Fair Value of Financial Instruments:

3 Months Ended

Mar. 31, 2013

Fair Value of Financial Instruments:

Fair Value of Financial Instruments:

Note 5 — Fair Value of Financial Instruments:

For cash and cash equivalents, accounts receivable, accounts payable and short-term debt, the carrying amount is assumed to approximate fair value due to the short-term nature of the amounts. The table below estimates the fair value of long-term debt held by GSWC. Rates available to GSWC at March 31, 2013 and December 31, 2012 for debt with similar terms and remaining maturities were used to estimate fair value for long-term debt. The interest rates used for the March 31, 2013 valuation increased as compared to December, 31, 2012, decreasing the fair value of long-term debt as of March 31, 2013. Changes in the assumptions will produce differing results.

	March 31, 2013				December 31, 2012
(dollars in thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial liabilities:
Long-term debt—GSWC	$	335,829	$	425,443	$	335,791	$	456,792

As previously discussed in Note 4, the accounting guidance for fair value measurements establishes a framework for measuring fair value and requires fair value measurements to be classified and disclosed in one of three levels. The following tables set forth by level, within the fair value hierarchy, GSWC’s long-term debt measured at fair value as of March 31, 2013:

(dollars in thousands)	Level 1	Level 2		Level 3	Total
Long-term debt—GSWC	—	$	425,443	—	$	425,443