Employee Benefit Plans

6 Months Ended

Jun. 30, 2020

Retirement Benefits [Abstract]

Employee Benefit Plans

Employee Benefit Plans

The components of net periodic benefit costs for Registrant’s pension plan, postretirement medical benefit plan and SERP for the three and six months ended June 30, 2020 and 2019 were as follows:

	For The Three Months Ended June 30,
	Pension Benefits						Other Postretirement Benefits						SERP
(dollars in thousands)	2020			2019			2020			2019			2020		2019
Components of Net Periodic Benefits Cost:
Service cost	$	1,372		$	986		$	47		$	53		$	244	$	298
Interest cost	1,986			2,133			56			80			247		267
Expected return on plan assets	(2,950		)	(2,595		)	(127		)	(112		)	—		—
Amortization of prior service cost	109			109			—			—			—		—
Amortization of actuarial (gain) loss	526			351			(199		)	(150		)	211		118
Net periodic benefits costs under accounting standards	1,043			984			(223		)	(129		)	702		683
Regulatory adjustment - deferred	(148		)	(342		)	—			—			—		—
Total expense (benefit) recognized, before surcharges and allocation to overhead pool	$	895		$	642		$	(223	)	$	(129	)	$	702	$	683
	For The Six Months Ended June 30,
	Pension Benefits						Other Postretirement Benefits						SERP
(dollars in thousands)	2020			2019			2020			2019			2020		2019
Components of Net Periodic Benefits Cost:
Service cost	$	2,780		$	2,220		$	94		$	106		$	488	$	596
Interest cost	3,940			4,264			112			160			494		534
Expected return on plan assets	(5,900		)	(5,188		)	(254		)	(224		)	—		—
Amortization of prior service cost	218			218			—			—			—		—
Amortization of actuarial (gain) loss	968			710			(398		)	(300		)	422		236
Net periodic benefits costs under accounting standards	2,006			2,224			(446		)	(258		)	1,404		1,366
Regulatory adjustment - deferred	(241		)	(342		)	—			—			—		—
Total expense (benefit) recognized, before surcharges and allocation to overhead pool	$	1,765		$	1,882		$	(446	)	$	(258	)	$	1,404	$	1,366

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 and six months ended June 30, 2020, GSWC's actual pension expense was higher than the amounts included in water customer rates by $148,000 and $241,000, respectively. During the three and six ended June 30, 2019, GSWC's actual pension expense was higher than the amounts included in water customer rates by $342,000. As of June 30, 2020, GSWC had a $1.4 million net over-collection in the two-way pension balancing accounts included as part of the pension regulatory asset (Note 3).