XML 34 R22.htm IDEA: XBRL DOCUMENT
v3.25.2

Regulatory Matters (Tables) | 6 Months Ended
--- | ---
Jun. 30, 2025
Regulated Operations [Abstract] |
Schedule of Regulatory Assets, Net | Regulatory assets and liabilities are comprised of the following as of June 30, 2025 and December 31, 2024:
| June 30, 2025 |  | December 31, 2024
Regulatory assets: |  |  |
Income tax temporary differences (a) (p) | $ | 185,239 |  |  | 180,103 |
Monterey Water Revenue Adjustment Mechanism (“MWRAM”) (b) | 14,753 |  |  | 9,985 |
Business combinations debt premium (c) (p) | 11,043 |  |  | 12,313 |
Employee benefit costs (d) (p) | 6,144 |  |  | 6,370 |
Revenue adjustment mechanisms (e) (p) | 5,780 |  |  | 5,024 |
Customer Assistance Program (“CAP”) balancing account (f) | 4,686 |  |  | 6,599 |
Unrecognized pensions and other postretirement benefits (g) (p) | 1,506 |  |  | 3,177 |
2022 general rate case interim memorandum account (h) | 1,106 |  |  | 3,392 |
Other (j) | 15,019 |  |  | 15,264 |
Total regulatory assets | 245,276 |  |  | 242,227 |
Less: current regulatory assets (k) | 12,626 |  |  | 18,172 |
Total regulatory assets, less current portion | $ | 232,650 |  |  | 224,055 |
Regulatory liabilities: |  |  |
Cost of removal (l) | 379,624 |  |  | 364,398 |
Future income tax benefits due to customers (m) | 83,326 |  |  | 84,128 |
Unrecognized pensions and other postretirement benefits (g) | 27,696 |  |  | 27,872 |
PFAS legal settlement proceeds (q) | 6,352 |  |  | — |
Employee benefit costs (d) | 4,933 |  |  | 1,137 |
Water supply costs (i) | 4,405 |  |  | 3,386 |
Revenue adjustment mechanisms (e) | 2 |  |  | 1,122 |
Other (n) | 2,644 |  |  | 2,798 |
Total regulatory liabilities | 508,982 |  |  | 484,841 |
Less: current regulatory liabilities (o) | 2 |  |  | 1,122 |
Total regulatory liabilities, less current portion | $ | 508,980 |  |  | 483,719 |
___________________________________ (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. (q)Primarily relates to legal settlements received by SJWC and CWC from ongoing PFAS water contamination litigation against manufacturers which will be used to offset future costs incurred, recorded as Contributions in Aid of Construction (“CIAC”), or returned to customers through future rates. Water Contamination Litigation Memorandum Account (“WCLMA”) has been established to track net proceeds and costs resulting from water contamination litigation related to SJWC.

X
- References No definition available. + Details
Name: | us-gaap_RegulatedOperationsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of assets that are created when regulatory agencies permit public utilities to defer certain costs included in rate-setting to the balance sheet. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 980 -SubTopic 340 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147478742/980-340-50-1 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 980 -SubTopic 715 -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147478574/980-715-50-1 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 980 -SubTopic 340 -Section 50 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org/1943274/2147478742/980-340-50-2 + Details
Name: | us-gaap_ScheduleOfRegulatoryAssetsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration