Regulatory Assets and Liabilities

9 Months Ended

Sep. 30, 2025

Regulated Operations [Abstract]

Regulatory Assets and Liabilities

Regulatory Assets and Liabilities

Regulatory assets and liabilities were comprised of the following as of September 30, 2025 and December 31, 2024:

	Recovery Period	September 30, 2025		December 31, 2024
Regulatory Assets
Property-related temporary differences (tax benefits flowed through to customers)	Indefinite	$	178,279	$	178,279
Asset retirement obligations, net	Indefinite	31,051		28,883
Other accrued benefits	Indefinite	26,756		25,439
IRMA long-term accounts receivable	Various	25,233		46,278
Tank coating	Various	19,527		21,477
MWRAM long-term regulatory asset	1 - 2 years	13,570		16,353
General District Balancing Account receivable	Various	9,724		9,393
Incremental Cost Balancing Accounts (ICBA)	1 year	4,608		8,251
Customer Assistance Program and Rate Support Fund accounts receivable	1 year	4,423		9,910
Net WRAM and Modified Cost Balancing Account (MCBA) long-term accounts receivable	Various	3,776		3,633
Recoverable property losses	Various	2,131		2,633
Other regulatory assets	Various	7,441		6,877
Total Regulatory Assets		$	326,519	$	357,406
Regulatory Liabilities
Cost of removal		$	514,145	$	483,108
Pension and retiree group health		173,593		174,708
Future tax benefits due to customers		104,154		106,184
PFAS settlement proceeds		24,000		—
Other components of net periodic benefit cost		22,812		18,287
Pension Cost Balancing Account		17,009		14,143
Health Cost Balancing Account		4,264		3,630
Net WRAM and MCBA long-term payable		3,103		3,064
Conservation Expense Balancing Account		2,909		3,294
ICBA		2,548		6,003
Other regulatory liabilities		2,083		2,130
Total Regulatory Liabilities		$	870,620	$	814,551

Short-term regulatory assets and liabilities are excluded from the above table. The short-term regulatory assets were $74.0 million as of September 30, 2025 and $55.9 million as of December 31, 2024. The short-term regulatory assets as of September 30, 2025 primarily consisted of IRMA, MWRAM, and ICBA receivables. As of December 31, 2024, the short-term regulatory assets primarily consisted of IRMA and MWRAM receivables. The short-term regulatory assets are included in current assets under regulatory balancing accounts on the unaudited Condensed Consolidated Balance Sheets.

The short-term portion of regulatory liabilities was $23.4 million as of September 30, 2025 and $22.6 million as of December 31, 2024. The short-term regulatory liabilities as of September 30, 2025 consisted of Tax Cuts and Jobs Act (TCJA) regulatory liabilities, ICBA regulatory liabilities, and PFAS settlement proceeds (see Note 9, Commitments and Contingencies). As of December 31, 2024, the short-term regulatory liabilities primarily consisted of TCJA regulatory liabilities, ICBA regulatory liabilities, and IRMA regulatory liabilities. The short-term regulatory liabilities are included in current liabilities under regulatory balancing accounts on the unaudited Condensed Consolidated Balance Sheets.

The PFAS settlement proceeds in the table above represents amounts the Company does not expect to reclassify to Contributions in Aid of Construction (CIAC) in the next 12 months. The Company is required by the Commissions to provide the benefit of the PFAS settlement proceeds to customers through CIAC once PFAS related remediation projects are placed in service. Since the Company is required to provide the benefit of the settlement proceeds to customers, the Company recorded the PFAS settlement proceeds as a regulatory liability and will reclassify them to CIAC once the related projects are placed in service.