Utility Plant and Intangible Assets

12 Months Ended

Dec. 31, 2016

Utility Plant and Intangible Assets

Utility Plant and Intangible Assets

Utility Plant and Intangible Assets

The following table shows Registrant’s utility plant by major asset class:

	AWR December 31,						GSWC December 31,
(dollars in thousands)	2016			2015			2016			2015
Water
Land	$	15,393		$	15,299		$	15,393		$	15,299
Intangible assets	36,291			34,848			36,273			34,830
Source of water supply	86,775			86,914			86,775			86,914
Pumping	169,983			161,668			169,983			161,668
Water treatment	74,980			72,238			74,980			72,238
Transmission and distribution	1,014,925			941,651			1,014,925			941,651
General	127,969			126,438			116,090			115,424
	1,526,316			1,439,056			1,514,419			1,428,024
Electric
Transmission and distribution	71,112			66,121			71,112			66,121
Generation	12,583			12,563			12,583			12,563
General (1)	10,314			9,797			10,314			9,797
	94,009			88,481			94,009			88,481
Less — accumulated depreciation	(532,753		)	(529,698		)	(524,927		)	(522,749		)
Construction work in progress	63,354			62,955			61,810			62,360
Net utility plant	$	1,150,926		$	1,060,794		$	1,145,311		$	1,056,116

(1)        Includes intangible assets of $1.2 million for the years ended December 31, 2016 and 2015 for studies performed in association with the electricity segment of the Registrant’s operations.

As of December 31, 2016 and 2015, intangible assets consist of the following:

	Weighted Average Amortization	AWR December 31,						GSWC December 31,
(dollars in thousands)	Period	2016			2015			2016			2015
Intangible assets:
Conservation programs	3 years	$	9,496		$	9,496		$	9,496		$	9,496
Water and service rights (2)	30 years	8,695			8,695			8,124			8,124
Water planning studies	14 years	19,487			18,044			19,487			18,044
Total intangible assets		37,678			36,235			37,107			35,664
Less — accumulated amortization		(28,108		)	(26,291		)	(28,001		)	(26,196		)
Intangible assets, net of amortization		$	9,570		$	9,944		$	9,106		$	9,468
Intangible assets not subject to amortization (3)		$	427		$	427		$	409		$	409

(2)   Includes intangible assets of $571,000 for contracted services included in "Other Property and Investments" on the consolidated balance sheets as of December 31, 2016 and 2015.

(3) The intangible assets not subject to amortization primarily consist of organization and consent fees.

For the years ended December 31, 2016, 2015 and 2014, amortization of intangible assets was $1.9 million, $1.8 million and $1.9 million, respectively, for AWR and GSWC.  Estimated future consolidated amortization expenses related to intangible assets for the succeeding five years are (in thousands):

	Amortization Expense
2017	$	1,922
2018	1,922
2019	1,737
2020	1,609
2021	1,485
Total	$	8,675

There is no material difference between the consolidated operations of AWR and the operations of GSWC in regards to the future amortization expense of intangible assets.

Asset Retirement Obligations:

The following is a reconciliation of the beginning and ending aggregate carrying amount of asset retirement obligations, which are included in “Other Credits” on the balance sheets as of December 31, 2016 and 2015:

(dollars in thousands)	GSWC
Obligation at December 31, 2014	$	3,234
Additional liabilities incurred	7
Accretion	209
Revision of previous estimates	707
Obligation at December 31, 2015	$	4,157
Additional liabilities incurred	121
Liabilities settled	(112		)
Accretion	227
Obligation at December 31, 2016	$	4,393

Registrant follows the accounting guidance for asset retirement obligations.  Because retirement costs have historically been recovered through rates at the time of retirement, upon implementing this guidance, the cumulative effect of the adoption of the authoritative guidance was reflected as a regulatory asset.

Schedule of Public Utility Property Plant and Equipment Components [Table Text Block]

The following table shows Registrant’s utility plant by major asset class:

	AWR December 31,						GSWC December 31,
(dollars in thousands)	2016			2015			2016			2015
Water
Land	$	15,393		$	15,299		$	15,393		$	15,299
Intangible assets	36,291			34,848			36,273			34,830
Source of water supply	86,775			86,914			86,775			86,914
Pumping	169,983			161,668			169,983			161,668
Water treatment	74,980			72,238			74,980			72,238
Transmission and distribution	1,014,925			941,651			1,014,925			941,651
General	127,969			126,438			116,090			115,424
	1,526,316			1,439,056			1,514,419			1,428,024
Electric
Transmission and distribution	71,112			66,121			71,112			66,121
Generation	12,583			12,563			12,583			12,563
General (1)	10,314			9,797			10,314			9,797
	94,009			88,481			94,009			88,481
Less — accumulated depreciation	(532,753		)	(529,698		)	(524,927		)	(522,749		)
Construction work in progress	63,354			62,955			61,810			62,360
Net utility plant	$	1,150,926		$	1,060,794		$	1,145,311		$	1,056,116

(1)        Includes intangible assets of $1.2 million for the years ended December 31, 2016 and 2015 for studies performed in association with the electricity segment of the Registrant’s operations.