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Balancing and Memorandum Accounts | 3 Months Ended
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Mar. 31, 2020
Regulated Operations [Abstract] |
BALANCING AND MEMORANDUM ACCOUNTS | Balancing and Memorandum Accounts SJWC has established balancing accounts for the purpose of tracking the under-collection or over-collection associated with expense changes and the revenue authorized by the CPUC to offset those expense changes. SJWC also maintains memorandum accounts to track revenue impacts due to catastrophic events, certain unforeseen water quality expenses related to new federal and state water quality standards, energy efficiency, water conservation, water tariffs, and other approved activities or as directed by the CPUC. Balancing and memorandum accounts are recognized by SJWC when it is probable that future recovery of previously incurred costs or future refunds that are to be credited to customers will occur through the ratemaking process. In addition, in the case of special revenue programs such as the Water Conservation Memorandum Account (“WCMA”) and Water Revenue Adjustment (“WRA”), SJWC and CTWS follow the requirements of ASC Topic 980-605-25—“Alternative Revenue Programs” in determining revenue recognition, including the requirement that such revenues will be collected within 24 months of the year-end in which the revenue is recorded. A reserve is recorded for amounts SJW Group estimates will not be collected within the 24-month period. This reserve is based on an estimate of actual usage over the recovery period, offset by applicable drought surcharges. In assessing the probability criteria for balancing and memorandum accounts between general rate cases, SJWC considers evidence that may exist prior to CPUC authorization that would satisfy ASC Topic 980 subtopic 340-25 recognition criteria. Such evidence may include regulatory rules and decisions, past practices, and other facts and circumstances that would indicate that recovery or refund is probable. When such evidence provides sufficient support, the balances are recorded in SJW Group’s consolidated financial statements. On December 19, 2019, the CPUC denied the recovery of the 2018 WCMA in Advice Letter No. 532 and no longer approved the tracking of WCMA balances. Due to the decision, SJWC believes WCMA tracking no longer meets the probability criteria under ASC Topic 980-605-25. For the three months ended March 31, 2019, SJWC recognized a regulatory liability of $752 due to sales in excess of authorized usage accumulated in the 2019 WCMA account. Since the balance represents an amount due to customers, SJWC recorded a regulatory liability for the amount with a corresponding reduction to revenues. SJWC also recognized a regulatory liability of $309 due to sales in excess of authorized usage accumulated in the 2018 WCMA account for the three months ended March 31, 2019 based on ASC Topic 980-605-25. As of March 31, 2019, a reserve of $80 was recorded which is the estimated amount that would not be collected within the 24-month period, as required by the guidance. The amounts have been reflected in the 2018 WCMA and 2019 WCMA balances shown in the table below.
| Three months ended March 31, 2020 |  | Three months ended March 31, 2019
Beginning Balance |  | Regulatory Asset Increase (Decrease) |  | Refunds (Collections) Adjustments |  | Ending Balance |  | Beginning Balance |  | Regulatory Asset Increase (Decrease) |  | Refunds (Collections) Adjustments |  | Ending Balance
Revenue accounts: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2014-2017 WCMA | $ | 708 |  |  | — |  |  | (43 | ) |  | 665 |  |  | $ | 7,750 |  |  | — |  |  | (838 | ) |  | 6,912 |
2018 WCMA | — |  |  | — |  |  | — |  |  | — |  |  | 9,386 |  |  | (389 | ) |  | — |  |  | 8,997 |
2019 WCMA | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (752 | ) |  | — |  |  | (752 | )
2012 General Rate Case true-up | 752 |  |  | — |  |  | — |  |  | 752 |  |  | 11,328 |  |  | 95 |  |  | (1,271 | ) |  | 10,152 |
Cost of capital memorandum account | (1,553 | ) |  | (5 | ) |  | — |  |  | (1,558 | ) |  | (1,523 | ) |  | (9 | ) |  | — |  |  | (1,532 | )
Tax memorandum account | (6,643 | ) |  | (3 | ) |  | 6,978 |  |  | 332 |  |  | (6,504 | ) |  | (41 | ) |  | — |  |  | (6,545 | )
All others | 4,796 |  |  | 1,765 |  |  | (94 | ) |  | 6,467 |  |  | 5,112 |  |  | 1,707 |  |  | (570 | ) |  | 6,249 |
Total revenue accounts | $ | (1,940 | ) |  | 1,757 |  |  | 6,841 |  |  | 6,658 |  |  | $ | 25,549 |  |  | 611 |  |  | (2,679 | ) |  | 23,481 |
Cost-recovery accounts: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Water supply costs | 4,328 |  |  | 767 |  |  | (34 | ) |  | 5,061 |  |  | 9,617 |  |  | (745 | ) |  | (655 | ) |  | 8,217 |
Pension | 2,449 |  |  | 415 |  |  | 22 |  |  | 2,886 |  |  | (1,843 | ) |  | 184 |  |  | 422 |  |  | (1,237 | )
All others | 446 |  |  | 1 |  |  | (4 | ) |  | 443 |  |  | 1,090 |  |  | 3 |  |  | (78 | ) |  | 1,015 |
Total cost-recovery accounts | $ | 7,223 |  |  | 1,183 |  |  | (16 | ) |  | 8,390 |  |  | $ | 8,864 |  |  | (558 | ) |  | (311 | ) |  | 7,995 |
Total | $ | 5,283 |  |  | 2,940 |  |  | 6,825 |  |  | 15,048 |  |  | $ | 34,413 |  |  | 53 |  |  | (2,990 | ) |  | 31,476 |
As of March 31, 2020, the total balance in SJWC’s balancing and memorandum accounts combined, including interest, that has not been recorded into the financial statements was a net under-collection of $1,780. All balancing accounts and memorandum-type accounts not included for recovery or refund in the current general rate case will be reviewed by the CPUC in SJWC’s next general rate case or at the time an individual account balance reaches a threshold of 2% of authorized revenue, whichever occurs first.

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- Definition The entire disclosure for public utilities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 980 -URI http://asc.fasb.org/topic&trid=2156578 + Details
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