Business Segments

9 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

Business Segments

Business Segments

AWR has three reportable segments: water, electric and contracted services. GSWC has one segment, water. On a stand-alone basis, AWR has no material assets or liabilities other than its equity investments in its subsidiaries, note payables to bank, deferred taxes and intercompany note receivables.  

All GSWC and BVES business activities are conducted in California. Activities of ASUS and the Military Utility Privatization Subsidiaries are conducted in California, Florida, Kansas, Maryland, Massachusetts, New Mexico, North Carolina, South Carolina, Texas and Virginia. Some of ASUS’s wholly owned subsidiaries are regulated by the state in which the subsidiary primarily conducts water and/or wastewater operations. Fees charged for operations and maintenance and renewal and replacement services are based upon the terms of the contracts with the U.S. government, which have been filed, as appropriate, with the commissions in the states in which ASUS’s subsidiaries are incorporated.

The tables below set forth information relating to AWR’s operating segments and AWR parent. The utility plant balances are net of respective accumulated provisions for depreciation. Capital additions reflect capital expenditures paid in cash and exclude U.S. government-funded and third-party prime contractor funded capital expenditures for ASUS, and property installed by developers and conveyed to GSWC and BVES.

	As Of And For The Three Months Ended September 30, 2023
					Contracted		AWR		Consolidated
(dollars in thousands)	Water		Electric		Services		Parent		AWR
Operating revenues	$	116,231	$	8,956	$	26,509	$	—	$	151,696
Operating income (loss)	43,243		2,049		6,204		255		51,751
Interest expense (income), net	6,775		760		394		1,637		9,566
Net property, plant and equipment	1,696,923		137,299		16,249		—		1,850,471
Depreciation and amortization expense (1)	8,610		776		798		—		10,184
Income tax expense (benefit)	8,830		(154)		1,430		(559)		9,547
Capital additions	37,349		9,947		186		—		47,482

	As Of And For The Three Months Ended September 30, 2022
					Contracted		AWR		Consolidated
(dollars in thousands)	Water		Electric		Services		Parent		AWR
Operating revenues	$	100,799	$	8,919	$	25,266	$	—	$	134,984
Operating income (loss)	32,451		2,337		5,553		(1)		40,340
Interest expense (income), net	5,625		355		(27)		711		6,664
Net property, plant and equipment	1,584,888		115,379		17,885		—		1,718,152
Depreciation and amortization expense (1)	8,475		709		933		—		10,117
Income tax expense (benefit)	6,831		478		1,347		(296)		8,360
Capital additions	40,684		4,711		109		—		45,504

	As Of And For The Nine Months Ended September 30, 2023
					Contracted		AWR		Consolidated
(dollars in thousands)	Water		Electric		Services		Parent		AWR
Operating revenues	$	345,851	$	30,688	$	93,980	$	—	$	470,519
Operating income (loss)	134,006		7,783		19,854		218		161,861
Interest expense (income), net	18,784		1,987		948		4,389		26,108
Net property, plant and equipment	1,696,923		137,299		16,249		—		1,850,471
Depreciation and amortization expense (1)	26,890		2,283		2,472		—		31,645
Income tax expense (benefit)	29,674		794		4,621		(1,586)		33,503
Capital additions	113,921		20,985		1,225		—		136,131

	As Of And For The Nine Months Ended September 30, 2022
					Contracted		AWR		Consolidated
(dollars in thousands)	Water		Electric		Services		Parent		AWR
Operating revenues	$	265,561	$	29,028	$	71,572	$	—	$	366,161
Operating income (loss)	77,161		7,973		13,894		(6)		99,022
Interest expense (income), net	16,088		763		(264)		1,272		17,859
Net property, plant and equipment	1,584,888		115,379		17,885		—		1,718,152
Depreciation and amortization expense (1)	25,573		2,049		2,780		—		30,402
Income tax expense (benefit)	14,623		1,645		3,399		(641)		19,026
Capital additions	107,668		13,485		903		—		122,056

(1)      Depreciation computed on GSWC’s and BVES’s transportation equipment is recorded in other operation expenses and totaled $160,000 and $97,000 for the three months ended September 30, 2023 and 2022, respectively, and totaled $683,000 and $286,000 for the nine months ended September 30, 2023 and 2022, respectively. For the nine months ended September 30, 2023, approximately $212,000 of additional depreciation expense on GSWC's transportation equipment was recorded that relates to the cumulative retroactive impact for the full year of 2022 approved in the CPUC final decision in GSWC's general rate case that resulted from an increase to the transportation equipment composite depreciation rates that are retroactive to January 1, 2022.

The following table reconciles total net property, plant and equipment (a key figure for ratemaking) to total consolidated assets (in thousands):

	September 30,
	2023		2022
Total net property, plant and equipment	$	1,850,471	$	1,718,152
Other assets	354,758		264,423
Total consolidated assets	$	2,205,229	$	1,982,575