Document_and_Entity_Informatio
Document and Entity Information (USD $) | 9 Months Ended | ||
Sep. 30, 2013 | Nov. 06, 2013 | Jun. 30, 2012 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'YORK WATER CO | ' | ' |
Entity Central Index Key | '0000108985 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $229,984,378 |
Entity Common Stock, Shares Outstanding | ' | 12,942,843 | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'Q3 | ' | ' |
Document Type | '10-Q | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 30-Sep-13 | ' | ' |
Balance_Sheets_Unaudited
Balance Sheets (Unaudited) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
UTILITY PLANT, at original cost | $299,345 | $292,483 |
Plant acquisition adjustments | -2,913 | -2,904 |
Accumulated depreciation | -53,775 | -50,040 |
Net utility plant | 242,657 | 239,539 |
OTHER PHYSICAL PROPERTY: | ' | ' |
Net of accumulated depreciation of $233 in 2013 and $219 in 2012 | 769 | 776 |
CURRENT ASSETS: | ' | ' |
Cash and cash equivalents | 6,795 | 4,012 |
Accounts receivable, net of reserves of $335 in 2013 and $305 in 2012 | 3,874 | 4,038 |
Unbilled revenues | 1,997 | 2,322 |
Materials and supplies inventories, at cost | 790 | 728 |
Prepaid expenses | 605 | 337 |
Deferred income taxes | 229 | 208 |
Total current assets | 14,290 | 11,645 |
OTHER LONG-TERM ASSETS: | ' | ' |
Deferred debt expense | 2,214 | 2,291 |
Notes receivable | 315 | 338 |
Deferred regulatory assets | 23,097 | 23,835 |
Restricted cash-compensating balance | 0 | 500 |
Other assets | 3,634 | 3,566 |
Total other long-term assets | 29,260 | 30,530 |
Total Assets | 286,976 | 282,490 |
COMMON STOCKHOLDERS' EQUITY: | ' | ' |
Common stock, no par value, authorized 46,500,000 shares, issued and outstanding 12,933,695 shares in 2013 and 12,918,633 shares in 2012 | 79,602 | 79,299 |
Retained earnings | 22,183 | 20,526 |
Total common stockholders' equity | 101,785 | 99,825 |
PREFERRED STOCK, authorized 500,000 shares, no shares issued | 0 | 0 |
LONG-TERM DEBT, excluding current portion | 84,896 | 84,933 |
COMMITMENTS | ' | ' |
CURRENT LIABILITIES: | ' | ' |
Current portion of long-term debt | 48 | 42 |
Accounts payable | 1,876 | 1,121 |
Dividends payable | 1,546 | 1,548 |
Accrued compensation and benefits | 1,069 | 1,082 |
Accrued income taxes | 592 | 96 |
Accrued interest | 1,220 | 1,065 |
Other accrued expenses | 499 | 520 |
Total current liabilities | 6,850 | 5,474 |
DEFERRED CREDITS: | ' | ' |
Customers' advances for construction | 13,232 | 12,949 |
Deferred income taxes | 34,616 | 32,425 |
Deferred employee benefits | 14,824 | 15,198 |
Other deferred credits | 2,550 | 3,463 |
Total deferred credits | 65,222 | 64,035 |
Contributions in aid of construction | 28,223 | 28,223 |
Total Stockholders' Equity and Liabilities | $286,976 | $282,490 |
Balance_Sheets_Unaudited_Paren
Balance Sheets (Unaudited) (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
OTHER PHYSICAL PROPERTY: | ' | ' |
Other physical property, accumulated depreciation | $233 | $219 |
CURRENT ASSETS: | ' | ' |
Receivables, reserves | $335 | $305 |
COMMON STOCKHOLDERS' EQUITY: | ' | ' |
Common stock, par value (in dollars per share) | $0 | $0 |
Common stock, authorized (in shares) | 46,500,000 | 46,500,000 |
Common stock, issued (in shares) | 12,933,695 | 12,918,633 |
Common stock, outstanding (in shares) | 12,933,695 | 12,918,633 |
Preferred stock, authorized (in shares) | 500,000 | 500,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Statements_of_Income_Unaudited
Statements of Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
OPERATING REVENUES: | ' | ' | ' | ' |
Residential | $6,823 | $6,896 | $20,042 | $19,558 |
Commercial and industrial | 3,266 | 3,312 | 9,248 | 9,085 |
Other | 823 | 817 | 2,428 | 2,403 |
Operating Revenues | 10,912 | 11,025 | 31,718 | 31,046 |
OPERATING EXPENSES: | ' | ' | ' | ' |
Operation and maintenance | 1,968 | 1,922 | 5,492 | 5,541 |
Administrative and general | 1,847 | 1,726 | 5,620 | 5,488 |
Depreciation and amortization | 1,437 | 1,292 | 4,301 | 3,855 |
Taxes other than income taxes | 293 | 304 | 864 | 902 |
Operating Expenses | 5,545 | 5,244 | 16,277 | 15,786 |
Operating income | 5,367 | 5,781 | 15,441 | 15,260 |
OTHER INCOME (EXPENSES): | ' | ' | ' | ' |
Interest on debt | -1,311 | -1,312 | -3,933 | -3,935 |
Allowance for funds used during construction | 13 | 29 | 58 | 71 |
Other income (expenses), net | -50 | -42 | -290 | -278 |
Other income (expenses) | -1,348 | -1,325 | -4,165 | -4,142 |
Income before income taxes | 4,019 | 4,456 | 11,276 | 11,118 |
Income taxes | 1,484 | 1,696 | 4,260 | 4,213 |
Net Income | $2,535 | $2,760 | $7,016 | $6,905 |
Basic Earnings Per Share (in dollars per share) | $0.19 | $0.22 | $0.54 | $0.54 |
Cash Dividends Declared Per Share (in dollars per share) | $0.14 | $0.13 | $0.41 | $0.40 |
Statements_of_Common_Stockhold
Statements of Common Stockholders' Equity (Unaudited) (USD $) | Common Stock [Member] | Retained Earnings [Member] | Total |
In Thousands, except Share data | |||
Balance at Dec. 31, 2011 | $77,113 | $18,152 | $95,265 |
Balance (in shares) at Dec. 31, 2011 | 12,791,671 | ' | ' |
Net income | 0 | 6,905 | 6,905 |
Dividends | 0 | -5,145 | -5,145 |
Issuance of common stock under dividend reinvestment, direct stock and employee stock purchase plans | 1,634 | 0 | 1,634 |
Issuance of common stock under dividend reinvestment, direct stock and employee stock purchase plans (in shares) | 94,611 | ' | ' |
Balance at Sep. 30, 2012 | 78,747 | 19,912 | 98,659 |
Balance (in shares) at Sep. 30, 2012 | 12,886,282 | ' | ' |
Balance at Dec. 31, 2012 | 79,299 | 20,526 | 99,825 |
Balance (in shares) at Dec. 31, 2012 | 12,918,633 | ' | 12,918,633 |
Net income | 0 | 7,016 | 7,016 |
Dividends | 0 | -5,359 | -5,359 |
Retirement of common stock | -1,772 | 0 | -1,772 |
Retirement of common stock (in shares) | -94,414 | ' | -94,414 |
Issuance of common stock under dividend reinvestment, direct stock and employee stock purchase plans | 2,075 | 0 | 2,075 |
Issuance of common stock under dividend reinvestment, direct stock and employee stock purchase plans (in shares) | 109,476 | ' | ' |
Balance at Sep. 30, 2013 | $79,602 | $22,183 | $101,785 |
Balance (in shares) at Sep. 30, 2013 | 12,933,695 | ' | 12,933,695 |
Statements_of_Cash_Flows_Unaud
Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net income | $7,016 | $6,905 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 4,301 | 3,855 |
Increase in deferred income taxes | 2,049 | 1,689 |
Other | 172 | 162 |
Changes in assets and liabilities: | ' | ' |
(Increase) decrease in accounts receivable and unbilled revenues | 260 | -469 |
Decrease in recoverable income taxes | 0 | 197 |
Increase in materials and supplies, prepaid expenses, regulatory and other assets | -983 | -760 |
Increase (decrease) in accounts payable, accrued compensation and benefits, accrued expenses, deferred employee benefits, and other deferred credits | 201 | -198 |
Increase in accrued interest and taxes | 651 | 813 |
Net cash provided by operating activities | 13,667 | 12,194 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Utility plant additions, including debt portion of allowance for funds used during construction of $32 in 2013 and $40 in 2012 | -6,595 | -8,785 |
Acquisitions of water and wastewater systems | -28 | -463 |
Decrease in compensating balance | 500 | 0 |
Decrease in notes receivable | 23 | 24 |
Net cash used in investing activities | -6,100 | -9,224 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Customers' advances for construction and contributions in aid of construction | 567 | 565 |
Repayments of customer advances | -262 | -234 |
Repayments of long-term debt | -31 | -32 |
Repurchase of common stock | -1,772 | 0 |
Issuance of common stock | 2,075 | 1,634 |
Dividends paid | -5,361 | -5,184 |
Net cash used in financing activities | -4,784 | -3,251 |
Net change in cash and cash equivalents | 2,783 | -281 |
Cash and cash equivalents at beginning of period | 4,012 | 4,006 |
Cash and cash equivalents at end of period | 6,795 | 3,725 |
Cash paid during the period for: | ' | ' |
Interest, net of amounts capitalized | 3,746 | 3,416 |
Income taxes | $1,322 | $1,661 |
Statements_of_Cash_Flows_Unaud1
Statements of Cash Flows (Unaudited) (Parenthetical) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Utility plant additions, debt portion of allowance for funds used during construction | $32 | $40 |
Supplemental schedule of non-cash investing and financing activities: | ' | ' |
Accounts payable, construction of utility plant | $997 | $1,043 |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended | |
Sep. 30, 2013 | ||
Basis of Presentation [Abstract] | ' | |
Basis of Presentation | ' | |
1 | Basis of Presentation | |
The interim financial statements are unaudited but, in the opinion of management, reflect all adjustments, consisting of only normal recurring accruals, necessary for a fair presentation of results for such periods. Because the financial statements cover an interim period, they do not include all disclosures and notes normally provided in annual financial statements, and therefore, should be read in conjunction with the financial statements and notes thereto contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2012. | ||
Operating results for the three and nine month periods ended September 30, 2013 are not necessarily indicative of the results that may be expected for the year ending December 31, 2013. |
Common_Stock_and_Basic_Earning
Common Stock and Basic Earnings Per Share | 9 Months Ended | |
Sep. 30, 2013 | ||
Common Stock And Earnings Per Share [Abstract] | ' | |
Common Stock and Basic Earnings Per Share | ' | |
2 | Common Stock and Basic Earnings Per Share | |
Basic earnings per share for the three months ended September 30, 2013 and 2012 were based on weighted average shares outstanding of 12,911,795 and 12,861,011, respectively. | ||
Basic earnings per share for the nine months ended September 30, 2013 and 2012 were based on weighted average shares outstanding of 12,921,440 and 12,831,653, respectively. | ||
Since the Company has no common stock equivalents outstanding, there are no diluted earnings per share. | ||
On March 11, 2013, the Board of Directors authorized a share repurchase program granting the Company authority to repurchase up to 1,200,000 shares of the Company's common stock from time to time. Under the stock repurchase program, the Company may repurchase shares in the open market or through privately negotiated transactions. The Company may suspend or discontinue the repurchase program at any time. During the three months ended September 30, 2013, the Company repurchased and retired 1,362 shares. During the nine months ended September 30, 2013, the Company repurchased and retired 94,414 shares. As of September 30, 2013, 1,105,586 shares remain available for repurchase. |
Commitments
Commitments | 9 Months Ended | |
Sep. 30, 2013 | ||
Commitments [Abstract] | ' | |
Commitments | ' | |
3 | Commitments | |
In November 2011, during a routine tank cleaning, the Company discovered a small amount of mercury in the bottom of the tank. The tank was not in service at the time of the discovery and remains out of service. A number of tests were performed to confirm no mercury entered the water supply and no employees or contractors present during the discovery were impacted. The tank will remain out of service until it is approved for service by the Pennsylvania Department of Environmental Protection, or DEP. No disruption of service to any customers has occurred or is expected to occur. The Company incurred total costs of $186 through September 30, 2013, none of which were in 2013. Recent tests have shown the tank is in compliance with safe drinking water standards and the Company has requested permission to place the tank back into service from the DEP. If the DEP does not approve based on the testing completed, other options will be reviewed, including a project to reline and strengthen the interior of the tank or replace the tank through capital expenditures. |
Pensions
Pensions | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Pensions [Abstract] | ' | |||||||
Pensions | ' | |||||||
4 | Pensions | |||||||
Components of Net Periodic Pension Cost | ||||||||
Three Months Ended | Nine Months Ended | |||||||
30-Sep | 30-Sep | |||||||
2013 | 2012 | 2013 | 2012 | |||||
Service cost | $ 297 | $ 263 | $ 891 | $ 788 | ||||
Interest cost | 320 | 322 | 960 | 966 | ||||
Expected return on plan assets | -411 | -361 | -1,233 | -1,082 | ||||
Amortization of actuarial loss | 174 | 161 | 523 | 481 | ||||
Amortization of prior service cost | 3 | 4 | 8 | 13 | ||||
Rate-regulated adjustment | 15 | 9 | 45 | 28 | ||||
Net periodic pension expense | $ 398 | $ 398 | $ 1,194 | $ 1,194 | ||||
Employer Contributions | ||||||||
The Company previously disclosed in its financial statements for the year ended December 31, 2012 that it expected to contribute $1,593 to its pension plans in 2013. As of September 30, 2013, contributions of $1,593 had been made. At this time, the Company does not expect to contribute any additional amount during the remainder of 2013. |
Interest_Rate_Swap_Agreement
Interest Rate Swap Agreement | 9 Months Ended | |
Sep. 30, 2013 | ||
Interest Rate Swap Agreement [Abstract] | ' | |
Interest Rate Swap Agreement | ' | |
5 | Interest Rate Swap Agreement | |
The Company is exposed to certain risks relating to its ongoing business operations. The primary risk managed by using derivative instruments is interest rate risk. The Company utilizes an interest rate swap agreement to effectively convert the Company's $12,000 variable-rate debt issue to a fixed rate. Interest rate swaps are contracts in which a series of interest rate cash flows are exchanged over a prescribed period. The notional amount on which the interest payments are based ($12,000) is not exchanged. The interest rate swap provides that the Company pays the counterparty a fixed interest rate of 3.16% on the notional amount of $12,000. In exchange, the counterparty pays the Company a variable interest rate based on 59% of LIBOR on the notional amount. The intent is for the variable rate received from the swap counterparty to approximate the variable rate the Company pays to bondholders on its variable rate debt issue, resulting in a fixed rate being paid to the swap counterparty and reducing the Company's interest rate risk. The Company's net payment rate on the swap was 3.08% during the three months ended September 30, 2013 and 3.03% during the nine months ended September 30, 2013. | ||
The interest rate swap agreement is classified as a financial derivative used for non-trading activities. The professional standards regarding accounting for derivatives and hedging activities require companies to recognize all derivative instruments as either assets or liabilities at fair value on the balance sheet. In accordance with the standards, the interest rate swap is recorded on the balance sheet in other deferred credits at fair value (see Note 6). | ||
The Company uses regulatory accounting treatment rather than hedge accounting to defer the unrealized gains and losses on its interest rate swap. Instead of the effective portion being recorded as other comprehensive income and the ineffective portion being recognized in earnings using the cash flow hedge accounting rules provided by the derivative accounting standards, the entire unrealized swap value is recorded as a regulatory asset. Based on current ratemaking treatment, the Company expects the unrealized gains and losses to be recognized in rates as a component of interest expense as the swap settlements occur. Swap settlements are recorded in the income statement with the hedged item as interest expense. During the three months ended September 30, 2013, $92 was reclassified from regulatory assets to interest expense as a result of swap settlements. During the nine months ended September 30, 2013, $273 was reclassified from regulatory assets to interest expense as a result of swap settlements. The overall swap result was a gain of less than $1 for the three months ended September 30, 2013 and a gain of $621 for the nine months ended September 30, 2013. The Company expects to reclassify $362 from regulatory assets to interest expense as a result of swap settlements over the next 12 months. | ||
The interest rate swap agreement contains provisions that require the Company to maintain a credit rating of at least BBB- with Standard & Poor's. If the Company's rating were to fall below this rating, it would be in violation of these provisions, and the counterparty to the derivative could request immediate payment if the derivative was in a liability position. On April 26, 2013, Standard & Poor's affirmed the Company's credit rating at A-, with a stable outlook and adequate liquidity. The Company's interest rate swap was in a liability position as of September 30, 2013. If a violation due to credit rating, or some other default provision, were triggered on September 30, 2013, the Company would have been required to pay the counterparty approximately $1,948. | ||
The interest rate swap will expire on October 1, 2029. Other than the interest rate swap, the Company has no other derivative instruments. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||
Sep. 30, 2013 | |||
Fair Value Measurements [Abstract] | ' | ||
Fair Value Measurements | ' | ||
6 | Fair Value Measurements | ||
The professional standards regarding fair value measurements establish a fair value hierarchy which indicates the extent to which inputs used in measuring fair value are observable in the market. Level 1 inputs include quoted prices for identical instruments and are the most observable. Level 2 inputs include quoted prices for similar assets and observable inputs such as interest rates, commodity rates and yield curves. Level 3 inputs are not observable in the market and include management's own judgments about the assumptions market participants would use in pricing the asset or liability. | |||
The Company has recorded its interest rate swap liability at fair value in accordance with the standards. The liability is recorded under the caption "Other deferred credits" on the balance sheet. The table below illustrates the fair value of the interest rate swap as of the end of the reporting period. | |||
Description | 30-Sep-13 | Fair Value Measurements | |
at Reporting Date Using | |||
Significant Other Observable Inputs (Level 2) | |||
Interest Rate Swap | $1,941 | $1,941 | |
Fair values are measured as the present value of all expected future cash flows based on the LIBOR-based swap yield curve as of the date of the valuation. These inputs to this calculation are deemed to be Level 2 inputs. The balance sheet carrying value reflects the Company's credit quality as of September 30, 2013. The rate used in discounting all prospective cash flows anticipated to be made under this swap reflects a representation of the yield to maturity for 30-year debt on utilities rated A- as of September 30, 2013. The use of the Company's credit rating resulted in a reduction in the fair value of the swap liability of $7 as of September 30, 2013. The fair value of the swap reflecting the Company's credit quality as of December 31, 2012 is shown in the table below. | |||
Description | 31-Dec-12 | Fair Value Measurements | |
at Reporting Date Using | |||
Significant Other Observable Inputs (Level 2) | |||
Interest Rate Swap | $2,836 | $2,836 | |
The carrying amount of current assets and liabilities that are considered financial instruments approximates fair value as of the dates presented. The Company's long-term debt (including current maturities), with a carrying value of $84,944 at September 30, 2013, and $84,975 at December 31, 2012, had an estimated fair value of approximately $94,000 and $107,000, respectively. The estimated fair value of debt was calculated using a discounted cash flow technique that incorporates a market interest yield curve with adjustments for duration and risk profile. These inputs to this calculation are deemed to be Level 2 inputs. The Company recognized its credit rating in determining the yield curve, and did not factor in third party credit enhancements including bond insurance on the 2004 PEDFA Series A and 2006 Industrial Development Authority issues, and the letter of credit on the 2008 PEDFA Series A issue. | |||
Customers' advances for construction and notes receivable have carrying values at September 30, 2013 of $13,232 and $315, respectively. At December 31, 2012, customers' advances for construction and notes receivable had carrying values of $12,949 and $338, respectively. The relative fair values of these amounts cannot be accurately estimated since the timing of future payment streams is dependent upon several factors, including new customer connections, customer consumption levels and future rate increases. |
Debt
Debt | 9 Months Ended | |||||
Sep. 30, 2013 | ||||||
Debt [Abstract] | ' | |||||
Debt | ' | |||||
7 | Debt | |||||
As of | As of | |||||
Sept. 30, 2013 | Dec. 31, 2012 | |||||
4.05% Pennsylvania Economic Development Financing Authority | ||||||
Exempt Facilities Revenue Bonds, Series A, due 2016 | $ 2,350 | $ 2,350 | ||||
5.00% Pennsylvania Economic Development Financing Authority | ||||||
Exempt Facilities Revenue Bonds, Series A, due 2016 | 4,950 | 4,950 | ||||
10.17% Senior Notes, Series A, due 2019 | 6,000 | 6,000 | ||||
9.60% Senior Notes, Series B, due 2019 | 5,000 | 5,000 | ||||
1.00% Pennvest Loan, due 2019 | 259 | 290 | ||||
10.05% Senior Notes, Series C, due 2020 | 6,500 | 6,500 | ||||
8.43% Senior Notes, Series D, due 2022 | 7,500 | 7,500 | ||||
Variable Rate Pennsylvania Economic Development Financing Authority | ||||||
Exempt Facilities Revenue Bonds, Series 2008A, due 2029 | 12,000 | 12,000 | ||||
4.75% Industrial Development Authority Revenue | ||||||
Bonds, Series 2006, due 2036 | 10,500 | 10,500 | ||||
6.00% Pennsylvania Economic Development Financing Authority | ||||||
Exempt Facilities Revenue Bonds, Series 2008B, due 2038 | 14,885 | 14,885 | ||||
5.00% Monthly Senior Notes, Series 2010A, due 2040 | 15,000 | 15,000 | ||||
Total long-term debt | 84,944 | 84,975 | ||||
Less current maturities | -48 | -42 | ||||
Long-term portion | $84,896 | $84,933 | ||||
The 6.00% Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Bonds, Series 2008B, contain special redemption provisions. Under these provisions, representatives of deceased beneficial owners of the bonds have the right to request redemption prior to the stated maturity of all or part of their holding in the bonds. Current maturities include $5 for bonds that met the special provisions and have been tendered for redemption. The Company is not obligated to redeem any individual holding exceeding $25, or aggregate holdings exceeding $300 in any annual period. | ||||||
In May 2013, the Company renewed its $13,000 committed line of credit and extended the maturity date to May 2015. | ||||||
In May 2013, the Company renewed its $11,000 committed line of credit and extended the maturity date to May 2015. The renewal eliminated the requirement to maintain a demand deposit account with an average monthly balance of $500. | ||||||
In May 2013, the Company renewed its $5,000 committed line of credit and extended the maturity date to June 2014. |
Acquisitions
Acquisitions | 9 Months Ended | |
Sep. 30, 2013 | ||
Acquisitions [Abstract] | ' | |
Acquisitions | ' | |
8 | Acquisitions | |
On March 7, 2013, the Company completed the acquisition of the Windy Brae Mobile Home Park water assets of Barkas, Inc. in York County, Pennsylvania. The Company began operating the existing system through an interconnection with its current distribution system on March 11, 2013. The acquisition resulted in the addition of approximately 135 new water customers with purchase price and acquisition costs of approximately $29, which is less than the depreciated original cost of the assets. The Company recorded a negative acquisition adjustment of approximately $45 and will seek approval from the Pennsylvania Public Utility Commission, or PPUC, to amortize the negative acquisition adjustment over the remaining life of the acquired assets. | ||
The results have been immaterial to total Company results. | ||
During the third quarter of 2013, the Company received a refund of approximately $1 for expenditures related to a previous acquisition. |
Rate_Matters
Rate Matters | 9 Months Ended | |
Sep. 30, 2013 | ||
Rate Matters [Abstract] | ' | |
Rate Matters | ' | |
9 | Rate Matters | |
From time to time, the Company files applications for rate increases with the PPUC and is granted rate relief as a result of such requests. The most recent rate request was filed by the Company on May 29, 2013 and sought an increase in rates designed to produce additional annual water revenues of $7,116 and additional annual wastewater revenues of $28. The Company, the Office of Consumer Advocate, the Office of Small Business Advocate and the PPUC's Bureau of Investigation and Enforcement have reached a tentative settlement agreement increasing water rates to produce approximately $4,972 in additional annual revenues, and increasing wastewater rates for the Asbury Pointe subdivision to produce approximately $28 in additional annual revenues. The settlement agreement is subject to PPUC approval and would be effective on February 28, 2014. | ||
The PPUC permits water utilities to collect a distribution system improvement charge (DSIC). The DSIC allows the Company to add a charge to customers' bills for qualified replacement costs of certain infrastructure without submitting a rate filing. This surcharge mechanism typically adjusts periodically based on additional qualified capital expenditures completed or anticipated in a future period. The DSIC is capped at 5% of base rates, and is reset to zero when new base rates that reflect the costs of those additions become effective or when a utility's earnings exceed a regulatory benchmark. The DSIC provided revenues of $380 for the three months ended September 30, 2013 and $240 for the three months ended September 30, 2012. The DSIC provided revenue of $1,047 for the nine months ended September 30, 2013 and $258 for the nine months ended September 30, 2012. |
Pensions_Tables
Pensions (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Pensions [Abstract] | ' | |||||||
Schedule of Net Benefit Costs | ' | |||||||
Components of Net Periodic Pension Cost | ||||||||
Three Months Ended | Nine Months Ended | |||||||
30-Sep | 30-Sep | |||||||
2013 | 2012 | 2013 | 2012 | |||||
Service cost | $ 297 | $ 263 | $ 891 | $ 788 | ||||
Interest cost | 320 | 322 | 960 | 966 | ||||
Expected return on plan assets | -411 | -361 | -1,233 | -1,082 | ||||
Amortization of actuarial loss | 174 | 161 | 523 | 481 | ||||
Amortization of prior service cost | 3 | 4 | 8 | 13 | ||||
Rate-regulated adjustment | 15 | 9 | 45 | 28 | ||||
Net periodic pension expense | $ 398 | $ 398 | $ 1,194 | $ 1,194 |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||
Sep. 30, 2013 | |||
Fair Value Measurements [Abstract] | ' | ||
Fair Value, Liabilities Measured on Recurring Basis | ' | ||
The Company has recorded its interest rate swap liability at fair value in accordance with the standards. The liability is recorded under the caption "Other deferred credits" on the balance sheet. The table below illustrates the fair value of the interest rate swap as of the end of the reporting period. | |||
Description | 30-Sep-13 | Fair Value Measurements | |
at Reporting Date Using | |||
Significant Other Observable Inputs (Level 2) | |||
Interest Rate Swap | $1,941 | $1,941 | |
Fair values are measured as the present value of all expected future cash flows based on the LIBOR-based swap yield curve as of the date of the valuation. These inputs to this calculation are deemed to be Level 2 inputs. The balance sheet carrying value reflects the Company's credit quality as of September 30, 2013. The rate used in discounting all prospective cash flows anticipated to be made under this swap reflects a representation of the yield to maturity for 30-year debt on utilities rated A- as of September 30, 2013. The use of the Company's credit rating resulted in a reduction in the fair value of the swap liability of $7 as of September 30, 2013. The fair value of the swap reflecting the Company's credit quality as of December 31, 2012 is shown in the table below. | |||
Description | 31-Dec-12 | Fair Value Measurements | |
at Reporting Date Using | |||
Significant Other Observable Inputs (Level 2) | |||
Interest Rate Swap | $2,836 | $2,836 |
Debt_Tables
Debt (Tables) | 9 Months Ended | |||||
Sep. 30, 2013 | ||||||
Debt [Abstract] | ' | |||||
Schedule of Debt | ' | |||||
As of | As of | |||||
Sept. 30, 2013 | Dec. 31, 2012 | |||||
4.05% Pennsylvania Economic Development Financing Authority | ||||||
Exempt Facilities Revenue Bonds, Series A, due 2016 | $ 2,350 | $ 2,350 | ||||
5.00% Pennsylvania Economic Development Financing Authority | ||||||
Exempt Facilities Revenue Bonds, Series A, due 2016 | 4,950 | 4,950 | ||||
10.17% Senior Notes, Series A, due 2019 | 6,000 | 6,000 | ||||
9.60% Senior Notes, Series B, due 2019 | 5,000 | 5,000 | ||||
1.00% Pennvest Loan, due 2019 | 259 | 290 | ||||
10.05% Senior Notes, Series C, due 2020 | 6,500 | 6,500 | ||||
8.43% Senior Notes, Series D, due 2022 | 7,500 | 7,500 | ||||
Variable Rate Pennsylvania Economic Development Financing Authority | ||||||
Exempt Facilities Revenue Bonds, Series 2008A, due 2029 | 12,000 | 12,000 | ||||
4.75% Industrial Development Authority Revenue | ||||||
Bonds, Series 2006, due 2036 | 10,500 | 10,500 | ||||
6.00% Pennsylvania Economic Development Financing Authority | ||||||
Exempt Facilities Revenue Bonds, Series 2008B, due 2038 | 14,885 | 14,885 | ||||
5.00% Monthly Senior Notes, Series 2010A, due 2040 | 15,000 | 15,000 | ||||
Total long-term debt | 84,944 | 84,975 | ||||
Less current maturities | -48 | -42 | ||||
Long-term portion | $84,896 | $84,933 |
Common_Stock_and_Basic_Earning1
Common Stock and Basic Earnings Per Share (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Common Stock And Earnings Per Share [Abstract] | ' | ' | ' | ' |
Weighted Average Number of Shares Outstanding, Basic, Total | 12,911,795 | 12,861,011 | 12,921,440 | 12,831,653 |
Number of shares authorized to be repurchased under the stock repurchase program | 1,200,000 | ' | 1,200,000 | ' |
Number of remaining shares authorized to be repurchased under the stock repurchase program | 1,105,586 | ' | 1,105,586 | ' |
Number of shares repurchased and retired under the stock repurchase program | 1,362 | ' | 94,414 | ' |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Commitments [Abstract] | ' |
Cost of Services, Environmental Remediation | $186 |
Pensions_Details
Pensions (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Contributions by employer | ' | ' | $1,593 | ' |
Estimated employer contributions | 1,593 | ' | 1,593 | ' |
Pension Plans, Defined Benefit [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost | 297 | 263 | 891 | 788 |
Interest cost | 320 | 322 | 960 | 966 |
Expected return on plan assets | -411 | -361 | -1,233 | -1,082 |
Amortization of actuarial loss | 174 | 161 | 523 | 481 |
Amortization of prior service cost | 3 | 4 | 8 | 13 |
Rate-regulated adjustment | 15 | 9 | 45 | 28 |
Net periodic pension expense | $398 | $398 | $1,194 | $1,194 |
Interest_Rate_Swap_Agreement_D
Interest Rate Swap Agreement (Details) (Interest Rate Swap [Member], USD $) | 3 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 |
Interest Rate Swap [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Notional amount of swaps | $12,000 | $12,000 |
Net payment rate on swaps | 3.08% | 3.03% |
Interest rate swap settlements reclassified to interest expense | 92 | 273 |
Interest rate swap gain (loss) capitalized | 1 | 621 |
Interest rate swap settlements to be reclassified during the next 12 months | 362 | 362 |
Potential payment to counterparty | $1,948 | $1,948 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Notes receivable | $315 | $338 |
Customer advances for construction | 13,232 | 12,949 |
Reduction in the fair value of swap liability | 7 | ' |
Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Interest rate swaps | 1,941 | 2,836 |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Interest rate swaps | 1,941 | 2,836 |
Long-term debt, gross | 84,944 | 84,975 |
Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long-term debt, gross | 94,000 | 107,000 |
Fair Value, Estimate Not Practicable, Carrying (Reported) Amount [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Notes receivable | 315 | 338 |
Customer advances for construction | $13,232 | $12,949 |
Debt_Details
Debt (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Debt Instrument [Line Items] | ' | ' |
Total long-term debt | $84,944 | $84,975 |
Less current maturities | -48 | -42 |
Long-term portion | 84,896 | 84,933 |
Demand deposit requirement, minimum | 0 | 500 |
Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Bonds, Series A, due 2016, 4.05 Percent [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total long-term debt | 2,350 | 2,350 |
Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Bonds, Series A, due 2016, 5.00 Percent [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total long-term debt | 4,950 | 4,950 |
Senior Notes, Series A, due 2019, 10.17 percent [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total long-term debt | 6,000 | 6,000 |
Senior Notes, Series B, due 2019, 9.6 percent [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total long-term debt | 5,000 | 5,000 |
Pennvest Loan, due 2019, 1.00 percent [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total long-term debt | 259 | 290 |
Senior Notes, Series C, due 2020, 10.05 percent [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total long-term debt | 6,500 | 6,500 |
Senior Notes, Series D, due 2022, 8.43 percent [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total long-term debt | 7,500 | 7,500 |
Variable Rate Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Bonds Series 2008A due 2029 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total long-term debt | 12,000 | 12,000 |
Industrial Development Authority Revenue Bonds, series 2006, due 2036, 4.75 percent [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total long-term debt | 10,500 | 10,500 |
Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Bonds, Series 2008B, due 2038, 6.00 percent [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total long-term debt | 14,885 | 14,885 |
Special provision, repayment of bonds | 5 | ' |
Special provision, amount to be redeemed per individual interest, per year, maximum | 25 | ' |
Special provision, amount to be redeemed in the aggregate, per year, maximum | 300 | ' |
Monthly Senior Notes, Series 2010A, due 2040, 5.00 percent [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total long-term debt | 15,000 | 15,000 |
Renewed Line of Credit, First Note [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Renewed line of credit | 13,000 | ' |
Revised maturity date | 1-May-15 | ' |
Renewed Line of Credit, Second Note [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Renewed line of credit | 11,000 | ' |
Revised maturity date | 1-May-15 | ' |
Renewed Line of Credit, Third Note [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Renewed line of credit | $5,000 | ' |
Revised maturity date | 1-Jun-14 | ' |
Acquisitions_Details
Acquisitions (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Business Acquisition [Line Items] | ' |
Change In Business Acquisition Adjustment | $1 |
Windy Brae Mobile Home Park [Member] | ' |
Business Acquisition [Line Items] | ' |
Business Acquisition, Date of Acquisition Agreement | 7-Mar-13 |
Business Acquisition, Effective Date of Acquisition | 11-Mar-13 |
Business Acquisition, Cost of Acquired Entity, Cash Paid | 29 |
Number of Customers Acquired | 135 |
Acquisition adjustment | $45 |
Rate_Matters_Details
Rate Matters (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | 29-May-13 |
Rate Matters [Abstract] | ' | ' | ' | ' | ' |
Requested Dollar Increase In Annual Water Revenues From PPUC | ' | ' | ' | ' | $7,116 |
Requested Dollar Increase In Annual Wastewater Revenue From PPUC | ' | ' | ' | ' | 28 |
Agreed Upon But Not Yet Authorized Dollar Increase In Annual Water Revenues From Ppuc | ' | ' | ' | ' | 4,972 |
Agreed Upon But Not Yet Authorized Dollar Increase In Annual Wastewater Revenues From Ppuc | ' | ' | ' | ' | 28 |
Distribution system improvement charge percentage over base rate | 5.00% | ' | 5.00% | ' | ' |
Distribution system improvement charge revenue | $380 | $240 | $1,047 | $258 | ' |