Artesian Resources (ARTNA) 10-Q 8 Nov 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Nov. 05, 2019
Entity Information [Line Items]
Entity Registrant Name	Artesian Resources Corporation
Entity Central Index Key	0000863110
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Entity Address, State or Province	DE
Class A Stock [Member]
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		8,403,873
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, 2019	Dec. 31, 2018
ASSETS
Utility plant, at original cost (less accumulated depreciation - 2019 - $134,310,; 2018 - $126,114)	$ 518,636	$ 498,678
Current assets
Cash and cash equivalents	458	293
Accounts receivable (less allowance for doubtful accounts - 2019 - $254; 2018 - $232)	6,647	8,159
Income tax receivable	182	772
Unbilled operating revenues	1,424	1,441
Materials and supplies	1,275	1,459
Prepaid property taxes	2,672	1,870
Prepaid expenses and other	2,197	2,124
Total current assets	14,855	16,118
Other assets
Non-utility property (less accumulated depreciation - 2019- $780; 2018 - $734)	3,819	3,849
Other deferred assets	4,205	3,931
Operating lease right of use asset	489	0
Total other assets	8,513	7,780
Regulatory assets, net	6,933	7,254
Total Assets	548,937	529,830
Stockholders' equity
Common stock	9,284	9,250
Preferred stock	0	0
Additional paid-in capital	101,552	100,639
Retained earnings	46,067	43,362
Total stockholders' equity	156,903	153,251
Long-term debt, net of current portion	114,558	115,862
Total stockholders' equity and long term debt	271,461	269,113
Current liabilities
Lines of credit	31,693	15,942
Current portion of long-term debt	1,671	1,725
Dividends payable	2,317	0
Accounts payable	4,950	8,187
Accrued expenses	2,561	3,902
Overdraft payable	51	117
Accrued interest	1,229	784
Income taxes payable	732	0
Customer deposits	1,074	1,044
Revenue reserve for refund	0	3,298
Other	3,969	2,732
Total current liabilities	50,247	37,731
Commitments and contingencies
Deferred credits and other liabilities
Net advances for construction	5,814	6,596
Operating lease liabilities	459	0
Regulatory liabilities	22,452	22,813
Deferred investment tax credits	495	508
Deferred income taxes	53,224	55,054
Total deferred credits and other liabilities	82,444	84,971
Net contributions in aid of construction	144,785	138,015
Total Liabilities and Stockholders' Equity	$ 548,937	$ 529,830

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
ASSETS
Utility Plant, accumulated depreciation	$ 134,310	$ 126,114
Current assets
Accounts receivable, allowance for doubtful accounts	254	232
Other assets
Non-utility Property, accumulated depreciation	$ 780	$ 734

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Operating revenues
Non-Tariff Revenue	$ 22,549	$ 21,924	$ 62,586	$ 61,068
Operating expenses
Utility operating expenses	10,495	10,333	28,865	28,454
Non-utility operating expenses	838	735	2,385	2,069
Depreciation and amortization	2,679	2,513	8,117	7,623
State and federal income taxes	1,498	1,834	4,002	4,737
Property and other taxes	1,309	1,265	3,884	3,731
Total Operating Expenses	16,819	16,680	47,253	46,614
Operating income	5,730	5,244	15,333	14,454
Other income, net
Allowance for funds used during construction (AFUDC)	566	146	1,058	413
Miscellaneous (expense) income	(73)	87	670	1,014
Income before interest charges	6,223	5,477	17,061	15,881
Interest charges	1,765	1,548	5,235	4,548
Net income applicable to common stock	$ 4,458	$ 3,929	$ 11,826	$ 11,333
Income per common share:
Basic (in dollars per share)	$ 0.48	$ 0.43	$ 1.28	$ 1.23
Diluted (in dollars per share)	$ 0.48	$ 0.42	$ 1.27	$ 1.22
Weighted average common shares outstanding:
Basic (in shares)	9,283	9,244	9,272	9,235
Diluted (in shares)	9,329	9,299	9,322	9,290
Cash dividends per share of common stock (in dollars per share)	$ 0.2459	$ 0.2387	$ 0.7341	$ 0.7126
Water Sales [Member]
Operating revenues
Non-Tariff Revenue	$ 20,102	$ 19,469	$ 55,227	$ 53,983
Other Utility Operating Revenue [Member]
Operating revenues
Non-Tariff Revenue	1,245	1,189	3,515	3,273
Non-Utility Operating Revenue [Member]
Operating revenues
Non-Tariff Revenue	$ 1,202	$ 1,266	$ 3,844	$ 3,812

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 11,826	$ 11,333
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	8,117	7,623
Deferred income taxes, net	(1,843)	1,314
Stock compensation	136	144
AFUDC, equity portion	(649)	(287)
Changes in assets and liabilities:
Accounts receivable, net of allowance for doubtful accounts	1,512	207
Income tax receivable	590	180
Unbilled operating revenues	17	101
Materials and supplies	184	230
Income taxes payable	732	0
Prepaid property taxes	(802)	(692)
Prepaid expenses and other	(73)	(124)
Other deferred assets	(300)	(199)
Regulatory assets	272	168
Regulatory liabilities	(361)	726
Accounts payable	(3,237)	(3,680)
Accrued expenses	(1,341)	599
Accrued interest	445	(635)
Revenue reserved for refund	(3,298)	0
Customer deposits and other, net	1,237	4,060
NET CASH PROVIDED BY OPERATING ACTIVITIES	13,164	21,068
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (net of AFUDC, equity portion)	(27,344)	(34,962)
Proceeds from sale of assets	43	44
NET CASH USED IN INVESTING ACTIVITIES	(27,301)	(34,918)
CASH FLOWS FROM FINANCING ACTIVITIES
Net borrowings under lines of credit agreements	15,751	5,748
(Decrease) increase in overdraft payable	(66)	191
Net advances and contributions in aid of construction	5,968	6,634
Net proceeds from issuance of common stock	811	783
Issuance of long-term debt	0	7,500
Dividends paid	(6,804)	(6,579)
Debt issuance costs	0	(75)
Principal repayments of long-term debt	(1,358)	(1,071)
NET CASH PROVIDED BY FINANCING ACTIVITIES	14,302	13,131
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	165	(719)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR	293	952
CASH AND CASH EQUIVALENTS AT END OF PERIOD	458	233
Non-cash Investing and Financing Activity:
Utility plant received as construction advances and contributions	1,819	623
Dividends declared but not paid	2,317	2,206
Supplemental Disclosures of Cash Flow Information:
Interest paid	4,790	5,183
Income taxes paid	$ 4,850	$ 2,417

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands		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, 2017		$ 8,333		$ 882		$ 99,526	$ 37,903	$ 146,644
Balance (in shares) at Dec. 31, 2017		8,333	[1],[2],[3]	882	[4]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		$ 0		$ 0		0	3,478	3,478
Cash dividends declared
Common stock		0		0		0	(2,168)	(2,168)
Issuance of common stock
Dividend reinvestment plan		$ 3		$ 0		88	0	91
Dividend reinvestment plan (in shares)		3	[1],[2],[3]	0	[4]
Employee stock options and awards	[3]	$ 0		$ 0		47	0	47
Employee stock options and awards (in shares)	[3]	0	[1],[2]	0	[4]
Employee Retirement Plan	[1]	$ 12		$ 0		290	0	302
Employee Retirement Plan (in shares)	[1]	12	[2],[3]	0	[4]
Balance at Mar. 31, 2018		$ 8,348		$ 882		99,951	39,213	148,394
Balance (in shares) at Mar. 31, 2018		8,348	[1],[2],[3]	882	[4]
Balance at Dec. 31, 2017		$ 8,333		$ 882		99,526	37,903	146,644
Balance (in shares) at Dec. 31, 2017		8,333	[1],[2],[3]	882	[4]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income								11,333
Balance at Sep. 30, 2018		$ 8,364		$ 882		100,422	40,417	150,085
Balance (in shares) at Sep. 30, 2018		8,364	[1],[2],[3]	882	[4]
Balance at Mar. 31, 2018		$ 8,348		$ 882		99,951	39,213	148,394
Balance (in shares) at Mar. 31, 2018		8,348	[1],[2],[3]	882	[4]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		$ 0		$ 0		0	3,926	3,926
Cash dividends declared
Common stock		0		0		0	(4,411)	(4,411)
Issuance of common stock
Dividend reinvestment plan		$ 2		$ 0		91	0	93
Dividend reinvestment plan (in shares)		2	[1],[2],[3]	0	[4]
Employee stock options and awards	[3]	$ 6		$ 0		67	0	73
Employee stock options and awards (in shares)	[3]	6	[1],[2]	0	[4]
Employee Retirement Plan	[1]	$ 3		$ 0		99	0	102
Employee Retirement Plan (in shares)	[1]	3	[2],[3]	0	[4]
Balance at Jun. 30, 2018		$ 8,359		$ 882		100,208	38,728	148,177
Balance (in shares) at Jun. 30, 2018		8,359	[1],[2],[3]	882	[4]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		$ 0		$ 0		0	3,929	3,929
Cash dividends declared
Common stock		0		0		0	(2,240)	(2,240)
Issuance of common stock
Dividend reinvestment plan		$ 2		$ 0		87	0	89
Dividend reinvestment plan (in shares)		2	[1],[2],[3]	0	[4]
Employee stock options and awards	[3]	$ 0		$ 0		48	0	48
Employee stock options and awards (in shares)	[3]	0	[1],[2]	0	[4]
Employee Retirement Plan	[1]	$ 3		$ 0		79	0	82
Employee Retirement Plan (in shares)	[1]	3	[2],[3]	0	[4]
Balance at Sep. 30, 2018		$ 8,364		$ 882		100,422	40,417	150,085
Balance (in shares) at Sep. 30, 2018		8,364	[1],[2],[3]	882	[4]
Balance at Dec. 31, 2018		$ 8,368		$ 882		100,639	43,362	153,251
Balance (in shares) at Dec. 31, 2018		8,368	[1],[2],[3]	882	[4]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		$ 0		$ 0		0	3,590	3,590
Cash dividends declared
Common stock		0		0		0	(2,241)	(2,241)
Issuance of common stock
Dividend reinvestment plan		$ 2		$ 0		85	0	87
Dividend reinvestment plan (in shares)		2	[1],[2],[3]	0	[4]
Employee stock options and awards	[3]	$ 14		$ 0		263	0	277
Employee stock options and awards (in shares)	[3]	14	[1],[2]	0	[4]
Employee Retirement Plan	[1]	$ 2		$ 0		76	0	78
Employee Retirement Plan (in shares)	[1]	2	[2],[3]	0	[4]
Balance at Mar. 31, 2019		$ 8,386		$ 882		101,063	44,711	155,042
Balance (in shares) at Mar. 31, 2019		8,386	[1],[2],[3]	882	[4]
Balance at Dec. 31, 2018		$ 8,368		$ 882		100,639	43,362	153,251
Balance (in shares) at Dec. 31, 2018		8,368	[1],[2],[3]	882	[4]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income								11,826
Balance at Sep. 30, 2019		$ 8,402		$ 882		101,552	46,067	156,903
Balance (in shares) at Sep. 30, 2019		8,402	[1],[2],[3]	882	[4]
Balance at Mar. 31, 2019		$ 8,386		$ 882		101,063	44,711	155,042
Balance (in shares) at Mar. 31, 2019		8,386	[1],[2],[3]	882	[4]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		$ 0		$ 0		0	3,778	3,778
Cash dividends declared
Common stock		0		0		0	(4,563)	(4,563)
Issuance of common stock
Dividend reinvestment plan		$ 3		$ 0		87	0	90
Dividend reinvestment plan (in shares)		3	[1],[2],[3]	0	[4]
Employee stock options and awards	[3]	$ 5		$ 0		38	0	43
Employee stock options and awards (in shares)	[3]	5	[1],[2]	0	[4]
Employee Retirement Plan	[1]	$ 3		$ 0		110	0	113
Employee Retirement Plan (in shares)	[1]	3	[2],[3]	0	[4]
Balance at Jun. 30, 2019		$ 8,397		$ 882		101,298	43,926	154,503
Balance (in shares) at Jun. 30, 2019		8,397	[1],[2],[3]	882	[4]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		$ 0		$ 0		0	4,458	4,458
Cash dividends declared
Common stock		0		0		0	(2,317)	(2,317)
Issuance of common stock
Dividend reinvestment plan		$ 3		$ 0		115	0	118
Dividend reinvestment plan (in shares)		3	[1],[2],[3]	0	[4]
Employee stock options and awards	[3]	$ 0		$ 0		45	0	45
Employee stock options and awards (in shares)	[3]	0	[1],[2]	0	[4]
Employee Retirement Plan	[1]	$ 2		$ 0		94	0	96
Employee Retirement Plan (in shares)	[1]	2	[2],[3]	0	[4]
Balance at Sep. 30, 2019		$ 8,402		$ 882		$ 101,552	$ 46,067	$ 156,903
Balance (in shares) at Sep. 30, 2019		8,402	[1],[2],[3]	882	[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 September 30, 2019 and September 30, 2018, Class A Common Stock had 15,000,000 shares authorized. For the same periods, shares issued, inclusive of treasury shares, were 8,432,220 and 8,393,208, 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 2015 Plan. Includes stock compensation expense for September 30, 2019 and September 30, 2018, see Note 5-Stock Compensation Plans.
[4]	At September 30, 2019 and September 30, 2018, Class B Common Stock had 1,040,000 shares authorized and 881,452 shares issued.

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	Sep. 30, 2019	Sep. 30, 2018	Dec. 09, 2015
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
Common Shares Class B Voting [Member]
Common stock, par value (in dollars per share)	$ 1
Common stock, shares authorized (in shares)	1,040,000
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
Common Stock Shares Issued (in shares)	8,432,220	8,393,208
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
Common Stock Shares Issued (in shares)	881,452	881,452

GENERAL

GENERAL	9 Months Ended
	Sep. 30, 2019
GENERAL [Abstract]
GENERAL	NOTE 1 Artesian Resources Corporation, or Artesian Resources, includes income from the earnings of our nine wholly owned subsidiaries. The terms "we", "our", "Artesian" and the "Company" as used herein refer to Artesian Resources and its subsidiaries. DELAWARE REGULATED SUBSIDIARIES Artesian Water Company, Inc., or Artesian Water, our principal subsidiary, is the oldest and largest public water utility in the State of Delaware and has been providing water service within the state since 1905. Artesian Water distributes and sells water to residential, commercial, industrial, governmental, municipal and utility customers throughout the State of Delaware. In addition, Artesian Water provides services to other water utilities, including operations and billing functions, and has contract operation agreements with private and municipal water providers. We also provide water for public and private fire protection to customers in our service territories. Artesian Wastewater Management, Inc., or Artesian Wastewater, is a regulated entity that owns wastewater collection and treatment infrastructure and provides wastewater services to customers in Delaware as a regulated public wastewater service company. Artesian Wastewater owns and operates four wastewater treatment facilities, which are permitted to treat approximately 500,000 gallons per day. Artesian Wastewater and Sussex County, a political subdivision of Delaware, provide reciprocal services to address the periodic need of each for additional wastewater treatment and disposal capacity in certain service areas within Sussex County. There are numerous locations in Sussex County where Artesian Wastewater’s and Sussex County’s facilities are capable of being connected or integrated to allow for the movement and disposal of wastewater generated by one or the other’s system in a manner that most efficiently and cost effectively manages wastewater transmission, treatment and disposal. MARYLAND REGULATED SUBSIDIARIES Artesian Water Maryland, Inc., or Artesian Water Maryland, began operations in August 2007. Artesian Water Maryland distributes and sells water to residential, commercial, industrial and municipal customers in Cecil County, Maryland. Artesian Water Maryland owns and operates 8 public water systems including one in Port Deposit that has the ability to supply up to 1 million gallons per day, or mgd, of water through an intake in the Susquehanna River. Artesian Wastewater Maryland, Inc., or Artesian Wastewater Maryland, was incorporated on June 3, 2008 and is able to provide regulated wastewater services to customers in the State of Maryland. PENNSYLVANIA REGULATED SUBSIDIARY Artesian Water Pennsylvania, Inc., or Artesian Water Pennsylvania, began operations in 2002. It provides water service to a residential community in Chester County, Pennsylvania. OTHER SUBSIDIARIES Our four other subsidiaries, none of which are regulated, are 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. Artesian Utility was formed in 1996 and designs and builds water and wastewater infrastructure and provides contract water and wastewater operation services on the Delmarva Peninsula to private, municipal and governmental institutions. Table of Contents Artesian Utility currently operates wastewater treatment facilities for the town of Middletown, in southern New Castle County, Delaware, or Middletown, under a 20-year contract that expires in July 2039. Artesian Utility also offers three protection plans to customers, the WSLP Plan, the SSLP Plan, and the ISLP Plan. The The SSLP Plan covers all parts, material and labor required to repair or replace participating customers' leaking or clogged sewer lines up to an annual limit. Artesian Development is a real estate holding company that owns properties, including land zoned for office buildings, a water treatment plant and wastewater facility, as well as property for current operations, including an office facility in Sussex County, Delaware. The facility consists of approximately 10,000 square feet of office space along with nearly 10,000 square feet of warehouse space. Artesian Storm Water, incorporated on January 17, 2017, was formed to provide design, installation, maintenance and repair services related to existing or proposed storm water management systems in Delaware and the surrounding areas. The ability to offer storm water services will complement the primary water and wastewater services that we provide. Artesian Consulting Engineers ceased offering services in 2011. In September 2019, the Board of Directors of Artesian Consulting Engineers unanimously approved its dissolution. Also, in September 2019, the Board of Directors of Artesian Resources Corporation, the sole shareholder of Artesian Consulting Engineers, unanimously approved the dissolution of Artesian Consulting Engineers. The Company filed a Certificate of Dissolution with the Delaware Secretary of State in October 2019.

BASIS OF PRESENTATION AND IMPAC

BASIS OF PRESENTATION AND IMPACT OF RECENT ACCOUNTING PRONOUNCEMENTS	9 Months Ended
	Sep. 30, 2019
BASIS OF PRESENTATION AND IMPACT OF RECENT ACCOUNTING PRONOUNCEMENTS [Abstract]
BASIS OF PRESENTATION AND IMPACT OF RECENT ACCOUNTING PRONOUNCEMENTS	NOTE 2 Basis of Presentation The unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission, or SEC, for Form 10-Q. Certain information and note disclosures normally included in the annual financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. Accordingly, these condensed consolidated financial statements and related notes should be read in conjunction with the consolidated financial statements and related notes in the Company's annual report on Form 10-K for fiscal year 2018 as filed with the SEC on March 15, 2019. The condensed consolidated financial statements include the accounts of Artesian Resources Corporation 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, 2019, the results of its operations for the three and nine months periods ended September 30, 2019 and September 30, 2018, its cash flows for the nine month periods ended September 30, 2019 and September 30, 2018 and the changes in stockholders’ equity for the three and nine months period ended September 30, 2019 and 2018. The December 31, 2018 Condensed Consolidated Balance Sheet was derived from the Company’s December 31, 2018 audited consolidated financial statements, but does not include all disclosures and notes normally provided in annual financial statements. The results of operations for the interim periods presented are not necessarily indicative of the results for the full year or for future periods. In the first quarter of 2019, the Company adopted the new standard on leases that was issued by the Financial Accounting Standards Board, or FASB. 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 an 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. Table of Contents The Company adopted this new standard using the modified retrospective method and did not apply the standard to the comparative periods presented in this Form 10-Q. The Company elected the practical expedient not to evaluate land easements that existed prior to implementation and were not previously accounted for as leases. The Company also elected not to recognize ROU assets and lease liabilities for short-term leases that have a lease term of 12 months or less. The Company has agreements for land easements and office equipment under operating leases. The Company evaluated each lease agreement to determine whether the lease was to be accounted for as an operating or financing lease. It was determined that all leases subject to this new standard are operating leases and are recognized on a straight line basis. The amount of ROU assets and related liabilities recognized on the Condensed Consolidated Balance Sheet as of September 30, 2019 are approximately $489,000 and reported as “Operating Lease Right of Use Assets” and “Operating Lease Liabilities.” The adoption of this new standard impacted our consolidated balance sheets, but did not have a material effect on our consolidated results of operations or cash flows. Management makes certain estimates and assumptions regarding each lease agreement, renewal and amendment, including, but not limited to, discount rates and probable term, which can impact the escalations in payment that are taken into consideration when calculating the straight line basis. The amount of rent expense and income reported could vary if different estimates and assumptions are used. Management also makes certain estimates and assumptions regarding the fair value of the leased property at lease commencement and the separation of lease and nonlease components.

REVENUE RECOGNITION

REVENUE RECOGNITION	9 Months Ended
	Sep. 30, 2019
REVENUE RECOGNITION [Abstract]
REVENUE RECOGNITION	NOTE 3 – 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 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. Tariff contract service revenues consist of water consumption, industrial wastewater services, fixed fees for water and wastewater services including customer and fire protection fees, service charges and Distribution System Improvement Charges, or DSIC, billed to customers at rates outlined in our tariffs that represent stand-alone selling prices. Our non-tariff contract revenues consist of Service Line Protection Plan, or SLP Plan, fees, water and wastewater contract operations and wastewater inspection fees. Other operating revenue primarily consists of developer guarantee contributions for wastewater and rental income for antenna contracts. Tariff 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. 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 revenue from industrial wastewater services provided to a customer in Sussex County, Delaware. We recognize industrial wastewater service revenue at a contract rate on a monthly basis for the volume of wastewater transferred to Artesian’s wastewater facilities based upon meter readings for actual gallons of wastewater transferred. These services are invoiced at the end of every month based on the actual meter readings for that month, and therefore there is no contract asset or liability associated with this revenue. Table of Contents 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 DSIC, 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 reduction in corporate income tax expense resulting from the TCJA was passed through to customers in the form of reduced tariff rates as approved by the DEPSC on January 31, 2019. Approximately $3.8 million was refunded to customers during the second quarter of 2019. This amount was previously held in reserve (refund liability) and was not reflected in income. Accounts receivable related to tariff contract revenues 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-tariff 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 Plan 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. Table of Contents Sales Tax The majority of Artesian’s revenues are earned within the State of Delaware, where there is no sales tax. Revenues 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: As a result of the reduced tariff rates approved by the DEPSC on January 31, 2019, the tariff revenues presented below for the three months ended September 30, 2018 and the nine months ended September 30, 2018 were reallocated to the appropriate line items for comparison purposes. (in thousands) Three months ended September 30, 2019 Three months ended September 30, 2018 Nine months ended September 30, 2019 Nine months ended September 30, 2018 Tariff Revenue Consumption charges $ 12,844 $ 13,672 $ 34,320 $ 36,459 Fixed fees 6,529 6,305 19,525 19,009 Service charges 133 183 467 508 DSIC 1,334 655 3,129 2,203 Industrial wastewater services 10 – 14 – Revenue reserved for refund – TCJA impact – (655 ) – (2,203 ) Total Tariff Revenue $ 20,850 $ 20,160 $ 57,455 $ 55,976 Non-Tariff Revenue Service line protection plans $ 1,039 $ 982 $ 3,117 $ 2,960 Contract operations 210 329 866 1,025 Inspection fees 69 115 155 171 Total Non-Tariff Revenue $ 1,318 $ 1,426 $ 4,138 $ 4,156 Other Operating Revenue not in scope of ASC 606 $ 381 $ 338 $ 993 $ 936 Total Operating Revenue $ 22,549 $ 21,924 $ 62,586 $ 61,068 Contract Assets and Contract Liabilities Our contract assets and liabilities consist of the following: (in thousands) September 30, 2019 December 31, 2018 Contract Assets – $ 2,367 $ 2,367 Deferred Revenue Deferred Revenue – Tariff $ 1,058 $ 1,025 Deferred Revenue – Non-Tariff 239 227 Total Deferred Revenue $ 1,297 $ 1,252 Refund Liability - $ – $ 3,298 For the nine months ended September 30, 2019, the Company recognized revenue of $1.0 million from amounts that were included in Deferred Revenue – Tariff at the beginning of the year and revenue of $207,000 from amounts that were included in Deferred Revenue – Non- Tariff 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 Refund Liability as of December 31, 2018 is based on the calculated amount approved by the DEPSC on January 31, 2019 related to the TCJA. This amount was refunded to customers during the second quarter of 2019. Table of Contents Remaining Performance Obligations As of September 30, 2019 and December 31, 2018, Deferred Revenue – Tariff 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, 2019 and December 31, 2018, Deferred Revenue – Non-Tariff 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 .

LEASES

LEASES	9 Months Ended
	Sep. 30, 2019
LEASES [Abstract]
LEASES	NOTE 4 – LEASES The Company leases land and office equipment under operating leases from non-related parties. Our leases have remaining lease terms of 3 years to 78 years, some of which include options to automatically extend the leases for up to 66 years. Payments made under operating leases are recognized in the condensed consolidated statement of operations on a straight-line basis over the period of the lease. The annual lease payments for the land operating leases increase each year either by the most recent increase in the Consumer Price Index or by 3%, as applicable based on the lease agreements. Periodically, the annual lease payment for one operating land lease is determined based on the fair market value of the applicable parcel of land. None of the operating leases contain contingent rent provisions. The commencement date of all the operating leases is the earlier of the date we become legally obligated to make rent payments or the date we may exercise control over the use of the land or equipment. The Company currently does not have any financing leases and does not have any lessor leases that require disclosure. Management made certain assumptions related to the separation of lease and nonlease components and to the discount rate used when calculating the right of use asset and liability amounts for the operating leases. As our leases do not provide an implicit rate, we use our incremental borrowing rates for long term and short term agreements and apply the rates accordingly based on the term of the lease agreements to determine the present value of lease payments. Rent expense for all operating leases except those with terms of 12 months or less comprises: (in thousands) Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Minimum rentals $ 7 $ 16 Contingent rentals -- - $ 7 $ 16 Supplemental cash flow information related to leases is as follows: (in thousands) Nine Months Ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 33 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 489 Table of Contents Supplemental balance sheet information related to leases is as follows: (in thousands, except lease term and discount rate) September 30, 2019 Operating Leases: Operating lease right-of-use assets $ 489 Other current liabilities $ 19 Operating lease liabilities 459 Total operating lease liabilities $ 478 Weighted Average Remaining Lease Term Operating leases 57 years Weighted Average Discount Rate Operating leases 4.9 % Maturities of operating lease liabilities that have initial or remaining non-cancelable lease terms in excess of one year as of September 30, 2019 are as follows: (in thousands) Operating Leases Year 2019 $ 42 2020 42 2021 33 2022 23 2023 23 Thereafter 1,338 Total undiscounted lease payments $ 1,501 Less effects of discounting (1,023 ) Total lease liabilities recognized 478 The change in accounting due to the adoption of the new lease guidance did not result in a material change to the future minimum rental payments when compared to December 31, 2018. As of September 30, 2019, we have not entered into operating or finance leases that will commence at a future date.

STOCK COMPENSATION PLANS

STOCK COMPENSATION PLANS	9 Months Ended
	Sep. 30, 2019
STOCK COMPENSATION PLANS [Abstract]
STOCK COMPENSATION PLANS	NOTE 5 – 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 that 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, or the Committee, of the Board of Directors of the Company, or the Board. 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, 2019, of approximately $45,000 and $136,000, respectively, was recorded for restricted stock awards issued in May 2018 and May 2019. For the three and nine months ended September 30, 2018, compensation expense of approximately $49,000 and $144,000, respectively, was recorded for restricted stock awards issued in May 2017 and May 2018. 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. Table of Contents On May 8, 2019, 5,000 shares of Class A Common Stock, or Class A Stock, were granted as restricted stock awards. The fair value per share was $36.11, the closing price of the Class A Stock as recorded on the NASDAQ Global Select Market on May 8, 2019. Prior to their release date, these restricted stock awards may be subject to forfeiture in the event of the recipient’s termination of service. On May 2, 2018, 5,000 shares of 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 Select Market on May 2, 2018. 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, 2019: 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, 2019 168,750 $ 20.11 $ 2,491 5,000 $ 38.51 Granted – – – 5,000 $ 36.11 Exercised/vested and released (13,500 ) 16.94 297 (5,000 ) $ 38.51 Expired/cancelled – – – – – Outstanding at September 30, 2019 155,250 $ 20.38 2.787 $ 2,580 5,000 $ 36.11 Exercisable/vested at September 30, 2019 155,250 $ 20.38 2.787 $ 2,580 – – The total intrinsic value of options exercised during the nine months ended September 30, 2019 was approximately $297,000. There were no unvested option shares outstanding under the 2015 Plan during the nine months ended September 30, 2019. As of September 30, 2019, there were no unrecognized expenses related to non-vested option shares granted under the 2015 Plan. As of September 30, 2019, there was $109,000 total unrecognized expenses related to non-vested awards of restricted shares awarded under the 2015 Plan. The cost will be recognized over 0.60 years, the remaining vesting period for the restricted stock awards.

REGULATORY ASSETS

REGULATORY ASSETS	9 Months Ended
	Sep. 30, 2019
REGULATORY ASSETS [Abstract]
REGULATORY ASSETS	N OTE 6 - REGULATORY ASSETS The 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 approximately $17,000 to its postretirement benefit plan in the first nine months of 2019. These contributions consist of insurance premium payments for medical, dental and life insurance benefits made on behalf of the Company's eligible retired employees. Certain 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. Table of Contents 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 Rate case studies 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, 2019 December 31, 2018 Postretirement benefit obligation $ 74 $ 74 Deferred income taxes 389 401 Expense of rate case studies 30 46 Debt issuance costs 5,557 5,815 Goodwill 290 295 Deferred acquisition and franchise costs 593 623 $ 6,933 $ 7,254

REGULATORY LIABILITIES

REGULATORY LIABILITIES	9 Months Ended
	Sep. 30, 2019
REGULATORY LIABILITIES [Abstract]
REGULATORY LIABILITIES	NOTE 7 The 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, the MDPSC, and the 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 when they render the services necessary to earn the benefits. Artesian Water contributed approximately $17,000 to its postretirement benefit plan in the first nine months of 2019. 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. Each year the liability is increased by an annual amount authorized by the DEPSC. Pursuant to the enactment of the TCJA, on December 22, 2017, the Company adjusted its existing deferred income tax balances to reflect the decrease in the corporate income tax rate from 34% to 21% (see Note 10). This resulted in a decrease in the net deferred income tax liability of approximately $24.3 million, of which $22.8 million was reclassed to a regulatory liability. The regulatory liability amount is 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. On January 31, 2019, the DEPSC approved the amortization of the regulatory liability amount of $22.2 million over a period of 49.5 years beginning February 1, 2018, subject to audit at a later date. The MDPSC has not issued a final order on the regulatory liability amount of $0.6 million regarding the effects of the TCJA on Maryland customers. Regulatory liabilities comprise: (in thousands) September 30, 2019 December 31, 2018 Postretirement benefit obligation $ 52 $ 52 Utility plant retirement cost obligation 291 319 Deferred income taxes (related to TCJA) 22,109 22,442 $ 22,452 $ 22,813

NET INCOME PER COMMON SHARE AND

NET INCOME PER COMMON SHARE AND EQUITY PER COMMON SHARE	9 Months Ended
	Sep. 30, 2019
NET INCOME PER COMMON SHARE AND EQUITY PER COMMON SHARE [Abstract]
NET INCOME PER COMMON SHARE AND EQUITY PER COMMON SHARE	NOTE 8 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, 2019 2018 2019 2018 (in thousands) (in thousands) Weighted average common shares outstanding during the period for Basic computation 9,283 9,244 9,272 9,235 Dilutive effect of employee stock options and awards 46 55 50 55 Weighted average common shares outstanding during the period for Diluted computation 9,329 9,299 9,322 9,290 For both the three and nine months ended September 30, 2019, 5,000 shares of restricted stock awards were excluded from the calculations of diluted net income per share. For the three and nine months ended September 30, 2018, no shares of restricted stock awards were excluded from the calculations of diluted net income per share. Due to unrecognized compensation costs, the hypothetical repurchase of shares exceeded the number of restricted shares expected to vest during the period, creating an anti-dilutive effect. For the three and nine months ended September 30, 2019 and September 30, 2018, 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, 2019 , September 30, 2018 $1.00 per the nine months ended September 30, 2019 and September 30, 2018, the Equity per common share was $16.92 and $16.53 at September 30, 2019 and December 31, 2018, respectively. These amounts were computed by dividing common stockholders' equity by the number of shares of common stock outstanding on September 30, 2019 and December 31, 2018, respectively.

REGULATORY PROCEEDINGS

REGULATORY PROCEEDINGS	9 Months Ended
	Sep. 30, 2019
REGULATORY PROCEEDINGS [Abstract]
REGULATORY PROCEEDINGS	Table of Contents N OTE 9 - 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. Th e first t ser of $2.5 million on an 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. 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 any 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 11/28/2018 05/29/2019 DEPSC Approval Date 12/20/2016 06/19/2018 12/20/2018 06/18/2019 Effective Date 01/01/2017 07/01/2018 01/01/2019 07/1/2019 Cumulative DSIC Rate 4.71 % 3.63 % 5.55 % 7.41 % Net Eligible Plant Improvements – Cumulative Dollars (in millions) $ 16.6 $ 24.7 $ 30.4 $ 43.1 Eligible Plant Improvements – Installed Beginning Date 10/01/2014 10/01/2014 10/01/2014 10/01/2014 Eligible Plant Improvements – Installed Ending Date 10/31/2016 04/30/2018 10/31/2018 04/30/2019 The DSIC rate effective July 1, 2019 replaces the DSIC rate effective January 1, 2019. This increased rate reflects the eligible plant improvements installed through April 30, 2019. The DSIC rates effective January 1, 2019 and July 1, 2019 are still subject to audit at a later date by the DEPSC. For the three and nine months ended September 30, 2019, we earned approximately $1.3 million and $3.1 million in DSIC revenue, respectively. For the three and nine months ended September 30, 2018, we earned approximately $0.7 million and $2.2 million in DSIC revenue, respectively.

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2019
INCOME TAXES [Abstract]
INCOME TAXES	Table of Contents NOTE 10 – INCOME TAXES The TCJA made 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 that began after December 31, 2017; (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 (CIAC) for water utilities. The most significant change that impacted Artesian Resources was 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. The SEC Staff issued Accounting Bulletin No. 118, Income Tax Accounting of the TCJA, allowing provisional amounts to be reported based on reasonable estimates, subject to adjustment during a one year measurement period. In 2018 the Company finalized making such adjustments. However, since many provisions of the 2017 Tax Act still do not have final guidance issued, it may be necessary for the Company to make future adjustments based on such new guidance. 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 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, 2019
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract]
FAIR VALUE OF FINANCIAL INSTRUMENTS	N OTE 11 – FAIR VALUE OF FINANC The following methods and assumptions were used to estimate the fair value of each class of financial instrument 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. Table of Contents Long-term Financial Liabilities All of Artesian Resources’ outstanding lo ng-term debt as of and In thousands September 30, 2019 December 31, 2018 Carrying amount $ 116,229 $ 117,587 Estimated fair value $ 129,783 $ 116,818 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, 2019
RELATED PARTY TRANSACTIONS [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 12 – RELATED PARTY TRANSACTIONS 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 $45,000 and $168,000 was paid to MNAT during the three and nine months ended September 30, 2019, respectively, for legal services. Approximately $65,000 and $182,000 was paid to MNAT during the three and nine months ended September 30, 2018, respectively, for legal services. As of September 30, 2019, the Company did not have an 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 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 party 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, 2019
BUSINESS COMBINATIONS [Abstract]
BUSINESS COMBINATIONS	NOTE 13 – 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.

IMPACT OF RECENT ACCOUNTING PRO

IMPACT OF RECENT ACCOUNTING PRONOUNCEMENTS	9 Months Ended
	Sep. 30, 2019
IMPACT OF RECENT ACCOUNTING PRONOUNCEMENTS [Abstract]
IMPACT OF RECENT ACCOUNTING PRONOUNCEMENTS	Table of Contents NOTE 14 - IMPACT OF RECENT ACCOUNTING PRONOUNCEMENTS There was no new guidance issued by the FASB during the nine months ended September 30, 2019 that is applicable to the Company.

SUBSEQUENT EVENT

SUBSEQUENT EVENT	9 Months Ended
	Sep. 30, 2019
SUBSEQUENT EVENT [Abstract]
SUBSEQUENT EVENT	NOTE 15 - SUBSEQUENT EVENT On October 8, 2019, Artesian Water Company entered into an interest rate lock agreement, or the Agreement, with CoBank, ACB, or CoBank. The Company is seeking to finance a $30 million principal amount First Mortgage Bond, or the Bond. The Agreement allows for a maturity period of 30 years and a fixed interest rate of 4.42% per annum, or the Fixed Rate, for the Bond. The Agreement is effective through December 31, 2019, or the Settlement Date. Pursuant to the Agreement, the Bond is not subject to redemption based on mortgage style amortization; interest on the outstanding principal balance will be payable quarterly on the 30th day of January, April, July and October each year. The proceeds from the sale of the Bond shall be used to pay down outstanding lines of credit of Artesian Water, any additional proceeds shall be used to fund future capital investments in Artesian Water. Closing on the debt financing is subject to approval by the DEPSC. Also pursuant to the Agreement, the Company agrees to pay to CoBank, on demand, a broken funding charge if the Company does not, for any reason whatsoever, borrow the entire $30 million principal amount on or before the Settlement Date. The broken funding charge shall be in an amount equal to the present value of the sum of all losses and expenses incurred by CoBank in retiring, liquidating, or reallocating any debt, obligation, or cost incurred or allocated by CoBank to fund or hedge the Fixed Rate.

REVENUE RECOGNITION (Tables)

REVENUE RECOGNITION (Tables)	9 Months Ended
	Sep. 30, 2019
REVENUE RECOGNITION [Abstract]
Disaggregation Revenues	Disaggregated Revenues The following table shows the Company’s revenues disaggregated by service type; all revenues are generated within a similar geographical location: As a result of the reduced tariff rates approved by the DEPSC on January 31, 2019, the tariff revenues presented below for the three months ended September 30, 2018 and the nine months ended September 30, 2018 were reallocated to the appropriate line items for comparison purposes. (in thousands) Three months ended September 30, 2019 Three months ended September 30, 2018 Nine months ended September 30, 2019 Nine months ended September 30, 2018 Tariff Revenue Consumption charges $ 12,844 $ 13,672 $ 34,320 $ 36,459 Fixed fees 6,529 6,305 19,525 19,009 Service charges 133 183 467 508 DSIC 1,334 655 3,129 2,203 Industrial wastewater services 10 – 14 – Revenue reserved for refund – TCJA impact – (655 ) – (2,203 ) Total Tariff Revenue $ 20,850 $ 20,160 $ 57,455 $ 55,976 Non-Tariff Revenue Service line protection plans $ 1,039 $ 982 $ 3,117 $ 2,960 Contract operations 210 329 866 1,025 Inspection fees 69 115 155 171 Total Non-Tariff Revenue $ 1,318 $ 1,426 $ 4,138 $ 4,156 Other Operating Revenue not in scope of ASC 606 $ 381 $ 338 $ 993 $ 936 Total Operating Revenue $ 22,549 $ 21,924 $ 62,586 $ 61,068
Contract Assets and Contract Liabilities	Our contract assets and liabilities consist of the following: (in thousands) September 30, 2019 December 31, 2018 Contract Assets – $ 2,367 $ 2,367 Deferred Revenue Deferred Revenue – Tariff $ 1,058 $ 1,025 Deferred Revenue – Non-Tariff 239 227 Total Deferred Revenue $ 1,297 $ 1,252 Refund Liability - $ – $ 3,298

LEASES (Tables)

LEASES (Tables)	9 Months Ended
	Sep. 30, 2019
LEASES [Abstract]
Rent Expense for All Operating Leases Except Those with Terms of 12 Months or Less	Rent expense for all operating leases except those with terms of 12 months or less comprises: (in thousands) Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Minimum rentals $ 7 $ 16 Contingent rentals -- - $ 7 $ 16
Supplemental Cash Flow Information Related to Leases	Supplemental cash flow information related to leases is as follows: (in thousands) Nine Months Ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 33 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 489
Supplemental Balance Sheet Information Related to Leases	Table of Contents Supplemental balance sheet information related to leases is as follows: (in thousands, except lease term and discount rate) September 30, 2019 Operating Leases: Operating lease right-of-use assets $ 489 Other current liabilities $ 19 Operating lease liabilities 459 Total operating lease liabilities $ 478 Weighted Average Remaining Lease Term Operating leases 57 years Weighted Average Discount Rate Operating leases 4.9 %
Maturities of Operating Lease Liabilities	Maturities of operating lease liabilities that have initial or remaining non-cancelable lease terms in excess of one year as of September 30, 2019 are as follows: (in thousands) Operating Leases Year 2019 $ 42 2020 42 2021 33 2022 23 2023 23 Thereafter 1,338 Total undiscounted lease payments $ 1,501 Less effects of discounting (1,023 ) Total lease liabilities recognized 478

STOCK COMPENSATION PLANS (Table

STOCK COMPENSATION PLANS (Tables)	9 Months Ended
	Sep. 30, 2019
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, 2019: 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, 2019 168,750 $ 20.11 $ 2,491 5,000 $ 38.51 Granted – – – 5,000 $ 36.11 Exercised/vested and released (13,500 ) 16.94 297 (5,000 ) $ 38.51 Expired/cancelled – – – – – Outstanding at September 30, 2019 155,250 $ 20.38 2.787 $ 2,580 5,000 $ 36.11 Exercisable/vested at September 30, 2019 155,250 $ 20.38 2.787 $ 2,580 – –

REGULATORY ASSETS (Tables)

REGULATORY ASSETS (Tables)	9 Months Ended
	Sep. 30, 2019
REGULATORY ASSETS [Abstract]
Amortization Period of Other Regulatory Expense	Regulatory expenses amortized on a straight-line basis are noted below: Expense Years Amortized Rate case studies 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, 2019 December 31, 2018 Postretirement benefit obligation $ 74 $ 74 Deferred income taxes 389 401 Expense of rate case studies 30 46 Debt issuance costs 5,557 5,815 Goodwill 290 295 Deferred acquisition and franchise costs 593 623 $ 6,933 $ 7,254

REGULATORY LIABILITIES (Tables)

REGULATORY LIABILITIES (Tables)	9 Months Ended
	Sep. 30, 2019
REGULATORY LIABILITIES [Abstract]
Regulatory Liabilities	Regulatory liabilities comprise: (in thousands) September 30, 2019 December 31, 2018 Postretirement benefit obligation $ 52 $ 52 Utility plant retirement cost obligation 291 319 Deferred income taxes (related to TCJA) 22,109 22,442 $ 22,452 $ 22,813

NET INCOME PER COMMON SHARE A_2

NET INCOME PER COMMON SHARE AND EQUITY PER COMMON SHARE (Tables)	9 Months Ended
	Sep. 30, 2019
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, 2019 2018 2019 2018 (in thousands) (in thousands) Weighted average common shares outstanding during the period for Basic computation 9,283 9,244 9,272 9,235 Dilutive effect of employee stock options and awards 46 55 50 55 Weighted average common shares outstanding during the period for Diluted computation 9,329 9,299 9,322 9,290

REGULATORY PROCEEDINGS (Tables)

REGULATORY PROCEEDINGS (Tables)	9 Months Ended
	Sep. 30, 2019
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 11/28/2018 05/29/2019 DEPSC Approval Date 12/20/2016 06/19/2018 12/20/2018 06/18/2019 Effective Date 01/01/2017 07/01/2018 01/01/2019 07/1/2019 Cumulative DSIC Rate 4.71 % 3.63 % 5.55 % 7.41 % Net Eligible Plant Improvements – Cumulative Dollars (in millions) $ 16.6 $ 24.7 $ 30.4 $ 43.1 Eligible Plant Improvements – Installed Beginning Date 10/01/2014 10/01/2014 10/01/2014 10/01/2014 Eligible Plant Improvements – Installed Ending Date 10/31/2016 04/30/2018 10/31/2018 04/30/2019

FAIR VALUE OF FINANCIAL INSTR_2

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	9 Months Ended
	Sep. 30, 2019
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 In thousands September 30, 2019 December 31, 2018 Carrying amount $ 116,229 $ 117,587 Estimated fair value $ 129,783 $ 116,818

GENERAL (Details)

GENERAL (Details)	9 Months Ended
	Sep. 30, 2019gal / dSubsidiaryFacilityWaterSystemPlanSquarefeet
Business Operations [Abstract]
Number of wholly owned subsidiaries | Subsidiary	9
Number of subsidiaries not regulated | Subsidiary	4
Artesian Development purchased area of office space (in square feet) | Squarefeet	10,000
Artesian Development purchased area of warehouse space (in square feet) | Squarefeet	10,000
Artesian Wastewater [Member]
Business Operations [Abstract]
Number of wastewater treatment facilities owned and operated | Facility	4
Capacity of wastewater treatment facilities	500,000
Artesian Water Maryland [Member]
Business Operations [Abstract]
Number of public water systems owned and operated | WaterSystem	8
Maximum supply amount of water per day	1,000,000
Artesian Utility [Member]
Business Operations [Abstract]
Initial contract period of operating wastewater treatment facilities in Middletown	20 years
Number of wastewater treatment station facility operations in Middletown | Facility	2
Number of wastewater treatment facilities in Middletown providing reclaimed wastewater | Facility	1
Number of protection plans offered to customers | Plan	3
Artesian Utility [Member] | Wastewater Treatment Facility First of Two [Member] | Maximum [Member]
Business Operations [Abstract]
Capacity of wastewater treatment facilities	2,500,000
Artesian Utility [Member] | Wastewater Treatment Facility Second of Two [Member] | Maximum [Member]
Business Operations [Abstract]
Capacity of wastewater treatment facilities	250,000

BASIS OF PRESENTATION AND IMP_2

BASIS OF PRESENTATION AND IMPACT OF RECENT ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
IMPACT OF RECENT ACCOUNTING PRONOUNCEMENTS [Abstract]
Operating Lease, Right-of-Use Asset	$ 489	$ 0
Operating Lease, Liability	478
Accounting Standards Update 2016-02 [Member]
IMPACT OF RECENT ACCOUNTING PRONOUNCEMENTS [Abstract]
Operating Lease, Right-of-Use Asset	489
Operating Lease, Liability	$ 489

REVENUE RECOGNITION, Disaggrega

REVENUE RECOGNITION, Disaggregated Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Jun. 30, 2019	Sep. 30, 2019	Sep. 30, 2018
REVENUE RECOGNITION [Abstract]
Refund to customers through reduced tariff rates			$ (3,800)
Minimum number of days for accounts receivable from tariff 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	$ 381	$ 338		$ 993	$ 936
Total Operating Revenue	22,549	21,924		62,586	61,068
Tariff Revenue [Member]
Disaggregation of Revenue [Abstract]
Total Operating Revenue	20,850	20,160		57,455	55,976
Tariff Revenue [Member] | Consumption Charges [Member]
Disaggregation of Revenue [Abstract]
Total Operating Revenue	12,844	13,672		34,320	36,459
Tariff Revenue [Member] | Fixed Fees [Member]
Disaggregation of Revenue [Abstract]
Total Operating Revenue	6,529	6,305		19,525	19,009
Tariff Revenue [Member] | Service Charges [Member]
Disaggregation of Revenue [Abstract]
Total Operating Revenue	133	183		467	508
Tariff Revenue [Member] | DSIC [Member]
Disaggregation of Revenue [Abstract]
Total Operating Revenue	1,334	655		3,129	2,203
Tariff Revenue [Member] | Industrial Wastewater Services [Member]
Disaggregation of Revenue [Abstract]
Total Operating Revenue	10	0		14	0
Tariff Revenue [Member] | Revenue Reserved for Refund - TCJA Impact [Member]
Disaggregation of Revenue [Abstract]
Total Operating Revenue	0	(655)		0	(2,203)
Non-Tariff Revenue [Member]
Disaggregation of Revenue [Abstract]
Total Operating Revenue	1,318	1,426		4,138	4,156
Non-Tariff Revenue [Member] | Service Line Protection Plans [Member]
Disaggregation of Revenue [Abstract]
Total Operating Revenue	1,039	982		3,117	2,960
Non-Tariff Revenue [Member] | Contract Operations [Member]
Disaggregation of Revenue [Abstract]
Total Operating Revenue	210	329		866	1,025
Non-Tariff Revenue [Member] | Inspection Fees [Member]
Disaggregation of Revenue [Abstract]
Total Operating Revenue	$ 69	$ 115		$ 155	$ 171

REVENUE RECOGNITION, Contract A

REVENUE RECOGNITION, Contract Assets and Contract Liabilities (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Contract with Customer, Asset and Liability [Abstract]
Total Deferred Revenue	$ 1,297	$ 1,252
Tariff Revenue [Member]
Contract with Customer, Asset and Liability [Abstract]
Contract Assets	2,367	2,367
Total Deferred Revenue	1,058	1,025
Refund Liability	0	3,298
Deferred Revenue	1,000
Non-Tariff Revenue [Member]
Contract with Customer, Asset and Liability [Abstract]
Total Deferred Revenue	239	$ 227
Deferred Revenue	$ 207

LEASES (Details)

LEASES (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019	Dec. 31, 2018
Operating Lease, Description [Abstract]
Percentage of increase in annual lease payments		3.00%
Rent Expense [Abstract]
Minimum rentals	$ 7	$ 16
Contingent rentals	0	0
Rent expenses	7	16
Cash paid for amounts included in the measurement of lease liabilities [Abstract]
Operating cash flows from operating leases		33
Right-of-use assets obtained in exchange for lease obligations [Abstract]
Operating leases		489
Operating leases [Abstract]
Operating lease right-of-use assets	489	489	$ 0
Other current liabilities	19	19
Operating lease liabilities	459	459	$ 0
Total operating lease liabilities	$ 478	$ 478
Weighted Average Remaining Lease Term [Abstract]
Operating leases	57 years	57 years
Weighted Average Discount Rate [Abstract]
Operating leases	4.90%	4.90%
Maturities of Operating Lease Liabilities [Abstract]
2019	$ 42	$ 42
2020	42	42
2021	33	33
2022	23	23
2023	23	23
Thereafter	1,338	1,338
Total undiscounted lease payments	1,501	1,501
Less effects of discounting	(1,023)	(1,023)
Total lease liabilities recognized	$ 478	$ 478
Minimum [Member]
Operating Lease, Description [Abstract]
Remaining lease term		3 years
Maximum [Member]
Operating Lease, Description [Abstract]
Remaining lease term		78 years
Option to extend lease term	66 years	66 years

STOCK COMPENSATION PLANS (Detai

STOCK COMPENSATION PLANS (Details)	May 08, 2019$ / sharesshares	May 02, 2018$ / sharesshares	Sep. 30, 2019USD ($)$ / sharesshares	Sep. 30, 2018USD ($)	Sep. 30, 2019USD ($)Director$ / sharesshares	Sep. 30, 2018USD ($)
Stock Compensation Plans [Abstract]
Compensation expense | $					$ 136,000	$ 144,000
Number of directors in committee | Director					3
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					168,750
Granted, option shares (in shares) | shares					0
Exercised/vested and released, option shares (in shares) | shares					(13,500)
Expired/cancelled, option shares (in shares) | shares					0
Outstanding at end of period, option shares (in shares) | shares			155,250		155,250
Exercisable/vested at end of period, option share (in shares) | shares			155,250		155,250
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)					$ 20.11
Granted, weighted average exercise price (in dollars per share)					0
Exercised/vested and released, weighted average exercise price (in dollars per shares)					16.94
Expired/cancelled, weighted average exercise price (in dollars per share)					0
Outstanding at end of period, weighted average exercise price (in dollars per shares)			$ 20.38		20.38
Options exercisable at year end (in dollars per shares)			$ 20.38		$ 20.38
Shares of Class A Non-Voting Common Stock under option [Abstract]
Outstanding at end of period, weighted average remaining life					2 years 9 months 13 days
Exercisable/vested at end of period, weighted average remaining life					2 years 9 months 13 days
Outstanding at beginning of period, aggregate intrinsic value | $					$ 2,491,000
Granted, aggregate intrinsic value | $					0
Exercised/vested and released, aggregate intrinsic value | $					297,000
Expired/cancelled, aggregate intrinsic value | $					0
Outstanding at end of period, aggregate intrinsic value | $			$ 2,580,000		2,580,000
Exercisable/vested at end of period, aggregate intrinsic value | $			2,580,000		2,580,000
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 | $			$ 45,000	$ 49,000	$ 136,000	$ 144,000
Fair value per share (in dollars per share)	$ 36.11	$ 38.51
Shares [Roll Forward]
Outstanding at beginning of year (in shares) | shares					5,000
Granted (in shares) | shares	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)					$ 38.51
Granted, weighted average grant date fair value (in dollars per share)					36.11
Vested and released, weighted average grant date fair value (in dollars per shares)					38.51
Cancelled, weighted average grant date fair value (in dollars per share)					0
Unvested Outstanding at end of year (in dollars per shares)			$ 36.11		$ 36.11
Class A Stock [Member] | Restricted Stock [Member] | 2015 Equity Compensation Plan [Member]
Stock Compensation Plans [Abstract]
Unrecognized expense related to non-vested option shares | $			$ 109,000		$ 109,000
Period over which unvested options cost will recognized					7 months 6 days

REGULATORY ASSETS (Details)

REGULATORY ASSETS (Details) - USD ($)	9 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Regulatory Assets [Abstract]
Contributions to postretirement benefit plan	$ 17,000
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	$ 6,933,000	$ 7,254,000
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
Postretirement Benefit Obligation [Member]
Regulatory assets net of amortization, comprise [Abstract]
Regulatory assets, net	$ 74,000	74,000
Deferred Income Taxes [Member]
Regulatory assets net of amortization, comprise [Abstract]
Regulatory assets, net	389,000	401,000
Debt Related Costs [Member]
Regulatory assets net of amortization, comprise [Abstract]
Regulatory assets, net	30,000	46,000
Expense of Rate and Regulatory Proceedings [Member]
Regulatory assets net of amortization, comprise [Abstract]
Regulatory assets, net	5,557,000	5,815,000
Goodwill [Member]
Regulatory assets net of amortization, comprise [Abstract]
Regulatory assets, net	290,000	295,000
Deferred Acquisition and Franchise Costs [Member]
Regulatory assets net of amortization, comprise [Abstract]
Regulatory assets, net	$ 593,000	$ 623,000

REGULATORY LIABILITIES (Details

REGULATORY LIABILITIES (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018	Jan. 31, 2019
REGULATORY LIABILITIES [Abstract]
Contributions to postretirement benefit plan	$ 17,000
Federal corporate tax rate	21.00%	34.00%
Decrease in the net deferred income tax liability	$ 24,300,000
Regulatory Liabilities [Abstract]
Regulatory liabilities	$ 22,452,000	$ 22,813,000
DEPSC [Member]
Regulatory Liabilities [Abstract]
Regulatory liabilities			$ 22,200,000
Regulatory liabilities, amortization period	49 years 6 months
MDPSC [Member]
Regulatory Liabilities [Abstract]
Regulatory liabilities	$ 600,000
Postretirement Benefit Obligation [Member]
Regulatory Liabilities [Abstract]
Regulatory liabilities	52,000	52,000
Utility Plant Retirement Cost Obligation [Member]
Regulatory Liabilities [Abstract]
Regulatory liabilities	291,000	319,000
Deferred Income Taxes [Member]
Regulatory Liabilities [Abstract]
Regulatory liabilities	$ 22,109,000	$ 22,442,000

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, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
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)	9,283,000	9,244,000	9,272,000	9,235,000
Dilutive effect of employee stock options and awards (in shares)	46,000	55,000	50,000	55,000
Weighted average common shares outstanding during the period for Diluted computation (in shares)	9,329,000	9,299,000	9,322,000	9,290,000
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)	8,403,243	8,364,231	8,403,243	8,364,231
Common stock, shares outstanding (in shares)	8,403,243	8,364,231	8,403,243	8,364,231
Common stock, par value (in dollars per share)	$ 1		$ 1
Common stock, shares issued during period (in shares)	5,929	4,493	34,215	30,777
Earnings Per Share [Abstract]
Equity per common share (in dollars per share)			$ 16.92		$ 16.53
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)	5,000	0	5,000	0

REGULATORY PROCEEDINGS (Details

REGULATORY PROCEEDINGS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Dec. 31, 2016
Other Proceedings [Abstract]
Cumulative DSIC Rate			7.41%	3.63%			5.55%	4.71%
Eligible Plant Improvements - Cumulative Dollars			$ 43,100	$ 24,700			$ 30,400	$ 16,600
Delaware [Member]
Rate Proceedings [Abstract]
Percentage of gross water sales					15.00%
Period to complete rate case by law					7 months
Revenue returned to customers as a result of TCJA					$ 3,800
Delaware [Member] | Maximum [Member]
Rate Proceedings [Abstract]
Temporary annual rate increase subject to 15% gross water sales limitation					$ 2,500
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 earned in DSIC rate increases	$ 1,300	$ 700			$ 3,100	$ 2,200

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
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
Reversal of reserve for lapsed statute of limitations	$ 73,000
Income tax penalties and interest accrued for unrecognized tax position	$ 17,000
State Authorities [Member]
Income Taxes [Abstract]
Open tax year	2016 2017 2018
Federal Authorities [Member]
Income Taxes [Abstract]
Open tax year	2016 2017 2018

FAIR VALUE OF FINANCIAL INSTR_3

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Carrying Amount [Member]
Long-term Financial Liabilities [Abstract]
Long-term debt	$ 116,229	$ 117,587
Estimated Fair Value [Member]
Long-term Financial Liabilities [Abstract]
Long-term debt	$ 129,783	$ 116,818

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
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
Morris Nichols Arsht & Tunnell [Member]
Related Party Transactions [Abstract]
Amount paid for legal services	$ 45,000	$ 65,000	$ 168,000	$ 182,000
Accounts payable balance	$ 0		$ 0

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

SUBSEQUENT EVENT (Details)

SUBSEQUENT EVENT (Details) - Subsequent Event [Member] - Artesian Water [Member] - CoBank [Member] - First Mortgage Bond [Member] $ in Millions	Oct. 08, 2019USD ($)
Subsequent Event [Abstract]
Debt instrument principal amount	$ 30
Debt instrument term	30 years
Fixed rate of interest	4.42%
Frequency of payment	quarterly