Commitments

12 Months Ended

Dec. 31, 2022

GSWC’s Water Supply:

GSWC has contracts to purchase water or water rights for an aggregate amount of $3.1 million as of December 31, 2022. Included in the $3.1 million is a commitment of $1.5 million to use water rights from a third party under an agreement, which expires in 2028. The remaining $1.6 million is for commitments for purchased water with other third parties, which expire from 2025 through 2038.

GSWC’s estimated future minimum payments under these purchased water supply commitments at December 31, 2022 are as follows (in thousands):


2023	$	459
2024	459
2025	412
2026	364
2027	364
Thereafter	1,008
Total	$	3,066

Bear Valley Electric Service, Inc.:

Purchased Power Contracts:

Generally, BVESI purchases power at a fixed cost, under long-term purchased power contracts, depending on the amount of power and the period during which the power is purchased under such contracts. BVESI began taking power pursuant to purchased power contracts approved by the CPUC effective in the fourth quarter of 2019 at a fixed cost over three and five-year terms depending on the amount of power and period during which the power is purchased under the contracts. As of December 31, 2022, BVESI has remaining commitments under these contracts of $4.9 million and $4.1 million for the years 2023 and 2024, respectively.

Renewables Portfolio Standard:

BVESI is subject to the renewables portfolio standard (“RPS”) law, which requires BVESI to meet certain targets for purchases of energy from qualified renewable energy resources. BVESI has an agreement with a third party to purchase renewable energy credits (“RECs”) whereby BVESI agreed to purchase approximately 578,000 RECs over a ten-year period through 2023, which will be used towards BVESI meeting California’s RPS requirements. As of December 31, 2022, BVESI has purchased sufficient RECs to be in compliance for all periods through 2022, and has remaining commitments under this contract of $619,000 for the year 2023. Accordingly, management does not believe any provision for loss or potential penalties is required as of December 31, 2022. The cost of these RECs has been included as part of the electric supply cost balancing account as of December 31, 2022.

See Note 16 for Registrant’s future minimum payments under long-term non-cancelable operating leases.