Balancing and Memorandum Accounts

6 Months Ended

Jun. 30, 2021

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 recorded to regulatory assets, net for the three and six months ended June 30, 2021 and 2020 as follows:


	Three months ended June 30, 2021				Three months ended June 30, 2020
	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	$	13,853	1,424	1	15,278	$	8,958	1,591	—	10,549


Cost of capital memorandum account	(1,561)		(1)	—	(1,562)	(1,558)		(2)	—	(1,560)
Tax memorandum account	333		—	—	333	332		—	—	332
All others	(980)		147	4	(829)	(1,074)		40	—	(1,034)
Total revenue accounts	$	11,645	1,570	5	13,220	$	6,658	1,629	—	8,287
Cost-recovery accounts:
Water supply costs	8,910		984	1	9,895	5,061		838	—	5,899
Pension	3,844		366	—	4,210	2,886		99	—	2,985
Hydro Generation Research, Development and Demonstration Memorandum Account (“PRVMA”)	1,027		—	(99)	928	—		—	—	—
COVID-19 Catastrophic Event Memorandum Account (“CEMA”)	2,266		352	—	2,618	—		—	—	—
All others	445		1	—	446	443		1	—	444
Total cost-recovery accounts	$	16,492	1,703	(98)	18,097	$	8,390	938	—	9,328

Total	$	28,137	3,273	(93)	31,317	$	15,048	2,567	—	17,615


	Six months ended June 30, 2021				Six months ended June 30, 2020
	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	$	12,077	3,200	1	15,278	$	7,015	3,561	(27)	10,549


Cost of capital memorandum account	(1,561)		(1)	—	(1,562)	(1,553)		(7)	—	(1,560)
Tax memorandum account	333		—	—	333	(6,643)		(3)	6,978	332
All others	(806)		(28)	5	(829)	(759)		(165)	(110)	(1,034)
Total revenue accounts	$	10,043	3,171	6	13,220	$	(1,940)	3,386	6,841	8,287
Cost-recovery accounts:
Water supply costs	8,123		1,771	1	9,895	4,328		1,605	(34)	5,899
Pension	3,478		732	—	4,210	2,449		514	22	2,985
PRVMA	1,108		—	(180)	928	—		—	—	—
CEMA	2,266		352	—	2,618	—		—	—	—
All others	445		1	—	446	446		2	(4)	444
Total cost-recovery accounts	$	15,420	2,856	(179)	18,097	$	7,223	2,121	(16)	9,328

Total	$	25,463	6,027	(173)	31,317	$	5,283	5,507	6,825	17,615

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.