Balancing and Memorandum Accounts

9 Months Ended

Sep. 30, 2021

Balancing and Memorandum AccountsSJWC has established balancing accounts for the purpose of tracking the under-collection or over-collection associated with expense changes and 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 (“MWRAM”) 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 nine months ended September 30, 2021, and 2020 as follows:


	Three months ended September 30, 2021				Three months ended September 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:
MWRAM	$	15,278	363	—	15,641	$	10,549	(1,124)	2,625	12,050


Cost of capital memorandum account	(1,562)		—	—	(1,562)	(1,560)		(1)	—	(1,561)
Tax memorandum account	333		—	—	333	332		1	—	333
All others	(829)		397	—	(432)	(1,034)		37	1	(996)
Total revenue accounts	$	13,220	760	—	13,980	$	8,287	(1,087)	2,626	9,826
Cost-recovery accounts:
Water supply costs	9,895		388	—	10,283	5,899		1,222	1	7,122
Pension	4,210		366	—	4,576	2,985		(253)	—	2,732
Hydro Generation Research, Development and Demonstration Memorandum Account (“PRVMA”)	928		—	(121)	807	—		1,219	(8)	1,211
COVID-19 Catastrophic Event Memorandum Account (“CEMA”)	2,618		567	—	3,185	—		—	—	—
All others	446		—	—	446	444		—	—	444
Total cost-recovery accounts	$	18,097	1,321	(121)	19,297	$	9,328	2,188	(7)	11,509

Total	$	31,317	2,081	(121)	33,277	$	17,615	1,101	2,619	21,335


	Nine months ended September 30, 2021				Nine months ended September 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:
MWRAM	$	12,077	3,563	1	15,641	$	7,015	2,437	2,598	12,050


Cost of capital memorandum account	(1,561)		(1)	—	(1,562)	(1,553)		(8)	—	(1,561)
Tax memorandum account	333		—	—	333	(6,643)		(2)	6,978	333
All others	(806)		369	5	(432)	(759)		(128)	(109)	(996)
Total revenue accounts	$	10,043	3,931	6	13,980	$	(1,940)	2,299	9,467	9,826
Cost-recovery accounts:
Water supply costs	8,123		2,159	1	10,283	4,328		2,827	(33)	7,122
Pension	3,478		1,098	—	4,576	2,449		261	22	2,732
PRVMA	1,108		—	(301)	807	—		1,219	(8)	1,211
CEMA	2,266		919	—	3,185	—		—	—	—
All others	445		1	—	446	446		2	(4)	444
Total cost-recovery accounts	$	15,420	4,177	(300)	19,297	$	7,223	4,309	(23)	11,509

Total	$	25,463	8,108	(294)	33,277	$	5,283	6,608	9,444	21,335

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.