The York Water Company (YORW) 10-Q 6 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	9 Months Ended
	Sep. 30, 2015	Nov. 05, 2015	Jun. 30, 2014
Document and Entity Information [Abstract]
Entity Registrant Name	YORK WATER CO
Entity Central Index Key	108,985
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			$ 267,065,786
Entity Common Stock, Shares Outstanding		12,791,600
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2015

Balance Sheets (Unaudited)

Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
ASSETS
UTILITY PLANT, at original cost	$ 327,481	$ 316,525
Plant acquisition adjustments	(3,713)	(3,522)
Accumulated depreciation	(63,689)	(59,809)
Net utility plant	260,079	253,194
OTHER PHYSICAL PROPERTY, net of accumulated depreciation of $305 in 2015 and $286 in 2014	750	765
CURRENT ASSETS:
Cash and cash equivalents	1,148	1,488
Restricted cash	1	7
Accounts receivable, net of reserves of $335 in 2015 and $325 in 2014	4,310	3,991
Unbilled revenues	2,522	2,377
Recoverable income taxes	275	957
Materials and supplies inventories, at cost	792	771
Prepaid expenses	882	584
Deferred income taxes	229	1,058
Total current assets	10,159	11,233
OTHER LONG-TERM ASSETS:
Deferred debt expense	2,776	2,573
Notes receivable	255	266
Deferred regulatory assets	32,666	32,614
Other assets	3,524	3,694
Total other long-term assets	39,221	39,147
Total Assets	310,209	304,339
COMMON STOCKHOLDERS' EQUITY:
Common stock, no par value, authorized 46,500,000 shares, issued and outstanding 12,792,058 shares in 2015 and 12,830,521 shares in 2014	76,823	77,556
Retained earnings	30,227	27,007
Total common stockholders' equity	107,050	104,563
PREFERRED STOCK, authorized 500,000 shares, no shares issued	0	0
LONG-TERM DEBT, excluding current portion	$ 87,269	$ 84,842
COMMITMENTS
CURRENT LIABILITIES:
Current portion of long-term debt	$ 43	$ 43
Accounts payable	1,959	1,589
Dividends payable	1,640	1,647
Accrued compensation and benefits	1,093	1,078
Accrued interest	1,036	1,027
Other accrued expenses	489	546
Total current liabilities	6,260	5,930
DEFERRED CREDITS:
Customers' advances for construction	11,399	10,712
Deferred income taxes	47,604	46,024
Deferred employee benefits	12,394	13,727
Other deferred credits	7,107	7,489
Total deferred credits	78,504	77,952
Contributions in aid of construction	31,126	31,052
Total Stockholders' Equity and Liabilities	$ 310,209	$ 304,339

Balance Sheets (Unaudited) (Par

Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
OTHER PHYSICAL PROPERTY:
Other physical property, accumulated depreciation	$ 305	$ 286
CURRENT ASSETS:
Receivables, reserves	$ 335	$ 325
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)	12,792,058	12,830,521
Common stock, outstanding (in shares)	12,792,058	12,830,521
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 ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
OPERATING REVENUES:
Residential	$ 7,678	$ 7,592	$ 22,370	$ 21,781
Commercial and industrial	3,801	3,608	10,480	9,967
Other	889	862	2,622	2,653
Operating Revenues	12,368	12,062	35,472	34,401
OPERATING EXPENSES:
Operation and maintenance	2,060	2,051	6,148	5,978
Administrative and general	2,160	2,165	6,704	6,497
Depreciation and amortization	1,537	1,487	4,591	4,433
Taxes other than income taxes	258	267	860	843
Operating Expenses	6,015	5,970	18,303	17,751
Operating income	6,353	6,092	17,169	16,650
OTHER INCOME (EXPENSES):
Interest on debt	(1,271)	(1,254)	(3,778)	(3,832)
Allowance for funds used during construction	40	58	148	157
Gain on sale of land	0	316	0	316
Other income (expenses), net	(216)	(222)	(594)	(438)
Other Income (Expenses)	(1,447)	(1,102)	(4,224)	(3,797)
Income before income taxes	4,906	4,990	12,945	12,853
Income taxes	1,386	1,925	3,972	4,920
Net Income	$ 3,520	$ 3,065	$ 8,973	$ 7,933
Basic Earnings Per Share (in dollars per share)	$ 0.28	$ 0.23	$ 0.70	$ 0.61
Cash Dividends Declared Per Share (in dollars per share)	$ 0.1495	$ 0.1431	$ 0.4485	$ 0.4293

Statements of Common Stockholde

Statements of Common Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Common Stock [Member]	Retained Earnings [Member]	Total
Balance at Dec. 31, 2013	$ 80,545	$ 22,966	$ 103,511
Balance (in shares) at Dec. 31, 2013	12,979,281
Net income	$ 0	7,933	7,933
Dividends	0	(5,527)	(5,527)
Retirement of common stock	$ (5,180)	0	$ (5,180)
Retirement of common stock (in shares)	(256,943)		(256,943)
Issuance of common stock under dividend reinvestment, direct stock and employee stock purchase plans	$ 2,144	0	$ 2,144
Issuance of common stock under dividend reinvestment, direct stock and employee stock purchase plans (in shares)	108,376
Balance at Sep. 30, 2014	$ 77,509	25,372	102,881
Balance (in shares) at Sep. 30, 2014	12,830,714
Balance at Dec. 31, 2014	$ 77,556	27,007	$ 104,563
Balance (in shares) at Dec. 31, 2014	12,830,521		12,830,521
Net income	$ 0	8,973	$ 8,973
Dividends	0	(5,753)	(5,753)
Retirement of common stock	$ (2,495)	0	$ (2,495)
Retirement of common stock (in shares)	(118,812)		(118,812)
Issuance of common stock under dividend reinvestment, direct stock and employee stock purchase plans	$ 1,762	0	$ 1,762
Issuance of common stock under dividend reinvestment, direct stock and employee stock purchase plans (in shares)	80,349
Balance at Sep. 30, 2015	$ 76,823	$ 30,227	$ 107,050
Balance (in shares) at Sep. 30, 2015	12,792,058		12,792,058

Statements of Cash Flows (Unaud

Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 8,973	$ 7,933
Adjustments to reconcile net income to net cash provided by operating activities:
Gain on sale of land	0	(316)
Depreciation and amortization	4,591	4,433
Increase in deferred income taxes	910	249
Other	150	157
Changes in assets and liabilities:
Increase in accounts receivable and unbilled revenues	(690)	(718)
Decrease in recoverable income taxes	682	0
Increase in materials and supplies, prepaid expenses, regulatory and other assets	(919)	(674)
Increase (decrease) in accounts payable, accrued compensation and benefits, accrued expenses, deferred employee benefits, and other deferred credits	(90)	5
Increase in accrued interest and taxes	9	2,885
Net cash provided by operating activities	13,616	13,954
CASH FLOWS FROM INVESTING ACTIVITIES:
Utility plant additions, including debt portion of allowance for funds used during construction of $83 in 2015 and $88 in 2014	(10,271)	(9,304)
Acquisitions of water and wastewater systems	(94)	(293)
Proceeds from sale of land	0	346
Decrease in notes receivable	11	32
Net cash used in investing activities	(10,354)	(9,219)
CASH FLOWS FROM FINANCING ACTIVITIES:
Customers' advances for construction and contributions in aid of construction	1,051	377
Repayments of customer advances	(287)	(320)
Proceeds of long-term debt issues	14,301	14,880
Debt issuance costs	(298)	(506)
Repayments of long-term debt	(11,876)	(14,912)
Repurchase of common stock	(2,495)	(5,180)
Issuance of common stock	1,762	2,144
Dividends paid	(5,760)	(5,551)
Net cash used in financing activities	(3,602)	(9,068)
Net change in cash and cash equivalents	(340)	(4,333)
Cash and cash equivalents at beginning of period	1,488	7,565
Cash and cash equivalents at end of period	1,148	3,232
Cash paid during the period for:
Interest, net of amounts capitalized	3,686	3,671
Income taxes	$ 1,961	$ 1,848
Supplemental schedule of non-cash investing and financing activities:
Accounts payable includes $1,017 in 2015 and $1,655 in 2014 for the construction of utility plant.

Statements of Cash Flows (Unau7

Statements of Cash Flows (Unaudited) (Parenthetical) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
CASH FLOWS FROM INVESTING ACTIVITIES:
Utility plant additions, debt portion of allowance for funds used during construction	$ 83	$ 88
Supplemental schedule of non-cash investing and financing activities:
Accounts payable, construction of utility plant	$ 1,017	$ 1,655

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2015
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, 2014. Operating results for the three and nine month periods ended September 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015.

Common Stock and Basic Earnings

Common Stock and Basic Earnings Per Share	9 Months Ended
	Sep. 30, 2015
Common Stock and Basic 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, 2015 and 2014 were based on weighted average shares outstanding of 12,835,197 and 12,823,680, respectively. Basic earnings per share for the nine months ended September 30, 2015 and 2014 were based on weighted average shares outstanding of 12,844,458 and 12,902,899, 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, 2015 and 2014, the Company repurchased and retired 118,812 and 21,523 shares, respectively. During the nine months ended September 30, 2015 and 2014, the Company repurchased and retired 118,812 and 256,943 shares, respectively. As of September 30, 2015, 704,204 shares remain available for repurchase.

Pensions

Pensions	9 Months Ended
	Sep. 30, 2015
Pensions [Abstract]
Pensions	3. Pensions Components of Net Periodic Pension Cost Three Months Ended September 30 Nine Months Ended September 30 2015 2014 2015 2014 Service cost $ 291 $ 238 $ 874 $ 714 Interest cost 378 361 1,136 1,083 Expected return on plan assets (557 ) (496 ) (1,672 ) (1,490 ) Amortization of actuarial loss 177 31 529 94 Amortization of prior service cost (3 ) (3 ) (9 ) (9 ) Rate-regulated adjustment 289 444 867 1,215 Net periodic pension expense $ 575 $ 575 $ 1,725 $ 1,607 Employer Contributions As of September 30, 2015, contributions of $2,300 had been made to the Company's pension plans, and the Company does not expect to contribute any additional amount during the remainder of 2015.

Interest Rate Swap Agreement

Interest Rate Swap Agreement	9 Months Ended
	Sep. 30, 2015
Interest Rate Swap Agreement [Abstract]
Interest Rate Swap Agreement	4. 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 3.07% and 3.09% during the three months ended September 30, 2015 and 2014, respectively, and 3.03% and 3.05% during the nine months ended September 30, 2015 and 2014, respectively. The interest rate swap agreement is classified as a financial derivative used for non-trading activities. The accounting 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 5). 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 or loss 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. Swap settlements resulted in the reclassification from regulatory assets to interest expense of $92 and $93 during the three months ended September 30, 2015 and 2014, respectively, and $274 and $276 during the nine months ended September 30, 2015 and 2014, respectively. The overall swap result was a loss of $430 and $142 for the three months ended September 30, 2015 and 2014, respectively, and $346 and $844 for the nine moths ended September 30, 2015 and 2014, respectively. The Company expects to reclassify $352 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 March 20, 2015, 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, 2015. If a violation due to credit rating, or some other default provision, were triggered on September 30, 2015, the Company would have been required to pay the counterparty approximately $2,827. 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, 2015
Fair Value Measurements [Abstract]
Fair Value Measurements	5. Fair Value Measurements The accounting 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 September 30, 2015 Fair Value Measurements at Reporting Date Using Significant Other Observable Inputs (Level 2) Interest Rate Swap $2,663 $2,663 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, 2015. 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, 2015. The use of the Company's credit rating resulted in a reduction in the fair value of the swap liability of $164 as of September 30, 2015. The fair value of the swap reflecting the Company's credit quality as of December 31, 2014 is shown in the table below. Description December 31, 2014 Fair Value Measurements at Reporting Date Using Significant Other Observable Inputs (Level 2) Interest Rate Swap $2,592 $2,592 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 and excluding the discount on issuance of long-term debt), with a carrying value of $87,552 at September 30, 2015, and $84,885 at December 31, 2014, had an estimated fair value of approximately $98,000 and $100,000, 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 2006 York County Industrial Development Authority issue and the letter of credit on the 2008 Pennsylvania Economic Development Financing Authority, or PEDFA, Series A issue. Customers' advances for construction and notes receivable have carrying values at September 30, 2015 of $11,399 and $255, respectively. At December 31, 2014, customers' advances for construction and notes receivable had carrying values of $10,712 and $266, 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, 2015
Debt [Abstract]
Debt	6. Debt As of Sept. 30, 2015 As of Dec. 31, 2014 4.05% Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Bonds, Series A of 2004, due 2016 $ - $ 2,350 5.00% Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Bonds, Series A of 2004, due 2016 - 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 Note, due 2019 172 205 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 Refunding Bonds, Series 2008A, due 2029 12,000 12,000 4.75% York County Industrial Development Authority Revenue Bonds, Series 2006, due 2036 10,500 10,500 4.50% Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Refunding Bonds, Series 2014, due 2038 14,880 14,880 5.00% Monthly Senior Notes, Series 2010A, due 2040 15,000 15,000 4.00% - 4.50% York County Industrial Development Authority Exempt Facilities Revenue Bonds, Series 2015, due 2029 - 2045 10,000 - Total long-term debt 87,552 84,885 Less discount on issuance of long-term debt (240 ) - Less current maturities (43 ) (43 ) Long-term portion $ 87,269 $ 84,842 On July 23, 2015, the York County Industrial Development Authority (the "YCIDA") issued and sold $10,000 aggregate principal amount of YCIDA Exempt Facilities Revenue Bonds, Series 2015 (the "Bonds") for the Company's benefit pursuant to the terms of a trust indenture, dated as of July 1, 2015, between the YCIDA and Manufacturers and Traders Trust Company, as trustee. The YCIDA then loaned the proceeds of the sale of the Bonds to the Company pursuant to a loan agreement dated as of July 1, 2015, between the Company and the YCIDA, which matches the debt service requirements on the Bonds. The Bonds, and therefore the loan, bear interest at rates ranging from 4.00% to 4.50% per annum payable semiannually. The Bonds have stated maturity dates of June 1 of the years 2029, 2032, 2035, 2038, 2042 and 2045 and are subject to optional and mandatory redemption provisions. Amounts outstanding under the loan agreement are direct, unsecured and unsubordinated obligations of the Company. The Company received net proceeds, after deducting original issue discount and issuance costs, of approximately $9,500. The net proceeds were used to redeem the PEDFA Series A of 2004 Bonds and to fund a portion of the Company's 2015 capital expenditures. In June 2015, the Company renewed its $5,000 committed line of credit and extended the maturity date to June 2016. In May 2015, the Company renewed its $13,000 and $11,000 committed lines of credit and extended the maturity date of each to May 2017.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2015
Income Taxes [Abstract]
Income Taxes	7. Income Taxes The Company filed for a change in accounting method under the Internal Revenue Service tangible property regulations when its 2014 income tax return was filed in the third quarter of 2015. The Company began adjusting its income tax provision for the effects of this change during the fourth quarter of 2014. Under the change in accounting method, the Company is permitted to deduct the costs of certain asset improvements that were previously being capitalized and depreciated for tax purposes as an expense on its income tax return. This ongoing deduction results in a reduction in the effective income tax rate, a net reduction in income tax expense, and a reduction in the amount of income taxes currently payable. It also results in increases to deferred tax liabilities and regulatory assets representing the appropriate book and tax basis difference on capital additions. As a result, the Company's effective tax rate was 28.3% for the three months ended September 30, 2015 and 30.7% for the nine months ended September 30, 2015 as compared to 38.6% for the three months ended September 30, 2014 and 38.3% for the nine months ended September 30, 2014. The benefit for the full year of 2014 was recorded in the fourth quarter.

Acquisitions

Acquisitions	9 Months Ended
	Sep. 30, 2015
Acquisitions [Abstract]
Acquisitions	8. Acquisitions On November 20, 2014, the Company completed the acquisition of the water assets of Lincoln Estates Mobile Home Park in Adams County, Pennsylvania. The Company began operating the existing system as a satellite location on November 24, 2014. The acquisition resulted in the addition of approximately 200 new water customers with purchase price and acquisition costs of approximately $70, which is less than the depreciated original cost of the assets. In 2015, the Company recorded a negative acquisition adjustment of approximately $77 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. On April 9, 2015, the Company completed the acquisition of the water assets of The Meadows community in Adams County, Pennsylvania. The Company began operating the existing system as a satellite location on April 13, 2015. The acquisition resulted in the addition of approximately 90 new water customers with purchase price and acquisition costs of approximately $63, which is less than depreciated original cost of the assets. The Company recorded a negative acquisition adjustment of approximately $159 and will seek approval from the PPUC to amortize the negative acquisition adjustment over the remaining life of the acquired assets. On April 22, 2015, the Company completed the acquisition of the water assets of the Paradise Homes Community in York County, Pennsylvania. The Company began operating the existing system through an interconnection with its current distribution system on April 27, 2015. The acquisition resulted in the addition of approximately 90 new water customers with purchase price and acquisition costs of approximately $29. The result of these acquisitions has been immaterial to total Company results. During the second quarter of 2015, the Company paid approximately $2 of additional acquisition costs related to a previous acquisition.

Rate Matters

Rate Matters	9 Months Ended
	Sep. 30, 2015
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. Effective February 28, 2014, the PPUC authorized an increase in water rates designed to produce approximately $4,972 in additional annual revenues, and an increase in wastewater rates for the Asbury Pointe subdivision to produce approximately $28 in additional annual revenues. 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 surcharge reset to zero when the new base rates took effect on February 28, 2014. To date in 2015, the Company's earnings have exceeded the regulatory benchmark, preventing the collection of a DSIC. The were no DSIC revenues for the three months ended September 30, 2015 and 2014. The DSIC provided revenue of $0 and $283 for the nine months ended September 30, 2015 and 2014, respectively.

Impact of Recent Accounting Pro

Impact of Recent Accounting Pronouncements	9 Months Ended
	Sep. 30, 2015
Impact of Recent Accounting Pronouncements [Abstract]
Impact of Recent Accounting Pronouncements	10. Impact of Recent Accounting Pronouncements In April 2015, the Financial Accounting Standards Board ( Accounting Standards Update ( Simplifying the Presentation of Debt Issuance Costs. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. This ASU supersedes the revenue recognition requirements in Accounting Standards Codification 605—Revenue Recognition and most industry-specific guidance throughout the Codification. The standard requires that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. This ASU is effective for fiscal years beginning after December 15, 2017, and for interim periods within those fiscal years. E arly adoption is permitted for fiscal years beginning after December 15, 2016. The standard permits the use of either a retrospective or cumulative effect transition method. The Company has not yet selected a transition method and is in the process of assessing the impact of the adoption of the standard on its financial position, results of operations and cash flows.

Impact of Recent Accounting P18

Impact of Recent Accounting Pronouncements (Policies)	9 Months Ended
	Sep. 30, 2015
Impact of Recent Accounting Pronouncements [Abstract]
New Accounting Pronouncements	In April 2015, the Financial Accounting Standards Board ( Accounting Standards Update ( Simplifying the Presentation of Debt Issuance Costs. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. This ASU supersedes the revenue recognition requirements in Accounting Standards Codification 605—Revenue Recognition and most industry-specific guidance throughout the Codification. The standard requires that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. This ASU is effective for fiscal years beginning after December 15, 2017, and for interim periods within those fiscal years. E arly adoption is permitted for fiscal years beginning after December 15, 2016. The standard permits the use of either a retrospective or cumulative effect transition method. The Company has not yet selected a transition method and is in the process of assessing the impact of the adoption of the standard on its financial position, results of operations and cash flows.

Pensions (Tables)

Pensions (Tables)	9 Months Ended
	Sep. 30, 2015
Pensions [Abstract]
Components of Net Periodic Pension Cost	Components of Net Periodic Pension Cost Three Months Ended September 30 Nine Months Ended September 30 2015 2014 2015 2014 Service cost $ 291 $ 238 $ 874 $ 714 Interest cost 378 361 1,136 1,083 Expected return on plan assets (557 ) (496 ) (1,672 ) (1,490 ) Amortization of actuarial loss 177 31 529 94 Amortization of prior service cost (3 ) (3 ) (9 ) (9 ) Rate-regulated adjustment 289 444 867 1,215 Net periodic pension expense $ 575 $ 575 $ 1,725 $ 1,607

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2015
Fair Value Measurements [Abstract]
Fair Value of Interest Rate Swap	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 September 30, 2015 Fair Value Measurements at Reporting Date Using Significant Other Observable Inputs (Level 2) Interest Rate Swap $2,663 $2,663 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, 2015. 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, 2015. The use of the Company's credit rating resulted in a reduction in the fair value of the swap liability of $164 as of September 30, 2015. The fair value of the swap reflecting the Company's credit quality as of December 31, 2014 is shown in the table below. Description December 31, 2014 Fair Value Measurements at Reporting Date Using Significant Other Observable Inputs (Level 2) Interest Rate Swap $2,592 $2,592

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 30, 2015
Debt [Abstract]
Debt	As of Sept. 30, 2015 As of Dec. 31, 2014 4.05% Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Bonds, Series A of 2004, due 2016 $ - $ 2,350 5.00% Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Bonds, Series A of 2004, due 2016 - 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 Note, due 2019 172 205 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 Refunding Bonds, Series 2008A, due 2029 12,000 12,000 4.75% York County Industrial Development Authority Revenue Bonds, Series 2006, due 2036 10,500 10,500 4.50% Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Refunding Bonds, Series 2014, due 2038 14,880 14,880 5.00% Monthly Senior Notes, Series 2010A, due 2040 15,000 15,000 4.00% - 4.50% York County Industrial Development Authority Exempt Facilities Revenue Bonds, Series 2015, due 2029 - 2045 10,000 - Total long-term debt 87,552 84,885 Less discount on issuance of long-term debt (240 ) - Less current maturities (43 ) (43 ) Long-term portion $ 87,269 $ 84,842

Common Stock and Basic Earnin22

Common Stock and Basic Earnings Per Share (Details) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Common Stock and Basic Earnings Per Share [Abstract]
Weighted average number of shares outstanding (in shares)	12,835,197	12,823,680	12,844,458	12,902,899
Common stock equivalents outstanding (in shares)			0
Diluted earnings per share (in dollars per share)			$ 0
Number of shares authorized to be repurchased under the stock repurchase program (in shares)	1,200,000		1,200,000
Number of remaining shares authorized to be repurchased under the stock repurchase program (in shares)	704,204		704,204
Number of shares repurchased and retired under the stock repurchase program (in shares)	118,812	21,523	118,812	256,943

Pensions (Details)

Pensions (Details) - Pension Plans [Member] - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Net Periodic Pension Cost [Abstract]
Service cost	$ 291	$ 238	$ 874	$ 714
Interest cost	378	361	1,136	1,083
Expected return on plan assets	(557)	(496)	(1,672)	(1,490)
Amortization of actuarial loss	177	31	529	94
Amortization of prior service cost	(3)	(3)	(9)	(9)
Rate-regulated adjustment	289	444	867	1,215
Net periodic pension expense	$ 575	$ 575	1,725	$ 1,607
Employer Contributions [Abstract]
Contributions made by employer			2,300
Estimated future contributions in current year			$ 0

Interest Rate Swap Agreement (D

Interest Rate Swap Agreement (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Interest Rate Swap Agreement [Abstract]
Long-term debt	$ 87,552		$ 87,552		$ 84,885
Interest Rate Swap [Member]
Interest Rate Swap Agreement [Abstract]
Notional amount of swap	$ 12,000		$ 12,000
Fixed interest rate (in hundredths)	3.16%		3.16%
Net payment rate on swaps (in hundredths)	3.07%	3.09%	3.03%	3.05%
Interest rate swap settlements reclassified from regulatory assets to interest expense	$ 92	$ 93	$ 274	$ 276
Interest rate swap gain (loss) capitalized	(430)	$ (142)	(346)	$ (844)
Interest rate swap settlements to be reclassified during the next 12 months	352		352
Potential payment to counterparty	$ 2,827		$ 2,827
Maturity date of swap			Oct. 1, 2029
LIBOR [Member] | Interest Rate Swap [Member]
Interest Rate Swap Agreement [Abstract]
Percentage of variable interest rate (in hundredths)	59.00%		59.00%
Variable Rate Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Refunding Bonds, Series 2008A, due 2029 [Member]
Interest Rate Swap Agreement [Abstract]
Long-term debt	$ 12,000		$ 12,000		$ 12,000

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Interest Rate Swap [Abstract]
Term of debt on utilities rated A- used to discount prospective cash flows	30 years
Reduction in fair value of swap liability	$ 164
Fair Value Estimate Not Practicable, Financial Liabilities [Abstract]
Customer advances for construction	11,399	$ 10,712
Fair Value Estimate Not Practicable, Financial Assets [Abstract]
Notes receivable	255	266
Fair Value on a Recurring Basis [Member]
Interest Rate Swap [Abstract]
Interest rate swap	2,663	2,592
Fair Value on a Recurring Basis [Member] | Fair Value Measurements Using Significant Other Observable Inputs (Level 2) [Member]
Interest Rate Swap [Abstract]
Interest rate swap	2,663	2,592
Carrying Amount [Member]
Fair Value, Financial Liabilities [Abstract]
Long-term debt (including current maturities)	87,552	84,885
Estimate of Fair Value [Member]
Fair Value, Financial Liabilities [Abstract]
Long-term debt (including current maturities)	98,000	100,000
Fair Value, Estimate Not Practicable, Carrying Amount [Member]
Fair Value Estimate Not Practicable, Financial Liabilities [Abstract]
Customer advances for construction	11,399	10,712
Fair Value Estimate Not Practicable, Financial Assets [Abstract]
Notes receivable	$ 255	$ 266

Debt (Details)

Debt (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Debt [Abstract]
Total long-term debt	$ 87,552	$ 84,885
Less discount on issuance of long-term debt	(240)	0
Less current maturities	(43)	(43)
Long-term portion	87,269	84,842
4.05% Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Bonds, Series A of 2004, due 2016 [Member]
Debt [Abstract]
Total long-term debt	$ 0	2,350
Interest rate (in hundredths)	4.05%
5.00% Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Bonds, Series A of 2004, due 2016 [Member]
Debt [Abstract]
Total long-term debt	$ 0	4,950
Interest rate (in hundredths)	5.00%
10.17% Senior Notes, Series A, due 2019 [Member]
Debt [Abstract]
Total long-term debt	$ 6,000	6,000
Interest rate (in hundredths)	10.17%
9.60% Senior Notes, Series B, due 2019 [Member]
Debt [Abstract]
Total long-term debt	$ 5,000	5,000
Interest rate (in hundredths)	9.60%
1.00% Pennvest Note, due 2019 [Member]
Debt [Abstract]
Total long-term debt	$ 172	205
Interest rate (in hundredths)	1.00%
10.05% Senior Notes, Series C, due 2020 [Member]
Debt [Abstract]
Total long-term debt	$ 6,500	6,500
Interest rate (in hundredths)	10.05%
8.43% Senior Notes, Series D, due 2022 [Member]
Debt [Abstract]
Total long-term debt	$ 7,500	7,500
Interest rate (in hundredths)	8.43%
Variable Rate Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Refunding Bonds, Series 2008A, due 2029 [Member]
Debt [Abstract]
Total long-term debt	$ 12,000	12,000
4.75% York County Industrial Development Authority Revenue Bonds, series 2006, due 2036 [Member]
Debt [Abstract]
Total long-term debt	$ 10,500	10,500
Interest rate (in hundredths)	4.75%
4.50% Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Refunding Bonds, Series 2014, due 2038 [Member]
Debt [Abstract]
Total long-term debt	$ 14,880	14,880
Interest rate (in hundredths)	4.50%
5.00% Monthly Senior Notes, Series 2010A, due 2040 [Member]
Debt [Abstract]
Total long-term debt	$ 15,000	15,000
Interest rate (in hundredths)	5.00%
4.00% - 4.50% York County Industrial Development Authority Exempt Facilities Revenue Bonds, Series 2015, due 2029 - 2045 [Member]
Debt [Abstract]
Total long-term debt	$ 10,000	$ 0
Proceeds from debt, net of issuance costs	$ 9,500
4.00% - 4.50% York County Industrial Development Authority Exempt Facilities Revenue Bonds, Series 2015, due 2029 - 2045 [Member] | Maximum [Member]
Debt [Abstract]
Interest rate (in hundredths)	4.50%
4.00% - 4.50% York County Industrial Development Authority Exempt Facilities Revenue Bonds, Series 2015, due 2029 - 2045 [Member] | Minimum [Member]
Debt [Abstract]
Interest rate (in hundredths)	4.00%
Renewed Line Of Credit 1 [Member]
Debt [Abstract]
Renewed line of credit	$ 13,000
Maturity date	May 31, 2017
Renewed Line Of Credit 2 [Member]
Debt [Abstract]
Renewed line of credit	$ 11,000
Maturity date	May 31, 2017
Renewed Line Of Credit 3 [Member]
Debt [Abstract]
Renewed line of credit	$ 5,000
Maturity date	Jun. 30, 2016

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Taxes [Abstract]
Effective tax rate (in hundredths)	28.30%	38.60%	30.70%	38.30%

Acquisitions (Details)

Acquisitions (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2015USD ($)Customer	Sep. 30, 2014USD ($)
Acquisitions [Abstract]
Purchase price	$ 94	$ 293
Change in acquisition adjustment	$ 2
Water Assets of Lincoln Estates Mobile Home Park [Member]
Acquisitions [Abstract]
Date of agreement	Nov. 20, 2014
Effective date of acquisition	Nov. 24, 2014
Number of customers acquired | Customer	200
Purchase price	$ 70
Acquisition adjustment	$ 77
Water Assets of The Meadows [Member]
Acquisitions [Abstract]
Date of agreement	Apr. 9, 2015
Effective date of acquisition	Apr. 13, 2015
Number of customers acquired | Customer	90
Purchase price	$ 63
Acquisition adjustment	$ 159
Water Assets of Paradise Homes Community [Member]
Acquisitions [Abstract]
Date of agreement	Apr. 22, 2015
Effective date of acquisition	Apr. 27, 2015
Number of customers acquired | Customer	90
Purchase price	$ 29

Rate Matters (Details)

Rate Matters (Details) - PPUC [Member] - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Rate Request Filed on March 29, 2013 [Member] | Water [Member]
Rate Matters [Abstract]
Requested dollar increase in annual revenue			$ 7,116
Authorized dollar increase in annual revenue			4,972
Rate Request Filed on March 29, 2013 [Member] | Wastewater [Member]
Rate Matters [Abstract]
Requested dollar increase in annual revenue			28
Authorized dollar increase in annual revenue			28
DSIC [Member]
Rate Matters [Abstract]
Distribution system improvement charge revenue	$ 0	$ 0	$ 0	$ 283
DSIC [Member] | Maximum [Member]
Rate Matters [Abstract]
Distribution system improvement charge percentage over base rate (in hundredths)			5.00%
DSIC [Member] | Minimum [Member]
Rate Matters [Abstract]
Distribution system improvement charge percentage over base rate (in hundredths)			0.00%