158,010

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
2016	$	2,549
2017	2,549
2018	2,549
2019	2,549
2020	2,549
Thereafter	50,414

Schedule of Asset Retirement Obligations

For the years ended December 31, 2015 and 2014, the asset retirement obligation is as follows:



	2015			2014
Retirement obligation	$	4,249		4,355
Discount rate	6		%	6	%
Present value, recorded as a liability	1,961			1,994
Deferred tax	1,348			1,371
Regulatory asset	$	3,309		3,365