Short-term and Long-term Borrowings

6 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

Short-term and Long-term Borrowings

Short-term and Long-term Borrowings

Both short-term unsecured credit agreements contain affirmative and negative covenants and events of default customary for credit facilities of this type including, among other things, limitations and prohibitions relating to additional indebtedness, liens, mergers, and asset sales. Also, these unsecured credit agreements contain financial covenants governing the Company and its subsidiaries’ consolidated total capitalization ratio and interest coverage ratio.

The outstanding borrowings on the Company lines of credit were $55.1 million as of June 30, 2018 and December 31, 2017. There were $270.0 million and $220.0 million borrowings on the Cal Water lines of credit as of June 30, 2018 and December 31, 2017, respectively. The average borrowing rate for borrowings on the Company and Cal Water lines of credit during the six months ended June 30, 2018 was 2.72% compared to 1.82% for the same period last year.