Employee Benefit Plans

6 Months Ended

Jun. 30, 2021

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, 2021 and 2020 were as follows:

	For The Three Months Ended June 30,
	Pension Benefits				Other Postretirement Benefits				SERP
(dollars in thousands)	2021		2020		2021		2020		2021		2020
Components of Net Periodic Benefits Cost:
Service cost	$	1,625	$	1,372	$	40	$	47	$	348	$	244
Interest cost	1,712		1,986		31		56		229		247
Expected return on plan assets	(3,134)		(2,950)		(134)		(127)		—		—
Amortization of prior service cost	109		109		—		—		—		—
Amortization of actuarial (gain) loss	993		526		(287)		(199)		419		211
Net periodic benefits costs under accounting standards	1,305		1,043		(350)		(223)		996		702
Regulatory adjustment - deferred	(351)		(148)		—		—		—		—
Total expense (benefit) recognized, before surcharges and allocation to overhead pool	$	954	$	895	$	(350)	$	(223)	$	996	$	702
	For The Six Months Ended June 30,
	Pension Benefits				Other Postretirement Benefits				SERP
(dollars in thousands)	2021		2020		2021		2020		2021		2020
Components of Net Periodic Benefits Cost:
Service cost	$	3,250	$	2,780	$	80	$	94	$	696	$	488
Interest cost	3,424		3,940		62		112		458		494
Expected return on plan assets	(6,268)		(5,900)		(268)		(254)		—		—
Amortization of prior service cost	218		218		—		—		—		—
Amortization of actuarial (gain) loss	1,986		968		(574)		(398)		838		422
Net periodic benefits costs under accounting standards	2,610		2,006		(700)		(446)		1,992		1,404
Regulatory adjustment - deferred	(702)		(241)		—		—		—		—
Total expense (benefit) recognized, before surcharges and allocation to overhead pool	$	1,908	$	1,765	$	(700)	$	(446)	$	1,992	$	1,404

In September 2021, Registrant expects to contribute approximately $3.5 million to its pension plan.

As authorized by the CPUC in the water and electric general rate case decisions, GSWC and BVESI 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 months ended June 30, 2021 and 2020, GSWC's actual pension expense was higher than the amounts included in water customer rates by $351,000 and $148,000, respectively. During the six months ended June 30, 2021 and 2020, GSWC's actual pension expense was higher than the amounts included in water customer rates by $702,000 and $241,000, respectively. BVESI's actual expense was lower than the amounts included in electric customer rates for all periods presented. As of June 30, 2021, GSWC and BVESI had over-collections in their two-way pension balancing accounts of $315,000 and $102,000, respectively, included as part of regulatory assets and liabilities (Note 3).