Allowance for Doubtful Accounts

6 Months Ended

Jun. 30, 2020

Allowance for Doubtful Accounts [Abstract]

Note 10 — Allowance for Doubtful Accounts

Registrant adopted ASU 2016-13 Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments effective January 1, 2020. The guidance requires estimated credit losses on financial instruments, such as Registrant's trade and other receivables, be based on expected credit losses rather than incurred losses.

Registrant's allowance for doubtful account as of June 30, 2020 was developed based on observed effects of the economic impact of the COVID-19 pandemic on GSWC's aging of utility customer accounts receivable, as well as economic data such as unemployment rates and other considerations which may impact customers' ability to pay their bills. Management also took into consideration the impact of the CPUC's order to suspend through April 2021 service disconnections for nonpayments, which is expected to have the effect of increasing delinquent customer accounts receivable during the COVID-19 pandemic. However, the CPUC has authorized GSWC and BVESI to track incremental costs, including bad debt expense in excess of what is included in their respective revenue requirements, incurred as a result of the COVID-19 pandemic in CEMA accounts to be filed with the CPUC for future recovery.

The table below presents Registrant’s provision for doubtful accounts charged to expense and accounts written off, net of recoveries.



	Three Months Ended June 30, 2020						Six Months Ended June 30, 2020
(dollars in thousands)	AWR			GSWC			AWR			GSWC
Balances at beginning of the period	$	1,145		$	1,145		$	916		$	916
Increase to provision	673			673			1,066			1,066
Accounts written off, net of recoveries	(156		)	(156		)	(320		)	(320		)
Balances at end of the period	$	1,662		$	1,662		$	1,662		$	1,662

Allowance for doubtful accounts related to accounts receivable-customer	$	1,603		$	1,603		$	1,603		$	1,603
Allowance for doubtful accounts related to receivable from U.S. government	—			—			—			—
Allowance for doubtful accounts related to other accounts receivable	59			59			59			59
Total allowance for doubtful accounts	$	1,662		$	1,662		$	1,662		$	1,662