cost-recovery rates such as the mcba provides for recovery of adopted expense levels for purchased water , purchased power and pump taxes , as established by the cpuc . in addition , cost-recovery rates include recovery of cost related to water conservation programs and certain other operating expenses adopted by the cpuc . variances ( which include the effects of changes in both rate and volume for the mcba ) between adopted and actual costs are recorded as a component of revenue , as the amount of such variances will 31 be recovered from or refunded to our customers at a later date . cost-recovery expenses are generally recognized when the expenses are incurred with no markup for return or profit . the balances in the wram and mcba assets and liabilities accounts will fluctuate on a monthly basis depending upon the variance between adopted and actual results . the recovery or refund of the wram is netted against the mcba over- or under-recovery for the corresponding district and the deferred net balances are interest bearing at the current 90-day commercial paper rate . at the end of the calendar year , cal water files with the cpuc to refund or collect the balance in the accounts . the majority of under-collected net wram and mcba receivable balances are collected over 12 and 18 months . cal water defers any net wram and mcba revenues and associated costs whenever the net receivable balances are estimated to be collected more than 24 months after the respective reporting period in which it was recorded . the deferred net wram and mcba revenue and associated costs were determined using forecasts of customer consumption trends in future reporting periods and the timing of when the cpuc will authorize cal water 's filings to recover unbilled balances . deferred revenues and associated costs are recorded in the periods when the collection is within 24 months of the respective reporting period . customers ' meter reads occur on various business days throughout the month . as a result , there are unmetered or unbilled customer usage each month . the estimated unbilled revenue for monthly unmetered customer usage is recorded using the number of unbilled days for that month and average daily customer billing rate for the previous month . the average daily customer billing rate for the previous month fluctuates depending on customer usage . estimated unbilled revenue is not included in the wram until it is billed . flat rate customers are billed in advance at the beginning of the service period . the revenue is prorated so that the portion of revenue applicable to the current period is included in that period 's revenue , with the balance recorded as unearned revenue on the balance sheet and recognized as revenue when earned in the subsequent accounting period . our unearned revenue liability was $ 0.8 million as of december 31 , 2016 and was $ 1.3 million as of december 31 , 2015. this liability is included in `` other accrued liabilities `` on our consolidated balance sheets . regulated utility accounting because we operate almost exclusively in a regulated business , we are subject to the accounting standards for regulated utilities . the commissions in the states in which we operate establish rates that are designed to permit the recovery of the cost of service and a return on investment . we capitalize and record regulatory assets for costs that would otherwise be charged to expense if it is probable that the incurred costs will be recovered in future rates . regulatory assets are amortized over the future periods that the costs are expected to be recovered . if costs expected to be incurred in the future are currently being recovered through rates , we record those expected future costs as regulatory liabilities . in addition , we record regulatory liabilities when the commissions require a refund to be made to our customers over future periods . determining probability requires significant judgment by management and includes , but is not limited to , consideration of testimony presented in regulatory hearings , proposed regulatory decisions , final regulatory orders , and the strength or status of applications for rehearing or state court appeals . if we determine that a portion of our assets used in utility operations is not recoverable in customer rates , we would be required to recognize the loss of the assets disallowed . income taxes we account for income taxes using the asset and liability method . deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis . we measure deferred tax assets and liabilities at enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled . we recognize the effect on the deferred tax assets and liabilities of a change in tax rate in the period that includes the enactment date . we must also assess the likelihood that deferred tax assets will be recovered in future taxable income and , to the extent recovery is not probable , a valuation allowance would be recorded . in management 's view , a valuation allowance was not required as of december 31 , 2016 and december 31 , 2015. we anticipate that future rate actions by the regulatory commissions will reflect revenue requirements for the tax effects of temporary differences recognized , which have previously been passed through to customers . the regulatory commissions have granted the company permission to reflect the normalization of the tax benefits of the federal accelerated methods and available investment tax credits ( itcs ) for all assets placed in service after 1980. itcs are deferred and amortized over the lives of the related properties for book purposes . the cpuc requires flow-through accounting for state deferred taxes . story_separator_special_tag the company and subsidiaries which it designates may borrow up to $ 150.0 million under its short-term credit facility . cal water may borrow up to $ 300.0 million under its credit facility ; however , all borrowings need to be repaid within 24 months unless otherwise authorized by the cpuc . both short-term credit agreements contain affirmative and negative covenants and events of default customary for credit facilities of this type including , among other things , limitations and prohibitions relating to additional indebtedness , liens , mergers , and asset sales . also , these unsecured credit agreements contain financial covenants governing the company and its subsidiaries ' consolidated total capitalization ratio not to exceed 66.7 % and interest coverage ratio of three or more . as of december 31 , 2016 , the company 's consolidated total capitalization ratio was 52.6 % ( trade payable and short term borrowings are included as debt for this calculation ) and the interest coverage ratio was greater than five . in summary , we have met all of the covenant requirements and are eligible to use the full amounts of these credit agreements . long-term financing cal water is authorized to issue $ 350.0 million of debt and common stock to finance capital projects and operations by a cpuc decision dated september 23 , 2010. on march 16 , 2016 , cal water sold $ 50.0 million of first mortgage bonds and used the net proceeds of $ 49.8 million to pay down outstanding short-term borrowings , fund capital expenditures and for general corporate purposes . the company made principal payments on first mortgage bonds and other long-term debt of $ 7.0 million during 2016. on october 13 , 2015 , cal water sold $ 100.0 million of first mortgage bonds and used the net proceeds of $ 99.3 million to pay down outstanding short-term borrowings , fund capital expenditures and for general corporate purposes . we made principal payments on first mortgage bonds and other long-term debt of $ 7.0 million during 2015. long-term financing , which includes first mortgage bonds , senior notes , other debt securities , and common stock , has typically been used to replace short-term borrowings and fund capital expenditures . internally generated funds , after making dividend payments , provide positive cash flow , but have not been at a level to meet the needs of our capital expenditure requirements . management expects this trend to continue given our capital expenditures plan for the next five years . some capital expenditures are funded by payments received from developers for contributions in aid of construction or advances for construction . funds received for contributions in aid of construction are non-refundable , whereas 39 funds classified as advances in construction are refundable . management believes long-term financing is available to meet our cash flow needs through issuances in both debt and equity instruments . in march 2013 , the company sold 5,750,000 shares of its common stock in an underwritten public offering for cash proceeds of approximately $ 105.6 million , net of $ 5.1 million of underwriting discounts , commissions and offering expenses . cal water has issued approximately $ 77.0 million of its common stock in accordance with the cpuc decision . in november 2010 , cal water issued $ 100.0 million of first mortgage bonds in accordance with the cpuc decision . additional information regarding the bank borrowings and long-term debt is presented in notes 7 and 8 in the notes to consolidated financial statements . off-balance sheet transactions we do not utilize off-balance-sheet financing or utilize special purpose entity arrangements for financing . we do not have equity ownership through joint ventures or partnership arrangements . 40 contractual obligations the contractual obligations presented in the table below represent our estimates of future payments under fixed contractual obligations and commitments . changes in our business needs , cancellation provisions and changes in interest rates , as well as action by third parties and other factors , may cause these estimates to change . therefore , our actual payments in future periods may vary from those presented in the table below . the following table summarizes our contractual obligations as of december 31 , 2016 . replace_table_token_15_th _ * excludes capital lease obligations as reported below . also , excludes unamortized debt issuance costs of $ 4.5 million . * * pension and postretirement benefits include $ 2.0 million of short-term pension obligations . * * * capital lease obligations represent total cash payments to be made in the future and include interest expense of $ 2.2 million . for pension and postretirement benefits other than pensions obligations , see note 11 of the notes to the consolidated financial statements . long-term debt payments include annual sinking fund payments on first mortgage bonds , maturities of long-term debt , and annual payments on other long-term obligations . advances for construction represent annual contract refunds to developers for the cost of water systems paid for by the developers . the contracts are non-interest bearing , and refunds are generally on a straight-line basis over a 40-year period . system and facility leases include obligations associated with leasing water systems and rents for office space . for capital lease obligations , facility leases , and system lease , see note 14 of the notes to the consolidated financial statements . cal water has water supply contracts with wholesale suppliers in 14 of its operating districts and for the two leased systems in hawthorne and commerce . for each contract , the cost of water is established by the wholesale supplier and is generally beyond our control . the amount paid annually to the wholesale suppliers is charged to purchased water expense on our statement of income . most contracts do not require minimum annual payments and vary with the volume of water purchased . for more details related to water supply contracts , see note

liquidity and capital resources cash flow from operations during 2016 , we generated cash flow from operations of $ 159.7 million , compared to $ 144.6 million during 2015. the increase in 2016 was mostly due to rate increases as authorized by the cal water 2012 grc decision . during 2015 , we generated cash flow from operations of $ 144.6 million , compared to $ 128.1 million during 2014. the increase in 2015 was mostly due to interim rates collections of $ 13.8 million as authorized by the cal water 2012 grc decision . the water business is seasonal . billed revenue is lower in the cool , wet winter months when less water is used compared to the warm , dry summer months when water use is highest . this seasonality results in the possible need for short-term borrowings under the bank lines of credit in the event cash is not sufficient to cover operating and capital costs during the winter period . the increase in cash flow during the summer allows short-term borrowings to be paid down . customer water usage can be lower than normal in years when more than normal precipitation falls in our service areas or temperatures are lower than normal , especially in the summer months . the reduction in water usage reduces cash flow from operations and increases the need for short-term bank borrowings . in addition , short-term borrowings are used to finance capital expenditures until long-term financing is arranged . investing activities during 2016 , 2015 and 2014 , we used $ 228.9 million , $ 176.8 million , and $ 132.0 million , respectively , of cash for capital expenditures , both company-funded and developer-funded . the 2016 capital expenditures exceeded the high end of the budgeted capital expenditures of $ 190.0 million . annual expenditures fluctuate each year due to the availability of construction resources and our ability to obtain construction permits in a timely manner .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```liquidity and capital resources cash flow from operations during 2016 , we generated cash flow from operations of $ 159.7 million , compared to $ 144.6 million during 2015. the increase in 2016 was mostly due to rate increases as authorized by the cal water 2012 grc decision . during 2015 , we generated cash flow from operations of $ 144.6 million , compared to $ 128.1 million during 2014. the increase in 2015 was mostly due to interim rates collections of $ 13.8 million as authorized by the cal water 2012 grc decision . the water business is seasonal . billed revenue is lower in the cool , wet winter months when less water is used compared to the warm , dry summer months when water use is highest . this seasonality results in the possible need for short-term borrowings under the bank lines of credit in the event cash is not sufficient to cover operating and capital costs during the winter period . the increase in cash flow during the summer allows short-term borrowings to be paid down . customer water usage can be lower than normal in years when more than normal precipitation falls in our service areas or temperatures are lower than normal , especially in the summer months . the reduction in water usage reduces cash flow from operations and increases the need for short-term bank borrowings . in addition , short-term borrowings are used to finance capital expenditures until long-term financing is arranged . investing activities during 2016 , 2015 and 2014 , we used $ 228.9 million , $ 176.8 million , and $ 132.0 million , respectively , of cash for capital expenditures , both company-funded and developer-funded . the 2016 capital expenditures exceeded the high end of the budgeted capital expenditures of $ 190.0 million . annual expenditures fluctuate each year due to the availability of construction resources and our ability to obtain construction permits in a timely manner .
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 Suspicious Activity Report : cost-recovery rates such as the mcba provides for recovery of adopted expense levels for purchased water , purchased power and pump taxes , as established by the cpuc . in addition , cost-recovery rates include recovery of cost related to water conservation programs and certain other operating expenses adopted by the cpuc . variances ( which include the effects of changes in both rate and volume for the mcba ) between adopted and actual costs are recorded as a component of revenue , as the amount of such variances will 31 be recovered from or refunded to our customers at a later date . cost-recovery expenses are generally recognized when the expenses are incurred with no markup for return or profit . the balances in the wram and mcba assets and liabilities accounts will fluctuate on a monthly basis depending upon the variance between adopted and actual results . the recovery or refund of the wram is netted against the mcba over- or under-recovery for the corresponding district and the deferred net balances are interest bearing at the current 90-day commercial paper rate . at the end of the calendar year , cal water files with the cpuc to refund or collect the balance in the accounts . the majority of under-collected net wram and mcba receivable balances are collected over 12 and 18 months . cal water defers any net wram and mcba revenues and associated costs whenever the net receivable balances are estimated to be collected more than 24 months after the respective reporting period in which it was recorded . the deferred net wram and mcba revenue and associated costs were determined using forecasts of customer consumption trends in future reporting periods and the timing of when the cpuc will authorize cal water 's filings to recover unbilled balances . deferred revenues and associated costs are recorded in the periods when the collection is within 24 months of the respective reporting period . customers ' meter reads occur on various business days throughout the month . as a result , there are unmetered or unbilled customer usage each month . the estimated unbilled revenue for monthly unmetered customer usage is recorded using the number of unbilled days for that month and average daily customer billing rate for the previous month . the average daily customer billing rate for the previous month fluctuates depending on customer usage . estimated unbilled revenue is not included in the wram until it is billed . flat rate customers are billed in advance at the beginning of the service period . the revenue is prorated so that the portion of revenue applicable to the current period is included in that period 's revenue , with the balance recorded as unearned revenue on the balance sheet and recognized as revenue when earned in the subsequent accounting period . our unearned revenue liability was $ 0.8 million as of december 31 , 2016 and was $ 1.3 million as of december 31 , 2015. this liability is included in `` other accrued liabilities `` on our consolidated balance sheets . regulated utility accounting because we operate almost exclusively in a regulated business , we are subject to the accounting standards for regulated utilities . the commissions in the states in which we operate establish rates that are designed to permit the recovery of the cost of service and a return on investment . we capitalize and record regulatory assets for costs that would otherwise be charged to expense if it is probable that the incurred costs will be recovered in future rates . regulatory assets are amortized over the future periods that the costs are expected to be recovered . if costs expected to be incurred in the future are currently being recovered through rates , we record those expected future costs as regulatory liabilities . in addition , we record regulatory liabilities when the commissions require a refund to be made to our customers over future periods . determining probability requires significant judgment by management and includes , but is not limited to , consideration of testimony presented in regulatory hearings , proposed regulatory decisions , final regulatory orders , and the strength or status of applications for rehearing or state court appeals . if we determine that a portion of our assets used in utility operations is not recoverable in customer rates , we would be required to recognize the loss of the assets disallowed . income taxes we account for income taxes using the asset and liability method . deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis . we measure deferred tax assets and liabilities at enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled . we recognize the effect on the deferred tax assets and liabilities of a change in tax rate in the period that includes the enactment date . we must also assess the likelihood that deferred tax assets will be recovered in future taxable income and , to the extent recovery is not probable , a valuation allowance would be recorded . in management 's view , a valuation allowance was not required as of december 31 , 2016 and december 31 , 2015. we anticipate that future rate actions by the regulatory commissions will reflect revenue requirements for the tax effects of temporary differences recognized , which have previously been passed through to customers . the regulatory commissions have granted the company permission to reflect the normalization of the tax benefits of the federal accelerated methods and available investment tax credits ( itcs ) for all assets placed in service after 1980. itcs are deferred and amortized over the lives of the related properties for book purposes . the cpuc requires flow-through accounting for state deferred taxes . story_separator_special_tag the company and subsidiaries which it designates may borrow up to $ 150.0 million under its short-term credit facility . cal water may borrow up to $ 300.0 million under its credit facility ; however , all borrowings need to be repaid within 24 months unless otherwise authorized by the cpuc . both short-term credit agreements contain affirmative and negative covenants and events of default customary for credit facilities of this type including , among other things , limitations and prohibitions relating to additional indebtedness , liens , mergers , and asset sales . also , these unsecured credit agreements contain financial covenants governing the company and its subsidiaries ' consolidated total capitalization ratio not to exceed 66.7 % and interest coverage ratio of three or more . as of december 31 , 2016 , the company 's consolidated total capitalization ratio was 52.6 % ( trade payable and short term borrowings are included as debt for this calculation ) and the interest coverage ratio was greater than five . in summary , we have met all of the covenant requirements and are eligible to use the full amounts of these credit agreements . long-term financing cal water is authorized to issue $ 350.0 million of debt and common stock to finance capital projects and operations by a cpuc decision dated september 23 , 2010. on march 16 , 2016 , cal water sold $ 50.0 million of first mortgage bonds and used the net proceeds of $ 49.8 million to pay down outstanding short-term borrowings , fund capital expenditures and for general corporate purposes . the company made principal payments on first mortgage bonds and other long-term debt of $ 7.0 million during 2016. on october 13 , 2015 , cal water sold $ 100.0 million of first mortgage bonds and used the net proceeds of $ 99.3 million to pay down outstanding short-term borrowings , fund capital expenditures and for general corporate purposes . we made principal payments on first mortgage bonds and other long-term debt of $ 7.0 million during 2015. long-term financing , which includes first mortgage bonds , senior notes , other debt securities , and common stock , has typically been used to replace short-term borrowings and fund capital expenditures . internally generated funds , after making dividend payments , provide positive cash flow , but have not been at a level to meet the needs of our capital expenditure requirements . management expects this trend to continue given our capital expenditures plan for the next five years . some capital expenditures are funded by payments received from developers for contributions in aid of construction or advances for construction . funds received for contributions in aid of construction are non-refundable , whereas 39 funds classified as advances in construction are refundable . management believes long-term financing is available to meet our cash flow needs through issuances in both debt and equity instruments . in march 2013 , the company sold 5,750,000 shares of its common stock in an underwritten public offering for cash proceeds of approximately $ 105.6 million , net of $ 5.1 million of underwriting discounts , commissions and offering expenses . cal water has issued approximately $ 77.0 million of its common stock in accordance with the cpuc decision . in november 2010 , cal water issued $ 100.0 million of first mortgage bonds in accordance with the cpuc decision . additional information regarding the bank borrowings and long-term debt is presented in notes 7 and 8 in the notes to consolidated financial statements . off-balance sheet transactions we do not utilize off-balance-sheet financing or utilize special purpose entity arrangements for financing . we do not have equity ownership through joint ventures or partnership arrangements . 40 contractual obligations the contractual obligations presented in the table below represent our estimates of future payments under fixed contractual obligations and commitments . changes in our business needs , cancellation provisions and changes in interest rates , as well as action by third parties and other factors , may cause these estimates to change . therefore , our actual payments in future periods may vary from those presented in the table below . the following table summarizes our contractual obligations as of december 31 , 2016 . replace_table_token_15_th _ * excludes capital lease obligations as reported below . also , excludes unamortized debt issuance costs of $ 4.5 million . * * pension and postretirement benefits include $ 2.0 million of short-term pension obligations . * * * capital lease obligations represent total cash payments to be made in the future and include interest expense of $ 2.2 million . for pension and postretirement benefits other than pensions obligations , see note 11 of the notes to the consolidated financial statements . long-term debt payments include annual sinking fund payments on first mortgage bonds , maturities of long-term debt , and annual payments on other long-term obligations . advances for construction represent annual contract refunds to developers for the cost of water systems paid for by the developers . the contracts are non-interest bearing , and refunds are generally on a straight-line basis over a 40-year period . system and facility leases include obligations associated with leasing water systems and rents for office space . for capital lease obligations , facility leases , and system lease , see note 14 of the notes to the consolidated financial statements . cal water has water supply contracts with wholesale suppliers in 14 of its operating districts and for the two leased systems in hawthorne and commerce . for each contract , the cost of water is established by the wholesale supplier and is generally beyond our control . the amount paid annually to the wholesale suppliers is charged to purchased water expense on our statement of income . most contracts do not require minimum annual payments and vary with the volume of water purchased . for more details related to water supply contracts , see note

