Taxes on Income (Tables)

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Schedule of significant components of the deferred tax assets and liabilities from continuing operations

The significant components of the deferred tax assets and liabilities as reflected in the balance sheets at December 31, 2024 and 2023 are:

	AWR				GSWC
	December 31,				December 31,
(dollars in thousands)	2024		2023		2024		2023
Deferred tax assets:
Regulatory-liability-related (1)	$	28,851	$	32,042	$	27,171	$	30,407
Contributions and advances	6,768		6,660		7,103		6,981
Other	5,801		5,924		5,632		6,041
Total deferred tax assets	$	41,420	$	44,626	$	39,906	$	43,429
Deferred tax liabilities:
Fixed assets	$	(169,666)	$	(161,820)	$	(162,366)	$	(155,131)
Regulatory-asset-related: depreciation and other	(43,149)		(36,337)		(39,635)		(33,242)
Balancing and memorandum accounts (non-flowed-through)	(8,778)		(8,046)		(4,315)		(2,514)
Total deferred tax liabilities	(221,593)		(206,203)		(206,316)		(190,887)
Accumulated deferred income taxes, net	$	(180,173)	$	(161,577)	$	(166,410)	$	(147,458)

 (1) Primarily represents the gross-up portion of the deferred income tax (on the excess-deferred-tax regulatory liability) brought about by the Tax Cuts and Jobs Act's reduction of the federal income tax rate.

Schedule of current and deferred components of income tax expense from continuing operations

The current and deferred components of income tax expense are as follows:

	AWR
	Year Ended December 31,
(dollars in thousands)	2024		2023		2022
Current
Federal	$	19,680	$	26,327	$	14,845
State	8,451		10,489		6,016
Total current tax expense	$	28,131	$	36,816	$	20,861
Deferred
Federal	$	1,656	$	4,157	$	2,991
State	386		626		(188)
Total deferred tax (benefit) expense	2,042		4,783		2,803
Total income tax expense	$	30,173	$	41,599	$	23,664

	GSWC
	Year Ended December 31,
(dollars in thousands)	2024		2023		2022
Current
Federal	$	13,570	$	22,564	$	10,582
State	6,551		10,176		4,909
Total current tax expense	$	20,121	$	32,740	$	15,491
Deferred
Federal	$	1,362	$	2,867	$	1,507
State	1,386		82		(652)
Total deferred tax (benefit) expense	2,748		2,949		855
Total income tax expense	$	22,869	$	35,689	$	16,346

Schedule of reconciliations of the effective tax rates to the federal statutory rate

The reconciliations of the effective tax rates (“ETR”) to the federal statutory rate are as follows:

	AWR
	Year Ended December 31,
(dollars in thousands)	2024			2023			2022
Federal taxes on pretax income at statutory rate	$	31,383		$	34,969		$	21,433
Increase (decrease) in taxes resulting from:
State income tax, net of federal benefit	6,508			9,785			4,335
Excess deferred tax amortization	(1,467)			(1,648)			(1,311)
Flow-through on fixed assets	1,075			1,067			1,076
Flow-through on removal costs	(3,096)			(2,255)			(1,802)
Investment tax credit	(69)			(71)			(71)
Excess deferred tax adjustment - change in estimate	(5,015)			—			—
Other – net	854			(248)			4
Total income tax expense from operations	$	30,173		$	41,599		$	23,664
Pretax income from operations	$	149,441		$	166,520		$	102,060
Effective income tax rate	20.2		%	25.0		%	23.2		%

	GSWC
	Year Ended December 31,
(dollars in thousands)	2024			2023			2022
Federal taxes on pretax income at statutory rate	$	24,640		$	29,063		$	14,724
Increase (decrease) in taxes resulting from:
State income tax, net of federal benefit	5,772			9,169			3,119
Excess deferred tax amortization	(1,491)			(1,681)			(1,130)
Flow-through on fixed assets	1,058			1,041			1,010
Flow-through on removal costs	(3,029)			(2,225)			(1,715)
Investment tax credit	(69)			(71)			(71)
Excess deferred tax adjustment - change in estimate	(5,015)			—			—
Other – net	1,003			393			409
Total income tax expense from operations	$	22,869		$	35,689		$	16,346
Pretax income from operations	$	117,332		$	138,397		$	70,116
Effective income tax rate	19.5		%	25.8		%	23.3		%