Commitments

12 Months Ended

Dec. 31, 2023

GSWC’s Water Supply:

GSWC has contracts to purchase water or water rights for an aggregate amount of $2.7 million as of December 31, 2023. Included in the $2.7 million is a commitment of $1.3 million to use water rights from a third party under an agreement, which expires in 2028. The remaining $1.4 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, 2023 are as follows (in thousands):


2024	$	491
2025	441
2026	391
2027	391
2028	213
Thereafter	805
Total	$	2,732

BVES Commitments:

Purchase Power Contracts:

BVES had entered into long-term, fixed-price contracts to purchase power over three- and five-year terms. These long-term contracts will expire during the fourth quarter of 2024. In July 2023, the CPUC approved a new power purchase agreement between BVES and a third party to procure renewable portfolio standard (“RPS”) eligible energy and renewable energy credits as a bundled product. BVES will begin taking power under this long-term contract during the fourth quarter of 2024 to replace the existing expiring contracts. The new contract provides for the purchase of electricity during a delivery period from November 1, 2024 through December 31, 2035. As of December 31, 2023, BVES has power purchase commitments under these contracts that totals $45.8 million.

Renewables Portfolio Standard:

BVES is subject to the renewables portfolio standard law, which requires BVES to meet certain targets for purchases of energy from qualified renewable energy resources. BVES had an agreement with a third party to purchase RECs whereby BVES agreed to purchase approximately 578,000 RECs over a ten-year period through 2023, which has been used towards BVES meeting California’s RPS requirements. On January 18, 2023, BVES filed a compliance report with the CPUC that covered pre-2023 compliance period, which did not reflect any RPS procurement deficiencies.

BVES executed a contract in July 2023 with a third party to procure RPS eligible energy and RECs as a bundled product. The RECs under this agreement will be delivered following the year in which energy is purchased. BVES has agreed to purchase approximately 587,000 RECs over the eleven-year term of the contract. In addition, BVES has executed additional REC purchase agreements that delivered in 2023 a total of 30,000 RECs with an additional 15,000 RECs delivered in January 2024. As of December 31, 2023, BVES believes that it has purchased sufficient RECs to be in compliance through 2024 and management does not believe any provision for loss or potential penalties is required as of December 31, 2023. The cost of RECS are recorded to the electric supply cost balancing account when retired. BVES has commitments for RECs under contracts totaling $9.0 million as of December 31, 2023.

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