Income Taxes

6 Months Ended

Jun. 30, 2026

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

AWR’s effective income tax rate (“ETR”) was 25.1% and 23.3% for the three months ended June 30, 2026 and 2025, respectively, and was 25.0% and 23.6% for the six months ended June 30, 2026 and 2025, respectively. GSWC’s ETR was 25.9% and 24.4% for the three months ended June 30, 2026 and 2025, respectively, and was 25.9% and 24.5% for the six months ended June 30, 2026 and 2025, respectively.

The AWR and GSWC ETRs differed from the federal corporate statutory tax rate of 21% primarily due to (i) state taxes; (ii) permanent differences, including certain tax effects from stock compensation; (iii) the ongoing amortization of the excess deferred income tax liability; and (iv) differences between book and taxable income that are treated as flowed-through adjustments in accordance with regulatory requirements (principally from plant, rate-case, and compensation-related items). As regulated utilities, GSWC and BVES treat certain temporary differences as flowed-through to customers in computing their income tax expense consistent with the income tax method used in their CPUC-jurisdiction rate making. Flowed-through items either increase or decrease tax expense and the ETR.