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Regulatory Matters (Tables)
 3 Months Ended
Mar. 31, 2025
Regulated Operations [Abstract]  
Schedule of Regulatory Assets, Net
Regulatory assets and liabilities are comprised of the following as of March 31, 2025 and December 31, 2024:
March 31, 2025December 31, 2024
Regulatory assets:
Income tax temporary differences (a) (p)
$181,282 180,103 
Monterey Water Revenue Adjustment Mechanism (“MWRAM”) (b)
13,032 9,985 
Business combinations debt premium (c) (p)
11,678 12,313 
Employee benefit costs (d) (p)
6,262 6,370 
Revenue adjustment mechanisms (e) (p)
5,766 5,024 
Customer Assistance Program (“CAP”) balancing account (f)
5,717 6,599 
2022 general rate case interim memorandum account (h)
2,249 3,392 
Unrecognized pensions and other postretirement benefits (g) (p)
1,506 3,177 
Other (j)
15,682 15,264 
Total regulatory assets
243,174 242,227 
Less: current regulatory assets (k)
16,572 18,172 
Total regulatory assets, less current portion
$226,602 224,055 
Regulatory liabilities:
Cost of removal (l)
372,029 364,398 
Future income tax benefits due to customers (m)
83,670 84,128 
Unrecognized pensions and other postretirement benefits (g)
27,782 27,872 
Water supply costs (i)
4,726 3,386 
Employee benefit costs (d)3,028 1,137 
Revenue adjustment mechanisms (e)
573 1,122 
Other (n)
2,722 2,798 
Total regulatory liabilities
494,530 484,841 
Less: current regulatory liabilities (o)
573 1,122 
Total regulatory liabilities, less current portion
$493,957 483,719 
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(a)Consists primarily of temporary income tax differences that are flowed through to customers, which will be recovered in future rates as these temporary differences reverse. The company expects to recover regulatory assets related to plant depreciation income tax temporary differences over the lives of the plant assets, which are between 5 to 100 years.
(b)MWRAM is described in the following section.
(c)Consists of debt fair value adjustments recognized through purchase accounting for the completed merger with CTWS in 2019.
(d)Includes deferrals of pension and other postretirement benefit expense and cost of accrued benefits for vacation, and group health insurance.
(e)Primarily relates to Water Rate Adjustment mechanism (“WRA”). WRA and Water Conservation Memorandum Account (“WCMA”) are described in the following section.
(f)Represents costs associated with SJWC’s CAP.
(g)Represents actuarial losses and gains and prior service cost that have not yet been recognized as components of net periodic benefit cost for certain pension and other postretirement benefit plans.
(h)Represents the difference between revenues collected in interim rates in effect as of January 1, 2022 and revenues that would result from rates authorized in SJWC’s 2022 general rate case retroactive to January 1, 2022.
(i)Reflects primarily SJWC’s Full Cost Balancing Account (“FCBA”), which tracks differences in actual water supply costs compared to amounts assumed in base rates, including applicable changes and variations in costs and quantities that affect the overall mix of the water supply.
(j)Other includes other balancing and memorandum accounts and regulatory mechanisms, deferred costs for certain information technology activities, asset retirement obligations, tank painting, well reconditioning and rate case expenses.
(k)Primarily relates to SJWC’s balancing and memorandum account surcharge in accordance with Decision No. 24-12-077 and the current portion of CWC’s deferred well redevelopment and rate case costs.
(l)Represents amounts collected in rates from customers for estimated costs to retire assets at the end of their expected useful lives before the costs are incurred.
(m)On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) was signed into law. The Tax Act included a reduction in the federal income tax rate from 35% to 21%. The rate reduction was effective on January 1, 2018 and resulted in a regulatory liability for the excess deferred
income taxes. The benefit of amortization of excess deferred income taxes flows back to the customers under current normalization rules and agreed upon methods with the commissions.
(n)Other includes accrued tank painting costs and other regulatory mechanisms.
(o)Primarily relates to the current portion of WRA.
(p)Generally, not earning a return either by interest on the regulatory asset or as a component of rate base at the allowed rate of return.