Artesian Resources (ARTNA) 10-Q 9 Nov 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Nov. 06, 2018
Entity Information [Line Items]
Entity Registrant Name	Artesian Resources Corporation
Entity Central Index Key	863,110
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3
Class A Stock [Member]
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		8,364,803
Class B Stock [Member]
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		881,452

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
ASSETS
Utility plant, at original cost (less accumulated depreciation 2018-$124,556; 2017-$116,945)	$ 487,135	$ 460,502
Current assets
Cash and cash equivalents	233	952
Accounts receivable (less allowance for doubtful accounts 2018 - $318; 2017 - $288)	8,690	8,897
Income tax receivable	2,173	2,353
Unbilled operating revenues	1,326	1,427
Materials and supplies	1,289	1,519
Prepaid property taxes	2,487	1,795
Prepaid expenses and other	2,166	2,042
Total current assets	18,364	18,985
Other assets
Non utility property (less accumulated depreciation 2018-$715; 2017-$689)	3,866	3,882
Other deferred assets	3,894	3,721
Total other assets	7,760	7,603
Regulatory assets, net	7,404	7,549
Total Assets	520,663	494,639
Stockholders' equity
Common stock	9,246	9,215
Preferred stock	0	0
Additional paid-in capital	100,422	99,526
Retained earnings	40,417	37,903
Total stockholders' equity	150,085	146,644
Long-term debt, net of current portion	111,826	105,587
Total stockholders' equity and long term debt	261,911	252,231
Current liabilities
Lines of credit	15,358	9,610
Current portion of long-term debt	1,534	1,344
Accounts payable	5,173	8,853
Accrued expenses	3,487	2,888
Dividends payable	2,240	0
Overdraft payable	495	304
Accrued interest	1,170	1,805
Customer deposits	1,029	969
Other	6,688	2,688
Total current liabilities	37,174	28,461
Commitments and contingencies
Deferred credits and other liabilities
Net advances for construction	7,114	7,797
Regulatory liabilities	23,927	23,201
Deferred investment tax credits	513	526
Deferred income taxes	55,464	54,137
Total deferred credits and other liabilities	87,018	85,661
Net contributions in aid of construction	134,560	128,286
Total Liabilities and Stockholders' equity	$ 520,663	$ 494,639

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
ASSETS
Utility Plant, accumulated depreciation	$ 124,556	$ 116,945
Current assets
Accounts receivable, allowance for doubtful accounts	318	288
Other assets
Non-utility Property, accumulated depreciation	$ 715	$ 689

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Operating revenues
Total Operating Revenues	$ 21,924	$ 22,356	$ 61,068	$ 62,047
Operating expenses
Utility operating expenses	10,333	10,070	28,454	28,564
Non-utility operating expenses	735	736	2,069	2,085
Depreciation and amortization	2,513	2,377	7,623	7,024
State and federal income taxes	1,834	2,546	4,737	6,403
Property and other taxes	1,265	1,173	3,731	3,537
Total Operating Expenses	16,680	16,902	46,614	47,613
Operating income	5,244	5,454	14,454	14,434
Other income, net
Allowance for funds used during construction (AFUDC)	146	83	413	228
Miscellaneous income (expense)	87	(62)	1,014	231
Income before interest charges	5,477	5,475	15,881	14,893
Interest charges	1,548	1,533	4,548	4,614
Net income applicable to common stock	$ 3,929	$ 3,942	$ 11,333	$ 10,279
Income per common share:
Basic (in dollars per share)	$ 0.42	$ 0.43	$ 1.23	$ 1.12
Diluted (in dollars per share)	$ 0.42	$ 0.42	$ 1.22	$ 1.11
Weighted average common shares outstanding:
Basic (in shares)	9,244	9,191	9,235	9,164
Diluted (in shares)	9,299	9,286	9,290	9,262
Cash dividends per share of common stock (in dollars per share)	$ 0.2387	$ 0.2317	$ 0.7126	$ 0.6917
Water Sales [Member]
Operating revenues
Total Operating Revenues	$ 19,469	$ 20,045	$ 53,983	$ 55,228
Other Utility Operating Revenue [Member]
Operating revenues
Total Operating Revenues	1,189	1,036	3,273	3,075
Non-Utility Operating Revenue [Member]
Operating revenues
Total Operating Revenues	$ 1,266	$ 1,275	$ 3,812	$ 3,744

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 11,333	$ 10,279
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	7,623	7,024
Deferred income taxes, net	1,314	6,211
Stock compensation	144	375
AFUDC, equity portion	(287)	(155)
Changes in assets and liabilities:
Accounts receivable, net of allowance for doubtful accounts	207	551
Income tax receivable	180	(1,096)
Unbilled operating revenues	101	(234)
Materials and supplies	230	119
Prepaid property taxes	(692)	(799)
Prepaid expenses and other	(124)	(275)
Other deferred assets	(199)	(132)
Regulatory assets	168	275
Regulatory liabilities	726	0
Accounts payable	(3,680)	229
Accrued expenses	599	2,222
Accrued interest	(635)	347
Customer deposits and other, net	4,060	651
NET CASH PROVIDED BY OPERATING ACTIVITIES	21,068	25,592
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (net of AFUDC, equity portion)	(34,962)	(28,284)
Proceeds from sale of assets	44	71
NET CASH USED IN INVESTING ACTIVITIES	(34,918)	(28,213)
CASH FLOWS FROM FINANCING ACTIVITIES
Net borrowings (repayments) under lines of credit agreements	5,748	(830)
Increase in overdraft payable	191	1,261
Net advances and contributions in aid of construction	6,634	8,404
Net proceeds from issuance of common stock	783	1,240
Issuance of long-term debt	7,500	0
Dividends paid	(6,579)	(6,333)
Debt issuance costs	(75)	(148)
Principal repayments of long-term debt	(1,071)	(949)
NET CASH PROVIDED BY FINANCING ACTIVITIES	13,131	2,645
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(719)	24
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR	952	226
CASH AND CASH EQUIVALENTS AT END OF PERIOD	233	250
Supplemental Disclosures of Cash Flow Information:
Utility plant received as construction advances and contributions	623	2,628
Interest paid	5,183	4,267
Income taxes paid	$ 2,417	$ 1,278

BASIS OF PRESENTATION AND IMPAC

BASIS OF PRESENTATION AND IMPACT OF RECENT ACCOUNTING PRONOUNCEMENTS	9 Months Ended
	Sep. 30, 2018
BASIS OF PRESENTATION AND IMPACT OF RECENT ACCOUNTING PRONOUNCEMENTS [Abstract]
BASIS OF PRESENTATION AND IMPACT OF RECENT ACCOUNTING PRONOUNCEMENTS	NOTE 1 Artesian Resources Corporation, or Artesian Resources, includes income from the earnings of our nine wholly owned subsidiaries. Artesian Resources operates as the parent holding company of five regulated public utilities: Artesian Water Company, Inc., or Artesian Water, Artesian Water Pennsylvania, Inc., or Artesian Water Pennsylvania, Artesian Water Maryland, Inc., or Artesian Water Maryland, Artesian Wastewater Management, Inc., or Artesian Wastewater, Artesian Wastewater Maryland, Inc., or Artesian Wastewater Maryland, and four non-regulated subsidiaries: Artesian Utility Development, Inc., or Artesian Utility, Artesian Development Corporation, or Artesian Development, Artesian Storm Water Services, Inc., or Artesian Storm Water, and Artesian Consulting Engineers, Inc., or Artesian Consulting Engineers. The terms "we", "our", "Artesian" and the "Company" as used herein refer to Artesian Resources and its subsidiaries. Basis of Presentation The unaudited condensed consolidated financial statements are presented in accordance with the requirements of Form 10-Q and consequently do not include all the disclosures required in the financial statements included in the Company's annual report on Form 10-K. Accordingly, these financial statements and related notes should be read in conjunction with the financial statements and related notes in the Company's annual report on Form 10-K for fiscal year 2017 as filed with the Securities and Exchange Commission on March 15, 2018. The condensed consolidated financial statements include the accounts of Artesian Resources and its wholly owned subsidiaries, including its principal operating company, Artesian Water. In the opinion of the Company, the accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments (unless otherwise noted) necessary to present fairly the Company's balance sheet position as of September 30, 2018, the results of operations for the three and nine month periods ended September 30, 2018 and September 30, 2017 and the cash flows for the nine month periods ended September 30, 2018 and September 30, 2017. The results of operations for the interim periods presented are not necessarily indicative of the results for the full year or for future periods. Impact of Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board, or FASB, issued guidance, which replaces most of the existing guidance with a single set of principles for recognizing revenue from contracts with customers. The guidance was effective January 1, 2018 and did not have a material impact on the Company's financial statements. Disclosures related to Revenue Recognition are included in Note 2, Revenue Recognition. 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, or 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. This guidance, as well as additional guidance issued in January 2018 and July 2018, provides for certain practical expedients, including permitting the Company to elect not to evaluate land easements that existed prior to implementation and were not previously accounted for as leases, comparative reporting requirements for initial adoption and separating lease and non-lease components in a contract and allocating the consideration in the contract to the separate components for lessor only. 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 definition of a lease under the new standard and determining the proper classification and accounting treatment of such contracts in order to determine the ultimate impact the new standard will have on our consolidated financial statements.

REVENUE RECOGNITION

REVENUE RECOGNITION	9 Months Ended
	Sep. 30, 2018
REVENUE RECOGNITION [Abstract]
REVENUE RECOGNITION	NOTE 2 – REVENUE RECOGNITION Background On January 1, 2018 the Company adopted Accounting Standards Codification 606, or ASC 606, Revenue from Contracts with Customers, using the modified retrospective approach. The Company identified its sources of revenue streams that fall within the scope of this guidance and applied the five-step model to all qualifying revenue streams to determine when to recognize revenue. The Company concluded there is not a material change to how revenue was recognized before and after the adoption of ASC 606, therefore, no cumulative retained earnings adjustment was required. Artesian's operating revenues are primarily attributable to regulated contract services based upon tariff rates approved by the Delaware Public Service Commission, or DEPSC, the Maryland Public Service Commission, or MDPSC and the Pennsylvania Public Utility Commission, or PAPUC. Regulated contract service revenues consist of water consumption, fixed fees for water and wastewater services including customer and fire protection fees, services charges and a Distribution System Improvement Charge, or DSIC, billed to customers at rates outlined in our tariffs that represent stand-alone selling prices. Our non-regulated contract revenues consist of Service Line Protection Plan, or SLP Plan, fees, water and wastewater contract operations, and wastewater inspection fees. Regulated Contract Revenues Artesian generates revenue from the sale of water to customers in Delaware, Cecil County, Maryland, and Southern Chester County, Pennsylvania once a customer requests service in our territory. We recognize water consumption revenue at tariff rates on a cycle basis for the volume of water transferred to customers based upon meter readings for actual gallons of water consumed as well as unbilled amounts for estimated usage from the date of the last meter reading to the end of the accounting period. As actual usage amounts are known based on recurring meter readings, adjustments are made to the unbilled estimates in the next billing cycle based on the actual results. Estimates are made on an individual customer basis, based on one of three methods (the previous year's consumption in the same period, the previous billing period's consumption, or averaging) and are adjusted to reflect current changes in water demand on a system-wide basis. While actual usage for individual customers may differ materially from the estimate based on management judgements described above, we believe the overall total estimate of consumption and revenue for the fiscal period will not differ materially from actual billed consumption. The majority of our water customers are billed for water consumed on a monthly basis, while the remaining customers are billed on a quarterly basis. As a result, we record unbilled operating revenue (contract asset) for any estimated usage through the end of the accounting period that will be billed in the next monthly or quarterly billing cycle. Artesian generates fixed fee revenue for water and wastewater services provided to customers once a customer requests service in our territory. Our wastewater territory is located in Sussex County, Delaware. We recognize revenue from these services on a ratable basis over time as the customer simultaneously receives and consumes all the benefits of the Company remaining ready to provide them water and wastewater service. These contract services are billed in advance at tariff rates on a monthly, quarterly or semi-annual basis. As a result, we record deferred revenue (contract liability) and accounts receivable for any amounts for which we have a right to invoice but for which services have not been provided. This deferred revenue is netted with unbilled operating revenue on the Consolidated Balance Sheet. Artesian generates service charges primarily from non-payment fees, such as water shut off and reconnection fees and finance charges. These fees are billed and recognized as revenue at the point in time when our tariffs indicate the Company has the right to payment such as days past due have been reached or shut-offs and reconnections have been performed. There is no contract asset or liability associated with these fees. Artesian generates revenue from DSICs, which are surcharges applied to water customer tariff rates in Delaware related to specific types of water distribution system improvements. This rate is calculated on a semi-annual basis based on an approved projected revenue requirement over the following six-month period. This rate is adjusted up or down at the next DSIC filing to account for any differences between actual earned revenue and the projected revenue requirement. Since DSIC revenue is a surcharge applied to tariff rates, we recognize DSIC revenue based on the same guidelines as noted above depending on whether the surcharge was applied to consumption revenue or fixed fee revenue. The DEPSC required Delaware utilities to determine the impact that the Tax Cuts and Jobs Act of 2017, or TCJA, had on its customers and potential rate relief due to customers. The Company expects any reduction in corporate income tax expense resulting from the TCJA will be passed through to customers in the form of reduced tariff rates or approved DSIC rate. Until a final decision is determined by the DEPSC, recognized DSIC revenue for the first nine months of 2018 is being held in reserve (refund liability) and is not reflected in income. This reserved amount approximates the TCJA impact to Artesian Water's customers. Accounts receivable from our regulated contract customers are typically due within 25 days of invoicing. An allowance for doubtful accounts is calculated as a percentage of total associated revenues. We mitigate our exposure to credit losses by discontinuing services in the event of non-payment; accordingly, the related allowance for doubtful accounts and associated bad debt expense has not been significant. Non-regulated Contract Revenues Artesian generates SLP Plan revenue once a customer requests service to cover all parts, materials and labor required to repair or replace leaking water service lines, leaking or clogged sewer lines, or water and wastewater lines within the customers' residences, up to an annual limit. We recognize revenue from these services on a ratable basis over time as the customer simultaneously receives and consumes all the benefits of having service line protection services. These contract services are billed in advance on a monthly or quarterly basis. As a result, we record deferred revenue (contract liability) and accounts receivable for any amounts for which we have a right to invoice but for which services have not been provided. Accounts receivable from SLP Plan customers are typically due within 25 days of invoicing. An allowance for doubtful accounts is calculated as a percentage of total SLP contract revenue. We mitigate our exposure to credit losses by discontinuing services in the event of non-payment; accordingly, the related allowance for doubtful accounts and associated bad debt expense has not been significant. Artesian generates contract operation revenue from water and wastewater operation services provided to customers. We recognize revenue from these operation contracts, which consist primarily of monthly operation and maintenance services over time as customers receive and consume the benefits of such services performed. These services are invoiced in advance at the beginning of every month and are typically due within 30 days, and therefore there is no contract asset or liability associated with these revenues. An allowance for doubtful accounts is provided based on a periodic analysis of individual account balances, including an evaluation of days outstanding, payment history, recent payment trends, and our assessment of our customers' creditworthiness. The related allowance for doubtful accounts and associated bad debt expense has not been significant. Artesian generates inspection fee revenue for inspection services related to onsite wastewater collection systems installed by developers of new communities. These fees are paid by developers in advance when a service is requested for a new phase of a development. Inspection fee revenue is recognized on a per lot basis once the inspection of the infrastructure that serves each lot is completed. As a result, we record deferred revenue (contract liability) for any amounts related to infrastructure not yet inspected. There are no accounts receivable, allowance for doubtful accounts or bad debt expense associated with inspection fee contracts. Sales Tax The majority of Artesian's revenues are earned within the State of Delaware, where there is no sales tax. Revenue earned in the State of Maryland and the Commonwealth of Pennsylvania are related primarily to the sale of water by a public water utility and are exempt from sales tax. Therefore, no sales tax is collected on revenues . Disaggregated Revenues The following table shows the Company's revenues disaggregated by service type; all revenues are generated within a similar geographical location: (in thousands) Three months ended September 30, 2018 Three months ended September 30, 2017 Nine months ended September 30, 2018 Nine months ended September 30, 2017 Regulated Revenue Consumption charges $ 13,648 $ 13,109 $ 36,286 $ 35,304 Fixed fees 6,330 6,521 19,182 18,823 Service charges 182 247 507 761 DSIC 655 858 2,203 2,401 Revenue reserved for refund – TCJA impact (655 ) 0 (2,203 ) 0 Total Regulated Revenue $ 20,160 $ 20,735 $ 55,975 $ 57,289 Non-Regulated Revenue Service line protection plans $ 982 $ 978 $ 2,960 $ 2,882 Contract operations 329 340 1,025 995 Inspection fees 115 60 171 155 Total Non-Regulated Revenue $ 1,426 $ 1,378 $ 4,156 $ 4,032 Other Operating Revenue not in scope of ASC 606 $ 338 $ 243 $ 937 $ 726 Total Operating Revenue $ 21,924 $ 22,356 $ 61,068 $ 62,047 Contract Assets and Contract Liabilities Our contract assets and liabilities consist of the following: (in thousands) September 30, 2018 December 31, 2017 Accounts Receivable Accounts Receivable-Regulated $ 6,499 $ 5,631 Accounts Receivable-Non-Regulated 319 403 Total Accounts Receivable $ 6,818 $ 6,034 Contract Assets – Regulated $ 2,360 $ 2,397 Deferred Revenue Deferred Revenue – Regulated $ 1,140 $ 1,053 Deferred Revenue – Non-Regulated 252 203 Total Deferred Revenue $ 1,392 $ 1,256 Refund Liability - Regulated $ 2,203 $ -- For the nine months ended September 30, 2018, the Company recognized revenue of $1.1 million from amounts that were included in Deferred Revenue – Regulated at the beginning of the year and revenue of $183,000 from amounts that were included in Deferred Revenue – Non- Regulated at the beginning of the year. The increases (decreases) of Accounts Receivable, Contract Assets and Deferred Revenue were primarily due to normal timing differences between our performance and customer payments. The increase in the Refund Liability is due to management's best estimate of the most probable ultimate amount of a pending regulatory adjustment related to the TCJA. Remaining Performance Obligations As of September 30, 2018 and December 31, 2017, Deferred Revenue – Regulated is recorded net of contract assets within Unbilled operating revenues and represents our remaining performance obligations for our fixed fee water and wastewater services, all of which are expected to be satisfied and associated revenue recognized in the next three months. As of September 30, 2018 and December 31, 2017, Deferred Revenue – Non-Regulated is recorded within Other current liabilities and represents our remaining performance obligations for our SLP Plan services and wastewater inspections, which are expected to be satisfied and associated revenue recognized within the next three months and one year for the SLP Plan revenue and inspection fee revenue, respectively.

STOCK COMPENSATION PLANS

STOCK COMPENSATION PLANS	9 Months Ended
	Sep. 30, 2018
STOCK COMPENSATION PLANS [Abstract]
STOCK COMPENSATION PLANS	NOTE 3 – STOCK COMPENSATION PLANS On December 9, 2015, the Company's stockholders approved the 2015 Equity Compensation Plan, or the 2015 Plan, which replaced the 2005 Equity Compensation 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, or the Committee. The Committee has the authority to determine the individuals to whom grants will be made under the 2015 Plan, the type, size and terms of the grants, 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 and non-employee directors of the Company are eligible for grants under the 2015 Plan. Compensation expense for the three and nine months ended September 30, 2018, of approximately $49,000 and $144,000, respectively, was recorded for restricted stock awards issued in May 2017 and May 2018. Compensation expense, for the three and nine months ended September 30, 2017, of approximately $48,000 and $375,000, respectively, was recorded for restricted stock awards issued in May 2016 and May 2017, as well as fully vested stock awards issued in June 2017. Costs were determined based on the fair value on the dates of the awards and those costs were charged to income over the service periods associated with the awards. There was no stock compensation cost capitalized as part of an asset. On May 2, 2018, 5,000 shares of Class A Non-Voting Common Stock, or Class A Stock, were granted as restricted stock awards. The fair value per share was $38.51, the closing price of the Class A Stock as recorded on the Nasdaq Global Market on May 2, 2018. On May 3, 2017, 5,000 shares of Class A Stock, were granted as restricted stock awards. The fair value per share was $38.10, the closing price of the Class A Stock as recorded on the Nasdaq Global Market on May 3, 2017. On May 4, 2016, 5,000 shares of Class A Stock were granted as restricted stock awards. The fair value per share was $27.70, the closing price of the Class A Stock as recorded on the Nasdaq Global Market on May 4, 2016. The restricted shares are subject to a one-year vesting period from the date of each grant. Prior to their release date, these restricted stock awards may be subject to forfeiture in the event of the recipient's termination of employment. On June 28, 2017, 6,568 shares of Class A Stock were issued as fully vested stock awards. The fair market value per share was $38.06, the closing price of the Class A Stock as recorded on the Nasdaq Global Market on June 28, 2017. The following summary reflects changes in the shares of Class A Stock underlying options and restricted stock awards for the nine months ended September 30, 2018: Options Restricted Awards Option Shares Weighted Average Exercise Price Weighted Average Remaining Life (Yrs.) Aggregate Intrinsic Value (in thousands) Outstanding Restricted Stock Awards Weighted Average Grant Date Fair Value Plan options/restricted stock awards Outstanding at January 1, 2018 176,802 $ 19.91 $ 3,298 5,000 38.10 Granted – – – 5,000 $ 38.51 Exercised/vested and released (8,052 ) 15.77 176 (5,000 ) 38.10 Expired/cancelled – – – – – Outstanding at September 30, 2018 168,750 $ 20.11 3.58 $ 2,814 5,000 $ 38.51 Exercisable/vested at September 30, 2018 168,750 $ 20.11 3.58 $ 2,814 – – The total intrinsic value of options exercised during the nine months ended September 30, 2018 was approximately $176,000. There were no unvested option shares outstanding under the 2015 Plan during the nine months ended September 30, 2018. As of September 30, 2018, there was no unrecognized expense related to non-vested option shares granted under the 2015 Plan. As of September 30, 2018, there was $112,400 total unrecognized expense related to non-vested awards of restricted shares awarded under the 2015 Plan. The cost will be recognized over 0.58 years, the remaining vesting period for the restricted stock awards.

REGULATORY ASSETS

REGULATORY ASSETS	9 Months Ended
	Sep. 30, 2018
REGULATORY ASSETS [Abstract]
REGULATORY ASSETS	N OTE 4 - REGULATORY ASSETS The Financial Accounting Standards Board, or 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 DEPSC, MDPSC, and PAPUC. The postretirement benefit obligation is the recognition of an offsetting regulatory liability as it relates to the accrual of the expected cost of providing postretirement health care and life insurance benefits to retired employees. Artesian Water contributed $28,100 to its postretirement benefit plan in the first nine months of 2018. These contributions consist of insurance premium payments for medical, dental and life insurance benefits made on behalf of the Company's eligible retired employees. The deferred income taxes will Debt related costs include debt issuance costs and other debt related expense. The DEPSC has allowed rate recovery on unamortized issuance costs and make-whole premiums associated with the early retirement of Series O and Q First Mortgage bonds as the replacement of that debt in January 2017 with Series T First Mortgage bonds was deemed more favorable for the ratepayers. The DEPSC has also allowed rate recovery on issuance costs associated with the Series U First Mortgage bond purchase in January 2018 that paid the full indebtedness of the Series P First Mortgage bond. These amounts are recovered over the term of the new long-term debt issued. For both the Series T First Mortgage bond purchase and the Series U First Mortgage bond purchase, no cash, other than the issue costs, was paid or received as the trustee facilitated direct exchanges of the bonds issued. Regulatory expenses amortized on a straight-line basis are noted below: Expense Years Amortized Depreciation and salary studies 5 Delaware rate proceedings 2.5 Maryland rate proceedings 5 Debt related costs 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) September 30, 2018 December 31, 2017 Postretirement benefit obligation $ 149 $ 149 Deferred income taxes 404 416 Expense of rate and regulatory proceedings 45 70 Debt related costs 5,884 5,965 Goodwill 297 303 Deferred acquisition and franchise costs 625 646 $ 7,404 $ 7,549

REGULATORY LIABILITIES

REGULATORY LIABILITIES	9 Months Ended
	Sep. 30, 2018
REGULATORY LIABILITIES [Abstract]
REGULATORY LIABILITIES	NOTE 5 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 obligations are deferred and/or amortized as determined by the DEPSC, MDPSC, and PAPUC. Regulatory liabilities represent excess recovery of cost or other items that have been deferred because it is probable such amounts will be returned to customers through future regulated rates. 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. Artesian Water contributed $28,100 to its postretirement benefit plan in the first nine months of 2018. These contributions consist of insurance premium payments for medical, dental and life insurance benefits made on behalf of the Company's eligible retired employees. 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. The DEPSC authorized an amount to be recorded each year to the liability. Pursuant to the enactment of the TCJA on December 22, 2017, the Company adjusted its existing deferred income tax balances as of December 31, 2017 to reflect the decrease in the corporate income tax rate from 34% to 21% (see Note 8). This resulted in a decrease in the net deferred income tax liability of approximately $24.3 million of which $23.4 million was reclassified as a regulatory liability. These amounts are subject to certain Internal Revenue Service normalization rules that require the benefits to customers be spread over the remaining useful life of the underlying assets giving rise to the associated deferred income taxes. The amount and timing of potential settlements of the established net regulatory liabilities will be determined by the utilities' respective rate regulators. Regulatory liabilities comprise: (in thousands) September 30, 2018 December 31, 2017 Postretirement benefit obligation $ 112 $ 112 Utility plant retirement cost obligation 461 549 Deferred income taxes (related to TCJA) 23,354 22,540 $ 23,927 $ 23,201

NET INCOME PER COMMON SHARE AND

NET INCOME PER COMMON SHARE AND EQUITY PER COMMON SHARE	9 Months Ended
	Sep. 30, 2018
NET INCOME PER COMMON SHARE AND EQUITY PER COMMON SHARE [Abstract]
NET INCOME PER COMMON SHARE AND EQUITY PER COMMON SHARE	NOTE 6 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 Three Months Ended September 30, For the Nine Months Ended September 30, 2018 2017 2018 2017 (in thousands) (in thousands) Weighted average common shares outstanding during the period for Basic computation 9,244 9,191 9,235 9,164 Dilutive effect of employee stock options and awards 55 95 55 98 Weighted average common shares outstanding during the period for Diluted computation 9,299 9,286 9,290 9,262 For the three months ended September 30, 2018 and September 30, 2017, no shares of restricted stock awards were excluded from the calculations of diluted net income per share. For the nine months ended September 30, 2018 and September 30, 2017, 4,108 and 4,240 shares of restricted stock awards were excluded from the calculations of diluted net income per share, respectively. For the three and nine months ended September 30, 2018 and September 30, 2017, no shares of stock options were excluded from the calculations of diluted net income per share, as the calculated proceeds from the options' exercise were lower than the average market price of the Company's common stock during the period. The Company has 15,000,000 authorized shares of Class A Stock and 1,040,000 authorized shares of Class B Common Stock, or Class B Stock. As of September 30, 2018 , September 30, 2017 $1.00 per three months ended September 30, 2018 and September 30, 2017, th the nine months ended September 30, 2018 and September 30, 2017, the Equity per common share was $16.25 and $15.98 at September 30, 2018 and December 31, 2017, respectively. These amounts were computed by dividing common stockholders' equity by the number of shares of common stock outstanding on September 30, 2018 and December 31, 2017, respectively.

REGULATORY PROCEEDINGS

REGULATORY PROCEEDINGS	9 Months Ended
	Sep. 30, 2018
REGULATORY PROCEEDINGS [Abstract]
REGULATORY PROCEEDINGS	N OTE 7 - REGULATO 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: · The DEPSC regulates both Artesian Water and Artesian Wastewater · The MDPSC regulates both Artesian Water Maryland and Artesian Wastewater Maryland · The PAPUC regulates Artesian Water Pennsylvania 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 On January 16, 2018, the DEPSC approved the opening of Docket No. 17-1240 requiring Delaware utilities to determine the impact that the TCJA had on their customers and potential rate relief due to customers. We submitted the required reports to the DEPSC by the March 31, 2018 deadline. Until a final decision is determined by the DEPSC, DSIC revenue for the first nine months of 2018 is being held in reserve and is not reflected in income. This reserved amount approximates the TCJA impact to Artesian Water's customers. 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 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 (1) Artesian Water's applications with the DEPSC to collect DSIC rates and (2) the rates upon which eligible plant improvements are based: Application Date 11/29/2016 05/31/2018 DEPSC Approval Date 12/20/2016 06/19/2018 Effective Date 01/01/2017 07/01/2018 Cumulative DSIC Rate 4.71 % 3.63 % Net Eligible Plant Improvements – Cumulative Dollars (in millions) $ 16.6 $ 24.7 Eligible Plant Improvements – Installed Beginning Date 10/01/2014 10/01/2014 Eligible Plant Improvements – Installed Ending Date 10/31/2016 04/30/2018 The DSIC rate effective July 1, 2018 replaces the DSIC rate effective January 1, 2017. This reduced rate reflects the TCJA impact to customers, partially offset by eligible plant improvements installed through April 30, 2018. The DSIC rate effective July 1, 2018 is still subject to audit at a later date by the DEPSC. For the three and nine months ended September 30, 2018 we did not report any earnings in DSIC revenue since the full amount of $655,000 and $2,203,000, respectively, is being held in reserve pending the outcome of the DEPSC's decision regarding the TCJA impact to customers. The 2018 DSIC amount held in reserve is included in Other current liabilities on the Balance Sheet. For the three and nine months ended September 30, 2017, we earned approximately $858,000 and $2,401,000 in DSIC revenue, respectively.

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2018
INCOME TAXES [Abstract]
INCOME TAXES	NOTE 8 – INCOME TAXES The TCJA makes many significant changes to the Internal Revenue Code, including, but not limited to (1) reducing the federal corporate tax rate to a flat 21%; (2) creating a 30% limitation on deductible interest expense (not applicable to regulated utilities); (3) eliminating future bonus depreciation deductions on utility plant capital projects effective January 1, 2018; (4) eliminating the domestic production activities deduction; (5) eliminating the corporate alternative minimum tax and changing how existing alternative minimum tax credits can be realized; (6) changing the rules related to uses and limitations of net operating loss carryforwards created in tax years beginning after December 31, 2017 and (7) repealing the exclusion from gross income contributions in aid of construction, or CIAC, for water utilities. The most significant change that impacts Artesian Resources is the reduction of the corporate federal income tax rate from our previous effective rate of 34% to the new flat tax rate of 21% beginning January 1, 2018. 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. The Company's rate regulated utilities recognize regulatory liabilities, to the extent considered in ratemaking, for deferred taxes provided in excess of the current statutory tax rate and regulatory assets for deferred taxes provided at rates less than the current statutory rate. Such tax-related regulatory assets and liabilities are reported at the revenue requirement level and amortized to income as the related temporary differences reverse, generally over the lives of the related properties. 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. 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 established two reserves for uncertain tax positions based upon management's judgment as to the sustainability of these positions related to the methodology for determining the deduction for utility system repairs and the difference in the tax depreciation expense utilizing the half-year convention rather than the mid-quarter convention. The Company has accrued approximately $9,400 in penalties and interest for the nine months ended September 30, 2018. The Company remains subject to examination by federal and state authorities for the tax years 2015 through 2017. 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. On December 22, 2017, the TCJA repealed the 1996 exclusion from gross income effective on the enactment date. 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.

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	9 Months Ended
	Sep. 30, 2018
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract]
FAIR VALUE OF FINANCIAL INSTRUMENTS	N OTE 9 – FAIR VALUE OF FINANC 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 lo ng-term debt as of and was fixed-rate. The fair value of the Company's long-term debt is determined by discounting its 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 September 30, 2018 December 31, 2017 Carrying amount $ 113,360 $ 106,931 Estimated fair value $ 111,951 $ 110,524 The fair value of Advances for Construction cannot be reasonably estimated due to the inability to estimate accurately 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.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	9 Months Ended
	Sep. 30, 2018
RELATED PARTY TRANSACTIONS [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 10 – RELATED PARTY TRANSACTIONS In October 2017, September 2017, and February 2017, Artesian Water entered into agreements in the normal course of business with W.F. Construction, Inc. for work associated with building modifications to water treatment plants. The amounts of these agreements were approximately $60,000, $36,000 and $100,000, respectively. The owner of W.F. Construction, Inc. is the husband of Mrs. Jennifer Finch, Vice President and Assistant Treasurer of Artesian Resources. No amounts were paid to W.F. Construction, Inc. for the three and nine months ended September 30, 2018. No amounts were paid to W.F. Construction, Inc. for the three months ended September 30, 2017. Approximately $87,000 was paid to W.F. Construction, Inc. during the nine months ended September 30, 2017. As of September 30, 2018, the Company had no liability to W.F. Construction, Inc. On September 23, 2018, the Board elected Mr. Michael Houghton to serve as a director for the remainder of the three year term class that expires at the Annual Meeting of the Class B Stock shareholders to be held in 2021 and until his respective successor shall be elected and qualified. Mr. Houghton is a Partner in the law firm of Morris Nichols Arsht & Tunnell, or MNAT, in Wilmington, Delaware. In the normal course of business, the Company utilizes the services of MNAT for various regulatory, real estate and public policy matters. Approximately $271,000 and $446,000 was paid to MNAT during the three and nine months ended September 30, 2018, respectively, for legal services. Approximately $80,000 and $286,000 was paid to MNAT during the three and nine months ended September 30, 2017, respectively, for legal services. As of September 30, 2018, the Company had a $16,000 accounts payable balance due to MNAT. As set forth in the Charter of the Audit Committee of the Board, the Audit Committee is responsible for reviewing and, if appropriate, approving all related party transactions between us and any officer, any 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 related party transactions with W.F. Construction, Inc. and the related party transactions with MNAT, the Audit Committee considered the nature of the related person's interest in the transactions; the satisfactory performance of work contracted with the related parties prior to our employment of Mrs. Finch and prior to the director election of Mr. Houghton; and the material terms of the transactions, including, without limitation, the amount and type of transactions, the importance of the transactions to the related person, the importance of the transactions to the Company and whether the transactions 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 consistent with, the best interests of the Company and its stockholders.

BUSINESS COMBINATIONS

BUSINESS COMBINATIONS	9 Months Ended
	Sep. 30, 2018
BUSINESS COMBINATIONS [Abstract]
BUSINESS COMBINATIONS	NOTE 11 – BUSINESS COMBINATIONS On March 29, 2018, Artesian Water purchased the utility assets of Slaughter Beach Water Company, which serves the community of Slaughter Beach located in Sussex County, Delaware along the Delaware Bay consisting of 265 customers. The total purchase price was $450,000 in cash, which approximates the fair value of the net identifiable assets received. The acquisition was accounted for as a business combination under ASC Topic 805, "Business Combinations". The purchase price was allocated to the acquired utility assets, including land, based on the utility assets' estimated fair values as of the acquisition date. This acquisition was approved by the DEPSC on March 27, 2018 subject to the DEPSC determining the appropriate ratemaking treatment of the acquisition price and the assets acquired in Artesian Water's next base rate case. The pro forma effect of the business acquired is not material to the Company's financial position or results of operations.

REVENUE RECOGNITION (Tables)

REVENUE RECOGNITION (Tables)	9 Months Ended
	Sep. 30, 2018
REVENUE RECOGNITION [Abstract]
Disaggregation Revenues	The following table shows the Company's revenues disaggregated by service type; all revenues are generated within a similar geographical location: (in thousands) Three months ended September 30, 2018 Three months ended September 30, 2017 Nine months ended September 30, 2018 Nine months ended September 30, 2017 Regulated Revenue Consumption charges $ 13,648 $ 13,109 $ 36,286 $ 35,304 Fixed fees 6,330 6,521 19,182 18,823 Service charges 182 247 507 761 DSIC 655 858 2,203 2,401 Revenue reserved for refund – TCJA impact (655 ) 0 (2,203 ) 0 Total Regulated Revenue $ 20,160 $ 20,735 $ 55,975 $ 57,289 Non-Regulated Revenue Service line protection plans $ 982 $ 978 $ 2,960 $ 2,882 Contract operations 329 340 1,025 995 Inspection fees 115 60 171 155 Total Non-Regulated Revenue $ 1,426 $ 1,378 $ 4,156 $ 4,032 Other Operating Revenue not in scope of ASC 606 $ 338 $ 243 $ 937 $ 726 Total Operating Revenue $ 21,924 $ 22,356 $ 61,068 $ 62,047
Contract Assets and Contract Liabilities	Our contract assets and liabilities consist of the following: (in thousands) September 30, 2018 December 31, 2017 Accounts Receivable Accounts Receivable-Regulated $ 6,499 $ 5,631 Accounts Receivable-Non-Regulated 319 403 Total Accounts Receivable $ 6,818 $ 6,034 Contract Assets – Regulated $ 2,360 $ 2,397 Deferred Revenue Deferred Revenue – Regulated $ 1,140 $ 1,053 Deferred Revenue – Non-Regulated 252 203 Total Deferred Revenue $ 1,392 $ 1,256 Refund Liability - Regulated $ 2,203 $ --

STOCK COMPENSATION PLANS (Table

STOCK COMPENSATION PLANS (Tables)	9 Months Ended
	Sep. 30, 2018
STOCK COMPENSATION PLANS [Abstract]
Changes in Shares of Class A Common Stock Underlying Options and Restricted Stock Awards	The following summary reflects changes in the shares of Class A Stock underlying options and restricted stock awards for the nine months ended September 30, 2018: Options Restricted Awards Option Shares Weighted Average Exercise Price Weighted Average Remaining Life (Yrs.) Aggregate Intrinsic Value (in thousands) Outstanding Restricted Stock Awards Weighted Average Grant Date Fair Value Plan options/restricted stock awards Outstanding at January 1, 2018 176,802 $ 19.91 $ 3,298 5,000 38.10 Granted – – – 5,000 $ 38.51 Exercised/vested and released (8,052 ) 15.77 176 (5,000 ) 38.10 Expired/cancelled – – – – – Outstanding at September 30, 2018 168,750 $ 20.11 3.58 $ 2,814 5,000 $ 38.51 Exercisable/vested at September 30, 2018 168,750 $ 20.11 3.58 $ 2,814 – –

REGULATORY ASSETS (Tables)

REGULATORY ASSETS (Tables)	9 Months Ended
	Sep. 30, 2018
REGULATORY ASSETS [Abstract]
Amortization Period of Other Regulatory Expense	Regulatory expenses amortized on a straight-line basis are noted below: Expense Years Amortized Depreciation and salary studies 5 Delaware rate proceedings 2.5 Maryland rate proceedings 5 Debt related costs 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	Regulatory assets, net of amortization, comprise: (in thousands) September 30, 2018 December 31, 2017 Postretirement benefit obligation $ 149 $ 149 Deferred income taxes 404 416 Expense of rate and regulatory proceedings 45 70 Debt related costs 5,884 5,965 Goodwill 297 303 Deferred acquisition and franchise costs 625 646 $ 7,404 $ 7,549

REGULATORY LIABILITIES (Tables)

REGULATORY LIABILITIES (Tables)	9 Months Ended
	Sep. 30, 2018
REGULATORY LIABILITIES [Abstract]
Regulatory Liabilities	Regulatory liabilities comprise: (in thousands) September 30, 2018 December 31, 2017 Postretirement benefit obligation $ 112 $ 112 Utility plant retirement cost obligation 461 549 Deferred income taxes (related to TCJA) 23,354 22,540 $ 23,927 $ 23,201

NET INCOME PER COMMON SHARE A_2

NET INCOME PER COMMON SHARE AND EQUITY PER COMMON SHARE (Tables)	9 Months Ended
	Sep. 30, 2018
NET INCOME PER COMMON SHARE AND EQUITY PER COMMON SHARE [Abstract]
Shares Used in Computing Basic and Diluted Net Income Per Share	The following table summarizes the shares used in computing basic and diluted net income per share: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2018 2017 2018 2017 (in thousands) (in thousands) Weighted average common shares outstanding during the period for Basic computation 9,244 9,191 9,235 9,164 Dilutive effect of employee stock options and awards 55 95 55 98 Weighted average common shares outstanding during the period for Diluted computation 9,299 9,286 9,290 9,262

REGULATORY PROCEEDINGS (Tables)

REGULATORY PROCEEDINGS (Tables)	9 Months Ended
	Sep. 30, 2018
REGULATORY PROCEEDINGS [Abstract]
Eligible Plant Improvements	The following table summarizes (1) Artesian Water's applications with the DEPSC to collect DSIC rates and (2) the rates upon which eligible plant improvements are based: Application Date 11/29/2016 05/31/2018 DEPSC Approval Date 12/20/2016 06/19/2018 Effective Date 01/01/2017 07/01/2018 Cumulative DSIC Rate 4.71 % 3.63 % Net Eligible Plant Improvements – Cumulative Dollars (in millions) $ 16.6 $ 24.7 Eligible Plant Improvements – Installed Beginning Date 10/01/2014 10/01/2014 Eligible Plant Improvements – Installed Ending Date 10/31/2016 04/30/2018

FAIR VALUE OF FINANCIAL INSTR_2

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	9 Months Ended
	Sep. 30, 2018
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract]
Carrying Amount and Fair Value of Long-Term Debt	All of Artesian Resources' outstanding lo ng-term debt as of and was fixed-rate. The fair value of the Company's long-term debt is determined by discounting its 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 September 30, 2018 December 31, 2017 Carrying amount $ 113,360 $ 106,931 Estimated fair value $ 111,951 $ 110,524

BASIS OF PRESENTATION AND IMP_2

BASIS OF PRESENTATION AND IMPACT OF RECENT ACCOUNTING PRONOUNCEMENTS (Details)	9 Months Ended
	Sep. 30, 2018Subsidiary
BASIS OF PRESENTATION AND IMPACT OF RECENT ACCOUNTING PRONOUNCEMENTS [Abstract]
Number of wholly owned subsidiaries	9
Number of regulated public utilities	5
Number of subsidiaries not regulated	4

REVENUE RECOGNITION, Disaggrega

REVENUE RECOGNITION, Disaggregated Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
REVENUE RECOGNITION [Abstract]
Minimum number of days due for accounts receivable from regulated contract customers			25 days
Minimum number of days due for accounts receivable from SLP Plan customer			25 days
Minimum number of days customers services invoiced in advance			30 days
Disaggregation of Revenue [Abstract]
Other Operating Revenue not in scope of ASC 606	$ 338	$ 243	$ 937	$ 726
Total Operating Revenue	21,924	22,356	61,068	62,047
Regulated Revenue [Member]
Disaggregation of Revenue [Abstract]
Total Operating Revenue	20,160	20,735	55,975	57,289
Regulated Revenue [Member] | Consumption Charges [Member]
Disaggregation of Revenue [Abstract]
Total Operating Revenue	13,648	13,109	36,286	35,304
Regulated Revenue [Member] | Fixed Fees [Member]
Disaggregation of Revenue [Abstract]
Total Operating Revenue	6,330	6,521	19,182	18,823
Regulated Revenue [Member] | Service Charges [Member]
Disaggregation of Revenue [Abstract]
Total Operating Revenue	182	247	507	761
Regulated Revenue [Member] | DSIC [Member]
Disaggregation of Revenue [Abstract]
Total Operating Revenue	655	858	2,203	2,401
Regulated Revenue [Member] | Revenue Reserved for Refund - TCJA Impact [Member]
Disaggregation of Revenue [Abstract]
Total Operating Revenue	(655)	0	(2,203)	0
Non-Regulated Revenue [Member]
Disaggregation of Revenue [Abstract]
Total Operating Revenue	1,426	1,378	4,156	4,032
Non-Regulated Revenue [Member] | Service Line Protection Plans [Member]
Disaggregation of Revenue [Abstract]
Total Operating Revenue	982	978	2,960	2,882
Non-Regulated Revenue [Member] | Contract Operations [Member]
Disaggregation of Revenue [Abstract]
Total Operating Revenue	329	340	1,025	995
Non-Regulated Revenue [Member] | Inspection Fees [Member]
Disaggregation of Revenue [Abstract]
Total Operating Revenue	$ 115	$ 60	$ 171	$ 155

REVENUE RECOGNITION, Contract A

REVENUE RECOGNITION, Contract Assets and Contract Liabilities (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Contract with Customer, Asset and Liability [Abstract]
Total Accounts Receivable	$ 6,818	$ 6,034
Total Deferred Revenue	1,392	1,256
Regulated Revenue [Member]
Contract with Customer, Asset and Liability [Abstract]
Total Accounts Receivable	6,499	5,631
Contract Assets	2,360	2,397
Total Deferred Revenue	1,140	1,053
Refund Liability	2,203	0
Deferred Revenue	1,100
Non-Regulated Revenue [Member]
Contract with Customer, Asset and Liability [Abstract]
Total Accounts Receivable	319	403
Total Deferred Revenue	252	$ 203
Deferred Revenue	$ 183

STOCK COMPENSATION PLANS (Detai

STOCK COMPENSATION PLANS (Details)	May 02, 2018$ / sharesshares	Jun. 28, 2017$ / sharesshares	May 03, 2017$ / sharesshares	May 04, 2016$ / sharesshares	Sep. 30, 2018USD ($)$ / sharesshares	Sep. 30, 2017USD ($)	Sep. 30, 2018USD ($)Director$ / sharesshares	Sep. 30, 2017USD ($)
Stock Compensation Plans [Abstract]
Number of directors in committee | Director							3
Class A Stock [Member]
Stock Compensation Plans [Abstract]
Fair value per share (in dollars per share)		$ 38.06
Shares issued as fully vested stock awards (in shares) | shares		6,568
Class A Stock [Member] | Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding at beginning of period, option shares (in shares) | shares							176,802
Granted, option shares (in shares) | shares							0
Exercised/vested and released, option shares (in shares) | shares							(8,052)
Expired/cancelled, option shares (in shares) | shares							0
Outstanding at end of period, option shares (in shares) | shares					168,750		168,750
Exercisable/vested at end of period, option share (in shares) | shares					168,750		168,750
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Outstanding at beginning of period, weighted average exercise price (in dollars per shares)							$ 19.91
Granted, weighted average exercise price (in dollars per share)							0
Exercised/vested and released, weighted average exercise price (in dollars per shares)							15.77
Expired/cancelled, weighted average exercise price (in dollars per share)							0
Outstanding at end of period, weighted average exercise price (in dollars per shares)					$ 20.11		20.11
Options exercisable at year end (in dollars per shares)					$ 20.11		$ 20.11
Shares of Class A Non-Voting Common Stock under option [Abstract]
Outstanding at end of period, weighted average remaining life							3 years 6 months 29 days
Exercisable/vested at end of period, weighted average remaining life							3 years 6 months 29 days
Outstanding at beginning of period, aggregate intrinsic value | $							$ 3,298,000
Granted, aggregate intrinsic value | $							0
Exercised/vested and released, aggregate intrinsic value | $							176,000
Expired/cancelled, aggregate intrinsic value | $							0
Outstanding at end of period, aggregate intrinsic value | $					$ 2,814,000		2,814,000
Exercisable/vested at end of period, aggregate intrinsic value | $					2,814,000		2,814,000
Class A Stock [Member] | Stock Options [Member] | 2015 Equity Compensation Plan [Member]
Stock Compensation Plans [Abstract]
Unrecognized expense related to non-vested option shares | $					0		0
Class A Stock [Member] | Restricted Stock [Member]
Stock Compensation Plans [Abstract]
Compensation expense | $					$ 49,000	$ 48,000	$ 144,000	$ 375,000
Fair value per share (in dollars per share)	$ 38.51		$ 38.10	$ 27.70
Award vesting period							1 year
Shares [Roll Forward]
Outstanding at beginning of year (in shares) | shares							5,000
Granted (in shares) | shares	5,000		5,000	5,000			5,000
Exercised/vested and released, restricted stock awards (in shares) | shares							(5,000)
Cancelled (in shares) | shares							0
Unvested Outstanding at end of year (in shares) | shares					5,000		5,000
Weighted Average Grant Date Fair Value [Abstract]
Outstanding at beginning of year (in dollars per shares)							$ 38.10
Granted, weighted average grant date fair value (in dollars per share)							38.51
Vested and released, weighted average grant date fair value (in dollars per shares)							38.10
Cancelled, weighted average grant date fair value (in dollars per share)							0
Unvested Outstanding at end of year (in dollars per shares)					$ 38.51		$ 38.51
Class A Stock [Member] | Restricted Stock [Member] | 2015 Equity Compensation Plan [Member]
Stock Compensation Plans [Abstract]
Unrecognized expense related to non-vested option shares | $					$ 112,400		$ 112,400
Period over which unvested options cost will recognized							6 months 29 days

REGULATORY ASSETS (Details)

REGULATORY ASSETS (Details) - USD ($)	9 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Regulatory Assets [Abstract]
Contributions to postretirement benefit plan	$ 28,100
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
Regulatory assets net of amortization, comprise [Abstract]
Regulatory assets, net	$ 7,404,000	$ 7,549,000
Maximum [Member]
Amortization period of other regulatory expense [Abstract]
Debt related cost	25 years
Minimum [Member]
Amortization period of other regulatory expense [Abstract]
Debt related cost	15 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
Postretirement Benefit Obligation [Member]
Regulatory assets net of amortization, comprise [Abstract]
Regulatory assets, net	$ 149,000	149,000
Deferred Income Taxes [Member]
Regulatory assets net of amortization, comprise [Abstract]
Regulatory assets, net	404,000	416,000
Debt Related Costs [Member]
Regulatory assets net of amortization, comprise [Abstract]
Regulatory assets, net	45,000	70,000
Expense of Rate and Regulatory Proceedings [Member]
Regulatory assets net of amortization, comprise [Abstract]
Regulatory assets, net	5,884,000	5,965,000
Goodwill [Member]
Regulatory assets net of amortization, comprise [Abstract]
Regulatory assets, net	297,000	303,000
Deferred Acquisition and Franchise Costs [Member]
Regulatory assets net of amortization, comprise [Abstract]
Regulatory assets, net	$ 625,000	$ 646,000

REGULATORY LIABILITIES (Details

REGULATORY LIABILITIES (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
REGULATORY LIABILITIES [Abstract]
Contributions to postretirement benefit plan	$ 28,100
Federal corporate tax rate	21.00%	34.00%
Decrease in the net deferred income tax liability	$ 24,300,000
Regulatory Liabilities [Abstract]
Regulatory liabilities	23,927,000	$ 23,201,000
Postretirement Benefit Obligation [Member]
Regulatory Liabilities [Abstract]
Regulatory liabilities	112,000	112,000
Utility Plant Retirement Cost Obligation [Member]
Regulatory Liabilities [Abstract]
Regulatory liabilities	461,000	549,000
Deferred Income Taxes [Member]
Regulatory Liabilities [Abstract]
Regulatory liabilities	$ 23,354,000	$ 22,540,000

NET INCOME PER COMMON SHARE A_3

NET INCOME PER COMMON SHARE AND EQUITY PER COMMON SHARE (Details) - $ / shares	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
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)	9,244,000	9,191,000	9,235,000	9,164,000
Dilutive effect of employee stock options and awards (in shares)	55,000	95,000	55,000	98,000
Weighted average common shares outstanding during the period for Diluted computation (in shares)	9,299,000	9,286,000	9,290,000	9,262,000
Class A Stock [Member]
Common Stock [Abstract]
Common stock, shares authorized (in shares)	15,000,000		15,000,000
Common stock, shares issued (in shares)	8,364,231	8,311,100	8,364,231	8,311,100
Common stock, shares outstanding (in shares)	8,364,231	8,311,100	8,364,231	8,311,100
Common stock, par value (in dollars per share)	$ 1		$ 1
Common stock, shares issued during period (in shares)	4,493	5,027	30,777	65,067
Earnings Per Share [Abstract]
Equity per common share (in dollars per share)			$ 16.25		$ 15.98
Class B Stock [Member]
Common Stock [Abstract]
Common stock, shares authorized (in shares)	1,040,000		1,040,000
Common stock, shares issued (in shares)	881,452	881,452	881,452	881,452
Common stock, shares outstanding (in shares)	881,452	881,452	881,452	881,452
Common stock, par value (in dollars per share)	$ 1		$ 1
Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Abstract]
Shares excluded from calculations of diluted net income per share (in shares)	0	0	0	0
Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Abstract]
Shares excluded from calculations of diluted net income per share (in shares)	0	0	4,108	4,240

REGULATORY PROCEEDINGS (Details

REGULATORY PROCEEDINGS (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2016
Other Proceedings [Abstract]
Cumulative DSIC Rate	3.63%		3.63%		4.71%
Eligible Plant Improvements - Cumulative Dollars			$ 24,700,000		$ 16,600,000
Delaware [Member]
Rate Proceedings [Abstract]
Percentage of gross water sales			15.00%
Period to complete rate case by law			7 months
Delaware [Member] | Maximum [Member]
Rate Proceedings [Abstract]
Temporary annual rate increase subject to 15% gross water sales limitation			$ 2,500,000
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]
Other Proceedings [Abstract]
Revenue held in reserve pending outcome of TCJA impact to customers	$ 655,000		$ 2,203,000
Revenue earned in DSIC rate increases	$ 0	$ 858,000	$ 0	$ 2,401,000

INCOME TAXES (Details)

INCOME TAXES (Details)	9 Months Ended	12 Months Ended
	Sep. 30, 2018USD ($)Reserve	Dec. 31, 2017
Income Taxes [Abstract]
Federal corporate tax rate	21.00%	34.00%
Percentage of limitations on deductibility of interest expense	30.00%
Measurement period of provisional amounts	1 year
Number of reserves established for uncertain tax positions | Reserve	2
Income tax penalties and interest accrued for unrecognized tax position | $	$ 9,400
State Authorities [Member]
Income Taxes [Abstract]
Open tax year	2015 2016 2017
Federal Authorities [Member]
Income Taxes [Abstract]
Open tax year	2015 2016 2017

FAIR VALUE OF FINANCIAL INSTR_3

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Carrying Amount [Member]
Long-term Financial Liabilities [Abstract]
Long-term debt	$ 113,360	$ 106,931
Estimated Fair Value [Member]
Long-term Financial Liabilities [Abstract]
Long-term debt	$ 111,951	$ 110,524

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($)	1 Months Ended			3 Months Ended		9 Months Ended
	Oct. 31, 2017	Sep. 30, 2017	Feb. 28, 2017	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Related Party Transactions [Abstract]
Stock ownership required to be disclosed, minimum				5.00%		5.00%
Michael Houghton [Member]
Related Party Transactions [Abstract]
Term of director						3 years
W.F. Construction [Member]
Related Party Transactions [Abstract]
Agreements to modify water treatment plants	$ 60,000	$ 36,000	$ 100,000
Amount paid to related party				$ 0	$ 0	$ 0	$ 87,000
Amount of liability due to related party				0		0
Morris Nichols Arsht & Tunnell [Member]
Related Party Transactions [Abstract]
Amount paid for legal services				271,000	$ 80,000	446,000	$ 286,000
Accounts payable balance to related party				$ 16,000		$ 16,000

BUSINESS COMBINATIONS (Details)

BUSINESS COMBINATIONS (Details) - Slaughter Beach Water Company [Member]	Mar. 29, 2018USD ($)Customer
Business Combinations [Abstract]
Number of customers | Customer	265
Total purchase price | $	$ 450,000