Artesian Resources (ARTNA) 10-K 10 Mar 17 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2016	Mar. 06, 2017	Jun. 30, 2016
Entity Information [Line Items]
Entity Registrant Name	Artesian Resources Corporation
Entity Central Index Key	863,110
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
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	FY
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2016
Class A Stock [Member]
Entity Information [Line Items]
Entity Public Float			$ 269,178,000
Entity Common Stock, Shares Outstanding		8,251,271
Class B Stock [Member]
Entity Information [Line Items]
Entity Public Float			$ 8,328,000
Entity Common Stock, Shares Outstanding		881,452

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
ASSETS
Utility plant, at original cost (less accumulated depreciation 2016-$109,684; 2015-$109,309)	$ 425,502	$ 405,606
Current assets
Cash and cash equivalents	226	209
Accounts receivable (less allowance for doubtful accounts 2016 - $263; 2015-$277)	7,796	6,350
Income tax receivable	150	1,428
Unbilled operating revenues	1,403	1,535
Materials and supplies	1,564	1,713
Prepaid property taxes	1,669	1,591
Prepaid expenses and other	1,827	1,618
Total current assets	14,635	14,444
Other assets
Non utility property (less accumulated depreciation 2016-$611; 2015-$535)	3,881	3,956
Other deferred assets	3,584	3,444
Total other assets	7,465	7,400
Regulatory assets, net	3,374	4,176
Total assets	450,976	431,626
Stockholders' equity
Common stock	9,127	9,058
Preferred stock	0	0
Additional paid-in capital	97,480	95,631
Retained earnings	32,416	27,642
Total stockholders' equity	139,023	132,331
Long-term debt, net of current portion	102,331	103,647
Total stockholders' equity and long-term debt	241,354	235,978
Current liabilities
Lines of credit	7,130	10,487
Current portion of long-term debt	1,316	1,289
Accounts payable	5,532	4,914
Accrued expenses	1,309	1,254
Overdraft payable	32	546
Accrued interest	1,000	1,032
Customer deposits	864	704
Other	2,145	2,177
Total current liabilities	19,328	22,403
Commitments and contingencies ( Note 10 )
Deferred credits and other liabilities
Net advances for construction	8,169	8,752
Postretirement benefit obligation	149	230
Deferred investment tax credits	544	562
Utility plant retirement cost obligation	873	883
Deferred income taxes	68,453	62,971
Total deferred credits and other liabilities	78,188	73,398
Net contributions in aid of construction	112,106	99,847
Liabilities and stockholders' equity	$ 450,976	$ 431,626

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
ASSETS
Less - accumulated depreciation	$ 109,684	$ 104,750
Current assets
Less allowance for doubtful accounts	263	277
Other assets
Non utility property (accumulated depreciation)	$ 611	$ 535

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Operating revenues
Water sales	$ 70,587	$ 68,932	$ 64,667
Other utility operating revenue	3,816	3,694	3,648
Non-utility operating revenue	4,686	4,398	4,150
Total operating revenues	79,089	77,024	72,465
Operating expenses
Utility operating expenses	35,658	36,148	34,893
Non-utility operating expenses	2,602	2,305	2,193
Depreciation and amortization	9,188	8,837	8,673
State and federal income taxes
Current	2,849	2,667	(900)
Deferred	5,482	5,117	7,275
Property and other taxes	4,491	4,368	4,285
Total operating expenses	60,270	59,442	56,419
Operating income	18,819	17,582	16,046
Other income, net
Allowance for funds used during construction (AFUDC)	222	249	329
Miscellaneous	557	472	524
Total other income	779	721	853
Income before interest charges	19,598	18,303	16,899
Interest charges	6,644	6,998	7,393
Net income applicable to common stock	$ 12,954	$ 11,305	$ 9,506
Income per common share:
Basic (in dollars per share)	$ 1.42	$ 1.26	$ 1.07
Diluted (in dollars per share)	$ 1.41	$ 1.26	$ 1.07
Weighted average common shares outstanding:
Basic (in shares)	9,098	8,960	8,884
Diluted (in shares)	9,161	9,005	8,926
Cash dividends paid per share of common stock (in dollars per share)	$ 0.8997	$ 0.8733	$ 0.8477

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 12,954	$ 11,305	$ 9,506
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	9,188	8,837	8,673
Deferred income taxes, net	5,464	5,097	7,255
Stock compensation	92	183	135
AFUDC, equity portion	(146)	(163)	(212)
Changes in assets and liabilities:
Accounts receivable, net of allowance for doubtful accounts	(292)	(867)	147
Income taxes receivable	1,278	1,640	(2,613)
Unbilled operating revenues	132	1,779	(305)
Materials and supplies	149	177	(405)
Prepaid property taxes	(78)	(190)	90
Prepaid expenses and other	(209)	49	(390)
Other deferred assets	(175)	(167)	(172)
Regulatory assets	734	187	(187)
Accounts payable	618	1,131	(357)
Accrued expenses	55	(259)	(2,197)
Accrued interest	(32)	(396)	374
Customer deposits and other, net	128	102	(832)
Postretirement benefit obligation	(81)	(38)	(41)
NET CASH PROVIDED BY OPERATING ACTIVITIES	29,779	28,407	18,469
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (net of AFUDC, equity portion)	(28,251)	(20,694)	(23,730)
Proceeds from sale of assets	96	48	35
NET CASH USED IN INVESTING ACTIVITIES	(28,155)	(20,646)	(23,695)
CASH FLOWS FROM FINANCING ACTIVITIES
Net (repayments) borrowings under lines of credit agreements	(3,357)	(8,004)	8,159
Increase in overdraft payable	(514)	405	(605)
Net advances and contributions in aid of construction	9,907	5,829	3,808
Net proceeds from issuance of common stock	1,826	3,049	1,651
Dividends paid	(8,180)	(7,811)	(7,523)
Issuance of long-term debt	0	0	689
Principal repayments of long-term debt	(1,289)	(1,263)	(1,132)
NET CASH USED IN FINANCING ACTIVITIES	(1,607)	(7,795)	5,047
NET (DECREASE) IN CASH AND CASH EQUIVALENTS	17	(34)	(179)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR	209	243	422
CASH AND CASH EQUIVALENTS AT END OF YEAR	226	209	243
Supplemental Disclosures of Cash Flow Information:
Utility plant received as construction advances and contributions	2,499	1,451	1,491
Contractual amounts of contributions in aid of construction due from developers included in accounts receivable	1,542	796	456
Contractual amounts of contributions in aid of construction received from developers previously included in accounts receivable	388	377	361
Supplemental Disclosures of Cash Flow Information:
Interest paid	6,676	7,394	7,019
Income taxes paid	$ 1,434	$ 2,608	$ 1,615

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($)		Common Stock [Member]Common Shares Class A Non-Voting [Member]		Common Stock [Member]Common Shares Class B Voting [Member]		Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balance at Dec. 31, 2013		$ 7,948,000		$ 882,000		$ 90,841,000	$ 22,165,000	$ 121,836,000
Balance (in shares) at Dec. 31, 2013		7,948,000	[1],[2],[3]	882,000	[4]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income							9,506,000	9,506,000
Cash dividends declared
Common stock							(7,523,000)	(7,523,000)
Issuance of common stock
Dividend reinvestment plan		$ 21,000				438,000		$ 459,000
Dividends reinvestment plan (in shares)		21,000	[1],[2],[3]					21,000
Employee stock options and awards		$ 44,000				920,000		$ 964,000
Employee stock options and awards (in shares)	[1],[2],[3]	44,000
Employee Retirement Plan	[1]	$ 17,000				346,000		363,000
Employee Retirement Plan (in shares)	[1],[2],[3]	17,000
Balance at Dec. 31, 2014		$ 8,030,000		$ 882,000		92,545,000	24,148,000	125,605,000
Balance (in shares) at Dec. 31, 2014		8,030,000	[1],[2],[3]	882,000	[4]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income							11,305,000	11,305,000
Cash dividends declared
Common stock							(7,811,000)	(7,811,000)
Issuance of common stock
Dividend reinvestment plan		$ 18,000				366,000		$ 384,000
Dividends reinvestment plan (in shares)		18,000	[1],[2],[3]					17,500
Employee stock options and awards		$ 111,000				2,419,000		$ 2,530,000
Employee stock options and awards (in shares)	[1],[2],[3]	111,000
Employee Retirement Plan	[1]	$ 17,000				301,000		318,000
Employee Retirement Plan (in shares)	[1],[2],[3]	17,000
Balance at Dec. 31, 2015		$ 8,176,000		$ 882,000		95,631,000	27,642,000	132,331,000
Balance (in shares) at Dec. 31, 2015		8,176,000	[1],[2],[3]	882,000	[4]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income							12,954,000	12,954,000
Cash dividends declared
Common stock							(8,180,000)	(8,180,000)
Issuance of common stock
Dividend reinvestment plan		$ 13,000				387,000		$ 400,000
Dividends reinvestment plan (in shares)		13,000	[1],[2],[3]					13,600
Employee stock options and awards		$ 38,000				939,000		$ 977,000
Employee stock options and awards (in shares)	[1],[2],[3]	38,000
Employee Retirement Plan	[1]	$ 18,000				523,000		541,000
Employee Retirement Plan (in shares)	[1],[2],[3]	18,000
Balance at Dec. 31, 2016		$ 8,245,000		$ 882,000		$ 97,480,000	$ 32,416,000	$ 139,023,000
Balance (in shares) at Dec. 31, 2016		8,245,000	[1],[2],[3]	882,000	[4]
[1]	Artesian Resources Corporation registered 500,000 shares of Class A Common Stock available for purchase through the Artesian Retirement Plan and the Artesian Supplemental Retirement Plan.
[2]	At December 31, 2015, 2014, and 2013, Class A Common Stock had 15,000,000 shares authorized. For the same periods, shares issued, inclusive of treasury shares, were 8,205,190, 8,059,654 and 7,977,546, respectively.
[3]	Under the Equity Compensation Plan, effective December 9, 2015 Artesian Resources Corporation authorized up to 331,500 shares of Class A Common Stock for issuance of grants in forms of stock options, stock units, dividend equivalents and other stock-based awards, subject to adjustment in certain circumstances as discussed in the Plan.
[4]	At December 31, 2015, 2014, and 2013, Class B Common Stock had 1,040,000 shares authorized and 882,000 shares issued.

CONSOLIDATED STATEMENTS OF CHA7

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	Dec. 31, 2016	Dec. 31, 2015	Dec. 09, 2015	Dec. 31, 2014
Shares authorized for issuance of grants under equity compensation plan (in shares)			331,500
Common Stock [Member] | Common Shares Class A Non-Voting [Member]
Common stock, par value (in dollars per share)	$ 1
Common stock, shares authorized (in shares)	15,000,000	15,000,000		15,000,000
Common Stock Shares Issued	8,275,010	8,205,190		8,059,654
Shares available for purchase through retirement plans (in shares)	500,000
Shares authorized for issuance of grants under equity compensation plan (in shares)			331,500
Common Stock [Member] | Common Shares Class B Voting [Member]
Common stock, par value (in dollars per share)	$ 1
Common stock, shares authorized (in shares)	1,040,000	1,040,000		1,040,000
Common Stock Shares Issued	882,000	882,000		882,000

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2016
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The audited consolidated financial statements are presented in accordance with the requirements of Form 10-K and accounting principles generally accepted in the United States and consequently include all the disclosures required in the consolidated financial statements included in the Company's annual report on Form 10-K. The accompanying consolidated financial statements include the accounts of Artesian Resources Corporation and its subsidiaries and all intercompany balances and transactions between subsidiaries have been eliminated. Reclassification Certain accounts in the prior year financial statements have been reclassified for comparative purposes to conform with the presentation in the current year financial statements. These reclassifications had no effect on net income or stockholders' equity. In 2016, the Company adopted amended guidance on the Presentation of Debt Issuance Costs and amended guidance on Income Taxes, both of which were issued by the Financial Accounting Standards Board, or FASB, in 2015. The amended guidance on the Presentation of Debt Issuance Costs requires entities to present debt issuance costs related to a debt liability as a direct deduction from the carrying amount of that debt liability on the balance sheet as opposed to being presented as a deferred charge. The amended guidance on Income Taxes simplified the presentation of deferred income taxes, permitting all deferred income tax liabilities be classified as noncurrent on the balance sheet. For all periods presented in this Form 10-K for the year ended December 31, 2016, unamortized debt issuance costs related to the Company's long-term debt are reported on the Condensed Consolidated Balance Sheets within "Regulatory Assets, Net" under FASB ASC Topic 980 as this amount will be recovered in future rates charged to our customers. Prior to adoption, the Company reported the unamortized debt issuance costs in "Other Assets" on the Condensed Consolidated Balance Sheets. Deferred income taxes are reported as noncurrent on the Condensed Consolidated Balance Sheets. Prior to adoption, the Company reported current and noncurrent deferred income tax liabilities as separate amounts on the Condensed Consolidated Balance Sheets. Utility Subsidiary Accounting The accounting records of Artesian Water Company, Inc., or Artesian Water, and Artesian Wastewater Management, Inc., or Artesian Wastewater, are maintained in accordance with the uniform system of accounts as prescribed by the Delaware Public Service Commission, or the DEPSC. The accounting records of Artesian Water Pennsylvania, Inc., or Artesian Water Pennsylvania, are maintained in accordance with the uniform system of accounts as prescribed by the Pennsylvania Public Utility Commission, or the PAPUC. The accounting records of Artesian Water Maryland, Inc., or Artesian Water Maryland, and Artesian Wastewater Maryland, Inc., or Artesian Wastewater Maryland, are maintained in accordance with the uniform system of accounts as prescribed by the Maryland Public Service Commission, or the MDPSC. All five subsidiaries follow the provisions of FASB ASC Topic 980, which provides guidance for companies in regulated industries. These regulated subsidiaries account for the majority of our operating revenue. The operating revenues of our non-regulated division are presented in the Consolidated Statements of Operations. Utility Plant Utility plant is stated at original cost. Cost includes direct labor, materials, AFUDC (see description below) and indirect charges for such capitalized items as transportation, supervision, pension, medical, and other fringe benefits related to employees engaged in construction activities. When depreciable units of utility plant are retired, any cost associated with retirement, less any salvage value or proceeds received, is charged to the regulated retirement liability. Maintenance, repairs, and replacement of minor items of plant are charged to expense as incurred. In accordance with a rate order issued by the DEPSC, Artesian Water accrues an Allowance for Funds Used during Construction, or AFUDC. AFUDC, which represents the cost of funds devoted to construction projects through the date the project is placed in service, is capitalized as part of construction work in progress. The rate used for the AFUDC calculation is based on Artesian Water's weighted average cost of debt and the rate of return on equity authorized by the DEPSC. The rate used to capitalize AFUDC in 2016, 2015, and 2014 was 8.1%, 8.1%, and 8.2% respectively. Utility plant comprises In thousands December 31, Estimated Useful Life (In Years) 2016 2015 Utility plant at original cost Utility plant in service-Water Intangible plant — $ 140 $ 140 Source of supply plant 45-85 19,627 19,313 Pumping and water treatment plant 8-62 78,542 77,221 Transmission and distribution plant Mains 81 236,261 224,104 Services 39 38,803 36,060 Storage tanks 76 24,108 23,992 Meters 26 24,710 24,150 Hydrants 60 12,870 12,037 General plant 3-31 53,417 52,434 Utility plant in service-Wastewater Treatment and disposal plant 35-62 15,613 14,012 Collection mains & lift stations 81 8,675 7,833 General plant 3-31 931 906 Property held for future use — 14,815 14,345 Construction work in progress — 6,674 3,809 535,186 510,356 Less – accumulated depreciation 109,684 104,750 $ 425,502 $ 405,606 Depreciation and Amortization For financial reporting purposes, depreciation is recorded using the straight-line method at rates based on estimated economic useful lives, which range from 3 to 85 years. Composite depreciation rates for water utility plant were 2.25%, Utility Plant Retirement Cost Obligation The utility plant retirement cost obligation consists of estimated costs related to the potential removal and replacement of facilities and equipment on the Company's water and wastewater properties. Effective January 1, 2012, as authorized by the DEPSC, when depreciable units of utility plant are retired, any cost associated with retirement, less any salvage value or proceeds received is charged to a regulated retirement liability. Each year the liability is increased by an annual amount authorized by the DEPSC. Previously, when depreciable units of utility plant were retired, the cost of retired property, together with any cost associated with retirement less any salvage value or proceeds received, was charged to accumulated depreciation. Maintenance, repairs, and replacement of minor items of plant are charged to expense as incurred. Regulatory Assets FASB ASC Topic 980 stipulates generally accepted accounting principles for companies whose rates are established or subject to approvals by a third-party regulatory agency. Certain expenses are recoverable through rates charged to our customers, without a return on investment, and are deferred and amortized during future periods using various methods as permitted by the Delaware Public Service Commission, or DEPSC, the Maryland Public Service Commission, or MDPSC, and the Pennsylvania Public Utility Commission, or PAPUC. The postretirement benefit obligation is the recognition of an offsetting regulatory asset as it relates to the accrual of the expected cost of providing postretirement health care and life insurance benefits to retired employees when they render the services necessary to earn the benefits. Artesian Water contributed $81,000 to its postretirement benefit plan in 2016. These co The deferred income taxes will be amortized over future years as the tax effects of temporary differences that previously flowed through to our customers are reversed. Other regulatory expenses are amortized on a straight-line basis as noted below: Expense Years Amortized Depreciation and salary studies 5 Delaware rate proceedings 2.5 Maryland rate proceedings 5 Debt issuance costs (as of December 31, 2016) 10 to 30 (based on term of related debt) Debt issuance costs (after First Mortgage Bond Purchase in January 2017) 15 to 25 (based on term of related debt) Goodwill (resulting from acquisition of Mountain Hill Water Company in 2008) 50 Deferred acquisition costs (resulting from purchase of water assets in Cecil County, Maryland in 2011 and Port Deposit, Maryland in 2010) 20 Franchise Costs (resulting from purchase of water assets in Cecil County, Maryland in 2011) 80 Regulatory assets, net of amortization, comprise: (in thousands) December 31, 2016 December 31, 2015 Postretirement benefit obligation $ 186 $ 329 Deferred income taxes 431 446 Expense of rate and regulatory proceedings 116 616 Debt issuance costs 1,648 1,747 Goodwill 310 318 Deferred acquisition and franchise costs 683 720 $ 3,374 $ 4,176 Impairment or Disposal of Long-Lived Assets Our long-lived assets consist primarily of utility plant in service and regulatory assets. A review of our long-lived assets is performed in accordance with the requirements of FASB ASC Topic 360. In addition, the regulatory assets are reviewed for the continued application of FASB ASC Topic 980. The review determines whether there have been changes in circumstances or events that have occurred requiring adjustments to the carrying value of these assets. FASB ASC Topic 980 stipulates that adjustments to the carrying value of these assets would be made in instances where the inclusion in the rate-making process is unlikely. Other Deferred Assets The investment in Co-Bank, which is a cooperative bank, is related to certain outstanding First Mortgage Bonds and is a required investment in the bank based on the underlying long term debt agreements. A large portion of the remaining other deferred assets, approximately $0.3 million, is in relation to the Mountain Hill acquisition. Other deferred assets at December 31, net of amortization, comprise: In thousands 2016 2015 Investment in CoBank $ 3,198 $ 3,023 Other 386 421 $ 3,584 $ 3,444 Advances for Construction Cash advances to reimburse Artesian Water for its costs to construct water mains, services and hydrants are contributed to Artesian Water by real estate developers and builders in order to extend water service to their properties. The Company only accepts advances related to new phases of existing developments that are grandfathered into the refundable arrangement through pre-existing contracts. The value of these contributions is recorded as Advances for Construction. Artesian Water makes refunds on these advances over a specific period of time based on operating revenues generated by the specific plant or as new customers are connected to the mains. After all refunds are made within the contract period, any remaining balance is transferred to CIAC. Contributions in Aid of Construction CIAC includes the non-refundable portion of advances for construction and direct contributions of water mains, services and hydrants, and wastewater treatment facilities and collection systems, or cash to reimburse our water and wastewater divisions for costs to construct water mains, services and hydrants, and wastewater treatment and disposal plant. Income Taxes Deferred income taxes are provided in accordance with FASB ASC Topic 740 on all differences between the tax basis of assets and liabilities and the amounts at which they are carried in the consolidated financial statements based on the enacted tax rates expected to be in effect when such temporary differences are expected to reverse. Under FASB ASC Topic 740, an uncertain tax position represents our expected treatment of a tax position taken, or planned to be taken in the future, that has not been reflected in measuring income tax expense for financial reporting purposes. In 2014, the Company changed its tax method of accounting for qualifying utility system repairs effective with the tax year ended December 31, 2014 and for prior tax years. The tax accounting method was changed to permit the expensing of qualifying utility asset improvement costs that were previously being capitalized and depreciated for book and tax purposes. The Company establishes reserves for uncertain tax positions based upon management's judgment as to the sustainability of these positions. These accounting estimates related to the uncertain tax position reserve require judgments to be made as to the sustainability of each uncertain tax position based on its technical merits. The Company believes its tax positions comply with applicable law and that it has adequately recorded reserves as required. However, to the extent the final tax outcome of these matters is different than the estimates recorded, the Company would then adjust its tax reserves or unrecognized tax benefits in the period that this information becomes known. The Company has elected to recognize accrued interest (net of related tax benefits) and penalties related to uncertain tax positions as a component of its income tax expense. The Company remains subject to examination by federal authorities for the tax year 2015 and state authorities for the tax years 2013 through 2015. The Company was under federal audit by the Internal Revenue Service for tax years 2012 through 2014 during 2016. The audit was concluded during the year resulting in no change to the tax liability The Tax Reform Act of 1986 mandated that Advances and CIAC received subsequent to December 31, 1986, generally are taxable income. The 1996 Tax Act provided an exclusion from taxable income for CIAC and Advances received after June 12, 1996 except for certain contributions for large services that are not included in rate base for rate-making purposes. Investment tax credits were deferred through 1986 and are recognized as a reduction of deferred income tax expense over the estimated economic useful lives of the related assets. Stock Compensation Plans On December 9, 2015, the Company's stockholders approved the 2015 Equity Compensation Plan, or the 2015 Plan. The 2015 Plan replaced the 2005 Equity Compensation Plan, or the 2005 Plan, which expired on May 24, 2015. The 2015 Plan authorizes an aggregate number of shares of our Class A common stock that may be issued or transferred under the Plan equal to the sum of: 331,500 shares, plus the number of shares of Class A common stock subject to outstanding grants under the 2005 Plan as of December 9, 2015 that terminate, expire or are cancelled, forfeited, exchanged or surrendered without having been exercised, vested or paid under the 2005 Plan. The Company accounts for stock options issued after January 1, 2006 under FASB ASC Topic 718. Compensation costs for restricted stock grants and options were $92,000, $183,000 and $135,000 in 2016, 2015 and 2014, respectively. Cost for options and restricted stock grants were determined based on the fair value at the grant dates and those costs were charged to income over the associated service periods. The $135,000 in 2014 was the amount amortized for stock options awarded in 2014 and 2013. The $183,000 in 2015 was the amount amortized for restricted stock awarded in 2015 and stock options awarded in 2014. The $92,000 in 2016 was the amount amortized for restricted stock awarded in 2016. As of December 31, 2016 there is $47,000 unrecognized expense related to non-vested awards of restricted shares granted under the 2015 Plan. There was no stock compensation cost capitalized as part of an asset. Stock Options The fair value of each option grant is estimated using the Black-Scholes-Merton option pricing model with the following weighted-average assumptions used for grants issued in 2014 under the 2005 Equity Compensation Plan (See Note 8 "Stock Compensation Plans"). No options were granted in 2015 or 2016. 2014 Expected Dividend Yield 3.88% Expected Stock Price Volatility 26.50% Weighted Average Risk Free Interest Rate 2.24% Weighted Average Expected Life of Options (in years) 7.52 The expected dividend yield was based on a 12 month rolling average of the Company's current dividend yield. The expected volatility is the standard deviation of the change in the natural logarithm of the stock price (expressed as an annual rate) for the expected term shown above. The expected term was based on historic exercise patterns for similar grants. The risk free interest rate for the 2014 options is the weighted average of the 7-year and 10-year US Treasury Yield rates. Shares of Class A Stock have been reserved for future issuance under the 2015 Equity Compensation Plan. Stock Awards On May 4, 2016, 5,000 shares of Class A common stock were granted as restricted stock awards. The fair market value per share was $27.70, the closing price of the Class A common stock as recorded on the Nasdaq Global Market on May 4, 2016. The restricted shares vest one year from the date of grant. A total of $92,000 was recorded as compensation cost for the awards granted in May 2016. On December 18, 2015 5,000 shares of Class A common stock were issued as fully vested unrestricted stock awards. The fair market value per share was $27.38, the closing price of the Class A common stock as recorded on the Nasdaq Global market on December 18, 2015. A total of $137,000 was recorded as compensation cost for the stock awards granted in December 2015. Revenue Recognition and Unbilled Revenues Water service revenue for financial statement purposes includes amounts billed to Delaware customers on a monthly basis, amounts billed to Maryland customers on a quarterly or monthly cycle basis, depending on water system, and amounts billed to Pennsylvania customers on a quarterly basis. Water service revenues also include unbilled amounts based upon estimated usage from the date of the last meter reading to the end of the accounting period. As actual usage amounts are received, adjustments are made to the unbilled estimates in the next billing cycle based on an accrual basis. Other utility operating revenue includes wastewater service revenue derived from monthly fixed fees billed to customers, and is recognized on an accrual basis. Non-utility operating revenue is primarily derived from Service Line Protection Plans and from the design, construction and operation of contract water and wastewater projects. The Company recognizes non-utility operating revenue ratably over the service period with markup for overhead and profit. The Company records contract monthly fees for non-utility operating revenue when billed to the customer. Service line protection plan revenues are recognized on an accrual basis. Accounts Receivable Accounts receivable are recorded at the invoiced amounts. The allowance for doubtful accounts is the Company's best estimate of the amount of probable credit losses in our existing accounts receivable. The Company reviews the allowance for doubtful accounts on a quarterly basis. Account balances are written off against the allowance when it is probable the receivable will not be recovered. The allowance for doubtful accounts was $0.3 million and $0.3 million at December 31, 2016 and December 31, 2015 respectively. The corresponding expense for the year ended December 31, 2016 and 2015 was $0.2 million and $0.2 million, respectively. The following table summarizes the changes in the Company's accounts receivable balance: December 31, In thousands 2016 2015 2014 Customer accounts receivable – water $ 5,437 $ 5,017 $ 4,020 Contractual amounts due from developers and other 2,622 1,610 1,295 8,059 6,627 5,315 Less allowance for doubtful accounts 263 277 250 Net accounts receivable $ 7,796 $ 6,350 $ 5,065 The activities in the allowance for doubtful accounts are as follows: December 31, In thousands 2016 2015 2014 Beginning balance $ 277 $ 250 $ 221 Allowance adjustments 195 205 194 Recoveries 64 53 64 Write off of uncollectible accounts (273 ) (231 ) (229 ) Ending balance $ 263 $ 277 $ 250 Cash and Cash Equivalents For purposes of the Consolidated Statement of Cash Flows, Artesian Resources considers all temporary cash investments with an original maturity of three months or less to be cash equivalents. Artesian Resources and its subsidiaries utilize their bank's zero balance account disbursement service to reduce the use of their lines of credit by funding checks as they are presented to the bank for payment rather than at issuance. If the checks currently outstanding, but not yet funded, exceed the cash balance on our books, the net liability is recorded as a current liability on the Consolidated Balance Sheet in the Overdraft Payable account. Use of Estimates in the Preparation of Consolidated Financial Statements The consolidated financial statements were prepared in conformity with generally accepted accounting principles in the U.S., which require management to make estimates about the reported amounts of assets and liabilities including unbilled revenues, reserve for a portion of revenues received under temporary rates and regulatory asset recovery and contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from management's estimate.

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	12 Months Ended
	Dec. 31, 2016
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract]
FAIR VALUE OF FINANCIAL INSTRUMENTS	NOTE 2 FAIR VALUE OF FINANCIAL INSTRUMENTS The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value. Current Assets and Liabilities For those current assets and liabilities that are considered financial instruments, the carrying amounts approximate fair value because of the short maturity of those instruments. Long-term Financial Liabilities All of Artesian Resources' outstanding long-term debt as of December 31, 2016 and December 31, 2015 was fixed-rate. The fair value of the Company's long-term debt is determined by discounting their future cash flows using current market interest rates on similar instruments with comparable maturities consistent with FASB ASC 825. Under the fair value hierarchy, the fair value of the long-term debt in the table below is classified as Level 2 measurements. The fair values for long-term debt differ from the carrying values primarily due to interest rates that differ from the current market interest rates. The carrying amount and fair value of Artesian Resources' long-term debt are shown below: In thousands December 31, 2016 2015 Carrying amount $ 103,647 $ 104,936 Estimated fair value 111,864 120,243 The fair value of Advances for Construction cannot be reasonably estimated due to the inability to accurately estimate the timing and amounts of future refunds expected to be paid over the life of the contracts. Refund payments are based on the water sales to new customers in the particular development constructed. The fair value of Advances for Construction would be less than the carrying amount because these financial instruments are non-interest bearing.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2016
INCOME TAXES [Abstract]
INCOME TAXES	NOTE 3 INCOME TAXES Deferred income taxes reflect temporary differences between the valuation of assets and liabilities for financial and tax reporting. As of December 31, 2016, Artesian Resources had fully utilized all of its federal net operating loss carrybacks and carry-forwards. As of December 31, 2016, Artesian Resources has separate company state net operating loss carry-forwards aggregating approximately $13.4 million. These net operating loss carry-forwards will expire if unused between 2019 and 2037 . At December 31, 2016, for federal income tax purposes, there were alternative minimum tax credit carry-forwards aggregating $2.5 million resulting from the payment of alternative minimum tax in prior years. These alternative minimum tax credit carry-forwards may be carried forward indefinitely to offset future regular federal income taxes. The Company remains subject to examination by federal authorities for the tax year 2015 and state authorities for the tax years 2013 through 2015. Components of Income Tax Expense In thousands For the Year Ended December 31, State income taxes 2016 2015 2014 Current $ 1,050 $ 499 $ 173 Deferred 860 1,299 1,231 Total state income tax expense $ 1,910 $ 1,798 $ 1,404 For the Year Ended December 31, Federal income taxes 2016 2015 2014 Current $ 1,799 $ 2,168 $ (1,073 ) Deferred 4,622 3,818 6,044 Total federal income tax expense $ 6,421 $ 5,986 $ 4,971 Reconciliation of effective tax rate: For the Year Ended December 31, In thousands 2016 2016 2015 2015 2014 2014 Amount Percent Amount Percent Amount Percent Reconciliation of effective tax rate Income before federal and state income taxes $ 21,285 100.0 % $ 19,088 100.0 % $ 15,881 100.0 % Amount computed at statutory rate 7,237 34.0 % 6,490 34.0 % 5,400 34.0 % Reconciling items State income tax-net of federal tax benefit 1,327 6.2 % 1,214 6.4 % 918 5.8 % Other (233 ) (1.1 )% 80 0.4 % 57 0.4 % Total income tax expense and effective rate $ 8,331 39.1 % $ 7,784 40.8 % $ 6,375 40.2 % Deferred income taxes at December 31, 2016, 2015, and 2014 were comprised of the following: For the Year Ended December 31, In thousands 2016 2015 2014 Deferred tax assets related to: Federal alternative minimum tax credit carry-forwards $ 2,474 $ 3,971 $ 5,459 Federal and state operating loss carry-forwards 752 675 1,045 Bad debt allowance 104 110 99 Valuation allowance (286 ) (182 ) (65 ) Stock options 452 415 397 Other 320 291 269 Total deferred tax assets $ 3,816 $ 5,280 $ 7,204 Deferred tax liabilities related to: Property plant and equipment basis differences $ (70,711 ) $ (66,508 ) $ (63,427 ) Uncertain tax position (80 ) (247 ) (179 ) Expenses of rate proceedings (19 ) (213 ) (214 ) Property taxes (663 ) (527 ) (505 ) Other (796 ) (756 ) (734 ) Total deferred tax liabilities $ (72,269 ) $ (68,251 ) $ (65,059 ) Net deferred tax liability $ (68,453 ) $ (62,971 ) $ (57,855 ) Schedule of Valuation Allowance Balance at Beginning of Period Additions Charged to Costs and Expenses Deductions Balance at End of Period In thousands Classification For the Year Ended December 31, 2016 Valuation allowance for deferred tax assets $ 182 $ 104 — $ 286 For the Year Ended December 31, 2015 Valuation allowance for deferred tax assets $ 65 $ 117 — $ 182 For the Year Ended December 31, 2014 Valuation allowance for deferred tax assets $ 61 $ 4 — $ 65 Under FASB ASC Topic 740, an uncertain tax position represents our expected treatment of a tax position taken, or planned to be taken in the future, that has not been reflected in measuring income tax expense for financial reporting purposes. In 2014, the Company changed its tax method of accounting for qualifying utility system repairs effective with the tax year ended December 31, 2014 and for prior tax years. The tax accounting method was changed to permit the expensing of qualifying utility asset improvement costs that were previously being capitalized and depreciated for book and tax purposes. The Company will recognize a tax deduction on its 2016 Federal tax return when filed of $2.7 million for qualifying capital expenditures made during the year. The Company establishes reserves for uncertain tax positions based upon management's judgment as to the sustainability of these positions. These accounting estimates related to the uncertain tax position reserve require judgments to be made as to the sustainability of each uncertain tax position based on its technical merits. The Company believes its tax positions comply with applicable law and that it has adequately recorded reserves as required. However, to the extent the final tax outcome of these matters is different than the estimates recorded, the Company would then adjust its tax reserves or unrecognized tax benefits in the period that this information becomes known. The Company has elected to recognize accrued interest (net of related tax benefits) and penalties related to uncertain tax positions as a component of its income tax expense. In December 2015, the Company was notified by the IRS that its Federal tax filing for 2014 would be reviewed along with the effects of the net operating loss generated in 2014 and carryback to the 2012 and 2013 tax years. This review, which began in the first quarter of 2016 and was completed in the second quarter of 2016, resulted in no change to the tax liability. Since the Company had previously recorded a provision for the possible disallowance of a portion of the repair deduction in prior periods, the completion of the audit resulted in the reversal of the reserves, including interest and penalties, in the amount of approximately $201,000. While the Company maintains the belief that the deduction taken on its tax return is appropriate, the methodology for determining the deduction has not been agreed to by the tax authorities. Therefore, as required by FASB ASC 740, the Company has accrued approximately $4,800 in penalties and interest as of December 31, 2016 for any disallowance pertaining to the 2015 tax filing. The Company had previously accrued $22,000 in penalties and interest pertaining to the 2014 tax filing. This amount was reversed during the second quarter of 2016. The Company remains subject to examination by federal authorities for the tax year 2015 and state authorities for the tax years 2013 through 2015. The following table provides the changes in the Company's uncertain tax position: For the years ended December 31, In thousands 2016 2015 Balance at beginning of year $ 247 $ 179 Additions based on tax positions related to the current year 23 51 Additions based on tax positions related to prior years 11 17 Reductions for tax positions of prior years (201 ) - Settlements - - Lapses in Statutes of Limitations - - Balance at end of year $ 80 $ 247

PREFERRED STOCK

PREFERRED STOCK	12 Months Ended
	Dec. 31, 2016
PREFERRED STOCK [Abstract]
PREFERRED STOCK	NOTE 4 PREFERRED STOCK As of December 31, 2016 and 2015, Artesian Resources had no preferred stock outstanding. Artesian Resources has 100,000 shares of $1.00 par value Series Preferred stock authorized but unissued.

COMMON STOCK AND ADDITIONAL PAI

COMMON STOCK AND ADDITIONAL PAID-IN CAPITAL	12 Months Ended
	Dec. 31, 2016
COMMON STOCK AND ADDITIONAL PAID-IN CAPITAL [Abstract]
COMMON STOCK AND ADDITIONAL PAID-IN CAPITAL	NOTE 5 COMMON STOCK AND ADDITIONAL PAID-IN CAPITAL The Class A Non-Voting Common Stock, or Class A Stock, of Artesian Resources trades on the NASDAQ Global Select Market under the symbol ARTNA. The Class B Common Stock, or Class B Stock, of Artesian Resources trades on the NASDAQ's OTC Bulletin Board under the symbol ARTNB. The rights of the holders of the Class A Stock and the Class B Stock are identical, except with respect to voting. Under Artesian Resources' dividend reinvestment plan, which allows for reinvestment of cash dividends and optional cash payments, stockholders were issued 13,600, 17,500 and 21,000 shares at fair market value for the investment of $400,000, $384,000, and $459,000 of their monies in the years 2016, 2015, and 2014, respectively.

DEBT

DEBT	12 Months Ended
	Dec. 31, 2016
DEBT [Abstract]
DEBT	NOTE 6 DEBT At December 31, 2016, Artesian Resources had a $40 million line of credit with Citizens Bank of Pennsylvania, or Citizens, which is available to all subsidiaries of Artesian Resources. As of December 31, 2016, there was $36.4 million of available funds under this line of credit. The interest rate for borrowings under this line is the London Interbank Offered Rate, or LIBOR, plus 1.00%. This is a demand line of credit and therefore the financial institution may demand payment for any outstanding amounts at any time. The term of this line of credit expires on the earlier of May 26, 2017 or any date on which Citizens demands payment. At December 31, 2016, Artesian Water had a $20 million line of credit with CoBank, ACB, or CoBank, that allows for the financing of operations for Artesian Water, with up to $10.0 million of this line available for the operations of Artesian Water Maryland. As of December 31, 2016, there was $16.5 million of available funds under this line of credit. The interest rate for borrowings under this line is LIBOR plus 1.50%. CoBank may make an annual patronage refund, which has been equal to 1.00% of the average loan volume outstanding by Artesian during each of the years ended December 31, 2016, December 31, 2015 and December 31, 2014. The patronage refunds, associated with all debt at CoBank, earned by Artesian for the years ended December 31, 2016, December 31, 2015 and December 31, 2014 were $702,000, $689,000 and $682,000, respectively. The term of this line of credit expires on July 20, 2017. The weighted average interest rate on the lines of credit above paid by the Company was 1.67% for the year ended December 31, 2016. These lines of credit, as well as both the long-term debt and the state revolving fund loans shown below, require us to abide by certain financial covenants and ratios. As of December 31, 2016, we were in compliance with these covenants. Long-term debt consists of: December 31, In thousands 2016 2015 First mortgage bonds Series O, 8.17%, due December 29, 2020 $ 20,000 $ 20,000 Series P, 6.58%, due January 31, 2018 25,000 25,000 Series Q, 4.75%, due December 1, 2043 15,400 15,400 Series R, 5.96%, due December 31, 2028 25,000 25,000 Series S, 6.73%, due December 31, 2033 10,200 10,800 95,600 96,200 State revolving fund loans 4.48%, due August 1, 2021 1,456 1,711 3.57%, due September 1, 2023 640 719 3.64%, due May 1, 2025 1,142 1,255 3.41%, due February 1, 2031 2,448 2,576 3.40%, due July 1, 2032 2,361 2,475 8,047 8,736 Sub-total 103,647 104,936 Less: current maturities (principal amount) 1,316 1,289 Total long-term debt $ 102,331 $ 103,647 Payments of principal amounts due during the next five years and thereafter: In thousands 2017 2018 2019 2020 2021 Thereafter First Mortgage bonds $ 600 $ 25,600 $ 600 $ 20,600 $ 600 $ 47,600 State revolving fund loans 716 742 771 801 832 4,185 Total payments $ 1,316 $ 26,342 $ 1,371 $ 21,401 $ 1,432 $ 51,785 The table above is not reflective of the purchase of the $40 million principal amount First Mortgage Bond, Series T, or the Bond, due December 20, 2036, which was completed in January 2017. The proceeds from the sale of the Bond were used to prepay indebtedness of the Company under two existing First Mortgage Bonds listed above: Series O and related prepayment costs and Series Q.

NON-UTILITY OPERATING REVENUE A

NON-UTILITY OPERATING REVENUE AND EXPENSES	12 Months Ended
	Dec. 31, 2016
NON UTILITY OPERATING REVENUE AND EXPENSES [Abstract]
NON-UTILITY OPERATING REVENUE AND EXPENSES	NOTE 7 NON-UTILITY OPERATING REVENUE AND EXPENSES Non-utility operating revenue consisted of $4.7 million, $4.4 million, and $4.1 million recognized by Artesian Utility in 2016, 2015 and 2014, respectively. Non-utility operating expenses consisted of $2.6 million, $2.3 million and $2.2 million primarily recognized by Artesian Utility in 2016, 2015 and 2014, respectively. Artesian Utility operates the water, wastewater and internal Service Line Protection Plans, or SLP Plans. The SLP Plans provide coverage for all material and labor required to repair or replace participants' leaking water service, clogged sewer lines or water and wastewater lines within the residence up to an annual limit.

STOCK COMPENSATION PLANS

STOCK COMPENSATION PLANS	12 Months Ended
	Dec. 31, 2016
STOCK COMPENSATION PLANS [Abstract]
STOCK COMPENSATION PLANS	NOTE 8 STOCK COMPENSATION PLANS On December 9, 2015, the Company's stockholders approved the 2015 Equity Compensation Plan, or the 2015 Plan, that replaced the 2005 Equity Compensation Plan, or the 2005 Plan, which expired on May 24, 2015. The 2015 Plan provides that grants may be in any of the following forms: incentive stock options, nonqualified stock options, stock units, stock awards, dividend equivalents and other stock-based awards. The 2015 Plan is administered and interpreted by the Compensation Committee of the Board of Directors, or the Committee. The Committee has the authority to determine the individuals to whom grants will be made under the 2015 Plan, determine the type, size and terms of the grants, determine the time when grants will be made and the duration of any applicable exercise or restriction period (subject to the limitations of the 2015 Plan) and deal with any other matters arising under the 2015 Plan. The Committee presently consists of three directors, each of whom is a non-employee director of the Company. All of the employees of the Company and its subsidiaries are eligible for grants under the 2015 Plan. Non-employee directors of the Company are also eligible to receive grants under the 2015 Plan. The following summary reflects changes in the shares of Class A Stock under option: 2016 Shares 2016 Weighted Average Exercise Price 2015 Shares 2015 Weighted Average Exercise Price 2014 Shares 2014 Weighted Average Exercise Price Plan options Outstanding at beginning of year 270,000 $ 19.34 376,250 $ 19.52 387,000 $ 18.96 Granted — — - - 33,750 21.86 Exercised (38,245 ) 19.50 (106,250 ) 19.97 (44,500 ) 16.45 Expired — — — — — — Outstanding at end of year 231,755 $ 19.32 270,000 $ 19.34 376,250 $ 19.52 Options exercisable at year end 231,755 $ 19.32 270,000 $ 19.34 342,500 $ 19.29 The fair value per share of options granted during 2014 were $3.95, as estimated using the Black-Scholes Merton option pricing model. The total intrinsic value of options exercised during 2016, 2015 and 2014 were $351,000, $379,000 and $247,000, respectively. During 2016, we received $746,000 in cash from the exercise of options, with a $351,000 tax benefit realized for those options. The following tables summarize information about employee and director stock options outstanding at December 31, 2016: Options Outstanding Range of Exercise Price Shares Outstanding at December 31, 2016 Weighted Average Remaining Life Weighted Average Exercise Price Aggregate Intrinsic Value $ 15.26 - $19.04 123,755 3.28 Years $ 17.77 $ 1,753,268 $ 19.05 - $22.66 108,000 5.67 Years $ 21.09 $ 1,171,678 Options Exercisable Range of Exercise Price Shares Exercisable at December 31, 2016 Weighted Average Remaining Life Weighted Average Exercise Price Aggregate Intrinsic Value $ 15.26 - $19.04 123,755 3.28 Years $ 17.77 $ 1,753,268 $ 19.05 - $22.66 108,000 5.67 Years $ 21.09 $ 1,171,678 As of December 31, 2016, there was no unrecognized expense related to non-vested option shares granted under the Plan. On May 4, 2016, 5,000 shares of Class A common stock were granted as restricted stock awards. The fair market value per share was $27.70, the closing price of the Class A common stock as recorded on the Nasdaq Global Market on May 4, 2016. The restricted shares vest one year from the date of grant. On December 18, 2015, 5,000 shares of Class A common stock were issued as fully vested unrestricted stock awards. The fair market value per share was $27.38, the closing price of the Class A common stock as recorded on the Nasdaq Global Market on December 18, 2015.

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS	12 Months Ended
	Dec. 31, 2016
EMPLOYEE BENEFIT PLANS [Abstract]
EMPLOYEE BENEFIT PLANS	NOTE 9 EMPLOYEE BENEFIT PLANS 401(k) Plan Artesian Resources has a defined contribution 401(k) Salary Deduction Plan, or the 401(k) Plan, which covers substantially all employees. Under the terms of the 401(k) Plan, Artesian Resources contributed 2% of eligible salaries and wages and matched employee contributions up to 6% of gross pay at a rate of 50%. Artesian Resources may, at its option, make additional contributions of up to 3% of eligible salaries and wages. In 2015, an additional 1% of eligible salaries and wages was contributed under 401(k) Plan. No such additional contributions were made in 2014 or 2016. , Supplemental Pension Plan Effective October 1, 1994, Artesian Water established a Supplemental Pension Plan, or the Supplemental Plan, to provide additional retirement benefits to full-time employees hired prior to April 26, 1994. The Supplemental Plan is a defined contribution plan that enables employees to save for future retiree medical costs, which will be paid by employees. The Supplemental Plan accomplishes this objective by providing additional cash resources to employees upon a termination of employment or retirement, to meet the cost of future medical expenses. Artesian Water has established a contribution based upon each employee's years of service ranging from 2% to 6% of eligible salaries and wages. Artesian Water also provides additional benefits to individuals who were over age 50 as of January 1, 1994. These individuals are referred to as the Transition Group. Effective November 1, 1994, individuals eligible for the Transition Group had the opportunity to defer compensation to the Supplemental Plan, and to receive a transition matching contribution for 5 years. Each one-dollar of eligible salaries and wages deferred by the Transition Group was matched with three, four, or five dollars by Artesian Water based on the employee's years of service subject to certain limitations under the federal tax rules. Plan expenses, which include Company contributions and administrative fees, for the years 2016, 2015 and 2014, were approximately $227,000, $243,000, and $244,000, respectively. Postretirement Benefit Plan Artesian Water has a Postretirement Benefit Plan, or the Benefit Plan, which provides medical and life insurance benefits to certain retired employees. Prior to the amendment of the Benefit Plan, substantially all employees could become eligible for these benefits if they reached retirement age while still working for Artesian Water. The amendment excludes any current employees from becoming eligible for these benefits upon retirement. FASB ASC Topic 715 stipulates that Artesian Water accrue the expected cost of providing postretirement health care and life insurance benefits as employees render the services necessary to earn the benefits. Artesian Water recognizes an offsetting regulatory asset with respect to its post retirement liability. This asset is recorded based on the DEPSC order, which permits Artesian Water to continue recovery of postretirement health care and life insurance expense on a pay-as-you-go basis for the remaining eligible employees. Further, expense recovery as a percentage of rates is expected to remain generally constant over the initial years, and then decline until the obligation is liquidated. The amounts recognized in consolidated financial statements are determined based on an actuarial basis, which uses assumptions about inflation, mortality, medical trend rates and discount rates. A change in these assumptions could cause actual results to differ from those reported. Amounts charged to expense were $80,000, $113,000, and $121,000 for 2016, 2015 and 2014, respectively. The Company uses December 31 as the measurement date to determine the postretirement benefit obligation. There were three remaining eligible retirees as of December 31, 2016. The estimated post retirement liability recorded at December 31, 2016 and December 31, 2015 was $186,000 and $329,000 respectively. The Company anticipates contributing $37,000 towards postretirement benefits in 2017. There was no other comprehensive income impact because a regulatory asset is recorded as provided by FASB ASC Topic 980.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2016
COMMITMENTS AND CONTINGENCIES [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 10 COMMITMENTS AND CONTINGENCIES Leases In October 1997, Artesian Water entered into a 33 year operating lease for a parcel of land with improvements located in South Bethany, a municipality in Sussex County, Delaware. The annual lease payments increase each year by the most recent increase in the Consumer Price Index for Urban Workers, CPI-U, as published by the U.S. Department of Labor, Bureau of Labor Statistics. At each eleventh year of the lease term, the annual lease payment shall be determined based on the fair market value of the parcel of land. Rental payments for 2016, 2015 and 2014 were $16,000, $16,000, and $15,900, respectively. Since the CPI-U in 2016 was less than the CPI-U in 2015, the future minimum rental payment as disclosed in the following table is calculated using CPI-U as of October 31, 2015 as well as any adjustments for appraisals conducted to determine the fair market value of the parcel of land. During 2003, Artesian Resources entered into a 40 year easement agreement to acquire an easement to access, operate, maintain, repair, improve, replace and connect Artesian's water system to a well, including a parcel of land around the well. Easement payments for 2016, 2015 and 2014 were $36,000, $35,000 and $34,000, respectively. Artesian Wastewater entered into a perpetual agreement for the use of approximately 460 acres of land in Sussex County, Delaware for wastewater disposal. Beginning January 2007, Artesian Wastewater is required to pay a minimum of $40,000 per year for the use of this land. Beginning January 2012, and on each anniversary thereof until January 2027, the fee shall be adjusted upwards by an adjustment factor of two percent. Once disposal operations begin, the monthly fee will be contingent on the average number of gallons of wastewater disposed on the properties. Payments for 2016, 2015 and 2014 were $44,000, $43,000 and $43,000, respectively. The agreement can be terminated by giving 180 day notice prior to the termination date. Future minimum annual rental payments related to non-cancellable operating leases for the years subsequent to 2016 are as follows: In thousands 2017 $ 76 2018 54 2019 56 2020 57 2021 58 2022 through 2043 1,394 $ 1,695 Interconnections Artesian Water has one water service interconnection agreement with a neighboring utility, Chester Water Authority, which requires minimum annual purchases. Rates charged under this agreement are subject to change. Effective August 1, 1997, Artesian Water renegotiated the contract with the Chester Water Authority to, among other things, reduce the minimum purchase requirements from 1,459 million gallons to 1,095 million gallons annually, calculated as 3 million gallons per day times the number of calendar days in a year. The agreement is extended through the year 2021. The minimum annual purchase commitments for all interconnection agreements for 2017 through 2021, calculated at the noticed rates, are as follows: In thousands 2017 3,824 2018 3,824 2019 3,825 2020 3,834 2021 3,825 $ 19,132 Expenses for purchased water were $4.0 million for each of the years ended December 31, 2016, 2015 and 2014. Other Commitments In 2013, Artesian Water entere d into a 3-year agreement with Worldwide Industries Corporation to clean and paint tanks in 2014, 2015 and 2016. Pursuant to the 3-year agreement, the expenditure committed in total for the years 2014 through 2016 is $804,000. In 2014, the 3-year agreement with Worldwide Industries Corporation was amended to include an additional $113,000 in expenditures related to cleaning and painting tanks. T Budgeted mandatory utility plant expenditures, due to planned governmental highway projects, which require the relocation of Artesian Water's water service mains, expected to be incurred in 2017 through 2019 are as follows: In thousands 2017 $ 4,735 2018 2,165 2019 1,130 $ 8,030 The exact timing and extent of these relocation projects is controlled primarily by the Delaware Department of Transportation. Litigation Artesian Resources and its subsidiaries are subject to legal proceedings in the ordinary course of business. Any amounts from such legal proceedings that are probable and reasonably estimable are reflected in the financial statements.

GEOGRAPHIC CONCENTRATION OF CUS

GEOGRAPHIC CONCENTRATION OF CUSTOMERS	12 Months Ended
	Dec. 31, 2016
GEOGRAPHIC CONCENTRATION OF CUSTOMERS [Abstract]
GEOGRAPHIC CONCENTRATION OF CUSTOMERS	NOTE 11 GEOGRAPHIC CONCENTRATION OF CUSTOMERS Artesian Water, Artesian Water Maryland and Artesian Water Pennsylvania provide water utility service to customers within their established service territory in all three counties of Delaware and in portions of Maryland and Pennsylvania, pursuant to rates filed with and approved by the DEPSC, the MDPSC and the PAPUC. As of December 31, 2016, Artesian Water was serving approximately 82,700 customers, Artesian Water Maryland was serving approximately 2,300 customers and Artesian Water Pennsylvania was serving approximately 40 customers. Artesian Wastewater began providing wastewater services to a community in Sussex County, Delaware in July 2005. Artesian Wastewater provides wastewater utility service to customers within their established service territory in Sussex County, Delaware pursuant to rates filed with and approved by the DEPSC. As of December 31, 2016, Artesian Wastewater was serving approximately 1,600 customers, all of which are located in Sussex County, Delaware.

REGULATORY PROCEEDINGS

REGULATORY PROCEEDINGS	12 Months Ended
	Dec. 31, 2016
REGULATORY PROCEEDINGS [Abstract]
REGULATORY PROCEEDINGS	NOTE 12 REGULATORY PROCEEDINGS Our water and wastewater utilities generate operating revenue from customers based on rates that are established by state Public Service Commissions through a rate setting process that may include public hearings, evidentiary hearings and the submission of evidence and testimony in support of the requested level of rates by the Company. We are subject to regulation by the following state regulatory commissions: · · · Rate Proceedings Our regulated utilities periodically seek rate increases to cover the cost of increased operating expenses, increased financing expenses due to additional investments in utility plant and other costs of doing business. In Delaware, utilities are permitted by law to place rates into effect, under bond, on a temporary basis pending completion of a rate increase proceeding. The first temporary increase may be up to the lesser of $2.5 million on an annual basis or 15% of gross water sales. Should the rate case not be completed within seven months, by law, the utility may put the entire requested rate relief, up to 15% of gross water sales, in effect under bond until a final resolution is ordered and placed into effect. If any such rates are found to be in excess of rates the DEPSC finds to be appropriate, the utility must refund customers the portion found to be in excess with interest. The timing of our rate increase requests are therefore dependent upon the estimated cost of the administrative process in relation to the investments and expenses that we hope to recover through the rate increase. We can provide no assurances that rate increase requests will be approved by applicable regulatory agencies and, if approved, we cannot guarantee that these rate increases will be granted in a timely or sufficient manner to cover the investments and expenses for which we initially sought the rate increase. On August 18, 2015, the DEPSC made a preliminary ruling in response to Artesian Water's April 2014 application to implement new rates to meet a requested increase in revenue of 15.90%, or approximately $10.0 million, on an annualized basis. The preliminary ruling recommended a permanent rate increase in revenue of approximately $6.0 million, or 9.50%, on an annualized basis, which was an incremental increase for customers of approximately 6.20% above the Distribution System Improvement Charge, or DSIC, rate previously in effect. On October 6, 2015, a DEPSC order was issued concurring with the preliminary ruling issued on August 18, 2015. On January 19, 2016, a final DEPSC order was issued related to the permanent rate increase and concurred with the October 6, 2015 order. Because the permanent rate increase was less than amounts collected under previously approved temporary increases in rates, Artesian Water was required to refund a portion of the temporary rate increases to its customers. The refund, plus interest, at the average prime rate, for the overpayment from customers was applied to current and future customer bills in October 2015. Because the final rate award was at a level not less than the amount previously reported as income, there was no material impact upon previously reported water sales revenue. The new rates are designed to allow recovery of capital investments made by Artesian Water and to cover increased costs of operations, including water quality testing, chemicals and electricity for water treatment, taxes, labor and benefits. Other Proceedings Delaware law permits water utilities to put into effect, on a semi-annual basis, increases related to specific types of distribution system improvements through a Distribution System Improvement Charge, or DSIC. This charge may be implemented by water utilities between general rate increase applications that normally recognize changes in a water utility's overall financial position. The DSIC approval process is less costly when compared to the approval process for general rate increase requests. The DSIC rate applied between base rate filings is capped at 7.50% of the amount billed to customers under otherwise applicable rates and charges, and the DSIC rate increase applied cannot exceed 5.0% within an y 12-month period. The following table summarizes Artesian Water's applications with the DEPSC to collect DSIC rates and the eligible plant improvements the rates are based on: Application Date 11/26/2014 05/28/2015 11/24/2015 05/31/2016 11/29/2016 Effective Date 01/01/2015 07/01/2015 01/01/2016 07/01/2016 01/01/2017 DEPSC Approval Date 12/16/2014 06/16/2015 12/15/2015 06/28/2016 12/20/2016 Cumulative DSIC Rate 0.34 % 1.15 % 1.57 % 2.30 % 4.71 % Eligible Plant Improvements – Cumulative Dollars (in millions) $ 1.3 $ 4.6 $ 7.0 $ 10.3 $ 16.6 Eligible Plant Improvements – Installed Beginning Date 10/01/2014 10/01/2014 10/01/2014 10/01/2014 10/01/2014 Eligible Plant Improvements – Installed Ending Date 10/31/2014 04/30/2015 10/31/2015 04/30/2016 10/31/2016 All DEPSC approvals noted in the table above are subject to audit at a later date. For the years ended December 31, 2016, December 31, 2015 and December 31, 2014, we earned approximately $1,306,000, $520,000 and $788,000 in DSIC revenue, respectively.

NET INCOME PER COMMON SHARE AND

NET INCOME PER COMMON SHARE AND EQUITY PER COMMON SHARE	12 Months Ended
	Dec. 31, 2016
NET INCOME PER COMMON SHARE AND EQUITY PER COMMON SHARE [Abstract]
NET INCOME PER COMMON SHARE AND EQUITY PER COMMON SHARE	NOTE 13 NET INCOME PER COMMON SHARE AND EQUITY PER COMMON SHARE Basic net income per share is based on the weighted average number of common shares outstanding. Diluted net income per share is based on the weighted average number of common shares outstanding, the potentially dilutive effect of employee stock options and restricted stock awards. The following table summarizes the shares used in computing basic and diluted net income per share: For the Year Ended December 31, 2016 2015 2014 (in thousands) Weighted average common shares outstanding during the period for Basic computation 9,098 8,960 8,884 Dilutive effect of employee stock options 63 45 42 Weighted average common shares outstanding during the period for Diluted computation 9,161 9,005 8,926 For the years ended December 31, 2016 and December 31, 2015, no shares of common stock were excluded from the calculations of diluted net income per share, respectively. For the year ended December 31, 2014, employee stock options to purchase 67,500 shares of common stock were excluded from the calculations of diluted net income per share, as the calculated proceeds from the options' exercise were greater than the average market price of the Company's common stock during this period. The Company has 15,000,000 authorized shares of Class A Stock, and 1,040,000 shares of Class B Stock. As of December 31, 2016, 8,246,033 shares of Class A Stock and 881,452 shares of Class B Stock were issued and outstanding. As of December 31, 2015, 8,176,213 shares of Class A Stock and 881,452 shares of Class B Stock were issued and outstanding. As of December 31, 2014, 8,030,677 shares of Class A Stock and 881,452 shares of Class B Stock were issued and outstanding. The par value for both classes is $1.00 per share. For the years ended December 31, 2016, December 31, 2015, and December 31, 2014, the Company issued 69,820, 145,536, and 82,108 shares of Class A Stock, respectively. Equity per common share was $15.28, $14.77, and $14.14 at December 31, 2016, December 31, 2015, and December 31, 2014, respectively. These amounts were computed by dividing common stockholders' equity by the number of weighted average shares of common stock outstanding on December 31, 2016, December 31, 2015, and December 31, 2014, respectively.

SELECTED CONSOLIDATED QUARTERLY

SELECTED CONSOLIDATED QUARTERLY FINANCIAL DATA (UNAUDITED)	12 Months Ended
	Dec. 31, 2016
SELECTED CONSOLIDATED QUARTERLY FINANCIAL DATA (UNAUDITED) [Abstract]
SELECTED CONSOLIDATED QUARTERLY FINANCIAL DATA (UNAUDITED)	NOTE 14 SELECTED CONSOLIDATED QUARTERLY FINANCIAL DATA (UNAUDITED) The following table is derived from quarterly unaudited consolidated statements of operations for the years ended December 31, 2016 and 2015. Quarterly basic and diluted per share amounts do not add to the full year total due to rounding. First Quarter Second Quarter Third Quarter Fourth Quarter In thousands (except per share data) 2016 2015 2016 2015 2016 2015 2016 2015 Operating revenues $ 18,449 $ 17,962 $ 19,395 $ 19,536 $ 21,828 $ 20,776 $ 19,417 $ 18,750 Operating income $ 3,853 $ 3,672 $ 4,669 $ 4,985 $ 5,945 $ 5,394 $ 4,352 $ 3,531 Net income applicable to common stock $ 2,830 $ 2,538 $ 3,041 $ 3,233 $ 4,360 $ 3,699 $ 2,723 $ 1,835 Income per common share Basic $ 0.31 $ 0.28 $ 0.33 $ 0.36 $ 0.48 $ 0.41 $ 0.30 $ 0.21 Diluted $ 0.31 $ 0.28 $ 0.33 $ 0.36 $ 0.48 $ 0.41 $ 0.30 $ 0.21

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2016
RELATED PARTY TRANSACTIONS [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 15 RELATED PARTY TRANSACTIONS In July 2016, Artesian Water entered into a contract in the normal course of business with W.F. Construction, Inc., a related party, for $131,000 in work associated with building modifications to a water treatment plant. In May 2015, Artesian Water entered into an approximately $48,000 agreement in the normal course of business with W.F. Construction, Inc. for structural improvements at a water treatment plant. The owner of W.F. Construction, Inc. is the husband of Mrs. Jennifer Finch, Vice President and Assistant Treasurer of Artesian Resources. Approximately $137,000 was paid to W.F. Construction, Inc. during the year ended December 31, 2016. Approximately $48,000 was paid to W.F. Construction, Inc. for the year ended December 31, 2015. As of December 31, 2016 and December 31, 2015, the Company had no accounts payable balance due to W. F. Construction, Inc., respectively. As set forth in the Charter of the Audit Committee of the Board of Directors of Artesian Resources, the Audit Committee is responsible for reviewing and, if appropriate, approving all related party transactions between us and any officer, director, any person known to be the beneficial owner of more than 5% of any class of the Company's voting securities or any other related person that would potentially require disclosure. In its review and approval of the 2016 related party transaction with W.F. Construction, Inc., the Audit Committee considered the nature of the related person's interest in the transaction; the satisfactory performance of work contracted with the related party prior to our employment of Mrs. Finch; and the material terms of the transaction, including, without limitation, the amount and type of transaction, the importance of the transaction to the related person, the importance of the transaction to the Company and whether the transaction would impair the judgment of a director or officer to act in the best interest of the Company. The Audit Committee approves only those related person transactions that are in, or are not inconsistent with, the best interests of the Company and its stockholders.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS	12 Months Ended
	Dec. 31, 2016
Legal Proceedings [Abstract]
LEGAL PROCEEDINGS	NOTE 16 LEGAL PROCEEDINGS Periodically, we are involved in other proceedings or litigation arising in the ordinary course of business. We do not believe that the ultimate resolution of these matters will materially affect our business, financial position or results of operations. However, we cannot assure that we will prevail in any litigation and, regardless of the outcome, may incur significant litigation expense and may have significant diversion of management attention.

IMPACT OF RECENT ACCOUNTING PRO

IMPACT OF RECENT ACCOUNTING PRONOUNCEMENTS	12 Months Ended
	Dec. 31, 2016
IMPACT OF RECENT ACCOUNTING PRONOUNCEMENTS [Abstract]
IMPACT OF RECENT ACCOUNTING PRONOUNCEMENTS	NOTE 17 IMPACT OF RECENT ACCOUNTING PRONOUNCEMENTS In May 2014, the FASB issued amended guidance for reporting revenue from contracts with customers. This guidance affects any entity using U.S. GAAP that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (e.g., insurance contracts or lease contracts). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new standard also requires enhanced disclosures regarding the nature, amount, timing, and uncertainty of revenue and the related cash flows arising from contracts with customers. The majority of the Company's revenue should not be affected by this new standard. Water and wastewater revenue is based on service provided to customers at rates subject to approval by regulatory commissions without a defined contract. The Company continues to evaluate the impact of adoption of this new standard if contributions in aid of construction are determined to be in scope and thus considered to be revenue. In February 2016, the FASB issued new guidance on Leases to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. Management is currently evaluating the impact of our pending adoption of the new standard, which includes compiling a list of all contracts that meet the definitions of a lease under the new standard and determine the proper classification and accounting treatment to determine the ultimate impact the new standard will have on our consolidated financial statements. In March 2016, FASB issued amended guidance on Stock Compensation: Improvements to Employee Share-Based Payment Accounting. The amendments are intended to improve the accounting for employee share-based payments and affect all organizations that issue share-based payment awards to their employees. Several aspects of the accounting for share-based payment award transactions are simplified, including: (a) (b) (c) In August 2016, FASB issued amended guidance to address diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments provide guidance on the following eight specific cash flow issues: Debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies; distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. For public companies, the amendments are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The amendments should be applied using a retrospective transition method to each period presented.

SUMMARY OF SIGNIFICANT ACCOUN25

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2016
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Basis of Presentation	Basis of Presentation The audited consolidated financial statements are presented in accordance with the requirements of Form 10-K and accounting principles generally accepted in the United States and consequently include all the disclosures required in the consolidated financial statements included in the Company's annual report on Form 10-K. The accompanying consolidated financial statements include the accounts of Artesian Resources Corporation and its subsidiaries and all intercompany balances and transactions between subsidiaries have been eliminated.
Reclassification	Reclassification Certain accounts in the prior year financial statements have been reclassified for comparative purposes to conform with the presentation in the current year financial statements. These reclassifications had no effect on net income or stockholders' equity. In 2016, the Company adopted amended guidance on the Presentation of Debt Issuance Costs and amended guidance on Income Taxes, both of which were issued by the Financial Accounting Standards Board, or FASB, in 2015. The amended guidance on the Presentation of Debt Issuance Costs requires entities to present debt issuance costs related to a debt liability as a direct deduction from the carrying amount of that debt liability on the balance sheet as opposed to being presented as a deferred charge. The amended guidance on Income Taxes simplified the presentation of deferred income taxes, permitting all deferred income tax liabilities be classified as noncurrent on the balance sheet. For all periods presented in this Form 10-K for the year ended December 31, 2016, unamortized debt issuance costs related to the Company's long-term debt are reported on the Condensed Consolidated Balance Sheets within "Regulatory Assets, Net" under FASB ASC Topic 980 as this amount will be recovered in future rates charged to our customers. Prior to adoption, the Company reported the unamortized debt issuance costs in "Other Assets" on the Condensed Consolidated Balance Sheets. Deferred income taxes are reported as noncurrent on the Condensed Consolidated Balance Sheets. Prior to adoption, the Company reported current and noncurrent deferred income tax liabilities as separate amounts on the Condensed Consolidated Balance Sheets.
Utility Subsidiary Accounting	Utility Subsidiary Accounting The accounting records of Artesian Water Company, Inc., or Artesian Water, and Artesian Wastewater Management, Inc., or Artesian Wastewater, are maintained in accordance with the uniform system of accounts as prescribed by the Delaware Public Service Commission, or the DEPSC. The accounting records of Artesian Water Pennsylvania, Inc., or Artesian Water Pennsylvania, are maintained in accordance with the uniform system of accounts as prescribed by the Pennsylvania Public Utility Commission, or the PAPUC. The accounting records of Artesian Water Maryland, Inc., or Artesian Water Maryland, and Artesian Wastewater Maryland, Inc., or Artesian Wastewater Maryland, are maintained in accordance with the uniform system of accounts as prescribed by the Maryland Public Service Commission, or the MDPSC. All five subsidiaries follow the provisions of FASB ASC Topic 980, which provides guidance for companies in regulated industries. These regulated subsidiaries account for the majority of our operating revenue. The operating revenues of our non-regulated division are presented in the Consolidated Statements of Operations.
Utility Plant	Utility Plant Utility plant is stated at original cost. Cost includes direct labor, materials, AFUDC (see description below) and indirect charges for such capitalized items as transportation, supervision, pension, medical, and other fringe benefits related to employees engaged in construction activities. When depreciable units of utility plant are retired, any cost associated with retirement, less any salvage value or proceeds received, is charged to the regulated retirement liability. Maintenance, repairs, and replacement of minor items of plant are charged to expense as incurred. In accordance with a rate order issued by the DEPSC, Artesian Water accrues an Allowance for Funds Used during Construction, or AFUDC. AFUDC, which represents the cost of funds devoted to construction projects through the date the project is placed in service, is capitalized as part of construction work in progress. The rate used for the AFUDC calculation is based on Artesian Water's weighted average cost of debt and the rate of return on equity authorized by the DEPSC. The rate used to capitalize AFUDC in 2016, 2015, and 2014 was 8.1%, 8.1%, and 8.2% respectively. Utility plant comprises In thousands December 31, Estimated Useful Life (In Years) 2016 2015 Utility plant at original cost Utility plant in service-Water Intangible plant — $ 140 $ 140 Source of supply plant 45-85 19,627 19,313 Pumping and water treatment plant 8-62 78,542 77,221 Transmission and distribution plant Mains 81 236,261 224,104 Services 39 38,803 36,060 Storage tanks 76 24,108 23,992 Meters 26 24,710 24,150 Hydrants 60 12,870 12,037 General plant 3-31 53,417 52,434 Utility plant in service-Wastewater Treatment and disposal plant 35-62 15,613 14,012 Collection mains & lift stations 81 8,675 7,833 General plant 3-31 931 906 Property held for future use — 14,815 14,345 Construction work in progress — 6,674 3,809 535,186 510,356 Less – accumulated depreciation 109,684 104,750 $ 425,502 $ 405,606
Depreciation and Amortization	Depreciation and Amortization For financial reporting purposes, depreciation is recorded using the straight-line method at rates based on estimated economic useful lives, which range from 3 to 85 years. Composite depreciation rates for water utility plant were 2.25%,
Utility Plant Retirement Cost Obligation	Utility Plant Retirement Cost Obligation The utility plant retirement cost obligation consists of estimated costs related to the potential removal and replacement of facilities and equipment on the Company's water and wastewater properties. Effective January 1, 2012, as authorized by the DEPSC, when depreciable units of utility plant are retired, any cost associated with retirement, less any salvage value or proceeds received is charged to a regulated retirement liability. Each year the liability is increased by an annual amount authorized by the DEPSC. Previously, when depreciable units of utility plant were retired, the cost of retired property, together with any cost associated with retirement less any salvage value or proceeds received, was charged to accumulated depreciation. Maintenance, repairs, and replacement of minor items of plant are charged to expense as incurred.
Regulatory Assets	Regulatory Assets FASB ASC Topic 980 stipulates generally accepted accounting principles for companies whose rates are established or subject to approvals by a third-party regulatory agency. Certain expenses are recoverable through rates charged to our customers, without a return on investment, and are deferred and amortized during future periods using various methods as permitted by the Delaware Public Service Commission, or DEPSC, the Maryland Public Service Commission, or MDPSC, and the Pennsylvania Public Utility Commission, or PAPUC. The postretirement benefit obligation is the recognition of an offsetting regulatory asset as it relates to the accrual of the expected cost of providing postretirement health care and life insurance benefits to retired employees when they render the services necessary to earn the benefits. Artesian Water contributed $81,000 to its postretirement benefit plan in 2016. These co The deferred income taxes will be amortized over future years as the tax effects of temporary differences that previously flowed through to our customers are reversed. Other regulatory expenses are amortized on a straight-line basis as noted below: Expense Years Amortized Depreciation and salary studies 5 Delaware rate proceedings 2.5 Maryland rate proceedings 5 Debt issuance costs (as of December 31, 2016) 10 to 30 (based on term of related debt) Debt issuance costs (after First Mortgage Bond Purchase in January 2017) 15 to 25 (based on term of related debt) Goodwill (resulting from acquisition of Mountain Hill Water Company in 2008) 50 Deferred acquisition costs (resulting from purchase of water assets in Cecil County, Maryland in 2011 and Port Deposit, Maryland in 2010) 20 Franchise Costs (resulting from purchase of water assets in Cecil County, Maryland in 2011) 80 Regulatory assets, net of amortization, comprise: (in thousands) December 31, 2016 December 31, 2015 Postretirement benefit obligation $ 186 $ 329 Deferred income taxes 431 446 Expense of rate and regulatory proceedings 116 616 Debt issuance costs 1,648 1,747 Goodwill 310 318 Deferred acquisition and franchise costs 683 720 $ 3,374 $ 4,176
Impairment or Disposal of Long-Lived Assets	Impairment or Disposal of Long-Lived Assets Our long-lived assets consist primarily of utility plant in service and regulatory assets. A review of our long-lived assets is performed in accordance with the requirements of FASB ASC Topic 360. In addition, the regulatory assets are reviewed for the continued application of FASB ASC Topic 980. The review determines whether there have been changes in circumstances or events that have occurred requiring adjustments to the carrying value of these assets. FASB ASC Topic 980 stipulates that adjustments to the carrying value of these assets would be made in instances where the inclusion in the rate-making process is unlikely.
Other Deferred Assets	Other Deferred Assets The investment in Co-Bank, which is a cooperative bank, is related to certain outstanding First Mortgage Bonds and is a required investment in the bank based on the underlying long term debt agreements. A large portion of the remaining other deferred assets, approximately $0.3 million, is in relation to the Mountain Hill acquisition. Other deferred assets at December 31, net of amortization, comprise: In thousands 2016 2015 Investment in CoBank $ 3,198 $ 3,023 Other 386 421 $ 3,584 $ 3,444
Advances for Construction	Advances for Construction Cash advances to reimburse Artesian Water for its costs to construct water mains, services and hydrants are contributed to Artesian Water by real estate developers and builders in order to extend water service to their properties. The Company only accepts advances related to new phases of existing developments that are grandfathered into the refundable arrangement through pre-existing contracts. The value of these contributions is recorded as Advances for Construction. Artesian Water makes refunds on these advances over a specific period of time based on operating revenues generated by the specific plant or as new customers are connected to the mains. After all refunds are made within the contract period, any remaining balance is transferred to CIAC.
Contributions in Aid of Construction	Contributions in Aid of Construction CIAC includes the non-refundable portion of advances for construction and direct contributions of water mains, services and hydrants, and wastewater treatment facilities and collection systems, or cash to reimburse our water and wastewater divisions for costs to construct water mains, services and hydrants, and wastewater treatment and disposal plant.
Income Taxes	Income Taxes Deferred income taxes are provided in accordance with FASB ASC Topic 740 on all differences between the tax basis of assets and liabilities and the amounts at which they are carried in the consolidated financial statements based on the enacted tax rates expected to be in effect when such temporary differences are expected to reverse. Under FASB ASC Topic 740, an uncertain tax position represents our expected treatment of a tax position taken, or planned to be taken in the future, that has not been reflected in measuring income tax expense for financial reporting purposes. In 2014, the Company changed its tax method of accounting for qualifying utility system repairs effective with the tax year ended December 31, 2014 and for prior tax years. The tax accounting method was changed to permit the expensing of qualifying utility asset improvement costs that were previously being capitalized and depreciated for book and tax purposes. The Company establishes reserves for uncertain tax positions based upon management's judgment as to the sustainability of these positions. These accounting estimates related to the uncertain tax position reserve require judgments to be made as to the sustainability of each uncertain tax position based on its technical merits. The Company believes its tax positions comply with applicable law and that it has adequately recorded reserves as required. However, to the extent the final tax outcome of these matters is different than the estimates recorded, the Company would then adjust its tax reserves or unrecognized tax benefits in the period that this information becomes known. The Company has elected to recognize accrued interest (net of related tax benefits) and penalties related to uncertain tax positions as a component of its income tax expense. The Company remains subject to examination by federal authorities for the tax year 2015 and state authorities for the tax years 2013 through 2015. The Company was under federal audit by the Internal Revenue Service for tax years 2012 through 2014 during 2016. The audit was concluded during the year resulting in no change to the tax liability The Tax Reform Act of 1986 mandated that Advances and CIAC received subsequent to December 31, 1986, generally are taxable income. The 1996 Tax Act provided an exclusion from taxable income for CIAC and Advances received after June 12, 1996 except for certain contributions for large services that are not included in rate base for rate-making purposes. Investment tax credits were deferred through 1986 and are recognized as a reduction of deferred income tax expense over the estimated economic useful lives of the related assets.
Stock Compensation Plans	Stock Compensation Plans On December 9, 2015, the Company's stockholders approved the 2015 Equity Compensation Plan, or the 2015 Plan. The 2015 Plan replaced the 2005 Equity Compensation Plan, or the 2005 Plan, which expired on May 24, 2015. The 2015 Plan authorizes an aggregate number of shares of our Class A common stock that may be issued or transferred under the Plan equal to the sum of: 331,500 shares, plus the number of shares of Class A common stock subject to outstanding grants under the 2005 Plan as of December 9, 2015 that terminate, expire or are cancelled, forfeited, exchanged or surrendered without having been exercised, vested or paid under the 2005 Plan. The Company accounts for stock options issued after January 1, 2006 under FASB ASC Topic 718. Compensation costs for restricted stock grants and options were $92,000, $183,000 and $135,000 in 2016, 2015 and 2014, respectively. Cost for options and restricted stock grants were determined based on the fair value at the grant dates and those costs were charged to income over the associated service periods. The $135,000 in 2014 was the amount amortized for stock options awarded in 2014 and 2013. The $183,000 in 2015 was the amount amortized for restricted stock awarded in 2015 and stock options awarded in 2014. The $92,000 in 2016 was the amount amortized for restricted stock awarded in 2016. As of December 31, 2016 there is $47,000 unrecognized expense related to non-vested awards of restricted shares granted under the 2015 Plan. There was no stock compensation cost capitalized as part of an asset. Stock Options The fair value of each option grant is estimated using the Black-Scholes-Merton option pricing model with the following weighted-average assumptions used for grants issued in 2014 under the 2005 Equity Compensation Plan (See Note 8 "Stock Compensation Plans"). No options were granted in 2015 or 2016. 2014 Expected Dividend Yield 3.88% Expected Stock Price Volatility 26.50% Weighted Average Risk Free Interest Rate 2.24% Weighted Average Expected Life of Options (in years) 7.52 The expected dividend yield was based on a 12 month rolling average of the Company's current dividend yield. The expected volatility is the standard deviation of the change in the natural logarithm of the stock price (expressed as an annual rate) for the expected term shown above. The expected term was based on historic exercise patterns for similar grants. The risk free interest rate for the 2014 options is the weighted average of the 7-year and 10-year US Treasury Yield rates. Shares of Class A Stock have been reserved for future issuance under the 2015 Equity Compensation Plan. Stock Awards On May 4, 2016, 5,000 shares of Class A common stock were granted as restricted stock awards. The fair market value per share was $27.70, the closing price of the Class A common stock as recorded on the Nasdaq Global Market on May 4, 2016. The restricted shares vest one year from the date of grant. A total of $92,000 was recorded as compensation cost for the awards granted in May 2016. On December 18, 2015 5,000 shares of Class A common stock were issued as fully vested unrestricted stock awards. The fair market value per share was $27.38, the closing price of the Class A common stock as recorded on the Nasdaq Global market on December 18, 2015. A total of $137,000 was recorded as compensation cost for the stock awards granted in December 2015.
Revenue Recognition and Unbilled Revenues	Revenue Recognition and Unbilled Revenues Water service revenue for financial statement purposes includes amounts billed to Delaware customers on a monthly basis, amounts billed to Maryland customers on a quarterly or monthly cycle basis, depending on water system, and amounts billed to Pennsylvania customers on a quarterly basis. Water service revenues also include unbilled amounts based upon estimated usage from the date of the last meter reading to the end of the accounting period. As actual usage amounts are received, adjustments are made to the unbilled estimates in the next billing cycle based on an accrual basis. Other utility operating revenue includes wastewater service revenue derived from monthly fixed fees billed to customers, and is recognized on an accrual basis. Non-utility operating revenue is primarily derived from Service Line Protection Plans and from the design, construction and operation of contract water and wastewater projects. The Company recognizes non-utility operating revenue ratably over the service period with markup for overhead and profit. The Company records contract monthly fees for non-utility operating revenue when billed to the customer. Service line protection plan revenues are recognized on an accrual basis.
Accounts Receivable	Accounts Receivable Accounts receivable are recorded at the invoiced amounts. The allowance for doubtful accounts is the Company's best estimate of the amount of probable credit losses in our existing accounts receivable. The Company reviews the allowance for doubtful accounts on a quarterly basis. Account balances are written off against the allowance when it is probable the receivable will not be recovered. The allowance for doubtful accounts was $0.3 million and $0.3 million at December 31, 2016 and December 31, 2015 respectively. The corresponding expense for the year ended December 31, 2016 and 2015 was $0.2 million and $0.2 million, respectively. The following table summarizes the changes in the Company's accounts receivable balance: December 31, In thousands 2016 2015 2014 Customer accounts receivable – water $ 5,437 $ 5,017 $ 4,020 Contractual amounts due from developers and other 2,622 1,610 1,295 8,059 6,627 5,315 Less allowance for doubtful accounts 263 277 250 Net accounts receivable $ 7,796 $ 6,350 $ 5,065 The activities in the allowance for doubtful accounts are as follows: December 31, In thousands 2016 2015 2014 Beginning balance $ 277 $ 250 $ 221 Allowance adjustments 195 205 194 Recoveries 64 53 64 Write off of uncollectible accounts (273 ) (231 ) (229 ) Ending balance $ 263 $ 277 $ 250
Cash and Cash Equivalents	Cash and Cash Equivalents For purposes of the Consolidated Statement of Cash Flows, Artesian Resources considers all temporary cash investments with an original maturity of three months or less to be cash equivalents. Artesian Resources and its subsidiaries utilize their bank's zero balance account disbursement service to reduce the use of their lines of credit by funding checks as they are presented to the bank for payment rather than at issuance. If the checks currently outstanding, but not yet funded, exceed the cash balance on our books, the net liability is recorded as a current liability on the Consolidated Balance Sheet in the Overdraft Payable account.
Use of Estimates in the Preparation of Consolidated Financial Statements	Use of Estimates in the Preparation of Consolidated Financial Statements The consolidated financial statements were prepared in conformity with generally accepted accounting principles in the U.S., which require management to make estimates about the reported amounts of assets and liabilities including unbilled revenues, reserve for a portion of revenues received under temporary rates and regulatory asset recovery and contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from management's estimate.

SUMMARY OF SIGNIFICANT ACCOUN26

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2016
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Schedule of Utility Plant	Utility plant comprises In thousands December 31, Estimated Useful Life (In Years) 2016 2015 Utility plant at original cost Utility plant in service-Water Intangible plant — $ 140 $ 140 Source of supply plant 45-85 19,627 19,313 Pumping and water treatment plant 8-62 78,542 77,221 Transmission and distribution plant Mains 81 236,261 224,104 Services 39 38,803 36,060 Storage tanks 76 24,108 23,992 Meters 26 24,710 24,150 Hydrants 60 12,870 12,037 General plant 3-31 53,417 52,434 Utility plant in service-Wastewater Treatment and disposal plant 35-62 15,613 14,012 Collection mains & lift stations 81 8,675 7,833 General plant 3-31 931 906 Property held for future use — 14,815 14,345 Construction work in progress — 6,674 3,809 535,186 510,356 Less – accumulated depreciation 109,684 104,750 $ 425,502 $ 405,606
Amortization Period of Other Regulatory Expense	Other regulatory expenses are amortized on a straight-line basis as noted below: Expense Years Amortized Depreciation and salary studies 5 Delaware rate proceedings 2.5 Maryland rate proceedings 5 Debt issuance costs (as of December 31, 2016) 10 to 30 (based on term of related debt) Debt issuance costs (after First Mortgage Bond Purchase in January 2017) 15 to 25 (based on term of related debt) Goodwill (resulting from acquisition of Mountain Hill Water Company in 2008) 50 Deferred acquisition costs (resulting from purchase of water assets in Cecil County, Maryland in 2011 and Port Deposit, Maryland in 2010) 20 Franchise Costs (resulting from purchase of water assets in Cecil County, Maryland in 2011) 80
Regulatory Assets, Net of Amortization	Regulatory assets, net of amortization, comprise: (in thousands) December 31, 2016 December 31, 2015 Postretirement benefit obligation $ 186 $ 329 Deferred income taxes 431 446 Expense of rate and regulatory proceedings 116 616 Debt issuance costs 1,648 1,747 Goodwill 310 318 Deferred acquisition and franchise costs 683 720 $ 3,374 $ 4,176
Other Deferred Assets, Net of Amortization	Other deferred assets at December 31, net of amortization, comprise: In thousands 2016 2015 Investment in CoBank $ 3,198 $ 3,023 Other 386 421 $ 3,584 $ 3,444
Weighted-average Assumptions Used for Grants Issued	2014 Expected Dividend Yield 3.88% Expected Stock Price Volatility 26.50% Weighted Average Risk Free Interest Rate 2.24% Weighted Average Expected Life of Options (in years) 7.52
Changes in Accounts Receivable	December 31, In thousands 2016 2015 2014 Customer accounts receivable – water $ 5,437 $ 5,017 $ 4,020 Contractual amounts due from developers and other 2,622 1,610 1,295 8,059 6,627 5,315 Less allowance for doubtful accounts 263 277 250 Net accounts receivable $ 7,796 $ 6,350 $ 5,065
Allowance for Doubtful Accounts	The activities in the allowance for doubtful accounts are as follows: December 31, In thousands 2016 2015 2014 Beginning balance $ 277 $ 250 $ 221 Allowance adjustments 195 205 194 Recoveries 64 53 64 Write off of uncollectible accounts (273 ) (231 ) (229 ) Ending balance $ 263 $ 277 $ 250

FAIR VALUE OF FINANCIAL INSTR27

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	12 Months Ended
	Dec. 31, 2016
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract]
Fair value of long-term debt	In thousands December 31, 2016 2015 Carrying amount $ 103,647 $ 104,936 Estimated fair value 111,864 120,243

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2016
INCOME TAXES [Abstract]
Components of Income Tax Expense	Components of Income Tax Expense In thousands For the Year Ended December 31, State income taxes 2016 2015 2014 Current $ 1,050 $ 499 $ 173 Deferred 860 1,299 1,231 Total state income tax expense $ 1,910 $ 1,798 $ 1,404 For the Year Ended December 31, Federal income taxes 2016 2015 2014 Current $ 1,799 $ 2,168 $ (1,073 ) Deferred 4,622 3,818 6,044 Total federal income tax expense $ 6,421 $ 5,986 $ 4,971
Reconciliation of Effective Tax Rate	Reconciliation of effective tax rate: For the Year Ended December 31, In thousands 2016 2016 2015 2015 2014 2014 Amount Percent Amount Percent Amount Percent Reconciliation of effective tax rate Income before federal and state income taxes $ 21,285 100.0 % $ 19,088 100.0 % $ 15,881 100.0 % Amount computed at statutory rate 7,237 34.0 % 6,490 34.0 % 5,400 34.0 % Reconciling items State income tax-net of federal tax benefit 1,327 6.2 % 1,214 6.4 % 918 5.8 % Other (233 ) (1.1 )% 80 0.4 % 57 0.4 % Total income tax expense and effective rate $ 8,331 39.1 % $ 7,784 40.8 % $ 6,375 40.2 %
Deferred Income Taxes	Deferred income taxes at December 31, 2016, 2015, and 2014 were comprised of the following: For the Year Ended December 31, In thousands 2016 2015 2014 Deferred tax assets related to: Federal alternative minimum tax credit carry-forwards $ 2,474 $ 3,971 $ 5,459 Federal and state operating loss carry-forwards 752 675 1,045 Bad debt allowance 104 110 99 Valuation allowance (286 ) (182 ) (65 ) Stock options 452 415 397 Other 320 291 269 Total deferred tax assets $ 3,816 $ 5,280 $ 7,204 Deferred tax liabilities related to: Property plant and equipment basis differences $ (70,711 ) $ (66,508 ) $ (63,427 ) Uncertain tax position (80 ) (247 ) (179 ) Expenses of rate proceedings (19 ) (213 ) (214 ) Property taxes (663 ) (527 ) (505 ) Other (796 ) (756 ) (734 ) Total deferred tax liabilities $ (72,269 ) $ (68,251 ) $ (65,059 ) Net deferred tax liability $ (68,453 ) $ (62,971 ) $ (57,855 )
Schedule of Valuation Allowance	Schedule of Valuation Allowance Balance at Beginning of Period Additions Charged to Costs and Expenses Deductions Balance at End of Period In thousands Classification For the Year Ended December 31, 2016 Valuation allowance for deferred tax assets $ 182 $ 104 — $ 286 For the Year Ended December 31, 2015 Valuation allowance for deferred tax assets $ 65 $ 117 — $ 182 For the Year Ended December 31, 2014 Valuation allowance for deferred tax assets $ 61 $ 4 — $ 65
Schedule of Unrecognized Tax Benefits Roll Forward	The following table provides the changes in the Company's uncertain tax position: For the years ended December 31, In thousands 2016 2015 Balance at beginning of year $ 247 $ 179 Additions based on tax positions related to the current year 23 51 Additions based on tax positions related to prior years 11 17 Reductions for tax positions of prior years (201 ) - Settlements - - Lapses in Statutes of Limitations - - Balance at end of year $ 80 $ 247

DEBT (Tables)

DEBT (Tables)	12 Months Ended
	Dec. 31, 2016
DEBT [Abstract]
Schedule of Long-term debt	Long-term debt consists of: December 31, In thousands 2016 2015 First mortgage bonds Series O, 8.17%, due December 29, 2020 $ 20,000 $ 20,000 Series P, 6.58%, due January 31, 2018 25,000 25,000 Series Q, 4.75%, due December 1, 2043 15,400 15,400 Series R, 5.96%, due December 31, 2028 25,000 25,000 Series S, 6.73%, due December 31, 2033 10,200 10,800 95,600 96,200 State revolving fund loans 4.48%, due August 1, 2021 1,456 1,711 3.57%, due September 1, 2023 640 719 3.64%, due May 1, 2025 1,142 1,255 3.41%, due February 1, 2031 2,448 2,576 3.40%, due July 1, 2032 2,361 2,475 8,047 8,736 Sub-total 103,647 104,936 Less: current maturities (principal amount) 1,316 1,289 Total long-term debt $ 102,331 $ 103,647
Future Minimum Payments	Payments of principal amounts due during the next five years and thereafter: In thousands 2017 2018 2019 2020 2021 Thereafter First Mortgage bonds $ 600 $ 25,600 $ 600 $ 20,600 $ 600 $ 47,600 State revolving fund loans 716 742 771 801 832 4,185 Total payments $ 1,316 $ 26,342 $ 1,371 $ 21,401 $ 1,432 $ 51,785

STOCK COMPENSATION PLANS (Table

STOCK COMPENSATION PLANS (Tables)	12 Months Ended
	Dec. 31, 2016
STOCK COMPENSATION PLANS [Abstract]
Changes in Share of Class A Stock	The following summary reflects changes in the shares of Class A Stock under option: 2016 Shares 2016 Weighted Average Exercise Price 2015 Shares 2015 Weighted Average Exercise Price 2014 Shares 2014 Weighted Average Exercise Price Plan options Outstanding at beginning of year 270,000 $ 19.34 376,250 $ 19.52 387,000 $ 18.96 Granted — — - - 33,750 21.86 Exercised (38,245 ) 19.50 (106,250 ) 19.97 (44,500 ) 16.45 Expired — — — — — — Outstanding at end of year 231,755 $ 19.32 270,000 $ 19.34 376,250 $ 19.52 Options exercisable at year end 231,755 $ 19.32 270,000 $ 19.34 342,500 $ 19.29
Employee and Director Stock Options	The following tables summarize information about employee and director stock options outstanding at December 31, 2016: Options Outstanding Range of Exercise Price Shares Outstanding at December 31, 2016 Weighted Average Remaining Life Weighted Average Exercise Price Aggregate Intrinsic Value $ 15.26 - $19.04 123,755 3.28 Years $ 17.77 $ 1,753,268 $ 19.05 - $22.66 108,000 5.67 Years $ 21.09 $ 1,171,678 Options Exercisable Range of Exercise Price Shares Exercisable at December 31, 2016 Weighted Average Remaining Life Weighted Average Exercise Price Aggregate Intrinsic Value $ 15.26 - $19.04 123,755 3.28 Years $ 17.77 $ 1,753,268 $ 19.05 - $22.66 108,000 5.67 Years $ 21.09 $ 1,171,678

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Dec. 31, 2016
COMMITMENTS AND CONTINGENCIES [Abstract]
Future Minimum Rental Payments	Future minimum annual rental payments related to non-cancellable operating leases for the years subsequent to 2016 are as follows: In thousands 2017 $ 76 2018 54 2019 56 2020 57 2021 58 2022 through 2043 1,394 $ 1,695
Minimum Annual Purchase Commitments	The minimum annual purchase commitments for all interconnection agreements for 2017 through 2021, calculated at the noticed rates, are as follows: In thousands 2017 3,824 2018 3,824 2019 3,825 2020 3,834 2021 3,825 $ 19,132
Budgeted Mandatory Utility Plant Expenditures	Budgeted mandatory utility plant expenditures, due to planned governmental highway projects, which require the relocation of Artesian Water's water service mains, expected to be incurred in 2017 through 2019 are as follows: In thousands 2017 $ 4,735 2018 2,165 2019 1,130 $ 8,030

REGULATORY PROCEEDINGS (Tables)

REGULATORY PROCEEDINGS (Tables)	12 Months Ended
	Dec. 31, 2016
REGULATORY PROCEEDINGS [Abstract]
Eligible Plant Improvements	The following table summarizes Artesian Water's applications with the DEPSC to collect DSIC rates and the eligible plant improvements the rates are based on: Application Date 11/26/2014 05/28/2015 11/24/2015 05/31/2016 11/29/2016 Effective Date 01/01/2015 07/01/2015 01/01/2016 07/01/2016 01/01/2017 DEPSC Approval Date 12/16/2014 06/16/2015 12/15/2015 06/28/2016 12/20/2016 Cumulative DSIC Rate 0.34 % 1.15 % 1.57 % 2.30 % 4.71 % Eligible Plant Improvements – Cumulative Dollars (in millions) $ 1.3 $ 4.6 $ 7.0 $ 10.3 $ 16.6 Eligible Plant Improvements – Installed Beginning Date 10/01/2014 10/01/2014 10/01/2014 10/01/2014 10/01/2014 Eligible Plant Improvements – Installed Ending Date 10/31/2014 04/30/2015 10/31/2015 04/30/2016 10/31/2016

NET INCOME PER COMMON SHARE A33

NET INCOME PER COMMON SHARE AND EQUITY PER COMMON SHARE (Tables)	12 Months Ended
	Dec. 31, 2016
NET INCOME PER COMMON SHARE AND EQUITY PER COMMON SHARE [Abstract]
Shares Used in Computing Basic and Diluted Net Income per Share	Basic net income per share is based on the weighted average number of common shares outstanding. Diluted net income per share is based on the weighted average number of common shares outstanding, the potentially dilutive effect of employee stock options and restricted stock awards. The following table summarizes the shares used in computing basic and diluted net income per share: For the Year Ended December 31, 2016 2015 2014 (in thousands) Weighted average common shares outstanding during the period for Basic computation 9,098 8,960 8,884 Dilutive effect of employee stock options 63 45 42 Weighted average common shares outstanding during the period for Diluted computation 9,161 9,005 8,926

SELECTED CONSOLIDATED QUARTER34

SELECTED CONSOLIDATED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables)	12 Months Ended
	Dec. 31, 2016
SELECTED CONSOLIDATED QUARTERLY FINANCIAL DATA (UNAUDITED) [Abstract]
Quarterly Unaudited Consolidated Statements of Operations	The following table is derived from quarterly unaudited consolidated statements of operations for the years ended December 31, 2016 and 2015. Quarterly basic and diluted per share amounts do not add to the full year total due to rounding. First Quarter Second Quarter Third Quarter Fourth Quarter In thousands (except per share data) 2016 2015 2016 2015 2016 2015 2016 2015 Operating revenues $ 18,449 $ 17,962 $ 19,395 $ 19,536 $ 21,828 $ 20,776 $ 19,417 $ 18,750 Operating income $ 3,853 $ 3,672 $ 4,669 $ 4,985 $ 5,945 $ 5,394 $ 4,352 $ 3,531 Net income applicable to common stock $ 2,830 $ 2,538 $ 3,041 $ 3,233 $ 4,360 $ 3,699 $ 2,723 $ 1,835 Income per common share Basic $ 0.31 $ 0.28 $ 0.33 $ 0.36 $ 0.48 $ 0.41 $ 0.30 $ 0.21 Diluted $ 0.31 $ 0.28 $ 0.33 $ 0.36 $ 0.48 $ 0.41 $ 0.30 $ 0.21

SUMMARY OF SIGNIFICANT ACCOUN35

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)Subsidiary	Dec. 31, 2015USD ($)	Dec. 31, 2014
Utility Subsidiary Accounting [Abstract]
Number of wholly owned subsidiaries | Subsidiary	5
Utility Plant [Abstract]
Capitalized rate of AFUDC	8.10%	8.10%	8.20%
Summary of utility plant comprises [Abstract]
Utility plant, gross	$ 535,186	$ 510,356
Less - accumulated depreciation	109,684	104,750
Utility plant, net	$ 425,502	$ 405,606
Depreciation and Amortization [Abstract]
Depreciation rates of water utility plant	2.25%	2.29%	2.30%
Minimum [Member]
Depreciation and Amortization [Abstract]
Amortization period of other deferred assets	2 years
Maximum [Member]
Depreciation and Amortization [Abstract]
Amortization period of other deferred assets	40 years
Property Held for Future Use [Member]
Summary of utility plant comprises [Abstract]
Estimated useful life	0 years
Utility plant, gross	$ 14,815	$ 14,345
Construction in Progress [Member]
Summary of utility plant comprises [Abstract]
Estimated useful life	0 years
Utility plant, gross	$ 6,674	3,809
Utility plant in service-Water [Member] | Mains [Member]
Summary of utility plant comprises [Abstract]
Estimated useful life	81 years
Utility plant, gross	$ 236,261	224,104
Utility plant in service-Water [Member] | Services [Member]
Summary of utility plant comprises [Abstract]
Estimated useful life	39 years
Utility plant, gross	$ 38,803	36,060
Utility plant in service-Water [Member] | Storage Tanks [Member]
Summary of utility plant comprises [Abstract]
Estimated useful life	76 years
Utility plant, gross	$ 24,108	23,992
Utility plant in service-Water [Member] | Meters [Member]
Summary of utility plant comprises [Abstract]
Estimated useful life	26 years
Utility plant, gross	$ 24,710	24,150
Utility plant in service-Water [Member] | Hydrants [Member]
Summary of utility plant comprises [Abstract]
Estimated useful life	60 years
Utility plant, gross	$ 12,870	12,037
Utility plant in service-Water [Member] | Intangible plant [Member]
Summary of utility plant comprises [Abstract]
Estimated useful life	0 years
Utility plant, gross	$ 140	140
Utility plant in service-Water [Member] | Source of supply plant [Member]
Summary of utility plant comprises [Abstract]
Utility plant, gross	$ 19,627	19,313
Utility plant in service-Water [Member] | Source of supply plant [Member] | Minimum [Member]
Summary of utility plant comprises [Abstract]
Estimated useful life	45 years
Utility plant in service-Water [Member] | Source of supply plant [Member] | Maximum [Member]
Summary of utility plant comprises [Abstract]
Estimated useful life	85 years
Utility plant in service-Water [Member] | Pumping and water treatment plant [Member]
Summary of utility plant comprises [Abstract]
Utility plant, gross	$ 78,542	77,221
Utility plant in service-Water [Member] | Pumping and water treatment plant [Member] | Minimum [Member]
Summary of utility plant comprises [Abstract]
Estimated useful life	8 years
Utility plant in service-Water [Member] | Pumping and water treatment plant [Member] | Maximum [Member]
Summary of utility plant comprises [Abstract]
Estimated useful life	62 years
Utility plant in service-Water [Member] | General plant [Member]
Summary of utility plant comprises [Abstract]
Utility plant, gross	$ 53,417	52,434
Utility plant in service-Water [Member] | General plant [Member] | Minimum [Member]
Summary of utility plant comprises [Abstract]
Estimated useful life	3 years
Utility plant in service-Water [Member] | General plant [Member] | Maximum [Member]
Summary of utility plant comprises [Abstract]
Estimated useful life	31 years
Utility plant in service-Wastewater [Member] | General plant [Member]
Summary of utility plant comprises [Abstract]
Utility plant, gross	$ 931	906
Utility plant in service-Wastewater [Member] | General plant [Member] | Minimum [Member]
Summary of utility plant comprises [Abstract]
Estimated useful life	3 years
Utility plant in service-Wastewater [Member] | General plant [Member] | Maximum [Member]
Summary of utility plant comprises [Abstract]
Estimated useful life	31 years
Utility plant in service-Wastewater [Member] | Treatment and Disposal Plant [Member]
Summary of utility plant comprises [Abstract]
Utility plant, gross	$ 15,613	14,012
Utility plant in service-Wastewater [Member] | Treatment and Disposal Plant [Member] | Minimum [Member]
Summary of utility plant comprises [Abstract]
Estimated useful life	35 years
Utility plant in service-Wastewater [Member] | Treatment and Disposal Plant [Member] | Maximum [Member]
Summary of utility plant comprises [Abstract]
Estimated useful life	62 years
Utility plant in service-Wastewater [Member] | Collection Mains & Lift Stations [Member]
Summary of utility plant comprises [Abstract]
Estimated useful life	81 years
Utility plant, gross	$ 8,675	$ 7,833

SUMMARY OF SIGNIFICANT ACCOUN36

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Regulatory Assets (Details) - USD ($)	May 04, 2016	Dec. 18, 2015	Jan. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 09, 2015
Amortization period of other regulatory expense [Abstract]
Depreciation and salary studies				5 years
Goodwill				50 years
Deferred acquisition costs				20 years
Franchise costs				80 years
Summary of regulatory assets net of amortization, comprise [Abstract]
Regulatory assets, net				$ 3,374,000	$ 4,176,000
Summary of other deferred assets net of amortization [Abstract]
Investment in Co Bank				3,198,000	3,023,000
Other				386,000	421,000
Other deferred assets				3,584,000	3,444,000
Stock Compensation Plans [Abstract]
Number of share authorize under equity compensation plan (in shares)							331,500
Compensation costs	$ 92,000	$ 137,000		92,000	183,000	$ 135,000
Unrecognized expense related to non-vested awards of restricted shares granted				$ 47,000
Summary of fair value of each option grant is estimated using the Black-Scholes-Merton option pricing model [Abstract]
Expected Dividend Yield						3.88%
Expected Stock Price Volatility						26.50%
Weighted Average Risk-Free Interest Rate						2.24%
Weighted Average Expected Life of Options						7 years 6 months 7 days
Base period for calculation of expected dividend yield				12 months
Shares granted as restricted stock awards	5,000
Shares issued as fully vested unrestricted stock awards		5,000
Fair market value (in dollars per share)	$ 27.70	$ 27.38
Award vesting period	1 year
Accounts Receivable [Abstract]
Expense related to allowance for doubtful accounts				$ 200,000	200,000
Summary of changes in entity's accounts receivable [Abstract]
Gross accounts receivable				8,059,000	6,627,000	$ 5,315,000
Less allowance for doubtful accounts				263,000	277,000	250,000
Net accounts receivable				7,796,000	6,350,000	5,065,000
Summary of allowance for doubtful accounts [Abstract]
Beginning balance			$ 263,000	277,000	250,000	221,000
Allowance adjustments				195,000	205,000	194,000
Recoveries				64,000	53,000	64,000
Write off of uncollectible accounts				(273,000)	(231,000)	(229,000)
Ending balance				$ 263,000	277,000	250,000
Cash and Cash Equivalents [Abstract]
Maximum maturity period of temporary cash investments considered as cash equivalents				3 months
Minimum [Member]
Amortization period of other regulatory expense [Abstract]
Amortization period of debt issuance cost				10 years
Summary of fair value of each option grant is estimated using the Black-Scholes-Merton option pricing model [Abstract]
Period for risk free interest rate base on treasury constant maturity rate				7 years
Minimum [Member] | Subsequent Event [Member]
Amortization period of other regulatory expense [Abstract]
Amortization period of debt issuance cost			15 years
Maximum [Member]
Amortization period of other regulatory expense [Abstract]
Amortization period of debt issuance cost				30 years
Summary of fair value of each option grant is estimated using the Black-Scholes-Merton option pricing model [Abstract]
Period for risk free interest rate base on treasury constant maturity rate				10 years
Maximum [Member] | Subsequent Event [Member]
Amortization period of other regulatory expense [Abstract]
Amortization period of debt issuance cost			25 years
Maryland [Member]
Amortization period of other regulatory expense [Abstract]
Regulatory rate proceedings				5 years
Delaware [Member]
Amortization period of other regulatory expense [Abstract]
Regulatory rate proceedings				2 years 6 months
Artesian Water [Member]
Regulatory Assets [Abstract]
Contributions to postretirement benefit plan				$ 81,000
Mountain Hill [Member]
Summary of other deferred assets net of amortization [Abstract]
Other				300,000
Postretirement Benefit Obligation [Member]
Summary of regulatory assets net of amortization, comprise [Abstract]
Regulatory assets, net				186,000	329,000
Deferred Income Taxes [Member]
Summary of regulatory assets net of amortization, comprise [Abstract]
Regulatory assets, net				431,000	446,000
Expense of Rate and Regulatory Proceedings [Member]
Summary of regulatory assets net of amortization, comprise [Abstract]
Regulatory assets, net				116,000	616,000
Debt Issuance Costs [Member]
Summary of regulatory assets net of amortization, comprise [Abstract]
Regulatory assets, net				1,648,000	1,747,000
Goodwill [Member]
Summary of regulatory assets net of amortization, comprise [Abstract]
Regulatory assets, net				310,000	318,000
Deferred Acquisition and Franchise Costs [Member]
Summary of regulatory assets net of amortization, comprise [Abstract]
Regulatory assets, net				683,000	720,000
Regulatory Assets, Net [Member]
Summary of regulatory assets net of amortization, comprise [Abstract]
Regulatory assets, net					4,176,000
CIAC and Other [Member]
Summary of changes in entity's accounts receivable [Abstract]
Contractual Amounts of Contributions In Aid of Construction Due from Developers And Other				2,622,000	1,610,000	1,295,000
Customer accounts receivable - water [Member]
Summary of changes in entity's accounts receivable [Abstract]
Gross accounts receivable				$ 5,437,000	$ 5,017,000	$ 4,020,000
Federal [Member]
Income Tax Contingency [Line Items]
Open tax year				2,015
Federal [Member] | Internal Revenue Service (IRS) [Member] | Minimum [Member]
Income Tax Contingency [Line Items]
Open tax year				2,012
Federal [Member] | Internal Revenue Service (IRS) [Member] | Maximum [Member]
Income Tax Contingency [Line Items]
Open tax year				2,014
State [Member] | Minimum [Member]
Income Tax Contingency [Line Items]
Open tax year				2,013
State [Member] | Maximum [Member]
Income Tax Contingency [Line Items]
Open tax year				2,015

FAIR VALUE OF FINANCIAL INSTR37

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Carrying Amount [Member]
Long-term Financial Liabilities [Abstract]
Long-term debt	$ 103,647	$ 104,936
Estimated Fair Value [Member]
Long-term Financial Liabilities [Abstract]
Long-term debt	$ 111,864	$ 120,243

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Tax Examination [Line Items]
Net operating income (loss)	$ 4,352,000	$ 5,945,000	$ 4,669,000	$ 3,853,000	$ 3,531,000	$ 5,394,000	$ 4,985,000	$ 3,672,000	$ 18,819,000	$ 17,582,000	$ 16,046,000
Income tax receivable	150,000				1,428,000				150,000	1,428,000
Federal alternative minimum tax credit carry-forwards	2,474,000				3,971,000				2,474,000	3,971,000	5,459,000
Accrued penalties and interest	4,800				22,000				4,800	22,000
Valuation allowance	286,000				182,000				286,000	182,000	65,000
State income taxes [Abstract]
Current									1,050,000	499,000	173,000
Deferred									860,000	1,299,000	1,231,000
Total state income tax expense									1,910,000	1,798,000	1,404,000
Federal income taxes [Abstract]
Current									1,799,000	2,168,000	(1,073,000)
Deferred									4,622,000	3,818,000	6,044,000
Total federal income tax expense									6,421,000	5,986,000	4,971,000
Reconciliation of effective tax rate [Abstract]
Income before federal and state income taxes									$ 21,285,000	$ 19,088,000	$ 15,881,000
Income before federal and state income taxes									100.00%	100.00%	100.00%
Amount computed at statutory rate									$ 7,237,000	$ 6,490,000	$ 5,400,000
Amount computed at statutory rate									34.00%	34.00%	34.00%
Reconciling Items [Abstract]
State income tax-net of federal tax benefit									$ 1,327,000	$ 1,214,000	$ 918,000
State income tax-net of federal tax benefit									6.20%	6.40%	5.80%
Other									$ (233,000)	$ 80,000	$ 57,000
Other									(1.10%)	0.40%	0.40%
Total income tax expense									$ 8,331,000	$ 7,784,000	$ 6,375,000
Total effective income tax rate									39.10%	40.80%	40.20%
Deferred tax assets related to [Abstract]
Federal alternative minimum tax credit carry-forwards	2,474,000				3,971,000				$ 2,474,000	$ 3,971,000	$ 5,459,000
Federal and state operating loss carry-forwards	752,000				675,000				752,000	675,000	1,045,000
Bad debt allowance	104,000				110,000				104,000	110,000	99,000
Valuation allowance	(286,000)				(182,000)				(286,000)	(182,000)	(65,000)
Stock options	452,000				415,000				452,000	415,000	397,000
Other	320,000				291,000				320,000	291,000	269,000
Total deferred tax assets	3,816,000				5,280,000				3,816,000	5,280,000	7,204,000
Deferred tax liabilities related to [Abstract]
Property plant and equipment basis differences	(70,711,000)				(66,508,000)				(70,711,000)	(66,508,000)	(63,427,000)
Uncertain tax position	(80,000)				(247,000)				(80,000)	(247,000)	(179,000)
Expenses of rate proceedings	(19,000)				(213,000)				(19,000)	(213,000)	(214,000)
Property taxes	(663,000)				(527,000)				(663,000)	(527,000)	(505,000)
Other	(796,000)				(756,000)				(796,000)	(756,000)	(734,000)
Total deferred tax liabilities	(72,269,000)				(68,251,000)				(72,269,000)	(68,251,000)	(65,059,000)
Net deferred tax liability	(68,453,000)				(62,971,000)				(68,453,000)	(62,971,000)	(57,855,000)
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at Beginning Of Period				182,000				65,000	182,000	65,000	61,000
Additions Charged to Costs and Expenses									104,000	117,000	4,000
Deductions									0	0	0
Balance at End of Period	286,000				182,000				286,000	182,000	65,000
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense [Abstract]
Balance at beginning of year				$ 247,000				$ 179,000	247,000	179,000
Additions based on tax positions related to the current year									23,000	51,000
Additions based on tax positions related to prior years									11,000	17,000
Reductions for tax positions of prior years									(201,000)	0
Settlements									0	0
Lapses in Statutes of Limitations									0	0
Balance at end of year	80,000				$ 247,000				$ 80,000	$ 247,000	$ 179,000
Minimum [Member]
Income Tax Examination [Line Items]
Operating Loss Carryforwards Expiration Period									2,019
Maximum [Member]
Income Tax Examination [Line Items]
Operating Loss Carryforwards Expiration Period									2,037
Federal Authorities [Member]
Income Tax Examination [Line Items]
Federal alternative minimum tax credit carry-forwards	2,500,000								$ 2,500,000
Tax deduction for qualifying capital expenditures									$ 2,700,000
Income tax examination description									for the tax year 2015
Deferred tax assets related to [Abstract]
Federal alternative minimum tax credit carry-forwards	2,500,000								$ 2,500,000
State Authorities [Member]
Income Tax Examination [Line Items]
Net operating loss carry-forwards	$ 13,400,000								$ 13,400,000
Income tax examination description									for the tax years 2013 through 2015
State Authorities [Member] | Minimum [Member]
Income Tax Examination [Line Items]
Open tax year									2,013
State Authorities [Member] | Maximum [Member]
Income Tax Examination [Line Items]
Open tax year									2,015

PREFERRED STOCK (Details)

PREFERRED STOCK (Details) - $ / shares	Dec. 31, 2016	Dec. 31, 2015
PREFERRED STOCK [Abstract]
Preferred stock outstanding (in shares)	0	0
Preferred stock authorized (in shares)	100,000	100,000
Preferred stock, par value (in dollars per share)	$ 1	$ 1

COMMON STOCK AND ADDITIONAL P40

COMMON STOCK AND ADDITIONAL PAID-IN CAPITAL (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
COMMON STOCK AND ADDITIONAL PAID-IN CAPITAL [Abstract]
Dividends reinvestment plan (in shares)	13,600	17,500	21,000
Dividend reinvestment plan	$ 400,000	$ 384,000	$ 459,000

DEBT (Details)

DEBT (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Jan. 31, 2017
Long-term debt consists of [Abstract]
Sub-total of long-term debt	$ 103,647,000	$ 104,936,000
Less: current maturities (principal amount)	1,316,000	1,289,000
Total long-term debt	102,331,000	103,647,000
Payments of principal amounts due during the next five years and thereafter [Abstract]
2,017	1,316,000
2,018	26,342,000
2,019	1,371,000
2,020	21,401,000
2,021	1,432,000
Thereafter	$ 51,785,000
Artesian Water [Member]
Line of Credit Facility [Line Items]
Weighted average interest rate paid on the lines of credit	1.67%
First mortgage bonds [Member]
Long-term debt consists of [Abstract]
Sub-total of long-term debt	$ 95,600,000	96,200,000
Payments of principal amounts due during the next five years and thereafter [Abstract]
2,017	600,000
2,018	25,600,000
2,019	600,000
2,020	20,600,000
2,021	600,000
Thereafter	47,600,000
First mortgage bonds [Member] | Series O, 8.17%, due 12/29/2020 [Member]
Long-term debt consists of [Abstract]
Sub-total of long-term debt	20,000,000	20,000,000
First mortgage bonds [Member] | Series P, 6.58%, due 01/31/2018 [Member]
Long-term debt consists of [Abstract]
Sub-total of long-term debt	25,000,000	25,000,000
First mortgage bonds [Member] | Series Q, 4.75%, due 12/01/2043 [Member]
Long-term debt consists of [Abstract]
Sub-total of long-term debt	15,400,000	15,400,000
First mortgage bonds [Member] | Series R, 5.96%, due 12/31/2028 [Member]
Long-term debt consists of [Abstract]
Sub-total of long-term debt	25,000,000	25,000,000
First mortgage bonds [Member] | Series S, 6.73%, due 12/31/2033 [Member]
Long-term debt consists of [Abstract]
Sub-total of long-term debt	10,200,000	10,800,000
First mortgage bonds [Member] | Series T, due 12/20/2036 [Member] | Subsequent Event [Member]
Long-term debt consists of [Abstract]
Sub-total of long-term debt				$ 40,000,000
State revolving fund loans [Member]
Long-term debt consists of [Abstract]
Sub-total of long-term debt	8,047,000	8,736,000
Payments of principal amounts due during the next five years and thereafter [Abstract]
2,017	716,000
2,018	742,000
2,019	771,000
2,020	801,000
2,021	832,000
Thereafter	4,185,000
State revolving fund loans [Member] | 4.48%, due 08/01/2021 [Member]
Long-term debt consists of [Abstract]
Sub-total of long-term debt	1,456,000	1,711,000
State revolving fund loans [Member] | 3.57%, due 09/01/2023 [Member]
Long-term debt consists of [Abstract]
Sub-total of long-term debt	640,000	719,000
State revolving fund loans [Member] | 3.64%, due 05/01/2025 [Member]
Long-term debt consists of [Abstract]
Sub-total of long-term debt	1,142,000	1,255,000
State revolving fund loans [Member] | 3.41%, due 02/01/2031 [Member]
Long-term debt consists of [Abstract]
Sub-total of long-term debt	2,448,000	2,576,000
State revolving fund loans [Member] | 3.40%, due 07/01/2032 [Member]
Long-term debt consists of [Abstract]
Sub-total of long-term debt	2,361,000	2,475,000
Citizens Bank [Member] | Artesian Resources [Member]
Line of Credit Facility [Line Items]
Line of credit	40,000,000
Available funds under this line of credit	$ 36,400,000
Expiration date of line of credit	May 26, 2017
Citizens Bank [Member] | LIBOR [Member] | Artesian Resources [Member]
Line of Credit Facility [Line Items]
Variable rate for credit facility	LIBOR
Variable rate of credit facility	1.00%
CoBank [Member] | Artesian Resources [Member]
Line of Credit Facility [Line Items]
Line of credit	$ 20,000,000
Available funds under this line of credit	$ 16,500,000
CoBank [Member] | Artesian Water [Member]
Line of Credit Facility [Line Items]
Expiration date of line of credit	Jul. 20, 2017
Patronage refunds	$ 702,000	$ 689,000	$ 682,000
Annual patronage refund rate	1.00%
CoBank [Member] | Artesian Water Maryland [Member]
Line of Credit Facility [Line Items]
Line of credit	$ 10,000,000
CoBank [Member] | LIBOR [Member] | Artesian Water [Member]
Line of Credit Facility [Line Items]
Variable rate for credit facility	LIBOR
Variable rate of credit facility	1.50%

NON-UTILITY OPERATING REVENUE42

NON-UTILITY OPERATING REVENUE AND EXPENSES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Public Utility, Property, Plant and Equipment [Line Items]
Non-utility operating revenue	$ 4,686	$ 4,398	$ 4,150
Non-utility operating expenses	2,602	2,305	2,193
Artesian Utility [Member]
Public Utility, Property, Plant and Equipment [Line Items]
Non-utility operating revenue	4,700	4,400	4,100
Non-utility operating expenses	$ 2,600	$ 2,300	$ 2,200

STOCK COMPENSATION PLANS (Detai

STOCK COMPENSATION PLANS (Details)	May 04, 2016$ / sharesshares	Dec. 18, 2015$ / sharesshares	Dec. 31, 2016USD ($)Director$ / sharesshares	Dec. 31, 2015USD ($)$ / sharesshares	Dec. 31, 2014USD ($)$ / sharesshares	Dec. 09, 2015shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorizes under the plan (in shares) | shares						331,500
Shares granted as restricted stock awards | shares	5,000
Shares issued as fully vested unrestricted stock awards | shares		5,000
Fair market value (in dollars per share)	$ 27.70	$ 27.38
Award vesting period	1 year
Number of directors in committee | Director			3
Weighted Average Exercise [Abstract]
Granted, weighted average grant-date fair value per option (in dollars per share)					$ 3.95
Exercised/ vested and released, aggregate intrinsic value | $			$ 351,000	$ 379,000	$ 247,000
Received cash from the exercise of options | $			746,000
Tax benefit realized during the period | $			$ 351,000
$15.26 - $19.04 [Member] | Employee and director [Member]
Options Outstanding [Abstract]
Range of Exercise Price, Minimum (in dollars per shares)			$ 15.26
Range of Exercise Price, Maximum (in dollars per shares)			$ 19.04
Shares Outstanding (in shares) | shares			123,755
Weighted Average Remaining Life			3 years 3 months 11 days
Weighted Average Exercise Price (in dollars per shares)			$ 17.77
Aggregate Intrinsic Value | $			$ 1,753,268
Options Exercisable [Abstract]
Range of Exercise Price, Minimum (in dollars per shares)			$ 15.26
Range of Exercise Price, Maximum (in dollars per shares)			$ 19.04
Shares Exercisable (in shares) | shares			123,755
Weighted Average Remaining Life			3 years 3 months 11 days
Weighted Average Exercise Price (in dollars per shares)			$ 17.77
Aggregate Intrinsic Value | $			$ 1,753,268
$19.05 - $22.66 [Member] | Employee and director [Member]
Options Outstanding [Abstract]
Range of Exercise Price, Minimum (in dollars per shares)			$ 19.05
Range of Exercise Price, Maximum (in dollars per shares)			$ 22.66
Shares Outstanding (in shares) | shares			108,000
Weighted Average Remaining Life			5 years 8 months 1 day
Weighted Average Exercise Price (in dollars per shares)			$ 21.09
Aggregate Intrinsic Value | $			$ 1,171,678
Options Exercisable [Abstract]
Range of Exercise Price, Minimum (in dollars per shares)			$ 19.05
Range of Exercise Price, Maximum (in dollars per shares)			$ 22.66
Shares Exercisable (in shares) | shares			108,000
Weighted Average Remaining Life			5 years 8 months 1 day
Weighted Average Exercise Price (in dollars per shares)			$ 21.09
Aggregate Intrinsic Value | $			$ 1,171,678
Class A Stock [Member] | Stock Options [Member]
Shares [Abstract]
Outstanding at beginning of year (in shares) | shares			270,000	376,250	387,000
Granted (in shares) | shares			0	0	33,750
Exercised/vested and released, option shares (in shares) | shares			(38,245)	(106,250)	(44,500)
Expired (in shares) | shares			0	0	0
Outstanding at end of year (in shares) | shares			231,755	270,000	376,250
Exercisable/vested at end of period, option share (in shares) | shares			231,755	270,000	342,500
Weighted Average Exercise [Abstract]
Outstanding at beginning of year (in dollars per shares)			$ 19.34	$ 19.52	$ 18.96
Granted, weighted average exercise price (in dollars per share)			0	0	21.86
Exercised/vested and released, weighted average exercise price (in dollars per shares)			19.50	19.97	16.45
Expired/cancelled, weighted average exercise price (in dollars per share)			0	0	0
Outstanding at end of year (in dollars per shares)			19.32	19.34	19.52
Exercisable/vested at end of period, weighted average exercise price (in dollars per shares)			$ 19.32	$ 19.34	$ 19.29

EMPLOYEE BENEFIT PLANS (Details

EMPLOYEE BENEFIT PLANS (Details)	12 Months Ended
	Dec. 31, 2016USD ($)AgeRetiree	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Supplemental Pension Plan [Abstract]
Minimum age required for additional benefits to individuals | Age	50
Term of matching contribution	5 years
401(k) Plan [Member] | Artesian Resources [Member]
Defined Benefit Plan Disclosure [Line Items]
Percentages of contribution of eligible salaries and wages by Artesian Resources	2.00%
Percentages of matched employee contributions	6.00%
Entity contributions and administrative fees	$ 850,000	$ 1,000,000	$ 808,000
401(k) Plan [Abstract]
Gross pay rate of matched employee contributions	50.00%
Percentages of additional contribution of eligible salaries and wages by Artesian Resources	3.00%	1.00%
Supplemental Pension Plan [Member] | Artesian Water [Member]
Defined Benefit Plan Disclosure [Line Items]
Percentages of contribution of eligible salaries and wages by Artesian Resources	2.00%
Percentages of matched employee contributions	6.00%
Entity contributions and administrative fees	$ 227,000	$ 243,000	244,000
Supplemental Pension Plan [Member] | Artesian Water [Member] | Employee Period of Service 1 [Member]
Supplemental Pension Plan [Abstract]
Contribution per dollar deferred	3
Supplemental Pension Plan [Member] | Artesian Water [Member] | Employee Service Period 2 [Member]
Supplemental Pension Plan [Abstract]
Contribution per dollar deferred	4
Supplemental Pension Plan [Member] | Artesian Water [Member] | Employee Service Period 3 [Member]
Supplemental Pension Plan [Abstract]
Contribution per dollar deferred	5
Postretirement Benefit Plan [Member] | Artesian Water [Member]
Postretirement Benefit Plan [Abstract]
Expense incurred under the plan	$ 80,000	113,000	$ 121,000
Number of eligible retirees | Retiree	3
Estimated post retirement liability	$ 186,000	$ 329,000
Expected contributions in next fiscal year by employer	$ 37,000

COMMITMENTS AND CONTINGENCIES45

COMMITMENTS AND CONTINGENCIES (Details) gal in Millions	1 Months Ended		12 Months Ended
	Mar. 31, 2017USD ($)	Oct. 31, 1997	Dec. 31, 2016USD ($)agal	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)	Dec. 31, 2003
Leases [Abstract]
Easement payments			$ 36,000	$ 35,000	$ 34,000
Summary of minimum annual rental payments related to operating leases [Abstract]
2,017			76,000
2,018			54,000
2,019			56,000
2,020			57,000
2,021			58,000
2022 through 2043			1,394,000
Total			1,695,000
Summary of minimum annual purchase commitments for all interconnection agreements [Abstract]
2,017			3,824,000
2,018			3,824,000
2,019			3,825,000
2,020			3,834,000
2,021			3,825,000
Total			19,132,000
Expenses for purchased water			4,000,000	4,000,000	4,000,000
Other Commitments [Abstract]
Tank painting expense			528,000	329,000	342,000
Artesian Water [Member]
Leases [Abstract]
Operating lease period		33 years
Rental payments			$ 16,000	16,000	15,900
Interconnections [Abstract]
Multiplier to estimate minimum purchase requirements for the year | gal			3
Minimum purchase requirements of water | gal			1,459
Minimum reduced purchase requirements of water | gal			1,095
Other Commitments [Abstract]
Agreement period			3 years			3 years
Commitment amount			$ 113,000			$ 804,000
Summary of other commitment [Abstract]
2,017			4,735,000
2,018			2,165,000
2,019			1,130,000
Total			8,030,000
Artesian Water [Member] | Subsequent Event [Member]
Other Commitments [Abstract]
Agreement period	3 years
Commitment amount	$ 1,300,000
Artesian Resources [Member]
Leases [Abstract]
Easement agreement period							40 years
Artesian Wastewater [Member]
Leases [Abstract]
Rental payments			$ 44,000	$ 43,000	$ 43,000
Adjustment Factor			2.00%
Area of land use as per perpetual agreement (in acres) | a			460
Minimum rentals payment per year			$ 40,000
Termination Period			180 days

GEOGRAPHIC CONCENTRATION OF C46

GEOGRAPHIC CONCENTRATION OF CUSTOMERS (Details)	12 Months Ended
	Dec. 31, 2016CountyCustomer
Concentration Risk [Line Items]
Number of counties in which water utility service provided | County	3
Artesian Water [Member]
Concentration Risk [Line Items]
Number of customers	82,700
Artesian Water Maryland [Member]
Concentration Risk [Line Items]
Number of customers	2,300
Artesian Water Pennsylvania [Member]
Concentration Risk [Line Items]
Number of customers	40
Artesian Wastewater [Member]
Concentration Risk [Line Items]
Number of customers	1,600

REGULATORY PROCEEDINGS (Details

REGULATORY PROCEEDINGS (Details) - USD ($)	Nov. 29, 2016	May 31, 2016	Nov. 24, 2015	Aug. 18, 2015	May 28, 2015	Nov. 26, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Other Proceedings [Abstract]
Percentage of Distribution System Improvement Charges annual rate increase application filed by company to regulatory	4.71%	2.30%	1.57%		1.15%	0.34%
Increase Amount Based On Eligible Plant Improvements Since Last Rate Increase	$ 16,600,000	$ 10,300,000	$ 7,000,000		$ 4,600,000	$ 1,300,000
Delaware [Member]
Rate Proceedings [Abstract]
Temporary annual rate increase subject to 15% gross water sales limitation							$ 2,500,000
Percentage of gross water sales							15.00%
Period to complete rate case by law							7 months
Percentage of rate relief allowed should a rate case not complete							15.00%
Other Proceedings [Abstract]
Distribution System Improvement Charge rate increase applied between base rate filings							7.50%
Distribution System Improvement Charge rate increase within a 12-month period							5.00%
Artesian Water [Member]
Rate Proceedings [Abstract]
Percentage of revenue increase requested for new rates				15.90%
Increase in annual revenue expected from rate increase application approval				$ 10,000,000
Permanent rate increase in revenue				$ 6,000,000
Percentage of Permanent Rate Increases on an annualized basis (in hundredths)				9.50%
An incremental increase to customers above the DSIC rate previously in effect				6.20%
Other Proceedings [Abstract]
Revenue earned in DSIC rate increases							$ 1,306,000	$ 520,000	$ 788,000

NET INCOME PER COMMON SHARE A48

NET INCOME PER COMMON SHARE AND EQUITY PER COMMON SHARE (Details) - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Shares used in computing basic and diluted net income per share [Abstract]
Weighted average common shares outstanding during the period for Basic computation (in shares)	9,098,000	8,960,000	8,884,000
Dilutive effect of employee stock options (in shares)	63,000	45,000	42,000
Weighted average common shares outstanding during the period for Diluted computation (in shares)	9,161,000	9,005,000	8,926,000
Common stock excluded from calculations of diluted net income per share (in shares)	0	0	67,500
Class of Stock [Line Items]
Equity per common share (in dollars per share)	$ 15.28	$ 14.77	$ 14.14
Common Stock [Member] | Class A Stock [Member]
Class of Stock [Line Items]
Common stock, shares authorized (in shares)	15,000,000	15,000,000	15,000,000
Common stock, shares issued (in shares)	8,246,033	8,176,213	8,030,677
Common stock, shares outstanding (in shares)	8,246,033	8,176,213	8,030,677
Common stock, par value (in dollars per share)	$ 1
Common stock, shares issued during period (in shares)	69,820	145,536	82,108
Common Stock [Member] | Class B Stock [Member]
Class of Stock [Line Items]
Common stock, shares authorized (in shares)	1,040,000	1,040,000	1,040,000
Common stock, shares issued (in shares)	881,452	881,452	881,452
Common stock, shares outstanding (in shares)	881,452	881,452	881,452
Common stock, par value (in dollars per share)	$ 1

SELECTED CONSOLIDATED QUARTER49

SELECTED CONSOLIDATED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Summary of quarterly unaudited consolidated statements of operations information [Abstract]
Operating revenues	$ 19,417	$ 21,828	$ 19,395	$ 18,449	$ 18,750	$ 20,776	$ 19,536	$ 17,962	$ 79,089	$ 77,024	$ 72,465
Operating income	4,352	5,945	4,669	3,853	3,531	5,394	4,985	3,672	18,819	17,582	16,046
Net income applicable to common stock	$ 2,723	$ 4,360	$ 3,041	$ 2,830	$ 1,835	$ 3,699	$ 3,233	$ 2,538	$ 12,954	$ 11,305	$ 9,506
Income per common share [Abstract]
Basic (in dollars per share)	$ 0.30	$ 0.48	$ 0.33	$ 0.31	$ 0.21	$ 0.41	$ 0.36	$ 0.28	$ 1.42	$ 1.26	$ 1.07
Diluted (in dollars per share)	$ 0.30	$ 0.48	$ 0.33	$ 0.31	$ 0.21	$ 0.41	$ 0.36	$ 0.28	$ 1.41	$ 1.26	$ 1.07

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($)	May 31, 2015	Jul. 31, 2016	Dec. 31, 2016	Dec. 31, 2015
Related Party Transaction [Line Items]
Stock ownership required to be disclosed, minimum			5.00%
W.F. Construction [Member]
Related Party Transaction [Line Items]
Contract to repair water treatment plant	$ 48,000	$ 131,000
Amounts paid			$ 137,000	$ 48,000
Accounts payable balance due			$ 0	$ 0