Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2017

The major components of depreciable plant and equipment as of December 31, 2017 and 2016 are as follows:



	2017		2016
Equipment	$	307,938	269,734
Transmission and distribution	1,295,690		1,204,520
Office buildings and other structures	110,600		79,762
Total depreciable plant and equipment	$	1,714,228	1,554,016

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, 2017 and 2016 are as follows:



	2017		2016
Land	$	13,262	15,218
Buildings and improvements	42,951		46,826
Intangibles	—		149
Total real estate investment	$	56,213	62,193

Depreciation on real estate investments is computed using the straight-line method over the estimated useful lives of the assets, ranging from 7 to 39 years. The estimated service lives of depreciable real estate investments are as follows:



	Useful Lives
Buildings and improvements	7 to 39 years
Intangibles	7 to 12 years

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, 2017:



Year ending December 31:	Rental Revenue
2018	$	4,351
2019	4,432
2020	4,513
2021	2,644
2022	1,184
Thereafter	6,763

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, 2017
	Beginning Balance			Revenue Increase (Reduction)		Refunds (Collections)		Surcharge Offset and Other		Ending Balance

Memorandum accounts:
2014 WCMA	$	—		1,090		(1,047	)	—		43
2015 WCMA	1,589			2,101		(3,657	)	—		33
2016 WCMA	—			1,567		—		(1,452	)	115
2017 WCMA	—			12,530		—		(6,041	)	6,489
All others	2,768			1,762		453		—		4,983
Total memorandum accounts	$	4,357		19,050		(4,251	)	(7,493	)	11,663

Balancing accounts:
Water supply costs	5,190			2,921		568		—		8,679
Drought surcharges	(7,688		)	—		(765	)	8,453		—
Pension	(2,009		)	894		(1,344	)	—		(2,459	)
2012 General Rate Case true-up	20,682			—		(9,363	)	—		11,319
2015 General Rate Case true-up	5,528			—		(5,413	)	—		115
All others	(151		)	(678	)	(638	)	75		(1,392	)
Total balancing accounts	$	21,552		3,137		(16,955	)	8,528		16,262

Total	$	25,909		22,187		(21,206	)	1,035		27,925



	For the year ended December 31, 2016
	Beginning Balance			Revenue Increase (Reduction)		Refunds (Collections)		Surcharge Offset		Ending Balance

Memorandum accounts:
2014 WCMA	$	2,944		188		(3,132	)	—		—
2015 WCMA	5,372			211		(3,994	)	—		1,589
2016 WCMA	—			16,708		—		(16,708	)	—
All others	594			1,756		418		—		2,768
Total memorandum accounts	$	8,910		18,863		(6,708	)	(16,708	)	4,357

Balancing accounts:
Water supply costs	2,771			1,620		799		—		5,190
Drought surcharges	(359		)	—		(24,037	)	16,708		(7,688	)
Pension	(552		)	1,120		(2,577	)	—		(2,009	)
2012 General Rate Case true-up	33,070			—		(12,388	)	—		20,682
2015 General Rate Case true-up	—			8,767		(3,239	)	—		5,528
All others	1,366			(483	)	(1,034	)	—		(151	)
Total balancing accounts	$	36,296		11,024		(42,476	)	16,708		21,552

Total	$	45,206		29,887		(49,184	)	—		25,909



	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

Schedule of Regulatory Assets and Liabilities

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



	2017		2016
Regulatory assets:
Income tax temporary differences, net	$	—	10,139
Postretirement pensions and other medical benefits	68,556		109,795
Balancing and memorandum accounts, net	27,925		25,909
Other, net	3,073		5,930
Total regulatory assets, net in Consolidated Balance Sheets	$	99,554	151,773
Less: current regulatory asset, net	—		16,064
Total regulatory assets, net, less current portion	$	99,554	135,709

Regulatory liability:
Income tax temporary differences, net	$	62,476	—
Total regulatory liability in Consolidated Balance Sheets	$	62,476	—

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
2018	$	2,766
2019	2,766
2020	2,766
2021	2,766
2022	2,766
Thereafter	52,338

Schedule of Asset Retirement Obligations

For the years ended December 31, 2017 and 2016, the asset retirement obligation is as follows:



	2017			2016
Retirement obligation	$	5,231		4,835
Discount rate	6		%	6	%
Present value, recorded as a liability	1,184			1,966
Deferred tax	—			1,352
Regulatory asset	$	1,184		3,318