Employee Benefit Plans

3 Months Ended

Mar. 31, 2020

The components of net periodic benefit costs for Registrant’s pension plan, postretirement medical benefit plan and SERP for the three months ended March 31, 2020 and 2019 were as follows:



	For The Three Months Ended March 31,
	Pension Benefits						Other Postretirement Benefits						SERP
(dollars in thousands)	2020			2019			2020			2019			2020		2019
Components of Net Periodic Benefits Cost:
Service cost	$	1,408		$	1,234		$	47		$	53		$	244	$	298
Interest cost	1,954			2,131			56			80			247		267
Expected return on plan assets	(2,950		)	(2,593		)	(127		)	(112		)	—		—
Amortization of prior service cost	109			109			—			—			—		—
Amortization of actuarial (gain) loss	442			359			(199		)	(150		)	211		118
Net periodic benefits costs under accounting standards	963			1,240			(223		)	(129		)	702		683
Regulatory adjustment - deferred	(93		)	—			—			—			—		—
Total expense (benefit) recognized, before surcharges and allocation to overhead pool	$	870		$	1,240		$	(223	)	$	(129	)	$	702	$	683

In 2020, Registrant expects to contribute approximately $3.7 million to its pension plan.

As authorized by the CPUC in the water and electric general rate case decisions, GSWC utilizes two-way balancing accounts for its water and electric regions and the general office to track differences between the forecasted annual pension expenses in rates, or expected to be in rates, and the actual annual expense recorded by GSWC in accordance with the accounting guidance for pension costs. During the three months ended March 31, 2020, GSWC's actual pension expense was higher than the amounts included in water customer rates by $93,000. During the three months ended March 31, 2019, GSWC did not have any deferral of pension costs as billed water revenues were based on 2018 rates. As of March 31, 2020, GSWC had a $2.7 million net over-collection in the two-way pension balancing accounts included as part of the pension regulatory asset (Note 3).