Employee Benefit Plans

6 Months Ended

Jun. 30, 2023

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, 2023 and 2022 were as follows:

	For The Three Months Ended June 30,
	Pension Benefits				Other Postretirement Benefits				SERP
(dollars in thousands)	2023		2022		2023		2022		2023		2022
Components of Net Periodic Benefits Cost:
Service cost	$	846	$	1,342	$	33	$	33	$	312	$	298
Interest cost	2,513		1,856		26		16		411		256
Expected return on plan assets	(2,623)		(3,290)		(119)		(147)		—		—
Amortization of prior service cost	108		109		—		—		—		—
Amortization of actuarial (gain) loss	—		—		(242)		(412)		(8)		145
Net periodic benefits costs under accounting standards	844		17		(302)		(510)		715		699
Regulatory adjustments - deferred	(92)		—		—		—		—		—
Total expense (benefit) recognized, before surcharges and allocation to overhead pool	$	752	$	17	$	(302)	$	(510)	$	715	$	699
	For The Six Months Ended June 30,
	Pension Benefits				Other Postretirement Benefits				SERP
(dollars in thousands)	2023		2022		2023		2022		2023		2022
Components of Net Periodic Benefits Cost:
Service cost	$	1,692	$	2,822	$	66	$	66	$	624	$	596
Interest cost	5,026		3,700		51		32		822		512
Expected return on plan assets	(5,246)		(6,582)		(239)		(294)		—		—
Amortization of prior service cost	216		218		—		—		—		—
Amortization of actuarial (gain) loss	—		—		(482)		(824)		(16)		290
Net periodic benefits costs under accounting standards	1,688		158		(604)		(1,020)		1,430		1,398
Regulatory adjustments - deferred	(184)		—		—		—		—		—
Total expense (benefit) recognized, before surcharges and allocation to overhead pool	$	1,504	$	158	$	(604)	$	(1,020)	$	1,430	$	1,398

In 2023, Registrant expects to contribute approximately $3.0 million to its pension plan.

As authorized by the CPUC in the water and electric general rate case decisions, GSWC and BVES each utilize two-way balancing accounts to track differences between the forecasted annual pension expenses in rates, or expected to be in rates, and the actual annual expense recorded in accordance with the accounting guidance for pension costs. During the three and six months ended June 30, 2023, GSWC’s actual pension expense was higher than the amounts included in water customer rates by $92,000 and $184,000, respectively. GSWC’s actual pension expense was lower than the amounts included in water customer rates for the three and six months ended June 30, 2022. BVES’s actual expense was lower than the amounts included in electric customer rates for all periods presented. As of June 30, 2023, GSWC and BVES had over-collections in their two-way pension balancing accounts of $1,150,000 and $145,000, respectively, included as part of regulatory assets and liabilities (Note 3). Over-collections are recorded as a reduction to revenues.