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Balancing and Memorandum Accounts | 9 Months Ended
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Sep. 30, 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. The Monterey Water Revenue Adjustment Mechanism (“WRAM”) tracks the difference between the revenue received for actual metered sales through the tiered volumetric rate and the revenue that would have been received with the same actual metered sales if a uniform rate would have been in effect. 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. 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 980-340-25—“Other Assets and Deferred Costs” 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 condensed consolidated financial statements. CPUC approved Advice Letter No. 548A for the recovery of the Hydro Generation Research, Development and Demonstration Memorandum Account (“PRVMA”) on August 27, 2020. In 2016, the Company determined recovery at the time was not probable and recorded a reserve for the costs related to the project. Advice Letter No. 548A allowed recovery of $1,219 which was recognized as a regulatory asset for the three and nine months ended September 30, 2020, and the reserve previously recognized was reversed. The amounts have been reflected in the PRVMA balances shown in the table below. On December 19, 2019, the CPUC denied the recovery of SJWC’s 2018 WCMA in Advice Letter No. 532 and no longer approved the tracking of WCMA balances. As a result of conflicting CPUC proposed decisions issued in October 2019 on recovery of the 2018 WCMA balance, SJWC determined that it no longer met the probability criteria for recognition under ASC Topic 980-605-25 and fully reserved the 2019 and 2018 WCMA balances as of September 30, 2019.
| Three months ended September 30, 2020 |  | Three months ended September 30, 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: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Monterey WRAM | $ | 10,549 |  |  | (1,124 | ) |  | 2,625 |  |  | 12,050 |  |  | $ | 8,986 |  |  | 328 |  |  | (1,502 | ) |  | 7,812 |
2014-2017 WCMA | 665 |  |  | — |  |  | 1 |  |  | 666 |  |  | 5,315 |  |  | — |  |  | (2,397 | ) |  | 2,918 |
2018 WCMA | — |  |  | — |  |  | — |  |  | — |  |  | 8,958 |  |  | (8,958 | ) |  | — |  |  | — |
2019 WCMA | — |  |  | — |  |  | — |  |  | — |  |  | 557 |  |  | (557 | ) |  | — |  |  | — |
2012 General Rate Case true-up | 752 |  |  | — |  |  | — |  |  | 752 |  |  | 7,731 |  |  | (1 | ) |  | (3,631 | ) |  | 4,099 |
Cost of capital memorandum account | (1,560 | ) |  | (1 | ) |  | — |  |  | (1,561 | ) |  | (1,540 | ) |  | (7 | ) |  | — |  |  | (1,547 | )
Tax memorandum account | 332 |  |  | 1 |  |  | — |  |  | 333 |  |  | (6,585 | ) |  | (33 | ) |  | — |  |  | (6,618 | )
All others | (2,451 | ) |  | 37 |  |  | — |  |  | (2,414 | ) |  | (1,794 | ) |  | (47 | ) |  | (128 | ) |  | (1,969 | )
Total revenue accounts | $ | 8,287 |  |  | (1,087 | ) |  | 2,626 |  |  | 9,826 |  |  | $ | 21,628 |  |  | (9,275 | ) |  | (7,658 | ) |  | 4,695 |
Cost-recovery accounts: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Water supply costs | 5,899 |  |  | 1,222 |  |  | 1 |  |  | 7,122 |  |  | 5,912 |  |  | 1,049 |  |  | (1,871 | ) |  | 5,090 |
Pension | 2,985 |  |  | (253 | ) |  | — |  |  | 2,732 |  |  | (233 | ) |  | 199 |  |  | 1,208 |  |  | 1,174 |
PRVMA | — |  |  | 1,219 |  |  | (8 | ) |  | 1,211 |  |  | — |  |  | — |  |  | — |  |  | — |
All others | 444 |  |  | — |  |  | — |  |  | 444 |  |  | 870 |  |  | 2 |  |  | (223 | ) |  | 649 |
Total cost-recovery accounts | $ | 9,328 |  |  | 2,188 |  |  | (7 | ) |  | 11,509 |  |  | $ | 6,549 |  |  | 1,250 |  |  | (886 | ) |  | 6,913 |
Total | $ | 17,615 |  |  | 1,101 |  |  | 2,619 |  |  | 21,335 |  |  | $ | 28,177 |  |  | (8,025 | ) |  | (8,544 | ) |  | 11,608 |
| Nine months ended September 30, 2020 |  | Nine months ended September 30, 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: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Monterey WRAM | $ | 7,015 |  |  | 2,437 |  |  | 2,598 |  |  | 12,050 |  |  | $ | 6,847 |  |  | 3,994 |  |  | (3,029 | ) |  | 7,812 |
2014-2017 WCMA | 708 |  |  | — |  |  | (42 | ) |  | 666 |  |  | 7,750 |  |  | — |  |  | (4,832 | ) |  | 2,918 |
2018 WCMA | — |  |  | — |  |  | — |  |  | — |  |  | 9,386 |  |  | (9,386 | ) |  | — |  |  | — |
2019 WCMA | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
2012 General Rate Case true-up | 752 |  |  | — |  |  | — |  |  | 752 |  |  | 11,328 |  |  | 95 |  |  | (7,324 | ) |  | 4,099 |
Cost of capital memorandum account | (1,553 | ) |  | (8 | ) |  | — |  |  | (1,561 | ) |  | (1,523 | ) |  | (24 | ) |  | — |  |  | (1,547 | )
Tax memorandum account | (6,643 | ) |  | (2 | ) |  | 6,978 |  |  | 333 |  |  | (6,504 | ) |  | (114 | ) |  | — |  |  | (6,618 | )
All others | (2,219 | ) |  | (128 | ) |  | (67 | ) |  | (2,414 | ) |  | (1,735 | ) |  | 25 |  |  | (259 | ) |  | (1,969 | )
Total revenue accounts | $ | (1,940 | ) |  | 2,299 |  |  | 9,467 |  |  | 9,826 |  |  | $ | 25,549 |  |  | (5,410 | ) |  | (15,444 | ) |  | 4,695 |
Cost-recovery accounts: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Water supply costs | 4,328 |  |  | 2,827 |  |  | (33 | ) |  | 7,122 |  |  | 9,617 |  |  | (754 | ) |  | (3,773 | ) |  | 5,090 |
Pension | 2,449 |  |  | 261 |  |  | 22 |  |  | 2,732 |  |  | (1,843 | ) |  | 582 |  |  | 2,435 |  |  | 1,174 |
PRVMA | — |  |  | 1,219 |  |  | (8 | ) |  | 1,211 |  |  | — |  |  | — |  |  | — |  |  | — |
All others | 446 |  |  | 2 |  |  | (4 | ) |  | 444 |  |  | 1,090 |  |  | 8 |  |  | (449 | ) |  | 649 |
Total cost-recovery accounts | $ | 7,223 |  |  | 4,309 |  |  | (23 | ) |  | 11,509 |  |  | $ | 8,864 |  |  | (164 | ) |  | (1,787 | ) |  | 6,913 |
Total | $ | 5,283 |  |  | 6,608 |  |  | 9,444 |  |  | 21,335 |  |  | $ | 34,413 |  |  | (5,574 | ) |  | (17,231 | ) |  | 11,608 |
As of September 30, 2020, the total balance in SJWC’s balancing and memorandum accounts combined, including interest, that have not been recorded into the financial statements was a net under-collection of $2,245. 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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