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Benefit Plans
 12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
Benefit Plans Benefit Plans
Pension Plans
H2O America maintains noncontributory defined benefit pension plans for its eligible employees. SJWC employees hired before March 31, 2008 and CWC and MWC employees hired before January 1, 2009 are entitled to benefits under the pension plans based on the employee’s years of service and compensation. For SJWC employees hired on or after March 31, 2008, benefits are determined using a cash balance formula based upon compensation credits and interest credits for each employee. Effective January 1, 2023, TWC employees became eligible to participate under SJWC’s cash balance plan. Interest is credited based on the annual yield on 30-year Treasury bonds as of October for the preceding plan year with a minimum annual rate of 3.25% and a maximum annual rate of 6.00%. For the year ended December 31, 2025, the interest credits assumption was 4.25%. Certain employees hired before March 1, 2012, and covered by a plan merged into the CWC plan in 2013 are also entitled to benefits based on the employee’s years of service and compensation. CTWS employees hired on or after January 1, 2009 are entitled to an additional 3.0% of eligible compensation to their company sponsored savings plan. H2O America does not have multi-employer plans.
The pension plans are administered by their respective committees which oversee plan governance and are responsible for establishing investment objectives, policies, and guidelines to achieve the goals of income generation and long-term capital
preservation. H2O America engages third-party investment professionals to assist with, among other things, asset allocation strategy, investment policy advice, performance monitoring, and investment manager due diligence. Effective in 2025, the pension plan committees appointed a discretionary investment manager that qualifies as an “investment manager” under Section 3(38) of the employee retirement income security act of 1974. Under this arrangement, the investment manager has discretionary authority to make investment decisions and to select, appoint, monitor, and terminate underlying investment managers within the parameters established by the pension plans’ investment policies. The pension plan committees retain oversight responsibility and continue to monitor the performance of the investment manager, including reviews of investment results and compliance with the plans’ investment guidelines. Investment managers are not permitted to invest outside of the asset class or strategy authorized under those guidelines. The committees ensure that the plans establish a target mix that is expected to achieve its investment objectives by assuring a broad diversification of investment assets among investment types, while minimizing volatility of the target asset mix, unless market conditions make such a change appropriate to reduce risk. The pension plans require a minimum portion of plan assets to be allocated to fixed income securities and provide guidelines and restrictions on equity investments for the assets.
Plan assets are marked to market at each measurement date, resulting in unrealized actuarial gains or losses. Unrealized actuarial gains and losses on pension assets are amortized over the expected future working lifetime of participants for actuarial expense calculation purposes.
Generally, it is expected of the investment managers that the performance of the assets held in the pension plans, computed on a total annual rate of return basis, should meet or exceed specific performance standards over a three-to-five-year period and/or full market cycle. These standards include specific absolute and risk-adjusted performance standards over a three-to-five-year period and/or full market cycle. The expected long-term rate of return on the pension plan assets is between 6.50% and 6.75% for the year ended December 31, 2025.
H2O America calculates the market-related value of defined benefit pension plan assets, which is defined under FASB ASC Topic 715—“Compensation—Retirement Benefits,” as a balance used to calculate the expected return on plan assets, using fair value. The fair value is based on quoted prices in active markets for identical assets and significant observable inputs.
Certain senior management hired before March 31, 2008 for SJWC and January 1, 2009 for CWC are eligible to receive additional retirement benefits under the supplemental executive retirement plans and retirement contracts (collectively, “SERP”). SJWC’s senior management hired on or after March 31, 2008 are eligible to receive additional retirement benefits under SJWC’s Cash Balance Executive Supplemental Retirement Plan (“Cash Balance Executive Supplemental Retirement Plan”). Both of the plans are non-qualified plans in which only senior management and other designated members of management may participate. The annual cost of the plans has been included in the determination of the net periodic benefit cost shown below. The SERP and Cash Balance Executive Supplemental Retirement Plan had a projected benefit obligation of $43,644 and $40,328 as of December 31, 2025 and 2024, respectively, and net periodic pension cost of $3,212, $3,879 and $3,257 for 2025, 2024 and 2023, respectively. For the years ended December 31, 2025, 2024 and 2023, the amounts not recognized as a component of net periodic benefit cost was $(493), $169, and $314, respectively, recorded as other comprehensive income on the consolidated financial statements. SJWC’s non-qualified deferred compensation plans (“NQDCs”) are unfunded. By contrast, CWC’s non-qualified deferred compensation plans are funded, including SERP, through investments consisting primarily of life insurance contracts and assets are held in a Rabbi Trust. As of December 31, 2025 and 2024, total investments made to fund CWC’s SERP were $7,887 and $7,336, respectively, which is included in “Investments” in H2O America’s Consolidated Balance Sheets. The life insurance contracts are valued at cash surrender value of the policies as reported by the insurer. As of December 31, 2025 and 2024, the value of the life insurance contracts was $4,852 and $4,294, respectively.
The following tables summarize the fair values of the Rabbi Trust investment assets to fund CWC’s SERP by major categories as of December 31, 2025 and 2024:

  
Fair Value Measurements at December 31, 2025
Asset CategoryTotalQuoted
Prices in
Active
Markets for
Identical
Assets
(Level 1)		Significant
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
Money market funds$354 354 — — 
Mutual funds1,844 1,844 — — 
Fixed income593 593 — — 
Total$2,791 2,791 — — 
  
Fair Value Measurements at December 31, 2024
Asset CategoryTotalQuoted
Prices in
Active
Markets for
Identical
Assets
(Level 1)		Significant
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
Money market funds$28 28 — — 
Mutual funds2,062 2,062 — — 
Fixed income722 722 — — 
Total$2,812 2,812 — — 
Other Postretirement Benefits
In addition to providing pension and savings benefits, the company also provides health care and life insurance benefits for eligible retired employees under the respective employer-sponsored postretirement benefits other than pension plans. The benefits are paid by the company and not from plan assets due to limitations imposed by Internal Revenue Service.
Flexible Spending Plan
H2O America sponsors flexible spending account plans for its employees for the purpose of providing eligible employees with the opportunity to choose from among the fringe benefits available under the plans. The flexible spending plan is intended to qualify as a cafeteria plan under the provisions of the Internal Revenue Code Section 125. The flexible spending plan allows employees to save pre-tax income in a Health Care Spending Account (“HCSA”) and/or a Dependent Care Spending Account (“DCSA”) to help defray the cost of out-of-pocket medical and dependent care expenses. The annual maximum limit under the HCSA and DCSA plans is $3.3 and $5, respectively.
Savings Plans for Employees
H2O America also sponsors salary deferral plans which are defined contribution plans that allow employees to defer and contribute a portion of their earnings to the plan. Contributions, not to exceed set limits, are matched by the company. H2O America contributions were $4,928, $4,221 and $3,902 in 2025, 2024 and 2023, respectively. All of the company’s contributions are invested at the direction of the employees in funds offered under the plans.
Special Deferral Election Plans and Deferral Election Program
H2O America maintains a special deferral election plan and a deferred compensation plan and agreements for senior management and a deferral election program for non-employee directors allowing for the deferral of a portion of their earnings each year and to realize an investment return on those funds during the deferral period. Senior management and non-employee directors have to make an election on the deferral and distribution method of the deferrals before services are rendered. CWC’s deferred compensation plan allows the company to make discretionary contributions. Senior management and non-employee directors had deferred $8,767 and $8,216 under the plans as of December 31, 2025 and 2024, respectively. As of December 31, 2025 and 2024, $6,552 and $6,276, respectively, of the total amount deferred is related to CWC agreements.
Assumptions Utilized on Actuarial Calculations
Net periodic cost for the defined benefit plans and other postretirement benefits was calculated using the following assumptions:
 Pension Benefits
Other Postretirement Benefits
 202520242023202520242023
%%%%%%
Discount rate
5.55 - 5.63
4.99 - 5.03
4.95 - 5.24
5.48 - 5.58
4.95 - 5.01
4.96 - 5.21
Expected return on plan assets
6.50, 6.75
6.25, 6.75
6.00, 6.75
4.20, 6.50
4.20, 6.25
4.20, 6.00
Rate of compensation increase
4.50, 5.00
4.50, 5.00
4.50, 5.00
N/AN/AN/A
The expected rate of return on plan assets was determined based on a review of historical returns, for the pension plans and for medium- to large-sized defined benefit pension funds with similar asset allocations. This review generated separate expected returns for each asset class. These expected future returns were then blended based on the pension plans’ target asset allocations.
Benefit obligations for the defined benefit plans and other postretirement benefits were calculated using the following assumptions as of December 31:
 Pension Benefits
Other Postretirement Benefits
 2025202420252024
 %%%%
Discount rate
5.35 - 5.54
5.55 - 5.63
5.11 - 5.43
5.48 - 5.58
Rate of compensation increase
4.50 - 5.00
4.50 - 5.00
N/AN/A
H2O America utilized each plan’s projected benefit stream in conjunction with the FTSE Pension Discount Curve in determining the discount rate used in calculating the pension and other postretirement benefits liabilities at the measurement date.
H2O America has adopted MP-2021, Mortality Improvement Scales to determine mortality assumptions. The tables and scales reflect increasing life expectancies of participants in the United States. See also “Reconciliation of Funded Status” below.
For other postretirement benefits, the assumed healthcare cost trend rate for 2025 is 8.00%, grading down gradually to 4.50% by 2033.
Net Periodic Pension Costs
Net periodic costs for the defined benefit plans and other postretirement benefits for the years ended December 31 were as follows:
 Pension Benefits
Other Postretirement Benefits
 202520242023202520242023
Components of net periodic benefit cost
Service cost$6,571 6,662 7,569 $624 665 638 
Interest cost15,600 14,451 14,234 1,351 1,181 1,268 
Expected return on assets(19,777)(17,852)(15,440)(1,179)(1,068)(860)
Amortization of prior service cost15 15 15 — — — 
Amortization of actuarial (gain) loss
(1,801)(71)2,210 (856)(643)(350)
Recognition of significant event— — — — — — 
Net periodic benefit cost$608 3,205 8,588 $(60)135 696 
Reconciliation of Funded Status
For the defined benefit plans and other postretirement benefits, the benefit obligation is the projected benefit obligation and the accumulated benefit obligation, respectively. The projected benefit obligations and the funded status of the defined benefit pension and other postretirement plans as of December 31 were as follows:
 Pension Benefits
Other Postretirement Benefits
 2025202420252024
Change in benefit obligation
Benefit obligation at beginning of year$287,044 297,834 $25,080 24,264 
Service cost6,571 6,662 624 665 
Interest cost15,600 14,451 1,351 1,181 
Actuarial loss (gain)
4,860 (14,816)(2,332)(146)
Implicit rate subsidy— — (109)(336)
Plan participants contributions— — 149 183 
Administrative expenses paid(101)(146)— — 
Benefits paid and settlements(20,832)(16,941)(1,042)(731)
Benefit obligation at end of year$293,142 287,044 $23,721 25,080 
Change in plan assets
Fair value of assets at beginning of year$307,947 285,504 $23,225 21,207 
Actual return on plan assets30,763 31,523 2,562 2,879 
Employer contributions5,675 8,007 7 7 
Plan participants contributions— — 149 183 
Administrative expenses paid(101)(146)(48)(71)
Benefits paid and settlements(20,832)(16,941)(987)(980)
Fair value of plan assets at end of year323,452 307,947 24,908 23,225 
Funded status at end of year$30,310 20,903 $1,187 (1,855)
For the year ended December 31, 2025, the net actuarial loss on the benefit obligation was related primarily to a loss from changes in the discount rate of $4,219 and a $873 gain from pension data changes. For the year ended December 31, 2024, the net actuarial gain on the benefit obligation was related primarily to a gain from changes of discount rate of $21,129 and a $6,005 loss from pension data changes.
The amounts recognized on the balance sheet as of December 31 were as follows:
 Pension Benefits
Other Postretirement Benefits
 2025202420252024
Noncurrent assets$73,954 61,231 $7,013 5,191 
Current liabilities(2,958)(2,308)(129)(146)
Noncurrent liabilities(40,686)(38,020)(5,697)(6,900)
$30,310 20,903 $1,187 (1,855)
As of December 31, 2025 and 2024, the accumulated benefit obligation of the defined benefit pension plans was $269,908 and $263,607, respectively.
The following table provides selected information about plans with projected benefit obligation and accumulated benefit obligation in excess of plan assets as of December 31:
20252024
Pension Benefits:
Plans with projected benefit obligation in excess of plan assets:
Projected benefit obligation
$43,644 40,328 
Fair value of plan assets
— — 
Plans with accumulated benefit obligation in excess of plan assets:
Accumulated benefit obligation
40,890 38,053 
Fair value of plan assets
— — 
Other Postretirement Benefits:
Plans with accumulated benefit obligation in excess of plan assets:
Accumulated benefit obligation
15,874 16,891 
Fair value of plan assets
10,047 9,844 
H2O America recognizes regulatory assets and liabilities that represent actuarial losses and gains and prior service cost that have not yet been recognized as components of net periodic benefit cost for certain of its pension and other postretirement benefit plans, in accordance with ASC Topic 980. H2O America had no recorded regulatory assets as of December 31, 2025, and $3,177 as of December 31, 2024. Regulatory liabilities were $32,996 and $27,872 as of December 31, 2025 and 2024, respectively. As of December 31, 2024, the amount deferred in regulatory assets that has not yet been recognized as a component of net periodic benefit cost included a net loss of $3,150 and prior service cost of $27. As of December 31, 2025 and 2024, the amounts deferred in regulatory liabilities that have not yet been recognized as components of net periodic benefit cost include net gain of $32,996 and $27,872, respectively.
Plan Assets
Plan assets as of December 31 were as follows:
 Pension Benefits
Other Postretirement Benefits
 2025202420252024
Fair value of assets at end of year:
Debt securities$169,758 116,987 $8,656 5,368 
52 %38 %36 %23 %
Equity securities146,967 179,103 15,716 16,737 
45 %58 %63 %72 %
Cash and equivalents6,727 11,857 536 1,120 
2 %4 %2 %5 %
Total$323,452 307,947 $24,908 23,225 
The following tables summarize the fair values of plan assets by major categories as of December 31, 2025 and 2024:
  
Fair Value Measurements at December 31, 2025
Asset CategoryTotalQuoted
Prices in
Active
Markets for
Identical
Assets
(Level 1)		Significant
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
Cash and cash equivalents$7,263 7,263 — — 
Equity securities (a)162,683 162,683 — — 
Fixed Income (b)178,414 171,622 6,792 — 
Total$348,360 341,568 6,792 — 
___________________________________
(a)Actively managed portfolio of equity securities with the goal to exceed the benchmark performance.
(b)Actively managed portfolio of fixed income securities with the goal to exceed the benchmark performance.
  
Fair Value Measurements at December 31, 2024
Asset CategoryTotalQuoted
Prices in
Active
Markets for
Identical
Assets
(Level 1)		Significant
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
Cash and cash equivalents$12,977 12,977 — — 
Equity securities195,840 195,840 — — 
Fixed Income122,355 46,549 75,806 — 
Total$331,172 255,366 75,806 — 
In 2026, H2O America expects to make required and discretionary cash contributions of up to $7,682 to the pension plans and other postretirement benefit plans.
Benefits expected to be paid in the next five years and in the aggregate for the five years thereafter are:
Pension Plans
Other Postretirement
Benefit Plans
2026$19,103 $1,578 
202720,009 1,659 
202820,148 1,667 
202920,855 1,675 
203021,449 1,693 
2031 - 2035
116,122 9,023