Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 03, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Document Transition Report | false | |
Entity File Number | 001-34245 | |
Entity Registrant Name | YORK WATER CO | |
Entity Central Index Key | 0000108985 | |
Entity Incorporation, State or Country Code | PA | |
Entity Tax Identification Number | 23-1242500 | |
Entity Address, Address Line One | 130 East Market Street | |
Entity Address, City or Town | York | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 17401 | |
City Area Code | 717 | |
Local Phone Number | 845-3601 | |
Title of 12(b) Security | Common Stock, No par value | |
Trading Symbol | YORW | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 14,276,321 |
Balance Sheets (Unaudited)
Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
ASSETS | ||
UTILITY PLANT, at original cost | $ 526,229 | $ 485,750 |
Plant acquisition adjustments | (3,586) | (3,637) |
Accumulated depreciation | (104,816) | (99,204) |
Net utility plant | 417,827 | 382,909 |
OTHER PHYSICAL PROPERTY, net of accumulated depreciation of $493 in 2022 and $483 in 2021 | 733 | 717 |
CURRENT ASSETS: | ||
Cash and cash equivalents | 1 | 1 |
Accounts receivable, net of reserves of $834 in 2022 and $855 in 2021 | 5,461 | 4,634 |
Unbilled revenues | 3,084 | 2,784 |
Recoverable income taxes | 870 | 894 |
Materials and supplies inventories, at cost | 2,347 | 1,917 |
Prepaid expenses | 1,557 | 1,032 |
Total current assets | 13,320 | 11,262 |
OTHER LONG-TERM ASSETS: | ||
Prepaid pension cost | 17,182 | 14,054 |
Note receivable | 255 | 255 |
Deferred regulatory assets | 39,821 | 45,280 |
Other assets | 4,517 | 4,376 |
Total other long-term assets | 61,775 | 63,965 |
Total Assets | 493,655 | 458,853 |
COMMON STOCKHOLDERS' EQUITY: | ||
Common stock, no par value, authorized 46,500,000 shares, issued and outstanding 14,275,456 shares in 2022 and 13,112,948 shares in 2021 | 133,730 | 88,230 |
Retained earnings | 70,846 | 64,392 |
Total common stockholders' equity | 204,576 | 152,622 |
PREFERRED STOCK, authorized 500,000 shares, no shares issued | 0 | 0 |
LONG-TERM DEBT, excluding current portion | 116,788 | 138,869 |
COMMITMENTS | ||
CURRENT LIABILITIES: | ||
Current portion of long-term debt | 7,500 | 7,500 |
Accounts payable | 12,076 | 6,712 |
Dividends payable | 2,523 | 2,293 |
Accrued compensation and benefits | 1,585 | 1,575 |
Accrued interest | 1,084 | 959 |
Deferred regulatory liabilities | 588 | 607 |
Other accrued expenses | 400 | 440 |
Total current liabilities | 25,756 | 20,086 |
DEFERRED CREDITS: | ||
Customers' advances for construction | 15,331 | 12,820 |
Deferred income taxes | 46,317 | 49,590 |
Deferred employee benefits | 4,597 | 4,530 |
Deferred regulatory liabilities | 37,699 | 36,374 |
Other deferred credits | 717 | 2,086 |
Total deferred credits | 104,661 | 105,400 |
Contributions in aid of construction | 41,874 | 41,876 |
Total Stockholders' Equity and Liabilities | $ 493,655 | $ 458,853 |
Balance Sheets (Unaudited) (Par
Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
ASSETS | ||
Other physical property, accumulated depreciation | $ 493 | $ 483 |
CURRENT ASSETS: | ||
Accounts receivables, reserves | $ 834 | $ 855 |
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) | 14,275,456 | 13,112,948 |
Common stock, outstanding (in shares) | 14,275,456 | 13,112,948 |
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, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statements of Income [Abstract] | ||||
OPERATING REVENUES: | $ 15,811 | $ 14,503 | $ 44,950 | $ 41,385 |
OPERATING EXPENSES: | ||||
Operation and maintenance | 3,746 | 2,997 | 10,112 | 8,752 |
Administrative and general | 2,328 | 2,292 | 7,564 | 7,144 |
Depreciation and amortization | 2,572 | 2,223 | 7,545 | 6,595 |
Taxes other than income taxes | 309 | 307 | 1,001 | 954 |
Operating expenses | 8,955 | 7,819 | 26,222 | 23,445 |
Operating income | 6,856 | 6,684 | 18,728 | 17,940 |
OTHER INCOME (EXPENSES): | ||||
Interest on debt | (1,204) | (1,237) | (3,706) | (3,673) |
Allowance for funds used during construction | 382 | 310 | 902 | 883 |
Other pension costs | (318) | (304) | (956) | (911) |
Other income (expenses), net | (117) | (34) | (546) | (179) |
Other income (expenses) | (1,257) | (1,265) | (4,306) | (3,880) |
Income before income taxes | 5,599 | 5,419 | 14,422 | 14,060 |
Income taxes | (82) | 625 | (147) | 1,077 |
Net Income | $ 5,681 | $ 4,794 | $ 14,569 | $ 12,983 |
Basic Earnings Per Share (in dollars per share) | $ 0.4 | $ 0.36 | $ 1.05 | $ 0.99 |
Diluted Earnings Per Share (in dollars per share) | $ 0.4 | $ 0.36 | $ 1.05 | $ 0.99 |
Statements of Common Stockholde
Statements of Common Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Retained Earnings [Member] | Total |
Balance at Dec. 31, 2020 | $ 85,935 | $ 57,317 | $ 143,252 |
Balance (in shares) at Dec. 31, 2020 | 13,060,817 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Net income | $ 0 | 12,983 | 12,983 |
Cash dividends declared | 0 | (7,354) | (7,354) |
Issuance of common stock under dividend reinvestment, direct stock and employee stock purchase plans | $ 1,612 | 0 | 1,612 |
Issuance of common stock under dividend reinvestment, direct stock and employee stock purchase plans (in shares) | 35,937 | ||
Stock-based compensation | $ 167 | 0 | 167 |
Stock-based compensation (in shares) | 6,170 | ||
Balance at Sep. 30, 2021 | $ 87,714 | 62,946 | 150,660 |
Balance (in shares) at Sep. 30, 2021 | 13,102,924 | ||
Balance at Jun. 30, 2021 | $ 87,100 | 60,606 | 147,706 |
Balance (in shares) at Jun. 30, 2021 | 13,090,055 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Net income | $ 0 | 4,794 | 4,794 |
Cash dividends declared | 0 | (2,454) | (2,454) |
Issuance of common stock under dividend reinvestment, direct stock and employee stock purchase plans | $ 568 | 0 | 568 |
Issuance of common stock under dividend reinvestment, direct stock and employee stock purchase plans (in shares) | 12,869 | ||
Stock-based compensation | $ 46 | 0 | 46 |
Stock-based compensation (in shares) | 0 | ||
Balance at Sep. 30, 2021 | $ 87,714 | 62,946 | 150,660 |
Balance (in shares) at Sep. 30, 2021 | 13,102,924 | ||
Balance at Dec. 31, 2021 | $ 88,230 | 64,392 | $ 152,622 |
Balance (in shares) at Dec. 31, 2021 | 13,112,948 | 13,112,948 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Net income | $ 0 | 14,569 | $ 14,569 |
Cash dividends declared | 0 | (8,115) | (8,115) |
Issuance of common stock | $ 43,970 | 0 | 43,970 |
Issuance of common stock (in shares) | 1,121,940 | ||
Issuance of common stock under dividend reinvestment, direct stock and employee stock purchase plans | $ 1,322 | 0 | 1,322 |
Issuance of common stock under dividend reinvestment, direct stock and employee stock purchase plans (in shares) | 33,016 | ||
Stock-based compensation | $ 208 | 0 | 208 |
Stock-based compensation (in shares) | 7,552 | ||
Balance at Sep. 30, 2022 | $ 133,730 | 70,846 | $ 204,576 |
Balance (in shares) at Sep. 30, 2022 | 14,275,456 | 14,275,456 | |
Balance at Jun. 30, 2022 | $ 133,239 | 67,945 | $ 201,184 |
Balance (in shares) at Jun. 30, 2022 | 14,264,763 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Net income | $ 0 | 5,681 | 5,681 |
Cash dividends declared | 0 | (2,780) | (2,780) |
Issuance of common stock | $ 0 | 0 | 0 |
Issuance of common stock (in shares) | 0 | ||
Issuance of common stock under dividend reinvestment, direct stock and employee stock purchase plans | $ 441 | 0 | 441 |
Issuance of common stock under dividend reinvestment, direct stock and employee stock purchase plans (in shares) | 11,160 | ||
Stock-based compensation | $ 50 | 0 | 50 |
Stock-based compensation (in shares) | (467) | ||
Balance at Sep. 30, 2022 | $ 133,730 | $ 70,846 | $ 204,576 |
Balance (in shares) at Sep. 30, 2022 | 14,275,456 | 14,275,456 |
Statements of Common Stockhol_2
Statements of Common Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Cash dividends declared (in dollars per share) | $ 0.1949 | $ 0.1874 | $ 0.5847 | $ 0.5622 |
Statements of Cash Flows (Unaud
Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 14,569 | $ 12,983 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 7,545 | 6,595 |
Stock-based compensation | 208 | 167 |
Increase (decrease) in deferred income taxes | (170) | 53 |
Other | 38 | 46 |
Changes in assets and liabilities: | ||
(Increase) decrease in accounts receivable and unbilled revenues | (1,431) | 745 |
Decrease in recoverable income taxes | 24 | 700 |
(Increase) decrease in materials and supplies, prepaid expenses, prepaid pension cost, regulatory and other assets | 771 | (6,911) |
Increase (decrease) in accounts payable, accrued compensation and benefits, accrued expenses, deferred employee benefits, regulatory liabilities, and other deferred credits | (4,368) | 3,989 |
Increase in accrued interest | 125 | 109 |
Net cash provided by operating activities | 17,311 | 18,476 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Utility plant additions, including debt portion of allowance for funds used during construction of $504 in 2022 and $493 in 2021 | (34,050) | (27,434) |
Acquisitions of water and wastewater systems | (2,826) | 0 |
Net cash used in investing activities | (36,876) | (27,434) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Customers' advances for construction and contributions in aid of construction | 3,281 | 1,955 |
Repayments of customer advances | (772) | (772) |
Proceeds of long-term debt issues | 26,000 | 37,452 |
Repayments of long-term debt | (48,213) | (28,960) |
Changes in cash overdraft position | 1,862 | 14 |
Issuance of common stock | 45,292 | 1,612 |
Dividends paid | (7,885) | (7,344) |
Net cash provided by financing activities | 19,565 | 3,957 |
Net change in cash, cash equivalents, and restricted cash | 0 | (5,001) |
Cash, cash equivalents, and restricted cash at beginning of period | 1 | 5,002 |
Cash and cash equivalents at end of period | 1 | 1 |
Cash paid during the period for: | ||
Interest, net of amounts capitalized | 2,976 | 2,936 |
Income taxes | $ 0 | $ 217 |
Supplemental schedule of non-cash investing and financing activities: | ||
Accounts payable includes $5,536 in 2022 and $3,562 in 2021 for the construction of utility plant. |
Statements of Cash Flows (Una_2
Statements of Cash Flows (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Utility plant additions, debt portion of allowance for funds used during construction | $ 504 | $ 493 |
Supplemental schedule of non-cash investing and financing activities: | ||
Accounts payable for construction of utility plant | $ 5,536 | $ 3,562 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2022 | |
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, 2021. Operating results for the are not necessarily indicative of the results that may be expected for the year ending December 31, . Additionally, based on the duration and severity of the novel coronavirus ("COVID-19") pandemic, the Company is uncertain of the ultimate impact it could have on the business. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2022 | |
Acquisitions [Abstract] | |
Acquisitions | 2. Acquisitions On August 11, 2022, the Company completed the acquisition of the water assets and wastewater collection and treatment assets of Country View Manor Community, LLC in York County, Pennsylvania. The Company began operating the existing water assets and wastewater collection and treatment assets on August 15, 2022. The acquisition resulted in the addition of approximately 50 water and wastewater customers with purchase price and acquisition costs of approximately $39. This acquisition is immaterial to Company results. On August 25, 2022, the Company completed the acquisition of the water assets and wastewater collection and treatment assets jointly owned by Letterkenny Industrial Development Authority and Franklin County General Authority in Franklin County, Pennsylvania. The Company began operating the existing water assets and wastewater collection and treatment assets on August 29, 2022. The acquisition resulted in the addition of approximately 90 water and wastewater customers with purchase price and acquisition costs of approximately $2,787. This acquisition is immaterial to Company results. |
Accounts Receivable and Contrac
Accounts Receivable and Contract Assets | 9 Months Ended |
Sep. 30, 2022 | |
Accounts Receivable and Contract Assets [Abstract] | |
Accounts Receivable and Contract Assets | 3. Accounts Receivable and Contract Assets Accounts receivable and contract assets are summarized in the following table: As of Sep. 30, 2022 As of Dec. 31, 2021 Change Accounts receivable – customers $ 5,873 $ 5,034 $ 839 Other receivables 422 455 (33 ) 6,295 5,489 806 Less: allowance for doubtful accounts (834 ) (855 ) 21 Accounts receivable, net $ 5,461 $ 4,634 $ 827 Unbilled revenue $ 3,084 $ 2,784 $ 300 Differences in timing of revenue recognition, billings, and cash collections result in receivables and contract assets. Generally, billing occurs subsequent to revenue recognition, resulting in a contract asset reported as unbilled revenue on the balance sheet. The Company does not receive advances or deposits from customers before revenue is recognized so no contract liabilities are reported. Accounts receivable are recorded when the right to consideration becomes unconditional and are presented separately on the balance sheet. The changes in accounts receivable – customers and in unbilled revenue were primarily due to normal timing difference between performance and the customer’s payments. |
Common Stock and Earnings Per S
Common Stock and Earnings Per Share | 9 Months Ended |
Sep. 30, 2022 | |
Common Stock and Earnings Per Share [Abstract] | |
Common Stock and Earnings Per Share | 4. Common Stock and Earnings Per Share Net income of $5,681 and $4,794 for the three months ended September 30, 2022 and 2021, respectively, and $14,569 and $12,983 for the nine months ended September 30, 2022 and 2021, respectively, is used to calculate both basic and diluted earnings per share. Basic earnings per share is based on the weighted average number of common shares outstanding. Diluted earnings per share is based on the weighted average number of common shares outstanding plus potentially dilutive shares. The dilutive effect of employee stock-based compensation is included in the computation of diluted earnings per share and is calculated using the treasury stock method and expected proceeds upon exercise or issuance of the stock-based compensation. The following table summarizes the shares used in computing basic and diluted earnings per share: Three Months Ended September 30 Nine Months Ended September 30 2022 2021 2022 2021 Weighted average common shares, basic 14,254,570 13,083,762 13,853,816 13,069,582 Effect of dilutive securities: Employee stock-based compensation 703 563 407 347 Weighted average common shares, diluted 14,255,273 13,084,325 13,854,223 13,069,929 On April 5, 2022, the Company closed an underwritten public offering of 975,600 shares of its common stock, with an offering price of $41 per share. On April 7, 2022, the Company closed on the full exercise of the underwriter’s option to purchase an additional 146,340 shares of its common stock at the same price. Janney Montgomery Scott LLC was the underwriter in the offering. The Company received net proceeds in the offering, after deducting offering expenses and underwriters’ discounts and commissions, of $43,970. The net proceeds were used to repay the Company’s borrowings under its line of credit agreement incurred to fund capital expenditures and acquisitions, and for general corporate purposes. On March 11, 2013, the Board of Directors, or the Board, 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. The stock repurchase program has no specific end date and 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. No shares were repurchased during the three or nine months ended September 30, 2022 and 2021. As of September 30, 2022, 618,004 shares remain authorized for repurchase. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2022 | |
Debt [Abstract] | |
Debt | 5. Debt As of Sep. 30, 2022 As of Dec. 31, 2021 8.43 $ 7,500 $ 7,500 Variable Rate Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Refunding Bonds, Series 2008A, due 2029 12,000 12,000 3.00 10,500 10,500 3.10 14,870 14,870 3.23 15,000 15,000 4.00 4.50 10,000 10,000 4.54 20,000 20,000 3.24% Senior Notes, due 2050 30,000 30,000 Committed Line of Credit, due September 2024 7,107 29,320 Total long-term debt 126,977 149,190 Less discount on issuance of long-term debt (161 ) (169 ) Less unamortized debt issuance costs (2,528 ) (2,652 ) Less current maturities (7,500 ) (7,500 ) Long-term portion $ 116,788 $ 138,869 In the third quarter of 2022, the Company renewed its committed line of credit and extended the maturity date to September 2024. As part of the renewal, the interest rate will change from LIBOR plus 1.05% to a successor rate of the Secured Overnight Financing Rate, or SOFR, plus 1.17% on January 1, 2023, in advance of the likely discontinuation of LIBOR in 2023. No other terms or conditions of the line of credit agreement were modified. |
Interest Rate Swap Agreement
Interest Rate Swap Agreement | 9 Months Ended |
Sep. 30, 2022 | |
Interest Rate Swap Agreement [Abstract] | |
Interest Rate Swap Agreement | 6. 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 the U.S. Dollar one-month LIBOR rate 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 1.78% and 3.13% for the three months ended September 30, 2022 and 2021, respectively, and 2.43% and 3.06% for the nine months ended September 30, 2022 and 2021, 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 7). The Company uses regulatory accounting treatment rather than hedge accounting to defer the unrealized gains and losses on its interest rate swap. These unrealized gains and losses are 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 $52 and $94 for the three months ended September 30, 2022 and 2021, respectively, and $220 and $278 for the nine months ended September 30, 2022 and 2021, respectively. The overall swap result was a gain of $357 and $31 for the three months ended September 30, 2022 and 2021, respectively, and $1,132 and $250 for the nine months ended September 30, 2022 and 2021, respectively. The Company expects to reclassify $70 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 August 9, 2022, 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, 2022. If a violation due to credit rating, or some other default provision, were triggered on September 30, 2022, the Company would have been required to pay the counterparty approximately $701. 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 of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | 7. Fair Value of Financial Instruments 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, 2022 Fair Value Measurements at Reporting Date Using Significant Other Observable Inputs (Level 2) Interest Rate Swap $717 $717 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, 2022. 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, 2022. The fair value of the swap reflecting the Company's credit quality as of December 31, 2021 is shown in the table below. Description December 31, 2021 Fair Value Measurements at Reporting Date Using Significant Other Observable Inputs (Level 2) Interest Rate Swap $2,086 $2,086 The carrying amount of current assets and liabilities that are considered financial instruments approximates fair value as of the dates presented. The Company's total long-term debt, with a carrying value of $126,977 at September 30, 2022, and $149,190 at December 31, 2021, had an estimated fair value of approximately $105,000 and $168,000, 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 the letter of credit on the 2008 Pennsylvania Economic Development Financing Authority Series A issue. Customers' advances for construction and note receivable had carrying values at September 30, 2022 of $15,331 and $255, respectively. At December 31, 2021, customers' advances for construction and note receivable had carrying values of $12,820 and $255, 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. |
Commitments
Commitments | 9 Months Ended |
Sep. 30, 2022 | |
Commitments [Abstract] | |
Commitments | 8. Commitments The Company has committed to capital expenditures of approximately $39,205 to armor and replace the spillway of the Lake Williams dam, of which $29,626 remains to be incurred as of September 30, 2022. The Company may make additional commitments for this project in the future. The Company entered into a consent order agreement with the Pennsylvania Department of Environmental Protection, or DEP, in December 2016 after the Company determined it exceeded the action level for lead as established by the Lead and Copper Rule, or LCR, issued by the U.S. Environmental Protection Agency. The Company did not have an exceedance in any subsequent compliance test and successfully completed its commitment to exceed the LCR replacement schedule by replacing all the known company-owned lead service lines within four years from the agreement. In June 2022, DEP determined the Company had completed all requirements and terminated the consent order agreement. The Company was granted approval by the Pennsylvania Public Utility Commission, or PPUC, to modify its tariff to include the cost of the annual replacement of up to lead customer-owned service lines over from the agreement. The tariff modification allows the Company to replace customer-owned service lines at its own initial cost. The Company will record the costs as a regulatory asset to be recovered in future base rates to customers, over a period. The cost for the customer-owned lead service line replacements was approximately $ and $ through and , respectively, and is included as a regulatory asset. |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2022 | |
Revenue [Abstract] | |
Revenue | 9. Revenue The following table shows the Company’s revenues disaggregated by service and customer type. Three Months Ended September 30 Nine Months Ended September 30 2022 2021 2022 2021 Water utility service: Residential $ 9,282 $ 8,872 $ 26,548 $ 25,560 Commercial and industrial 4,208 3,952 11,692 10,891 Fire protection 856 827 2,528 2,428 Wastewater utility service: Residential 976 481 2,830 1,426 Commercial and industrial 209 79 434 237 Billing and revenue collection services 149 121 363 360 Collection services 3 18 151 29 Other revenue 6 18 25 38 Total Revenue from Contracts with Customers 15,689 14,368 44,571 40,969 Rents from regulated property 122 135 379 416 Total Operating Revenue $ 15,811 $ 14,503 $ 44,950 $ 41,385 Utility Service The Company provides utility service as a distinct and single performance obligation to each of its water and wastewater customers. The transaction price is detailed in the tariff pursuant to an order by the PPUC and made publicly available. There is no variable consideration and no free service, special rates, or subnormal charges to any customer. Due to the fact that the contract includes a single performance obligation, no judgment is required to allocate the transaction price. The performance obligation is satisfied over time through the continuous provision of utility service through a stand-ready obligation to perform and the transfer of water or the collection of wastewater through a series of distinct transactions that are identical in nature and have the same pattern of transfer to the customer. The Company uses an output method to recognize the utility service revenue over time. The stand-ready obligation is recognized through the passage of time in the form of a fixed charge and the transfer of water or the collection of wastewater is recognized at a per unit rate based on the actual or estimated flow through the meter. Each customer is invoiced every month and the invoice is due within twenty days. The utility service has no returns or warranties associated with it. No revenue is recognized from performance obligations satisfied in prior periods and no performance obligations remain unsatisfied as of the end of the reporting period. A contract asset for unbilled revenue is recognized for the passage of time and the actual or estimated usage from the latest meter reading to the end of the accounting period. The methodology is standardized and consistently applied to reduce bias and the need for judgment. Billing and Revenue Collection Service The Company provides billing and revenue collection service as distinct performance obligations to two municipalities within the service territory of the Company. The municipalities provide service to their residents and the Company acts as the billing and revenue collection agent for the municipalities. The transaction price is a fixed amount per bill prepared as established in the contract. There is no variable consideration. Due to the fact that both the billing performance obligation and the revenue collection performance obligation are materially complete by the end of the reporting period, the Company does not allocate the transaction price between the two performance obligations. The performance obligations are satisfied at a point in time when the bills are sent as the municipalities receive all the benefits and bears all of the risk of non-collection at that time. Each municipality is invoiced when the bills are complete and the invoice is due within thirty days. The billing and revenue collection service has no returns or warranties associated with it. No revenue is recognized from performance obligations satisfied in prior periods and no performance obligations remain unsatisfied as of the end of the reporting period. Collection Service The Company provides collection service as a distinct and single performance obligation to several municipalities within the service territory of the Company. The municipalities provide wastewater service to their residents. If those residents are delinquent in paying for their wastewater service, the municipalities request that the Company post for and shut off the supply of water to the premises of those residents. When the resident is no longer delinquent, the Company will restore water service to the premises. The transaction price for each posting, each shut off, and each restoration is a fixed amount as established in the contract. There is no variable consideration. Due to the fact that the contract includes a single performance obligation, no judgment is required to allocate the transaction price. The performance obligation is satisfied at a point in time when the posting, shut off, or restoration is completed as the municipalities receive all the benefits in the form of payment or no longer providing wastewater service. Each municipality is invoiced periodically for the posting, shut offs, and restorations that have been completed since the last billing and the invoice is due within thirty days. The collection service has no returns or warranties associated with it. No revenue is recognized from performance obligations satisfied in prior periods and no performance obligations remain unsatisfied as of the end of the reporting period. A contract asset for unbilled revenue is recognized for postings, shut offs, and restorations that have been completed from the last billing to the end of the accounting period. Service Line Protection Plan The Company provides service line protection as a distinct and single performance obligation to current water customers that choose to participate. The transaction price is detailed in the plan’s terms and conditions and made publicly available. There is no variable consideration. Due to the fact that the contract includes a single performance obligation, no judgment is required to allocate the transaction price. The performance obligation is satisfied over time through the continuous provision of service line protection through a stand-ready obligation to perform. The Company uses an output method to recognize the service line protection revenue over time. The stand-ready obligation is recognized through the passage of time. A customer has a choice to prepay for an entire year or to pay in advance each month. The service line protection plan has no returns or extended warranties associated with it. No revenue is recognized from performance obligations satisfied in prior periods and no material performance obligations remain unsatisfied as of the end of the reporting period. |
Rate Matters
Rate Matters | 9 Months Ended |
Sep. 30, 2022 | |
Rate Matters [Abstract] | |
Rate Matters | 10. 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 27, 2022 and seeks an annual increase in water rates of $18,854, which would represent a 33.8% increase, and an annual increase in wastewater rates of $1,457, which would represent a 35% increase. The request is currently under review by the PPUC and other interested parties. Any rate increase approved by the PPUC will be effective no later than March 1, 2023. There can be no assurance that the PPUC will grant the Company's rate increase in the amount requested, if at all. The PPUC permits water utilities to collect a distribution system improvement charge, or 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. |
Pensions
Pensions | 9 Months Ended |
Sep. 30, 2022 | |
Pensions [Abstract] | |
Pensions | 11. Pensions Components of Net Periodic Pension Cost Three Months Ended September 30 Nine Months Ended September 30 2022 2021 2022 2021 Service cost $ 257 $ 271 $ 769 $ 814 Interest cost 334 302 1,002 906 Expected return on plan assets (1,054 ) (913 ) (3,163 ) (2,739 ) Amortization of actuarial loss – 121 – 363 Amortization of prior service cost (4 ) (3 ) (10 ) (9 ) Rate-regulated adjustment 1,042 797 3,127 2,390 Net periodic pension expense $ 575 $ 575 $ 1,725 $ 1,725 Pension service cost is recorded in operating expenses. All other components of net periodic pension cost are recorded as other pension costs in other income (expenses). Employer Contributions The Company previously disclosed in its financial statements for the year ended that it expected to contribute $ to its pension plans in . For the |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2022 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | 12. Stock-Based Compensation On May 2, 2016, the Company’s stockholders approved The York Water Company Long-Term Incentive Plan, or LTIP. The LTIP was adopted to provide the incentive of long-term stock-based awards to officers, directors and key employees. The LTIP provides for the granting of nonqualified stock options, incentive stock options, stock appreciation rights, performance restricted stock grants and units, restricted stock grants and units, and unrestricted stock grants. A maximum of 100,000 shares of common stock may be issued under the LTIP over the ten-year life of the plan. The maximum number of shares of common stock subject to awards that may be granted to any participant in any one calendar year is 2,000. Shares of common stock issued under the LTIP may be treasury shares or authorized but unissued shares. The LTIP will be administered by the Compensation Committee of the Board, or the full Board, provided that the full Board will administer the LTIP as it relates to awards to non-employee directors of the Company. The Company filed a registration statement with the Securities and Exchange Commission on May 11, 2016 covering the offering of stock under the LTIP. The LTIP was effective on July 1, 2016. On May 2, 2022, the Board awarded stock to non-employee directors effective May 2, 2022. This stock award vested immediately. On May 2, 2022, the Compensation Committee awarded restricted stock to officers and key employees effective May 2, 2022. This stock award vests ratably over three years beginning May 2, 2022. The restricted stock awards provide the grantee with the rights of a shareholder, including the right to receive dividends and to vote such shares, but not the right to sell or otherwise transfer the shares during the restriction period. As a result, the awards are included in common shares outstanding on the balance sheet. Restricted stock awards result in compensation expense valued at the fair market value of the stock on the date of the grant and are amortized ratably over the restriction period. The following tables summarize the stock grant amounts and activity for the nine months ended September 30, 2022. Number of Shares Grant Date Weighted Average Fair Value Nonvested at beginning of the period 8,804 $46.91 Granted 8,052 $38.87 Vested (5,591 ) $42.60 Forfeited (500 ) $44.61 Nonvested at end of the period 10,765 $43.24 For the three months ended September 30, 2022 and 2021, the statement of income includes $50 and $46 of stock-based compensation, respectively, and related recognized tax benefits of $14 and $13, respectively. For the nine months ended September 30, 2022 and 2021, the statement of income includes $208 and $167 of stock-based compensation, respectively, and related recognized tax benefits of $60 and $48, respectively. The total fair value of the shares vested in the nine months ended September 30, 2022 was $238. Total stock-based compensation related to nonvested awards not yet recognized is $465 which will be recognized over the remaining three year vesting period. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2022 | |
Income Taxes [Abstract] | |
Income Taxes | 13. Income Taxes Under the Internal Revenue Service tangible property regulations, or TPR, 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. The Company’s effective tax rate was and for the three months ended and , respectively, and and for the and , respectively. On July 8, 2022, the Pennsylvania budget for the fiscal year ending June 30, 2023 was signed into law. A provision within the tax code bill included with the budget provides for an annual phase-down of the Pennsylvania corporate net income tax rate of one percentage point in the first year beginning January 1, 2023 from 9.99% to 8.99%, and a one-half percentage point each year thereafter until it reaches 4.99% beginning January 1, 2031. The Company has remeasured the state portion of the Company’s deferred income taxes as of September 30, 2022. The effect, net of the federal benefit, of $18 was recognized in income for the three and nine months ended September 30, 2022. Deferred income taxes for differences that are recognized for ratemaking purposes on a cash or flow-through basis were remeasured with offsetting changes to regulatory assets and liabilities on the balance sheet as of September 30, 2022. The Company expects any savings in its Pennsylvania current income taxes to be returned to its customers through the rate making process or as a future negative surcharge on their bills. |
Revenue (Policies)
Revenue (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Revenue [Abstract] | |
Revenue | Utility Service The Company provides utility service as a distinct and single performance obligation to each of its water and wastewater customers. The transaction price is detailed in the tariff pursuant to an order by the PPUC and made publicly available. There is no variable consideration and no free service, special rates, or subnormal charges to any customer. Due to the fact that the contract includes a single performance obligation, no judgment is required to allocate the transaction price. The performance obligation is satisfied over time through the continuous provision of utility service through a stand-ready obligation to perform and the transfer of water or the collection of wastewater through a series of distinct transactions that are identical in nature and have the same pattern of transfer to the customer. The Company uses an output method to recognize the utility service revenue over time. The stand-ready obligation is recognized through the passage of time in the form of a fixed charge and the transfer of water or the collection of wastewater is recognized at a per unit rate based on the actual or estimated flow through the meter. Each customer is invoiced every month and the invoice is due within twenty days. The utility service has no returns or warranties associated with it. No revenue is recognized from performance obligations satisfied in prior periods and no performance obligations remain unsatisfied as of the end of the reporting period. A contract asset for unbilled revenue is recognized for the passage of time and the actual or estimated usage from the latest meter reading to the end of the accounting period. The methodology is standardized and consistently applied to reduce bias and the need for judgment. Billing and Revenue Collection Service The Company provides billing and revenue collection service as distinct performance obligations to two municipalities within the service territory of the Company. The municipalities provide service to their residents and the Company acts as the billing and revenue collection agent for the municipalities. The transaction price is a fixed amount per bill prepared as established in the contract. There is no variable consideration. Due to the fact that both the billing performance obligation and the revenue collection performance obligation are materially complete by the end of the reporting period, the Company does not allocate the transaction price between the two performance obligations. The performance obligations are satisfied at a point in time when the bills are sent as the municipalities receive all the benefits and bears all of the risk of non-collection at that time. Each municipality is invoiced when the bills are complete and the invoice is due within thirty days. The billing and revenue collection service has no returns or warranties associated with it. No revenue is recognized from performance obligations satisfied in prior periods and no performance obligations remain unsatisfied as of the end of the reporting period. Collection Service The Company provides collection service as a distinct and single performance obligation to several municipalities within the service territory of the Company. The municipalities provide wastewater service to their residents. If those residents are delinquent in paying for their wastewater service, the municipalities request that the Company post for and shut off the supply of water to the premises of those residents. When the resident is no longer delinquent, the Company will restore water service to the premises. The transaction price for each posting, each shut off, and each restoration is a fixed amount as established in the contract. There is no variable consideration. Due to the fact that the contract includes a single performance obligation, no judgment is required to allocate the transaction price. The performance obligation is satisfied at a point in time when the posting, shut off, or restoration is completed as the municipalities receive all the benefits in the form of payment or no longer providing wastewater service. Each municipality is invoiced periodically for the posting, shut offs, and restorations that have been completed since the last billing and the invoice is due within thirty days. The collection service has no returns or warranties associated with it. No revenue is recognized from performance obligations satisfied in prior periods and no performance obligations remain unsatisfied as of the end of the reporting period. A contract asset for unbilled revenue is recognized for postings, shut offs, and restorations that have been completed from the last billing to the end of the accounting period. Service Line Protection Plan The Company provides service line protection as a distinct and single performance obligation to current water customers that choose to participate. The transaction price is detailed in the plan’s terms and conditions and made publicly available. There is no variable consideration. Due to the fact that the contract includes a single performance obligation, no judgment is required to allocate the transaction price. The performance obligation is satisfied over time through the continuous provision of service line protection through a stand-ready obligation to perform. The Company uses an output method to recognize the service line protection revenue over time. The stand-ready obligation is recognized through the passage of time. A customer has a choice to prepay for an entire year or to pay in advance each month. The service line protection plan has no returns or extended warranties associated with it. No revenue is recognized from performance obligations satisfied in prior periods and no material performance obligations remain unsatisfied as of the end of the reporting period. |
Accounts Receivable and Contr_2
Accounts Receivable and Contract Assets (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Accounts Receivable and Contract Assets [Abstract] | |
Accounts Receivable and Contract Assets | Accounts receivable and contract assets are summarized in the following table: As of Sep. 30, 2022 As of Dec. 31, 2021 Change Accounts receivable – customers $ 5,873 $ 5,034 $ 839 Other receivables 422 455 (33 ) 6,295 5,489 806 Less: allowance for doubtful accounts (834 ) (855 ) 21 Accounts receivable, net $ 5,461 $ 4,634 $ 827 Unbilled revenue $ 3,084 $ 2,784 $ 300 |
Common Stock and Earnings Per_2
Common Stock and Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Common Stock and Earnings Per Share [Abstract] | |
Shares Used in Computing Basic and Diluted Earnings per Share | The following table summarizes the shares used in computing basic and diluted earnings per share: Three Months Ended September 30 Nine Months Ended September 30 2022 2021 2022 2021 Weighted average common shares, basic 14,254,570 13,083,762 13,853,816 13,069,582 Effect of dilutive securities: Employee stock-based compensation 703 563 407 347 Weighted average common shares, diluted 14,255,273 13,084,325 13,854,223 13,069,929 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt [Abstract] | |
Debt | As of Sep. 30, 2022 As of Dec. 31, 2021 8.43 $ 7,500 $ 7,500 Variable Rate Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Refunding Bonds, Series 2008A, due 2029 12,000 12,000 3.00 10,500 10,500 3.10 14,870 14,870 3.23 15,000 15,000 4.00 4.50 10,000 10,000 4.54 20,000 20,000 3.24% Senior Notes, due 2050 30,000 30,000 Committed Line of Credit, due September 2024 7,107 29,320 Total long-term debt 126,977 149,190 Less discount on issuance of long-term debt (161 ) (169 ) Less unamortized debt issuance costs (2,528 ) (2,652 ) Less current maturities (7,500 ) (7,500 ) Long-term portion $ 116,788 $ 138,869 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value of Financial Instruments [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, 2022 Fair Value Measurements at Reporting Date Using Significant Other Observable Inputs (Level 2) Interest Rate Swap $717 $717 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, 2022. 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, 2022. The fair value of the swap reflecting the Company's credit quality as of December 31, 2021 is shown in the table below. Description December 31, 2021 Fair Value Measurements at Reporting Date Using Significant Other Observable Inputs (Level 2) Interest Rate Swap $2,086 $2,086 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Revenue [Abstract] | |
Revenues Disaggregated by Service and Customer Type | The following table shows the Company’s revenues disaggregated by service and customer type. Three Months Ended September 30 Nine Months Ended September 30 2022 2021 2022 2021 Water utility service: Residential $ 9,282 $ 8,872 $ 26,548 $ 25,560 Commercial and industrial 4,208 3,952 11,692 10,891 Fire protection 856 827 2,528 2,428 Wastewater utility service: Residential 976 481 2,830 1,426 Commercial and industrial 209 79 434 237 Billing and revenue collection services 149 121 363 360 Collection services 3 18 151 29 Other revenue 6 18 25 38 Total Revenue from Contracts with Customers 15,689 14,368 44,571 40,969 Rents from regulated property 122 135 379 416 Total Operating Revenue $ 15,811 $ 14,503 $ 44,950 $ 41,385 |
Pensions (Tables)
Pensions (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Pensions [Abstract] | |
Components of Net Periodic Pension Cost | Components of Net Periodic Pension Cost Three Months Ended September 30 Nine Months Ended September 30 2022 2021 2022 2021 Service cost $ 257 $ 271 $ 769 $ 814 Interest cost 334 302 1,002 906 Expected return on plan assets (1,054 ) (913 ) (3,163 ) (2,739 ) Amortization of actuarial loss – 121 – 363 Amortization of prior service cost (4 ) (3 ) (10 ) (9 ) Rate-regulated adjustment 1,042 797 3,127 2,390 Net periodic pension expense $ 575 $ 575 $ 1,725 $ 1,725 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Stock-Based Compensation [Abstract] | |
Restricted Stock | The following tables summarize the stock grant amounts and activity for the nine months ended September 30, 2022. Number of Shares Grant Date Weighted Average Fair Value Nonvested at beginning of the period 8,804 $46.91 Granted 8,052 $38.87 Vested (5,591 ) $42.60 Forfeited (500 ) $44.61 Nonvested at end of the period 10,765 $43.24 |
Acquisitions (Details)
Acquisitions (Details) $ in Thousands | 9 Months Ended | |||
Aug. 25, 2022 USD ($) Customer | Aug. 11, 2022 USD ($) Customer | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | |
Acquisitions [Abstract] | ||||
Purchase price | $ 2,826 | $ 0 | ||
Water Assets and Wastewater Collection and Treatment Assets of Country View Manor Community, LLC [Member] | ||||
Acquisitions [Abstract] | ||||
Number of customers acquired | Customer | 50 | |||
Purchase price | $ 39 | |||
Water Assets and Wastewater Collection and Treatment Assets Jointly Owned by Letterkenny Industrial Development Authority and Franklin County General Authority [Member] | ||||
Acquisitions [Abstract] | ||||
Number of customers acquired | Customer | 90 | |||
Purchase price | $ 2,787 |
Accounts Receivable and Contr_3
Accounts Receivable and Contract Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Accounts Receivable and Contract Assets [Abstract] | ||
Accounts receivable - customers | $ 5,873 | $ 5,034 |
Other receivables | 422 | 455 |
Accounts receivable | 6,295 | 5,489 |
Less: allowance for doubtful accounts | (834) | (855) |
Accounts receivable, net | 5,461 | 4,634 |
Unbilled revenue | 3,084 | $ 2,784 |
Change in accounts receivable - customers | 839 | |
Change in other receivables | (33) | |
Change in accounts receivable | 806 | |
Change in allowance for doubtful accounts | 21 | |
Change in accounts receivable, net | 827 | |
Change in unbilled revenue | $ 300 |
Common Stock and Earnings Per_3
Common Stock and Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Apr. 07, 2022 | Apr. 07, 2022 | Apr. 05, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Mar. 11, 2013 | |
Common Stock and Earnings Per Share [Abstract] | ||||||||
Net income | $ 5,681 | $ 4,794 | $ 14,569 | $ 12,983 | ||||
Shares Used in Computing Basic and Diluted Earnings per Share [Abstract] | ||||||||
Weighted average common shares, basic (in shares) | 14,254,570 | 13,083,762 | 13,853,816 | 13,069,582 | ||||
Effect of dilutive securities [Abstract] | ||||||||
Employee stock-based compensation (in shares) | 703 | 563 | 407 | 347 | ||||
Weighted average common shares, diluted (in shares) | 14,255,273 | 13,084,325 | 13,854,223 | 13,069,929 | ||||
Underwritten Public Offering [Abstract] | ||||||||
Issuance of common stock (in shares) | 975,600 | |||||||
Offering price (in dollars per share) | $ 41 | |||||||
Net proceeds from issuance of common stock | $ 43,970 | |||||||
Stock Repurchase Program [Abstract] | ||||||||
Number of shares authorized to be repurchased under the stock repurchase program (in shares) | 1,200,000 | |||||||
Number of shares repurchased under the stock repurchase program (in shares) | 0 | 0 | 0 | 0 | ||||
Number of remaining shares authorized to be repurchased under the stock repurchase program (in shares) | 618,004 | 618,004 | ||||||
Underwriter's Option [Member] | ||||||||
Underwritten Public Offering [Abstract] | ||||||||
Issuance of common stock (in shares) | 146,340 | |||||||
Offering price (in dollars per share) | $ 41 | $ 41 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2023 | Dec. 31, 2021 | |
Debt [Abstract] | |||
Total long-term debt | $ 126,977 | $ 149,190 | |
Less discount on issuance of long-term debt | (161) | (169) | |
Less unamortized debt issuance costs | (2,528) | (2,652) | |
Less current maturities | (7,500) | (7,500) | |
Long-term portion | 116,788 | 138,869 | |
8.43% Senior Notes, Series D, due 2022 [Member] | |||
Debt [Abstract] | |||
Total long-term debt | $ 7,500 | 7,500 | |
Interest rate | 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 | |
3.00% Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Refunding Bonds, Series A of 2019, due 2036 [Member] | |||
Debt [Abstract] | |||
Total long-term debt | $ 10,500 | 10,500 | |
Interest rate | 3% | ||
3.10% Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Refunding Bonds, Series B of 2019, due 2038 [Member] | |||
Debt [Abstract] | |||
Total long-term debt | $ 14,870 | 14,870 | |
Interest rate | 3.10% | ||
3.23% Senior Notes, due 2040 [Member] | |||
Debt [Abstract] | |||
Total long-term debt | $ 15,000 | 15,000 | |
Interest rate | 3.23% | ||
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 | 10,000 | |
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 | 4% | ||
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 | 4.50% | ||
4.54% Senior Notes, due 2049 [Member] | |||
Debt [Abstract] | |||
Total long-term debt | $ 20,000 | 20,000 | |
Interest rate | 4.54% | ||
3.24% Senior Notes, due 2050 [Member] | |||
Debt [Abstract] | |||
Total long-term debt | $ 30,000 | 30,000 | |
Interest rate | 3.24% | ||
Committed Line of Credit, due September 2024 [Member] | |||
Debt [Abstract] | |||
Total long-term debt | $ 7,107 | $ 29,320 | |
Committed Line of Credit, due September 2024 [Member] | LIBOR [Member] | |||
Debt [Abstract] | |||
Basis adjustment | 1.05% | ||
Committed Line of Credit, due September 2024 [Member] | SOFR [Member] | Plan [Member] | |||
Debt [Abstract] | |||
Basis adjustment | 1.17% |
Interest Rate Swap Agreement (D
Interest Rate Swap Agreement (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Interest Rate Swap Agreement [Abstract] | |||||
Total long-term debt | $ 126,977 | $ 126,977 | $ 149,190 | ||
Interest Rate Swap [Member] | |||||
Interest Rate Swap Agreement [Abstract] | |||||
Notional amount of swap | $ 12,000 | $ 12,000 | |||
Fixed interest rate | 3.16% | 3.16% | |||
Net payment rate on swap | 1.78% | 3.13% | 2.43% | 3.06% | |
Interest rate swap settlements reclassified from regulatory assets to interest expense | $ 52 | $ 94 | $ 220 | $ 278 | |
Overall interest rate swap gain | (357) | $ (31) | (1,132) | $ (250) | |
Interest rate swap settlements to be reclassified during the next 12 months | 70 | 70 | |||
Potential payment to counterparty | $ 701 | $ 701 | |||
LIBOR [Member] | Interest Rate Swap [Member] | |||||
Interest Rate Swap Agreement [Abstract] | |||||
Percentage of variable interest rate | 59% | 59% | |||
Term of variable rate | 1 month | ||||
Variable Rate Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Refunding Bonds, Series 2008A, due 2029 [Member] | |||||
Interest Rate Swap Agreement [Abstract] | |||||
Total long-term debt | $ 12,000 | $ 12,000 | $ 12,000 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Interest Rate Swap [Abstract] | ||
Term of debt on utilities rated A- used to discount prospective cash flows | 30 years | |
Fair Value Measurements [Abstract] | ||
Customers' advances for construction | $ 15,331 | $ 12,820 |
Note receivable | 255 | 255 |
Fair Value on a Recurring Basis [Member] | ||
Interest Rate Swap [Abstract] | ||
Interest rate swap | 717 | 2,086 |
Fair Value on a Recurring Basis [Member] | Fair Value Measurements at Reporting Date Using Significant Other Observable Inputs (Level 2) [Member] | ||
Interest Rate Swap [Abstract] | ||
Interest rate swap | 717 | 2,086 |
Carrying Amount [Member] | ||
Fair Value, Financial Liabilities [Abstract] | ||
Total long-term debt | 126,977 | 149,190 |
Estimated Fair Value [Member] | ||
Fair Value, Financial Liabilities [Abstract] | ||
Total long-term debt | $ 105,000 | $ 168,000 |
Commitments (Details)
Commitments (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 USD ($) ServiceLine | Dec. 31, 2021 USD ($) | |
Commitments [Abstract] | ||
Capital expenditures committed | $ 39,205 | |
Armor and Replace Spillway of Lake Williams Dam [Member] | ||
Commitments [Abstract] | ||
Remaining committed capital expenditures to be incurred | $ 29,626 | |
Company-Owned Lead Service Lines [Member] | ||
Commitments [Abstract] | ||
Term to replace all remaining company-owned lead service lines | 4 years | |
Customer-Owned Lead Service Lines [Member] | ||
Commitments [Abstract] | ||
Number of lead customer-owned service lines to be replaced annually | ServiceLine | 400 | |
Term of tariff modification to replace customer-owned lead service lines | 9 years | |
Recovery period of regulatory asset | 4 years | |
Costs incurred to replace customer-owned lead service lines | $ 1,501 | $ 1,351 |
Costs to be incurred to replace customer-owned lead service lines | $ 1,700 |
Revenue (Details)
Revenue (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) Municipality | Sep. 30, 2021 USD ($) | |
Revenue [Abstract] | ||||
Revenue from contracts with customers | $ 15,689 | $ 14,368 | $ 44,571 | $ 40,969 |
Rents from regulated property | 122 | 135 | 379 | 416 |
Total operating revenue | 15,811 | 14,503 | $ 44,950 | 41,385 |
Utility Service [Member] | ||||
Revenue [Abstract] | ||||
Number of days for customer to make payment after being invoiced | 20 days | |||
Water Utility Service [Member] | Residential [Member] | ||||
Revenue [Abstract] | ||||
Revenue from contracts with customers | 9,282 | 8,872 | $ 26,548 | 25,560 |
Water Utility Service [Member] | Commercial and Industrial [Member] | ||||
Revenue [Abstract] | ||||
Revenue from contracts with customers | 4,208 | 3,952 | 11,692 | 10,891 |
Water Utility Service [Member] | Fire Protection [Member] | ||||
Revenue [Abstract] | ||||
Revenue from contracts with customers | 856 | 827 | 2,528 | 2,428 |
Wastewater Utility Service [Member] | Residential [Member] | ||||
Revenue [Abstract] | ||||
Revenue from contracts with customers | 976 | 481 | 2,830 | 1,426 |
Wastewater Utility Service [Member] | Commercial and Industrial [Member] | ||||
Revenue [Abstract] | ||||
Revenue from contracts with customers | 209 | 79 | 434 | 237 |
Billing and Revenue Collection Services [Member] | ||||
Revenue [Abstract] | ||||
Revenue from contracts with customers | 149 | 121 | $ 363 | 360 |
Number of municipalities within the service territory provided service | Municipality | 2 | |||
Number of days for customer to make payment after being invoiced | 30 days | |||
Collection Services [Member] | ||||
Revenue [Abstract] | ||||
Revenue from contracts with customers | 3 | 18 | $ 151 | 29 |
Number of days for customer to make payment after being invoiced | 30 days | |||
Other Revenue [Member] | ||||
Revenue [Abstract] | ||||
Revenue from contracts with customers | $ 6 | $ 18 | $ 25 | $ 38 |
Rate Matters (Details)
Rate Matters (Details) - PPUC [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Rate Request Filed on May 27, 2022 [Member] | Water [Member] | ||||
Rate Matters [Abstract] | ||||
Requested annual increase in rates | $ 18,854 | |||
Percentage increase in rates | 33.80% | |||
Rate Request Filed on May 27, 2022 [Member] | Wastewater [Member] | ||||
Rate Matters [Abstract] | ||||
Requested annual increase in rates | $ 1,457 | |||
Percentage increase in rates | 35% | |||
DSIC [Member] | ||||
Rate Matters [Abstract] | ||||
Distribution system improvement charge revenue | $ 661 | $ 255 | $ 1,623 | $ 280 |
DSIC [Member] | Maximum [Member] | ||||
Rate Matters [Abstract] | ||||
Distribution system improvement charge percentage over base rate | 5% | |||
DSIC [Member] | Minimum [Member] | ||||
Rate Matters [Abstract] | ||||
Distribution system improvement charge percentage over base rate | 0% |
Pensions (Details)
Pensions (Details) - Pension Plans [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Components of Net Periodic Pension Cost [Abstract] | |||||
Service cost | $ 257 | $ 271 | $ 769 | $ 814 | |
Interest cost | 334 | 302 | 1,002 | 906 | |
Expected return on plan assets | (1,054) | (913) | (3,163) | (2,739) | |
Amortization of actuarial loss | 0 | 121 | 0 | 363 | |
Amortization of prior service cost | (4) | (3) | (10) | (9) | |
Rate-regulated adjustment | 1,042 | 797 | 3,127 | 2,390 | |
Net periodic pension expense | 575 | $ 575 | 1,725 | $ 1,725 | |
Employer Contributions [Abstract] | |||||
Estimated employer contributions in 2022 | $ 2,300 | ||||
Contributions made by employer | 1,725 | ||||
Estimated employer contributions in final quarter of 2022 | $ 575 | $ 575 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - LTIP [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | May 02, 2016 | |
Stock-Based Compensation [Abstract] | |||||
Maximum number of shares of common stock that can be issued under the plan (in shares) | 100,000 | ||||
Term of plan | 10 years | ||||
Maximum number of shares of common stock subject to awards that may be granted to a participant per calendar year (in shares) | 2,000 | ||||
Restricted Stock [Member] | |||||
Number of Shares [Roll Forward] | |||||
Nonvested at beginning of the period (in shares) | 8,804 | ||||
Granted (in shares) | 8,052 | ||||
Vested (in shares) | (5,591) | ||||
Forfeited (in shares) | (500) | ||||
Nonvested at end of the period (in shares) | 10,765 | 10,765 | |||
Grant Date Weighted Average Fair Value [Abstract] | |||||
Nonvested at beginning of the period (in dollars per share) | $ 46.91 | ||||
Granted (in dollars per share) | 38.87 | ||||
Vested (in dollars per share) | 42.6 | ||||
Forfeited (in dollars per share) | 44.61 | ||||
Nonvested at end of the period (in dollars per share) | $ 43.24 | $ 43.24 | |||
Stock-Based Compensation Expense [Abstract] | |||||
Stock-based compensation expense | $ 50 | $ 46 | $ 208 | $ 167 | |
Recognized tax benefits related to stock-based compensation expense | 14 | $ 13 | 60 | $ 48 | |
Fair value of vested shares | 238 | ||||
Stock-based compensation expense not yet recognized | $ 465 | $ 465 | |||
Period of recognition | 3 years | ||||
Restricted Stock [Member] | Officers and Key Employees [Member] | |||||
Stock-Based Compensation [Abstract] | |||||
Vesting period | 3 years |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Taxes [Abstract] | ||||
Effective tax rate | (1.50%) | 11.50% | (1.00%) | 7.70% |
State income tax benefit, net of federal benefit, due to rate change | $ (18) | $ (18) |