Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 12, 2024 | Jun. 30, 2023 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Document Transition Report | false | ||
Entity File Number | 000-18516 | ||
Entity Registrant Name | ARTESIAN RESOURCES CORP | ||
Entity Central Index Key | 0000863110 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 51-0002090 | ||
Entity Address, Address Line One | 664 Churchmans Road | ||
Entity Address, City or Town | Newark | ||
Entity Address, State or Province | DE | ||
Entity Address, Postal Zip Code | 19702 | ||
City Area Code | 302 | ||
Local Phone Number | 453 – 6900 | ||
Title of 12(b) Security | Common Stock | ||
Trading Symbol | ARTNA | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Auditor Firm ID | 243 | ||
Auditor Name | BDO USA, P.C. | ||
Auditor Location | Wilmington, Delaware | ||
Class A Stock [Member] | |||
Entity Information [Line Items] | |||
Entity Public Float | $ 426,719,824 | ||
Entity Common Stock, Shares Outstanding | 9,406,786 | ||
Class B Stock [Member] | |||
Entity Information [Line Items] | |||
Entity Public Float | $ 14,196,292 | ||
Entity Common Stock, Shares Outstanding | 881,452 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
ASSETS | ||
Utility plant, at original cost (less accumulated depreciation - 2023 - $185,170; 2022 - $172,954) | $ 714,284 | $ 668,031 |
Current assets | ||
Cash and cash equivalents | 2,505 | 1,309 |
Accounts and other receivables (less provision for expected credit loss 2023 - $328; 2022 - $416) | 12,830 | 13,511 |
Income tax receivable | 1,799 | 1,632 |
Unbilled operating revenues | 1,934 | 1,586 |
Materials and supplies | 5,983 | 4,702 |
Prepaid property taxes | 2,269 | 2,186 |
Prepaid expenses and other | 3,297 | 2,878 |
Total current assets | 30,617 | 27,804 |
Other assets | ||
Non-utility property (less accumulated depreciation - 2023 - $1,052; 2022 - $990) | 3,693 | 3,740 |
Other deferred assets | 8,504 | 10,536 |
Goodwill | 1,939 | 1,939 |
Operating lease right of use assets | 506 | 467 |
Total other assets | 14,642 | 16,682 |
Regulatory assets, net | 7,289 | 7,274 |
Total assets | 766,832 | 719,791 |
Stockholders' equity | ||
Common stock | 10,285 | 9,502 |
Preferred stock | 0 | 0 |
Additional paid-in capital | 143,369 | 107,142 |
Retained earnings | 76,743 | 71,286 |
Total stockholders' equity | 230,397 | 187,930 |
Long-term debt, net of current portion | 178,307 | 175,619 |
Total stockholders' equity and long-term debt | 408,704 | 363,549 |
Current liabilities | ||
Lines of credit | 0 | 20,174 |
Current portion of long-term debt | 2,235 | 2,003 |
Accounts payable | 9,697 | 10,929 |
Accrued expenses | 3,519 | 4,246 |
Overdraft payable | 9 | 43 |
Accrued interest | 2,275 | 989 |
Income taxes payable | 2 | 6 |
Customer and other deposits | 2,983 | 2,489 |
Other | 1,694 | 3,191 |
Total current liabilities | 22,414 | 44,070 |
Commitments and contingencies | ||
Deferred credits and other liabilities | ||
Net advances for construction | 2,797 | 3,686 |
Operating lease liabilities | 503 | 466 |
Regulatory liabilities | 25,676 | 28,721 |
Deferred investment tax credits | 423 | 439 |
Deferred income taxes | 58,381 | 54,552 |
Total deferred credits and other liabilities | 87,780 | 87,864 |
Net contributions in aid of construction | 247,934 | 224,308 |
Total Liabilities and Stockholders' Equity | $ 766,832 | $ 719,791 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets | ||
Less: provision for expected credit loss | $ 328 | $ 416 |
Other assets | ||
Non-utility property, accumulated depreciation | $ 1,052 | $ 990 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating revenues | |||
Total Operating Revenues | $ 98,861 | $ 98,897 | $ 90,859 |
Operating expenses | |||
Utility operating expenses | 46,205 | 43,772 | 41,414 |
Non-utility operating expenses | 4,428 | 6,850 | 3,942 |
Depreciation and amortization | 13,335 | 12,620 | 11,885 |
State and federal income taxes expense (benefit) | |||
Current | 2,962 | 4,285 | 3,360 |
Deferred | 3,386 | 1,593 | 2,377 |
Property and other taxes | 6,099 | 5,871 | 5,587 |
Total Operating Expenses | 76,415 | 74,991 | 68,565 |
Operating income | 22,446 | 23,906 | 22,294 |
Other income | |||
Allowance for funds used during construction (AFUDC) | 2,002 | 1,329 | 823 |
Miscellaneous (expense) income | 1,407 | 1,265 | 1,302 |
Total other income | 3,409 | 2,594 | 2,125 |
Income before interest charges | 25,855 | 26,500 | 24,419 |
Interest charges | 9,156 | 8,502 | 7,592 |
Net income applicable to common stock | $ 16,699 | $ 17,998 | $ 16,827 |
Net Income per common share: | |||
Basic (in dollars per share) | $ 1.67 | $ 1.9 | $ 1.79 |
Diluted (in dollars per share) | $ 1.67 | $ 1.9 | $ 1.79 |
Weighted average common shares outstanding: | |||
Basic (in shares) | 10,018 | 9,462 | 9,394 |
Diluted (in shares) | 10,022 | 9,481 | 9,426 |
Cash dividends per share of common stock (in dollars per share) | $ 1.14 | $ 1.09 | $ 1.05 |
Water Sales [Member] | |||
Operating revenues | |||
Total Operating Revenues | $ 80,033 | $ 78,318 | $ 77,821 |
Other Utility Operating Revenue [Member] | |||
Operating revenues | |||
Total Operating Revenues | 12,195 | 11,506 | 7,195 |
Non-Utility Operating Revenue [Member] | |||
Operating revenues | |||
Total Operating Revenues | $ 6,633 | $ 9,073 | $ 5,843 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 16,699 | $ 17,998 | $ 16,827 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 13,335 | 12,620 | 11,885 |
Amortization of debt expense | 355 | 354 | 351 |
Provision for bad debt expense | 92 | 68 | (224) |
Deferred income taxes, net | 3,813 | 2,282 | 2,803 |
Stock compensation | 254 | 152 | 193 |
AFUDC, equity portion | (1,243) | (894) | (556) |
Changes in assets and liabilities, net of acquisitions: | |||
Accounts and other receivables | 807 | (3,847) | 318 |
Income tax receivable | (167) | 602 | (1,605) |
Unbilled operating revenues | (348) | (141) | 86 |
Materials and supplies | (1,281) | (2,769) | (398) |
Income tax payable | (4) | 6 | (28) |
Prepaid property taxes | (83) | 697 | (415) |
Prepaid expenses and other | (419) | (216) | (444) |
Other deferred assets | 1,998 | (5,473) | (445) |
Regulatory assets | (497) | (37) | (236) |
Regulatory liabilities | (3,168) | 6,799 | (535) |
Accounts payable | 284 | (3,989) | 3,547 |
Accrued expenses | 614 | (564) | (71) |
Accrued interest | 1,286 | 72 | (13) |
Revenue reserved for refund | 0 | 0 | 0 |
Customer deposits and other | (476) | 545 | 270 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 31,851 | 24,265 | 31,310 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Capital expenditures (net of AFUDC, equity portion) | (62,177) | (48,483) | (40,814) |
Investment in acquisitions, net of cash acquired | 0 | (6,341) | 0 |
Proceeds from sale of assets | 99 | 65 | 90 |
NET CASH USED IN INVESTING ACTIVITIES | (62,078) | (54,759) | (40,724) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Repayments under lines of credit agreements | (23,477) | (41,038) | (10,797) |
Borrowings under lines of credit agreements | 3,303 | 34,509 | 10,687 |
(Decrease) increase in overdraft payable | (34) | 13 | (75) |
Proceeds from contributions in aid of construction and advances | 24,747 | 17,494 | 17,059 |
Payouts for contributions in aid of construction and advances | (2,228) | (1,063) | (1,242) |
Net proceeds from issuance of common stock | 37,073 | 2,090 | 1,390 |
Equity issuance costs | (317) | 0 | 0 |
Issuance of long-term debt | 5,608 | 31,803 | 4,126 |
Dividends paid | (11,242) | (10,319) | (9,826) |
Debt issuance costs | 0 | (135) | (19) |
Principal repayments of long-term debt | (2,010) | (1,643) | (1,825) |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 31,423 | 31,711 | 9,478 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 1,196 | 1,217 | 64 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 1,309 | 92 | 28 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 2,505 | 1,309 | 92 |
Non-cash Investing and Financing Activity: | |||
Utility plant received as construction advances and contributions | 3,492 | 8,416 | 3,538 |
Contractual amounts of contributions in aid of construction due from developers included in accounts receivable | 1,695 | 726 | 545 |
Contractual amounts of contributions in aid of construction received from developers previously included in accounts receivable | 799 | 356 | 1,749 |
Change in amounts included in accounts payable and accrued payables related to capital expenditures | (3,384) | 3,182 | 641 |
Supplemental Disclosures of Cash Flow Information: | |||
Interest paid | 7,515 | 8,430 | 7,605 |
Income taxes paid | 3,590 | 3,482 | 5,181 |
Purchase price of allocation of investment in acquisitions: | |||
Utility plant | 0 | 33,345 | 0 |
Cash | 0 | 280 | 0 |
Goodwill | 0 | 1,939 | 0 |
Other assets | 0 | 1,033 | 0 |
Total assets | 0 | 36,597 | 0 |
Less: | |||
Liabilities | 0 | 2,828 | 0 |
Future contractual obligation payable to seller | 0 | 1,569 | 0 |
Contributions in aid of construction | 0 | 25,597 | 0 |
Cash paid for acquisitions | 0 | 6,621 | 0 |
Cash received from acquisitions | 0 | 280 | 0 |
Investment in acquisitions, net of cash acquired | $ 0 | $ 6,341 | $ 0 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ 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, 2020 | $ 8,475 | $ 881 | $ 103,463 | $ 56,606 | $ 169,425 | |||
Balance (in shares) at Dec. 31, 2020 | 8,475,000 | [1],[2],[3] | 881,000 | [4] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 16,827 | 16,827 | ||||||
Cash dividends declared | ||||||||
Common stock | (9,826) | (9,826) | ||||||
Issuance of common stock | ||||||||
Dividend reinvestment plan | $ 10 | 382 | $ 392 | |||||
Dividend reinvestment plan (in shares) | 10,000 | [1],[2],[3] | 10,000 | |||||
Employee stock options and awards | [3] | $ 38 | 790 | $ 828 | ||||
Employee stock options and awards (in shares) | [1],[2],[3] | 38,000 | ||||||
Employee Retirement Plan | [1] | $ 9 | 354 | 363 | ||||
Employee Retirement Plan (in shares) | [1],[2],[3] | 9,000 | ||||||
Balance at Dec. 31, 2021 | $ 8,532 | $ 881 | 104,989 | 63,607 | 178,009 | |||
Balance (in shares) at Dec. 31, 2021 | 8,532,000 | [1],[2],[3] | 881,000 | [4] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 17,998 | 17,998 | ||||||
Cash dividends declared | ||||||||
Common stock | (10,319) | (10,319) | ||||||
Issuance of common stock | ||||||||
Dividend reinvestment plan | $ 7 | 366 | $ 373 | |||||
Dividend reinvestment plan (in shares) | 7,000 | [1],[2],[3] | 7,000 | |||||
Employee stock options and awards | [3] | $ 82 | 1,787 | $ 1,869 | ||||
Employee stock options and awards (in shares) | [1],[2],[3] | 82,000 | ||||||
Employee Retirement Plan | [1] | $ 0 | 0 | 0 | ||||
Employee Retirement Plan (in shares) | [1],[2],[3] | 0 | ||||||
Balance at Dec. 31, 2022 | $ 8,621 | $ 881 | 107,142 | 71,286 | 187,930 | |||
Balance (in shares) at Dec. 31, 2022 | 8,621,000 | [1],[2],[3] | 881,000 | [4] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 16,699 | 16,699 | ||||||
Cash dividends declared | ||||||||
Common stock | (11,242) | (11,242) | ||||||
Issuance of common stock | ||||||||
Public offering, net of costs | $ 763 | 35,464 | 36,227 | |||||
Public offering, net of costs (in shares) | [1],[2],[3] | 763,000 | ||||||
Dividend reinvestment plan | $ 8 | 373 | $ 381 | |||||
Dividend reinvestment plan (in shares) | 8,000 | [1],[2],[3] | 8,000 | |||||
Employee stock options and awards | [3] | $ 12 | 390 | $ 402 | ||||
Employee stock options and awards (in shares) | [1],[2],[3] | 12,000 | ||||||
Employee Retirement Plan | [1] | $ 0 | 0 | 0 | ||||
Employee Retirement Plan (in shares) | [1],[2],[3] | 0 | ||||||
Balance at Dec. 31, 2023 | $ 9,404 | $ 881 | $ 143,369 | $ 76,743 | $ 230,397 | |||
Balance (in shares) at Dec. 31, 2023 | 9,404,000 | [1],[2],[3] | 881,000 | [4] | ||||
[1] Artesian Resources Corporation registered shares of Class A Stock, subsequently adjusted for stock splits, available for purchase through |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 09, 2015 |
Common Stock [Member] | Common Shares Class A Non-Voting [Member] | ||||
Common stock, par value (in dollars per share) | $ 1 | |||
Common stock, shares authorized (in shares) | 15,000,000 | 15,000,000 | 15,000,000 | |
Common Stock Shares Issued (in shares) | 9,433,288 | 8,650,392 | 8,561,772 | |
Shares available for purchase through retirement plans (in shares) | 200,000 | |||
Shares authorized for issuance of grants under equity compensation plan (in shares) | 331,500 | |||
Common Stock [Member] | Common Shares Class B Voting [Member] | ||||
Common stock, par value (in dollars per share) | $ 1 | |||
Common stock, shares authorized (in shares) | 1,040,000 | 1,040,000 | 1,040,000 | |
Common Stock Shares Issued (in shares) | 881,452 | 881,452 | 881,452 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The audited consolidated financial statements are presented in accordance with the requirements of Form 10-K and accounting principles generally accepted in the United States and consequently include all the disclosures required in the consolidated financial statements included in the Company’s Annual Report on Form 10-K. The accompanying consolidated financial statements include the accounts of Artesian Resources Corporation and its subsidiaries and all intercompany balances and transactions between subsidiaries have been eliminated. Reclassification Certain accounts in the prior year financial statements have been reclassified for comparative purposes to conform with the presentation in the current year financial statements. These reclassifications had no effect on net income or stockholders’ equity. Regulated Utility Accounting The accounting records of Artesian Water Company, Inc., or Artesian Water, Artesian Wastewater Management, Inc., or Artesian Wastewater, and, effective January 14, 2022, Tidewater Environmental Services, Inc. dba Artesian Wastewater, or TESI, are maintained in accordance with the uniform system of accounts as prescribed by the Delaware Public Service Commission, or the DEPSC. The accounting records of Artesian Water Pennsylvania, Inc., or Artesian Water Pennsylvania, are maintained in accordance with the uniform system of accounts as prescribed by the Pennsylvania Public Utility Commission, or the PAPUC. The accounting records of Artesian Water Maryland, Inc., or Artesian Water Maryland, and Artesian Wastewater Maryland, Inc., or Artesian Wastewater Maryland, are maintained in accordance with the uniform system of accounts as prescribed by the Maryland Public Service Commission, or the MDPSC. All these subsidiaries follow the provisions of Financial Accounting Standards Board, or FASB, ASC Topic 980, which provides guidance for companies in regulated industries. These regulated subsidiaries account for the majority of our operating revenue. See Note 18 (Business Segment Information) to our Consolidated Financial Statements for a full description of our segment information. Use of Estimates in the Preparation of Consolidated Financial Statements The consolidated financial statements were prepared in conformity with generally accepted accounting principles in the U.S., which require management to make certain estimates and assumptions regarding the reported amounts of assets and liabilities including unbilled revenues, credit losses and reserves for bad debt, regulatory asset recovery, lease agreements, goodwill and contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from management’s estimates. All additions to utility plant are recorded at cost. Business combinations pursuant to ASC Topic 805 may result in a purchase price allocation and the acquired assets are required to be evaluated by the applicable regulatory agency. Artesian Wastewater acquired TESI in January 2022 and Artesian Water purchased substantially all of the water operating assets from the Town of Clayton in May 2022. On December 31, 2022, the fair value determinations for TESI and the water operating assets acquired from the Town of Clayton were finalized. Utility Plant Utility plant is stated at original cost. Cost includes direct labor, materials, AFUDC (see description below) and indirect charges for such capitalized items as transportation, supervision, pension, medical, and other fringe benefits related to employees engaged in construction activities. When depreciable units of utility plant are retired, the historical costs of plant retired is charged to accumulated depreciation. Any cost associated with retirement, less any salvage value or proceeds received, is charged to the regulated retirement liability. Maintenance, repairs, and replacement of minor items of utility plant are charged to expense as incurred. Allowance for Funds Used during Construction, or AFUDC, is a non-cash credit to income with a corresponding charge to utility plant that represents the cost of borrowed funds or a return on equity funds devoted to plant under construction. Presented in the table below is AFUDC for the years ended December 31: In thousands 2023 2022 2021 AFUDC - Debt $ 759 $ 435 $ 267 AFUDC - Equity $ 1,243 $ 894 $ 556 Utility plant comprises In thousands December 31, Estimated Useful Life (In Years) 2023 2022 Utility plant at original cost Utility plant in service-Water Intangible plant — $ 140 $ 140 Source of supply plant 45-85 29,960 25,223 Pumping and water treatment plant 8-62 130,337 116,915 Transmission and distribution plant Mains 81 370,977 338,368 Services 39 60,818 56,396 Storage tanks 76 40,933 34,567 Meters 26 30,318 29,720 Hydrants 60 18,980 17,751 General plant 5-31 67,317 65,632 Utility plant in service-Wastewater Intangible plant — 116 117 Treatment and disposal plant 21-81 67,789 66,178 Collection mains & lift stations 81 51,539 49,431 General plant 5-31 2,478 1,845 Property held for future use — 4,028 4,489 Construction work in progress — 23,724 34,213 899,454 840,985 Less – accumulated depreciation 185,170 172,954 $ 714,284 $ 668,031 Depreciation and Amortization For financial reporting purposes, depreciation is recorded using the straight-line method at rates based on estimated economic useful lives, which range from to years. Composite depreciation rates for water utility plant were , and for , and , respectively. Other deferred assets are amortized using the straight-line method over applicable lives, which range from to years. 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 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. Debt related costs include debt issuance costs and other debt related expense. The DEPSC has approved deferred regulatory accounting treatment for issuance costs associated with Artesian Water’s First Mortgage bonds. Debt issuance costs and other debt related expenses are reviewed during Artesian Water’s rate applications as part of its cost of capital calculations. Affiliated interest agreement deferred costs relate to the regulatory and administrative costs resulting from efforts necessary to secure water allocations in Artesian Water Pennsylvania’s territory for the provision of service to the surrounding area and interconnection to Artesian Water Pennsylvania’s affiliate regulated water utility Artesian Water. These costs were specifically included for cost recovery pursuant to an Affiliated Interest Agreement between Artesian Water and Artesian Water Pennsylvania and were approved for recovery by the PAPUC and were reclassed from deferred costs to a regulatory asset in 2022. Amortization of these deferred costs began in the fourth quarter of 2023. Regulatory expenses amortized on a straight-line basis are noted below: Expense Years Amortized Deferred contract costs and other 5 Rate case studies 5 Delaware rate proceedings 3 Maryland rate proceedings 5 Debt related costs 15 to 30 (based on term of related debt) Deferred costs affiliated interest agreement 20 Goodwill (resulting from acquisition of Mountain Hill Water Company in 2008) 50 Deferred acquisition costs (resulting from purchase of water assets in Cecil County, Maryland in 2011 and Port Deposit, Maryland in 2010) 20 Franchise Costs (resulting from purchase of water assets in Cecil County, Maryland in 2011) 80 Regulatory assets, net of amortization, comprise: (in thousands) December 31, 2023 December 31, 2022 Deferred contract costs and other $ 209 $ 227 Rate case studies 136 57 Rate proceedings 385 — Deferred income taxes 444 465 Debt related costs 4,322 4,682 Deferred costs affiliated interest agreement 1,110 1,114 Goodwill 258 266 Deferred acquisition and franchise costs 425 463 $ 7,289 $ 7,274 Impairment or Disposal of Long-Lived Assets Our long-lived assets consist primarily of utility plant in service and regulatory assets. A review of our long-lived assets is performed in accordance with the requirements of FASB ASC Topic 360. In addition, the regulatory assets are reviewed for the continued application of FASB ASC Topic 980. The review determines whether there have been changes in circumstances or events that have occurred requiring adjustments to the carrying value of these assets. FASB ASC Topic 980 stipulates that adjustments to the carrying value of these assets would be made in instances where the inclusion in the rate-making process is unlikely. For the years ended December 31, 2023, 2022 and 2021, there was no impairment or regulatory disallowance identified in our review. Goodwill The Company records goodwill when the purchase price of a business combination exceeds the estimated fair value of net identified tangible and intangible assets acquired. At December 31, 2023 and December 31, 2022, the Company had approximately $1.9 million of goodwill, respectively. The $1.9 million of goodwill arose from the January 2022 acquisition of Tidewater Environmental Services, Inc. Artesian Wastewater operates as the parent holding company of Tidewater Environmental Services, Inc. dba Artesian Wastewater, or TESI, and is a subsidiary of our Regulated Utility segment. In accordance with the accounting guidance for testing goodwill for impairment, the Company performs an annual assessment. In 2023, the Company used the optional qualitative assessment, "step zero", to identify and evaluate relevant events and circumstances to conclude whether it is more likely than not that the fair value of its reporting unit is less than its carrying amount, including goodwill. Relevant events and circumstances assessed included macroeconomic conditions, industry and market conditions, cost factors, financial performance, management and overall strategy. After evaluating and weighing these relevant events and circumstances, it was concluded that there was no impairment of goodwill and it was not necessary to perform quantitative testing. Other Deferred Assets The investment in CoBank, which is a cooperative bank, is related to certain outstanding First Mortgage Bonds and is a required investment in the bank based on the underlying long-term debt agreements. The settlement agreement receivable is related to the long-term portion of reimbursements due in years 2024 and 2025 as further discussed in Note 1 – Accounts Receivable. Other deferred assets at December 31, net of amortization, comprise: In thousands 2023 2022 Investment in CoBank $ 5,882 $ 5,351 Settlement agreement receivable-long term 2,496 4,991 Other deferred assets 126 194 $ 8,504 $ 10,536 Advances for Construction Cash advances to reimburse Artesian Water for its costs to construct water mains, services and hydrants are contributed to Artesian Water by real estate developers and builders in order to extend water service to their properties. The value of these contributions is recorded as Advances for Construction. Artesian Water makes refunds on these advances over a specific period of time based on operating revenues generated by the specific plant or as new customers are connected to the mains. After all refunds are made within the contract period, any remaining balance is transferred to CIAC. Contributions in Aid of Construction CIAC includes the non-refundable portion of advances for construction and direct contributions of water mains, services and hydrants, and wastewater treatment facilities and collection systems, or cash to reimburse our water and wastewater subsidiaries for costs to construct water mains, services and hydrants, and wastewater treatment and disposal plants. Effective with the Tax Cuts and Jobs Act, or TCJA, in 2017 CIAC was taxable and the DEPSC, MDPSC and PAPUC allowed the Company to collect additional CIAC to pay the associated tax. In 2021, legislation was enacted to amend the TCJA, which now exempts CIAC from income taxes for regulated water and wastewater utilities, effective for all of 2021 and forward. In 2022 the Company refunded developers a total of $3.6 million for the additional CIAC collected in 2021 to pay the associated tax. For the years ended December 31, 2023 and December 31, 2022, Artesian Water received approximately $3.8 million and $2.0 million, respectively, in grant funding from the State of Delaware, Delaware Department of Health and Social Services, Division of Public Health, or DPH, pursuant to grant agreements. The grants were used by Artesian Water to cover the costs associated with certain construction projects. The grant funds received under the grant agreements were recorded in accordance with the requirements under FASB ASC Topic 980, in Net contributions in aid of construction in the Consolidated Balance Sheets. Pursuant to the grant agreements, Artesian Water is no longer eligible to receive grant funds under these grants. Regulatory Liabilities 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. Deferred settlement refunds consist of reimbursements from the Delaware Sand and Gravel Remedial Trust for Artesian Water’s past capital and operating costs, totaling approximately $10.0 million, related to the treatment costs associated with the release of contaminants from the Delaware Sand & Gravel Landfill Superfund Site in groundwater that Artesian Water uses for public potable water supply, pursuant to the Settlement Agreement. Two installments for approximately $2.5 million each were paid in August 2022 and July 2023. The remaining $5.0 million is due in two equal installments no later than July of 2024 and 2025. Artesian Water received approval from the DEPSC in October 2022 to refund to its customers these reimbursements for past capital and operating costs. The refund for the reimbursements will be applied to current and future customer bills in annual installments. The first two refunds occurred in October 2022 and August 2023. Future customer refunds will occur no later than August 2024 and August 2025. The amount of the credit will be calculated by dividing the amount of the reimbursement by the number of eligible customers. Beginning in 2022, Artesian Water began recording 2022 and future recovery of capital expenditures as Contributions in Aid of Construction and began recording expense recovery as an offset to operations and maintenance expense, with the intention that those recoveries will be available for inclusion and consideration in any future rate applications. For a full discussion of the Settlement Agreement, refer to Note 17 – Legal Proceedings. The deferred settlement refunds were $5.0 million and $7.5 million at December 31, 2023 and December 31, 2022, respectively. Pursuant to the enactment of the Tax Cuts and Jobs Act, or 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 5 – Income Taxes) resulting in a decrease in the net deferred income tax liability of $24.3 million, of which $22.8 million was reclassified to a regulatory liability related to Artesian Water and Artesian Water Maryland. 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. In May 2022, the Company received a rate order from the DEPSC instructing the Company to continue amortizing the liability over a period of 49.5 years, subject to review in the Company’s next base rate filing. 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. The deferred income taxes, related to TCJA, were $20.7 million and $21.2 million at December 31, 2023 and December 31, 2022, respectively. Income Taxes Deferred income taxes are provided in accordance with FASB ASC Topic 740 on all differences between the tax basis of assets and liabilities and the amounts at which they are carried in the consolidated financial statements based on the enacted tax rates expected to be in effect when such temporary differences are expected to reverse. The Company’s rate regulated subsidiaries 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 , an uncertain tax position represents our expected treatment of a tax position taken, or planned to be taken in the future, that has not been reflected in measuring income tax expense for financial reporting purposes. The Company establishes reserves for uncertain tax positions based upon management’s judgment as to the sustainability of these positions. These accounting estimates related to the uncertain tax position reserve require judgments to be made as to the sustainability of each uncertain tax position based on its technical merits. The Company believes its tax positions comply with applicable law and that it has adequately recorded reserves as required. However, to the extent the final tax outcome of these matters is different than the estimates recorded, the Company would then adjust its tax reserves or unrecognized tax benefits in the period that this information becomes known. $ in penalties and interest, leaving a zero balance. The Company remains subject to examination by federal and state authorities for the tax years 2020 through 2023 . Investment tax credits were deferred through 1986 and are recognized as a reduction of deferred income tax expense over the estimated economic useful lives of the related assets. Stock Compensation Plans See Note 9 (Stock Compensation Plans) to our Consolidated Financial Statements for a full description of our stock compensation plans. Revenue Recognition and Unbilled Revenues See Note 2 (Revenue Recognition) to our Consolidated Financial Statements for a full description of our revenue recognition . Leases The Company has agreements for land easements and office equipment under operating leases. 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. See Note 3 (Leases) to our Consolidated Financial Statements for a full description of our leases. Accounts Receivable Accounts receivable are recorded at the invoiced amounts. As set forth in a settlement agreement, Artesian Water will receive reimbursements from the Delaware Sand and Gravel Remedial Trust, or Trust, for Artesian Water’s past capital and operating costs, totaling approximately $10.0 million, related to the treatment costs associated with the release of contaminants from the Delaware Sand & Gravel Landfill Superfund Site, or Site, in groundwater that Artesian Water uses for public potable water supply. Two installments for approximately $2.5 million each were paid in August 2022 and July 2023. The remaining $5.0 million is due in two equal installments no later than July of 2024 and 2025. In addition, the Trust shall reimburse Artesian Water for documented reasonable and necessary capital and operating costs after July 1, 2021 that Artesian Water incurs to treat contaminants of concern and of emerging concern. A provision for expected credit loss is calculated as a percentage of total associated revenues based upon historical trends and adjusted for current and reasonable projections based upon expected economic conditions. We mitigate our exposure to credit losses by discontinuing services in the event of non-payment; accordingly, the related provision for expected credit loss and associated bad debt expense has not been significant. The was $ million and $ million at and , respectively. The corresponding expense for the years ended and was $ million and $ million, respectively, The following table summarizes the changes in the Company’s accounts receivable balance: December 31, In thousands 2023 2022 2021 Customer accounts receivable – water $ 6,573 $ 5,981 $ 5,986 Customer accounts receivable – wastewater 513 482 1,326 Settlement agreement receivable – short term 2,747 2,532 — Miscellaneous accounts receivable 1,236 3,781 786 Developer receivable 2,089 1,151 698 13,158 13,927 8,796 Less provision for expected credit loss 328 416 429 Net accounts receivable $ 12,830 $ 13,511 $ 8,367 The activities in the provision for expected credit loss are as follows: December 31, In thousands 2023 2022 Beginning balance $ 416 $ 429 Provision adjustments 92 146 Recoveries 48 28 Write off of uncollectible accounts (228 ) (187 ) Ending balance $ 328 $ 416 Cash and Cash Equivalents For purposes of the Consolidated Statement of Cash Flows, Artesian Resources considers all temporary cash investments with an original maturity of three months or less to be cash equivalents. Artesian Resources and its subsidiaries utilize their bank’s zero balance account disbursement service to reduce the use of their lines of credit by funding checks as they are presented to the bank for payment rather than at issuance. If the checks currently outstanding, but not yet funded, exceed the cash balance on our books, the net liability is recorded as a current liability on the Consolidated Balance Sheet in the Overdraft Payable account. Inventories Inventories consist of materials and supplies related to water and wastewater utility plant. These materials and supplies are used for new construction and repairs and are recorded at the purchase cost. Usage costs are determined by the first-in, first-out method. The Company adjusts inventory value based on historical usage and forecasted demand. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 12 Months Ended |
Dec. 31, 2023 | |
REVENUE RECOGNITION [Abstract] | |
REVENUE RECOGNITION | NOTE 2 – REVENUE RECOGNITION Background Artesian’s operating revenues are primarily attributable to contract services based upon regulated tariff rates approved by the DEPSC, the MDPSC, and the PAPUC. Regulated 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, which are primarily non-utility revenues, consist of SLP Plan fees, water and wastewater contract operations, design and installation contract services, and wastewater inspection fees. Other regulated operating revenue primarily consists of developer guarantee contributions for wastewater and rental income for antenna agreements, which are not considered in the scope of Accounting Standards Codification 606, Revenue from Contracts with Customers. 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 judgments 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. The contract also provides for a minimum required volume of wastewater flow to our facility. At each year end, any shortfall of the actual volume from the required minimum volume is billed to the industrial customer and recorded as revenue. Additionally, if during the course of the year it is probable that the actual volume will not meet the minimum required volume, estimated revenue amounts would be recorded for the pro rata minimum volume, constrained for potential flow capacity that could occur in the remainder of the year. Any estimated revenue amounts are recorded as unbilled operating revenue (contract asset) through the end of the accounting period and will be billed at each year end for any shortfall of the actual volume from the required minimal volume. Artesian generates revenue from metered wastewater services provided to certain customers in Sussex County, Delaware. We recognize metered wastewater services at tariff rates on a cycle basis for the volume of wastewater transferred to Artesian’s wastewater facilities based upon meter readings for actual gallons of water transferred, as well as unbilled amounts for estimated volume from the date of the last meter reading to the end of the accounting period. As actual volume 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 volume in the same period, the previous billing period’s volume, or averaging. While actual usage for individual customers may differ materially from the estimate based on management judgments described above, we believe the overall total estimate of volume and revenue for the fiscal period will not differ materially from actual billed consumption. The majority of these wastewater customers are billed for the volume of water transferred on a quarterly basis. As a result, we record unbilled operating revenue (contract asset) for any estimated volume through the end of the accounting period that will be billed in the next quarterly cycle. Artesian generates fixed-fee revenue for water and wastewater services provided to customers once a customer requests service in our territory. Our wastewater territory is located in Sussex County, Delaware. We recognize revenue from these services on a ratable basis over time as the customer simultaneously receives and consumes all the benefits of the Company remaining ready to provide them water and wastewater service. These contract services are billed either in advance or arrears at tariff rates on a monthly, quarterly or semi-annual basis. For contract services billed in arrears, we record unbilled operating revenue (contract asset) for any services through the end of the accounting period that will be billed in the next monthly or quarterly cycle. For contract services billed in advance, 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. Artesian generates revenue from interim temporary rates. In Delaware, utilities are permitted by law to place rates into effect, under bond, on a temporary basis, pending resolution of an application for a base rate increase by the DEPSC. Temporary rate revenue is calculated as a percentage increase on tariff rates. We recognize this revenue based on the same guidelines as noted above depending on whether the additional rate was applied to consumption revenue or fixed-fee revenue. Until permanent rates are determined by the DEPSC, if it is probable that a refund of revenue associated with temporary rates will occur, a reserve would be recorded reducing revenue from temporary rates. As of December 31, 2023 and December 31, 2022, no such reserve or reduction to revenue was recorded. Accounts receivable related to tariff contract revenues are typically due within 25 days of invoicing. 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 customer’s residence, 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 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. The majority of 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 most of these revenues. We have one operation contract that was paid in advance resulting in a contract liability for services that have not yet been provided. A provision for expected credit loss 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 provision for expected credit loss and associated bad debt expense has not been significant. Artesian generates design and installation revenue for services related to the design and construction of wastewater infrastructure for a state agency under contract. We recognize revenue from these services over time as services are performed using the percentage-of-completion method based on an input method of incurred costs (cost-to-cost). These services are invoiced at the end of every month based on incurred costs to date. As of December 31, 2023, there is no associated contract asset or liability. There is no provision for expected credit loss or bad debt expense associated with this revenue. 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, provision for expected credit loss or bad debt expense associated with inspection fee contracts. Sales Tax The majority of Artesian’s revenues are earned within the State of Delaware, where there is no sales tax. 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: For the Year Ended December 31, (in thousands) 2023 2022 2021 Tariff Revenue Consumption charges $ 49,051 $ 47,809 $ 47,924 Fixed fees 33,074 31,431 27,977 Service charges 682 597 579 DSIC 4,727 5,085 5,093 Metered wastewater services 602 649 — Industrial wastewater services 1,851 1,853 675 Total Revenue $ 89,987 $ 87,424 $ 82,248 Non- Revenue Service line protection plans $ 5,632 $ 5,020 $ 4,594 Contract operations 1,046 931 884 Design and installation 181 3,315 562 Inspection fees 424 326 341 Total Non- Revenue $ 7,283 $ 9,592 $ 6,381 Other Operating Revenue $ 1,591 $ 1,881 $ 2,230 Total Operating Revenue $ 98,861 $ 98,897 $ 90,859 Contract Assets and Contract Liabilities Our contract assets and liabilities consist of the following: (in thousands) December 31, 2023 December 31, 2022 December 31, 2021 Contract Assets Tariff $ 3,043 $ 2,618 $ 2,144 Deferred Revenue Deferred Revenue – Tariff $ 1,300 $ 1,231 $ 1,227 Deferred Revenue – Non-Tariff 539 438 287 Total Deferred Revenue $ 1,839 $ 1,669 $ 1,514 For the year ended December 31, 2023, the Company recognized revenue of $1.2 million from amounts that were included in Deferred Revenue – Tariff at the beginning of the year and revenue of $0.3 million from amounts that were included in Deferred Revenue – Non-Tariff at the beginning of the year. For the year ended December 31, 2022, the Company recognized revenue of $1.2 million from amounts that were included in Deferred Revenue – Tariff at the beginning of the year and revenue of $0.3 million from amounts that were included in Deferred Revenue – Non- Tariff at the beginning of the year. The changes in Contract Assets and Deferred Revenue are primarily due to normal timing differences between our performance and customer payments. Remaining Performance Obligations As of December 31, 2023 and December 31, 2022, 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 December 31, 2023 and December 31, 2022, Deferred Revenue – Non-Tariff is recorded within Other current liabilities and represents our remaining performance obligations for our SLP Plan services, contract water operation services and wastewater inspections, which are expected to be satisfied and associated revenue recognized within the next three months, approximately six years for the contract service revenue and one year for the SLP Plan revenue and inspection fee revenue, respectively. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2023 | |
LEASES [Abstract] | |
LEASES | NOTE 3 – LEASES The Company leases land and office equipment under operating leases from non-related parties. Our leases have remaining lease terms of 4 years to 73 years, some of which include options to automatically extend the leases for up to 66 years and are included as part of the lease liability and right of use assets as we expect to exercise the options. Payments made under operating leases are recognized in the 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. In October 1997, Artesian Water entered into a 33-year operating lease for a parcel of land with improvements located in South Bethany, a municipality in Sussex County, Delaware. The annual lease payments increase each year by the most recent increase in the Consumer Price Index for Urban Workers, CPI-U, as published by the U.S. Department of Labor, Bureau of Labor Statistics. At each eleven In March 2023, Artesian Water entered into a 5-year operating lease for office equipment. The previous lease for office equipment expired in March 2022. The quarterly lease payments under both lease agreements remained fixed throughout the term of the lease. Payments pursuant to the lease agreements for 2023, 2022 and 2021 were $6,000, $5,000 and $19,000, respectively. Rent expense for all operating leases except those with terms of 12 months or less comprises: For the Twelve Months Ended December 31, (in thousands) 2023 2022 Minimum rentals $ 34 $ 32 Contingent rentals — — $ 34 $ 32 Supplemental cash flow information related to leases is as follows: (in thousands) Twelve Months Ended Twelve Months Ended December 31, December 31, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 34 $ 32 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 506 $ 467 Supplemental balance sheet information related to leases is as follows: (in thousands, except lease term and discount rate) December 31, 2023 December 31, 2022 Operating Leases: Operating lease right-of-use assets $ 506 $ 467 Other current liabilities $ 9 $ 2 Operating lease liabilities 503 466 Total operating lease liabilities $ 512 $ 468 Weighted Average Remaining Lease Term Operating leases 58 years 61 years Weighted Average Discount Rate Operating leases 5.0 % 5.0 % Maturities of operating lease liabilities that have initial or remaining non-cancelable lease terms in excess of one year as of December 31, 2023 (in thousands) Operating Leases Year 2024 $ 35 2025 35 2026 35 2027 35 2028 29 Thereafter 1,429 Total undiscounted lease payments $ 1,598 Less effects of discounting (1,086 ) Total lease liabilities recognized 512 As of December 31, 2023, we have not entered into finance leases that will commence at a future date. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2023 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | NOTE 4 FAIR VALUE OF FINANCIAL INSTRUMENTS 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. Long-term Financial Liabilities As of and , In thousands December 31, 2023 2022 Carrying amount $ 180,542 $ 177,622 Estimated fair value 162,720 155,425 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 . |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2023 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | NOTE 5 INCOME TAXES Deferred income taxes are provided in accordance with FASB ASC Topic 740 on all differences between the tax basis of assets and liabilities and the amounts at which they are carried in the consolidated financial statements based on the enacted tax rates expected to be in effect when such temporary differences are expected to reverse. The Company’s rate regulated subsidiaries 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. As of December 31, , the Company has separate company state net operating loss carry-forwards aggregating approximately $ million. The Company has recorded a valuation allowance to reflect the estimated amount of deferred tax assets The valuation allowance increased to approximately $ in from approximately $ in . Management believes that it is more likely than not that the Company will realize the benefit of these deferred tax assets, net of the valuation allowance. Components of Income Tax Expense In thousands For the Year Ended December 31, Federal income taxes 2023 2022 2021 Current $ 1,946 $ 2,912 $ 2,144 Deferred 1,968 930 1,601 Total federal income tax expense $ 3,914 $ 3,842 $ 3,745 For the Year Ended December 31, State income taxes 2023 2022 2021 Current $ 1,016 $ 1,373 $ 1,216 Deferred 1,418 663 776 Total state income tax expense $ 2,434 $ 2,036 $ 1,992 Reconciliation of effective tax rate: For the Year Ended December 31, In thousands 2023 2023 2022 2022 2021 2021 Amount Percent Amount Percent Amount Percent Reconciliation of effective tax rate Income before federal and state income taxes $ 23,047 100.0 % $ 23,876 100.0 % $ 22,564 100.0 % Amount computed at statutory rate 4,840 21.0 % 5,014 21.0 % 4,738 21.0 % Reconciling items State income tax-net of federal tax benefit 1,918 8.3 % 1,696 7.1 % 1,600 7.1 % Regulatory liability adjustment (449 ) (1.9 )% (450 ) (1.9 )% (451 ) (2.0 )% Other 39 0.2 % (382 ) (1.6 )% (150 ) (0.7 )% Total income tax expense and effective rate $ 6,348 27.6 % $ 5,878 24.6 % $ 5,737 25.4 % Deferred income taxes at December 31, 2023 and 2022 were comprised of the following: For the Year Ended December 31, In thousands 2023 2022 Deferred tax assets related to: State operating loss carry-forwards $ 1,037 $ 922 Less: valuation allowance (906 ) (600 ) Bad debt allowance 92 116 Stock options 47 47 Other 48 28 Total deferred tax assets $ 318 $ 513 Deferred tax liabilities related to: Property plant and equipment basis differences $ (56,012 ) $ (52,565 ) Bond retirement costs (982 ) (1,058 ) Property taxes (624 ) (609 ) Other (1,081 ) (833 ) Total deferred tax liabilities $ (58,699 ) $ (55,065 ) Net deferred tax liability $ (58,381 ) $ (54,552 ) Schedule of Valuation Allowance Balance at Beginning of Period Additions Charged to Costs and Expenses Deductions Balance at End of Period In thousands Classification For the Year Ended December 31, 2023 $ 600 $ 312 $ 6 $ 906 For the Year Ended December 31, 2022 $ 546 $ 54 $ — $ 600 For the Year Ended December 31, 2021 $ 493 $ 53 $ — $ 546 Under FASB ASC Topic 740, the Company establishes reserves for uncertain tax positions based upon management’s judgment as to the sustainability of these positions. The Company reserved a liability related to the difference in the tax depreciation utilizing the half-year convention rather than the mid-quarter convention for 2018. The following table provides the changes in the Company’s uncertain tax position: For the years ended December 31, In thousands 2023 2022 Balance at beginning of year $ 146 $ 202 Additions based on tax positions related to the current year — 146 Additions based on tax positions related to prior years 12 10 Reductions for tax positions of prior years — — Lapses in statutes of limitations — (212 ) Balance at end of year $ 158 $ 146 |
PREFERRED STOCK
PREFERRED STOCK | 12 Months Ended |
Dec. 31, 2023 | |
PREFERRED STOCK [Abstract] | |
PREFERRED STOCK | NOTE 6 PREFERRED STOCK As of December 31, 2023 and 2022, Artesian Resources had no preferred stock outstanding. Artesian Resources has 100,000 shares of $1.00 par value Series Preferred stock authorized but unissued. |
COMMON STOCK AND ADDITIONAL PAI
COMMON STOCK AND ADDITIONAL PAID-IN CAPITAL | 12 Months Ended |
Dec. 31, 2023 | |
COMMON STOCK AND ADDITIONAL PAID-IN CAPITAL [Abstract] | |
COMMON STOCK AND ADDITIONAL PAID-IN CAPITAL | NOTE 7 COMMON STOCK AND ADDITIONAL PAID-IN CAPITAL The Class A Non-Voting Common Stock, or Class A Stock, of Artesian Resources trades on the Nasdaq Global Select Market under the symbol ARTNA. The Class B Common Stock, or Class B Stock, of Artesian Resources trades on the Nasdaq’s OTC Bulletin Board under the symbol ARTNB. The rights of the holders of the Class A Stock and the Class B Stock are identical, except with respect to voting. Under Artesian Resources’ dividend reinvestment plan, which allows for reinvestment of cash dividends and optional cash payments, stockholders were issued approximately 8,000, 7,000 and 10,000 shares at fair market value for the investment of $381,000, $373,000 and $392,000 of their monies in the years 2023, 2022, and 2021, respectively. |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2023 | |
DEBT [Abstract] | |
DEBT | NOTE 8 DEBT At December 31, , Artesian Resources had a $ million line of credit with Citizens Bank, or Citizens, which is available to all subsidiaries of Artesian Resources. As of December 31, , there was $ million of available funds under this line of credit. The previous interest rate for borrowings under this line was the London Interbank Offered Rate, or , plus . The LIBOR rate for USD currency was discontinued as of June 30, 2023. As a result, effective May 20, 2022, this line of credit agreement was amended to replace LIBOR with the Daily Secured Overnight Financing Rate, or . The interest rate is a SOFR plus basis points, or Term SOFR, plus an applicable margin of , which was increased to effective August 3, 2023. Term SOFR cannot be less than . This is a demand line of credit and therefore the financial institution may demand payment for any outstanding amounts at any time. The term of this line of credit expires on the earlier of or any date on which Citizens demands payment. The Company expects to renew this line of credit. At December 31, , Artesian Water had a $ million line of credit with CoBank, ACB, or CoBank, that allows for the financing of operations for Artesian Water, with up to $ million of this line available for the operations of Artesian Water Maryland. As of December 31, , there was $ million of available funds under this line of credit. plus or a weekly variable rate established by CoBank; the Company historically used the weekly variable interest rate. In October 2022, this line of credit was amended to replace the previous interest rate options with a daily SOFR rate plus option or a term SOFR rate plus option that is locked in for either one or . The term of this line of credit expires on . Artesian Water expects to renew this line of credit. CoBank . The $ million line of credit, the First Mortgage Bonds and the promissory note are with CoBank. Patronage refunds earned by Artesian in and were $ million and $ million, respectively. The weighted average interest rate on the lines of credit discussed above paid by the Company was 6.27% for the year ended December 31, 2023. These lines of credit, as well as the long-term debt obligations shown below, require us to abide by certain financial covenants and ratios. As of December 31, 2023, we were in compliance with these financial covenants. Long-term debt consists of: December 31, In thousands 2023 2022 First mortgage bonds Series R, 5.96 December 31, 2028 $ 25,000 $ 25,000 Series S, 4.45 December 31, 2033 6,000 6,600 Series T, 4.24 December 20, 2036 40,000 40,000 Series U, 4.71 January 31, 2038 25,000 25,000 Series V, 4.42 October 31, 2049 30,000 30,000 Series W, 4.43%, due April 30, 2047 30,000 30,000 156,000 156,600 State revolving fund loans 3.57 September 1, 2023 — 102 3.64 May 1, 2025 228 373 3.41 February 1, 2031 1,415 1,577 3.40 July 1, 2032 1,445 1,590 1.187 November 1, 2041 588 617 1.187 November 1, 2041 690 724 1.187 November 1, 2041 1,075 1,128 2.00%, due February 1, 2043 828 846 2.00%, due February 1, 2043 1,143 974 2.00%, due June 1, 2043 1,002 1,044 2.00%, due June 1, 2043 1,022 — 2.00%, due February 1, 2044 2,696 — 2.00%, due January 1, 2043 1,000 — 13,132 8,975 Notes Payable Promissory Note, 5.12 December 30, 2028 $ 10,155 $ 10,478 Asset Purchase, 2.00%, due May 26, 2027 1,255 1,569 11,410 12,047 Sub-total 180,542 177,622 Less: current maturities (principal amount) 2,235 2,003 Total long-term debt $ 178,307 $ 175,619 Payments of principal amounts due during the next five years and thereafter: In thousands 2024 2025 2026 2027 2028 Thereafter First Mortgage bonds $ 600 $ 600 $ 600 $ 600 $ 25,600 $ 128,000 State revolving fund loans 756 852 794 813 834 9,083 Asset Purchase-Contractual Obligation 314 314 314 313 — — Promissory note 565 480 505 532 559 7,514 Total payments $ 2,235 $ 2,246 $ 2,213 $ 2,258 $ 26,993 $ 144,597 Substantially all of Artesian Water’s utility plant is pledged as security for our First Mortgage Bonds. As of December 31, 2023, no other water utility plant has been pledged as security for loans. Two parcels of land in Artesian Wastewater are pledged as security for the promissory note. |
STOCK COMPENSATION PLANS
STOCK COMPENSATION PLANS | 12 Months Ended |
Dec. 31, 2023 | |
STOCK COMPENSATION PLANS [Abstract] | |
STOCK COMPENSATION PLANS | NOTE 9 STOCK COMPENSATION PLANS On December 9, 2015, the Company’s stockholders approved the 2015 Equity Compensation Plan, or the 2015 Plan, that replaced the 2005 Equity Compensation Plan, or the 2005 Plan, which expired on May 24, 2015. The 2015 Plan provides that grants may be in any of the following forms: incentive stock options, nonqualified stock options, stock units, stock awards, dividend equivalents and other stock-based awards. The 2015 Plan is administered and interpreted by the Compensation Committee of the Board of Directors, or the Committee. The Committee has the authority to determine the individuals to whom grants will be made under the 2015 Plan, determine the type, size and terms of the grants, determine the time when grants will be made and the duration of any applicable exercise or restriction period (subject to the limitations of the 2015 Plan) and deal with any other matters arising under the 2015 Plan. The Committee presently consists of directors, each of whom is a non-employee director of the Company. All of the employees of the Company and its subsidiaries are eligible for grants under the 2015 Plan. Non-employee directors of the Company are also eligible to receive grants under the 2015 Plan. Compensation expenses for restricted stock awards were $254,000, $152,000 and $193,000 in 2023, 2022 and 2021, respectively. 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. As of December 31, 2023, there was $97,000 of unrecognized expense related to non-vested awards of restricted shares granted under the 2015 Plan. There was no stock compensation cost capitalized as part of an asset. The following summary reflects changes in the shares of Class A Stock under option: 2023 Shares 2023 Weighted Average Exercise Price 2022 Shares 2022 Weighted Average Exercise Price 2021 Shares 2021 Weighted Average Exercise Price Plan options Outstanding at beginning of year 6,750 $ 21.86 83,000 $ 21.65 116,347 $ 20.90 Granted — — — — — — Exercised (6,750) 21.86 (76,250) 21.63 (33,347) 19.04 Expired — — — — — — Outstanding at end of year — $ — 6,750 $ 21.86 83,000 $ 21.65 Options exercisable at year end — $ — 6,750 $ 21.86 83,000 $ 21.65 The total intrinsic value of options exercised during 2023, 2022 and 2021 were $137,000, $2,226,000 and $736,000, respectively. During 2023, we received $148,000 in cash from the exercise of options, with a $410,000 tax benefit realized for those options. The following table summarizes information about employee and director stock options outstanding and exercisable at December 31, 2023: Options Outstanding and Exercisable Range of Exercise Price Shares Outstanding at December 31, 2023 Weighted Average Remaining Life Weighted Average Exercise Price Aggregate Intrinsic Value $ 00.00 0 0 Years $ 00.00 $ 0 As of December 31, 2023, there were no outstanding option shares. The following summary reflects changes in the shares of Class A Non-Voting Stock Restricted Stock Awards (RSA): 2023 Shares 2023 Weighted Average Grant Date Fair Value 2022 Shares 2022 Weighted Average Grant Date Fair Value 2021 Shares 2021 Weighted Average Exercise Price Plan RSA’s Outstanding at beginning of year 5,000 $ 45.58 5,000 $ 40.11 5,000 $ 35.01 Granted 5,000 54.88 5,000 45.58 5,000 40.11 Vested/Released (5,000 ) 45.58 (5,000 ) 40.11 (5,000 ) 35.01 Cancelled — — — — — — Unvested Outstanding at end of year 5,000 $ 54.88 5,000 $ 45.58 5,000 $ 40.11 Stock Options No options were granted in 2023, 2022 or 2021. Shares of Class A Non-Voting Stock have been reserved for future issuance under the 2015 Plan. Stock Awards On May 9, 2023, 5,000 shares of Class A Non-Voting Common Stock, or Class A Non-Voting Stock, were granted as restricted stock awards. The fair value per share was $54.88, the closing price of the Class A Non-Voting Stock as recorded on the Nasdaq Global Select Market on May 9, 2023. 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 3, 2022, 5,000 shares of Class A Non-Voting Stock, were granted as restricted stock awards. The fair value per share was $45.58, the closing price of the Class A Non-Voting Stock as recorded on the Nasdaq Global Select Market on May 3, 2022. These shares were fully vested and released one year after the grant date. On May 4, 2021, 5,000 shares of Class A Non-Voting Stock were granted as restricted stock awards. The fair value per share was $40.11, the closing price of the Class A Non-Voting Stock as recorded on the Nasdaq Global Select Market on May 4, 2021. These shares were fully vested and released one year after the grant date. As of December 31, 2023, there was $97,000 of total unrecognized expense related to non-vested awards of restricted shares awarded under the 2015 Plan. The cost will be recognized over 0.35 years, the remaining vesting period for the restricted stock awards. The total intrinsic value of awards released during 2023 was approximately $272,600. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2023 | |
EMPLOYEE BENEFIT PLANS [Abstract] | |
EMPLOYEE BENEFIT PLANS | NOTE 10 EMPLOYEE BENEFIT PLANS 401(k) Plan Artesian Resources has a defined contribution 401(k) Salary Reduction Plan, or the 401(k) Plan, which covers substantially all employees. Under the terms of the 401(k) Plan, Artesian Resources contributed of eligible salaries and wages and matched employee contributions up to of gross pay at a rate of . The 401(k) Plan also provides additional retirement benefits to full-time employees hired prior to April 26, 1994, allowing them to save for future retiree medical costs that will be paid by employees by providing additional cash resources to those employees upon a termination of employment or retirement to meet the cost of future medical expenses. These eligible employees receive an additional contribution of of eligible salaries and wages. The 401(k) Plan expenses, which include Company contributions and administrative fees, for the years , and , were approximately |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2023 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 11 COMMITMENTS AND CONTINGENCIE S Leases The Company’s leases are disclosed in Note 3 . Easements During 2003, Artesian Water Pennsylvania entered into a 40-year easement agreement to acquire an easement to access, operate, maintain, repair, improve, replace and connect Artesian’s water system to a well, including a parcel of land around the well. Management made certain estimates and assumptions regarding the separation of lease and non-lease components related to this easement agreement. It was determined that the majority of this easement agreement contains non-lease components. Easement payments, including both lease and non-lease components, for 2023, 2022 and 2021 were $45,000, $43,000 and $42,000, respectively. Artesian Future minimum annual payments related to the easement agreements noted above for the years subsequent to 2023 are as follows: In thousands 2024 $ 67 2025 47 2026 49 2027 50 2028 52 2029 through 2043 868 $ 1,133 Interconnections Artesian Artesian Water Maryland has interconnection agreement with the Town of North East that has a “take or pay” clause requiring us to purchase a minimum of gallons per day. The agreement extends through June 2024. The agreement includes automatic renewal terms, unless terminated by either party. The minimum annual purchase commitments for all interconnection agreements for 2024 through 2028, calculated at the noticed rates, are as follows: In thousands 2024 $ 870 2025 881 2026 881 2027 57 2028 57 $ 2,746 Expenses for purchased water were $1.3 million, $1.8 million and $4.3 million for 2023, 2022 and 2021, respectively. Other Commitments In April 2021, Artesian Water entered into a 3-year agreement with Worldwide Industries Corporation effective July 1, 2021 to paint elevated water storage tanks. Pursuant to the agreement, the total expenditure for the three years was $1.2 million. Tank painting expense for , and was $ , $ , and $ , respectively. Budgeted mandatory utility plant expenditures, due to planned governmental highway projects, which require the relocation of Artesian Water’s water service mains, expected to be incurred in 2024 through 2026 are as follows: In thousands 2024 $ 8,200 2025 8,500 2026 8,550 $ 25,250 The exact timing and extent of these relocation projects is controlled primarily by the Delaware Department of Transportation. |
GEOGRAPHIC CONCENTRATION OF CUS
GEOGRAPHIC CONCENTRATION OF CUSTOMERS | 12 Months Ended |
Dec. 31, 2023 | |
GEOGRAPHIC CONCENTRATION OF CUSTOMERS [Abstract] | |
GEOGRAPHIC CONCENTRATION OF CUSTOMERS | NOTE 12 GEOGRAPHIC CONCENTRATION OF CUSTOMERS Artesian Water, Artesian Water Maryland and Artesian Water Pennsylvania provide regulated water utility service to customers within their established service territory in all three counties of Delaware and in portions of Maryland and Pennsylvania, pursuant to rates filed with and approved by the DEPSC, the MDPSC and the PAPUC. As of December 31, 2023, Artesian Water was serving approximately 95,900 customers, Artesian Water Maryland was serving approximately 2,600 customers and Artesian Water Pennsylvania was serving approximately 40 customers. Artesian Wastewater and TESI provide regulated wastewater utility service to customers within their established service territory in Sussex County, Delaware pursuant to rates filed with and approved by the DEPSC. The number of wastewater customers served more than doubled following the acquisition of TESI in January 2022. As of December 31, 2023, Artesian Wastewater and TESI were serving approximately customers combined including large |
REGULATORY PROCEEDINGS
REGULATORY PROCEEDINGS | 12 Months Ended |
Dec. 31, 2023 | |
REGULATORY PROCEEDINGS [Abstract] | |
REGULATORY PROCEEDINGS | NOTE 13 REGULATORY PROCEEDINGS Our water and wastewater utilities generate operating revenue from customers based on rates that are established by state public service commissions through a rate-setting process that may include public hearings, evidentiary hearings and the submission of evidence and testimony in support of the Company’s requested level of rates. We are subject to regulation by the following state regulatory commissions: • The DEPSC regulates Artesian Water, Artesian Wastewater, and TESI. • The MDPSC regulates both Artesian Water Maryland and Artesian Wastewater Maryland. • The PAPUC regulates Artesian Water Pennsylvania. Our water and wastewater utility operations are also subject to regulation under the federal Safe Drinking Water Act of 1974, or Safe Drinking Water Act, the Clean Water Act of 1972, or the Clean Water Act, and related state laws, and under federal and state regulations issued under these laws. These laws and regulations establish criteria and standards for drinking water and for wastewater discharges. Capital expenditures and operating costs required as a result of water quality standards and environmental requirements have been traditionally recognized by state regulatory commissions as appropriate for inclusion in establishing rates. Water and Wastewater Rates Our regulated periodically seek rate increases to cover the cost of increased operating expenses, increased financing expenses due to additional investments in utility plant and other costs of doing business In Delaware, utilities are permitted by law to place rates into effect, under bond, on a temporary basis pending completion of a rate increase proceeding. The first temporary increase may be up to the lesser of $ million on an annual basis or of gross water sales. Should the rate case not be completed within , by law, the utility may put the entire requested rate relief, up to of gross water sales, in effect under bond until a final resolution is ordered and placed into effect. If any such rates are found to be in excess of rates the DEPSC finds to be appropriate, the utility must refund customers the portion found to be in excess with interest. The timing of our rate increase requests is therefore dependent upon the estimated cost of the administrative process in relation to the investments and expenses that we hope to recover through the rate increase. We can provide no assurances that rate increase requests will be approved by applicable regulatory agencies and, if approved, we cannot guarantee that these rate increases will be granted in a timely or sufficient manner to cover the investments and expenses for which we initially sought the rate increase. Artesian Water filed an initial request with the DEPSC on April 28, 2023, further supplemented with a request filed on November 30, 2023, to implement new rates to meet a requested increase in revenue of 22.66%, or approximately $16.7 million, on an annualized basis. The actual effective increase is less than 22.66% since Artesian Water has been permitted to recover specific investments made in infrastructure through the assessment of a 7.50% DSIC. Since the DSIC rate is set to zero when temporary rates are placed into effect, customers would experience an incremental increase of 15.16%, the net of the overall 22.66% increase less the DSIC rate of 7.50% currently in effect, if the requested increase is granted in full by the DEPSC. The new rates are designed to support Artesian Water’s ongoing capital improvement program and to cover increased costs of operations, including chemicals and electricity for water treatment, water quality testing, fuel, taxes, interest, labor and benefits. In accordance with applicable Delaware law, Artesian Water is permitted to implement a temporary base rate increase of 15% of gross water sales on an annual basis or $2.5 million, whichever is lower, 60 days after the application is filed. Since Artesian Water had DSIC surcharges in excess of the allowable temporary increase and imposing the temporary increase would have require DSIC to be reset to zero, Artesian Water elected not to request the initial temporary rate increase. However, since the application was not resolved within the seven-month statutory timeframe, in accordance with applicable Delaware law, Artesian Water is permitted a temporary base rate increase of up to 15% of gross water sales on an annual basis. Artesian Water filed an interim rates application, which was approved, to place into effect on November 28, 2023 a temporary base rate increase of 15% of gross water sales on an annual basis and reducing the 7.5% DSIC rate to zero, with such interim rates subject to refund, until permanent rates are determined by the DEPSC. As of December 31, 2023, no amounts were held in reserve related to the temporary base rate increase. Artesian Water’s last comprehensive application for an increase in base rate charges was filed in April 2014. Other Proceedings Delaware law permits water utilities to put into effect, on a semi-annual basis, increases related to specific types of distribution system improvements through a DSIC. This charge may be implemented by water utilities between general rate increase applications that normally recognize changes in a water utility’s overall financial position. The DSIC approval process is less costly when compared to the approval process for general rate increase requests. The DSIC rate applied between base rate filings is capped at 7.50% of the amount billed to customers under otherwise applicable rates and charges, and the DSIC rate increase applied cannot exceed 5.0% within an y 12-month period. The following table summarizes (1) Artesian Water’s application with the DEPSC to collect DSIC rates and (2) the rate upon which eligible plant improvements are based: Application Date 11/20/2020 DEPSC Approval Date 12/14/2020 Effective Date 01/01/2021 Cumulative DSIC Rate 7.50% Net Eligible Plant Improvements – Cumulative Dollars (in millions) $ Eligible Plant Improvements – Installed Beginning Date 10/01/2014 Eligible Plant Improvements – Installed Ending Date 04/30/2019 The rate reflects the eligible plant improvements installed through April 30, 2019. The January 1, 2021 rate was reset to zero when temporary rates were placed into effect on November 28, 2023 and is subject to periodic audit by the DEPSC. For the years ended , and , we earned approximately $ million, $ million and $ million in DSIC revenue, respectively. |
NET INCOME PER COMMON SHARE AND
NET INCOME PER COMMON SHARE AND EQUITY PER COMMON SHARE | 12 Months Ended |
Dec. 31, 2023 | |
NET INCOME PER COMMON SHARE AND EQUITY PER COMMON SHARE [Abstract] | |
NET INCOME PER COMMON SHARE AND EQUITY PER COMMON SHARE | NOTE 14 NET INCOME PER COMMON SHARE AND EQUITY PER COMMON SHARE Basic net income per share is based on the weighted average number of common shares outstanding. Diluted net income per share is based on the weighted average number of common shares outstanding, the potentially dilutive effect of employee stock options and restricted stock awards. The following table summarizes the shares used in computing basic and diluted net income per share: For the Year Ended December 31, 2023 2022 2021 (in thousands) Weighted average common shares outstanding during the period for basic computation $ 10,018 $ 9,462 $ 9,394 Dilutive effect of employee stock options 4 19 32 Weighted average common shares outstanding during the period for diluted computation $ 10,022 $ 9,481 $ 9,426 For the years ended 2023, 2022 and 2021 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 years ended 2023, 2022 and 2021, no stock options were excluded from the calculations of diluted net income per share. The Company has authorized shares of Class A Stock, and authorized shares of Class B Stock. As of , shares of Class A Stock and shares of Class B Stock were issued and outstanding. As of , shares of Class A Stock and shares of Class B Stock were issued and outstanding. As of , shares of Class A Stock and shares of Class B Stock were issued and outstanding. The par value for both classes is $ per share. Equity per common share was $23.00, $19.86, and $18.94 at December 31, 2023, December 31, 2022, and December 31, 2021, respectively. These amounts were computed by dividing common stockholders’ equity by the number of weighted average shares of common stock outstanding on December 31, 2023, December 31, 2022, and December 31, 2021, respectively. |
COMMON STOCK OFFERING
COMMON STOCK OFFERING | 12 Months Ended |
Dec. 31, 2023 | |
COMMON STOCK OFFERING [Abstract] | |
COMMON STOCK OFFERING | NOTE 15 – COMMON STOCK OFFERING On May 23, 2023, the Company completed the sale of 695,650 shares of its Class A Non-Voting The Company also granted the underwriter a option to purchase up to an additional shares of Class A Non-Voting Stock at the public offering price, less the underwriting discount. On June 16, 2023, the underwriter exercised its over-allotment option to purchase shares of Class A Non-Voting Stock at the public offering price. The net proceeds to the Company resulting from the exercise of the over-allotment option, after deducting the underwriting discounts and commissions and other offering costs, were approximately $ million. All of the shares of Class A Non-Voting Stock sold in the offering were offered by the Company. The proceeds from both the initial offering and the over-allotment option were used to repay short-term borrowings through our lines of credit with Citizens Bank and CoBank, incurred primarily to finance capital expenditures, including investment in utility plant and equipment, and other general corporate purposes. |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 12 Months Ended |
Dec. 31, 2023 | |
BUSINESS COMBINATIONS [Abstract] | |
BUSINESS COMBINATIONS | NOTE 16 – BUSINESS COMBINATIONS As part of the Company’s growth strategy, on January 14, 2022 Artesian Wastewater completed its agreement to acquire TESI, which provides regulated wastewater services in Delaware. Artesian Wastewater purchased all of the stock of TESI from Middlesex Water Company for $6.4 million in cash and other consideration, including forgiveness of a $2.1 million note due from Middlesex, consisting of $3.1 million paid at closing. This acquisition more than doubled the number of wastewater customers served by Artesian in Sussex County, Delaware. The TESI acquisition was approved by the DEPSC on October 27, 2021, subject to the DEPSC determining the appropriate ratemaking treatment of the acquisition price and the assets acquired in Artesian Wastewater’s next base rate case. The results of operations for the years ended December 31, 2023 and December 31, 2022 related to the business acquired are included in the Company’s consolidated statements of operations. The table below sets forth the final purchase price allocation of this acquisition as of December 31, 2022. (in thousands) TESI Utility plant $ 25,354 Cash 280 Goodwill 1,939 Other assets 1,033 Total assets 28,606 Less: Liabilities and contributions in aid of construction (CIAC) Liabilities 2,808 CIAC 22,676 Net cash purchase price $ 3,122 Additionally, as part of the Company’s growth strategy, on , Artesian Water completed its purchase of substantially all of the water system operating assets from the Town of Clayton, or Clayton, a Delaware municipality located in Kent County, Delaware, including Clayton’s exclusive franchise territory and the right to provide water service to Clayton’s existing customers, or the Clayton Water System. The total purchase price was $ million, less the current payoff amount of secured debt or debt associated with the Clayton Water System. At closing, Artesian Water paid approximately $ million of the total purchase price. The remaining $ million is payable in equal annual installments on the anniversary date of the closing. The first installment payment was paid in May 2023. Each annual installment is payable with interest at an annual rate of . The acquisition was accounted for as a business combination under ASC Topic . This transfer of Clayton’s exclusive franchise territory was approved by the DEPSC on . The DEPSC will determine the appropriate ratemaking treatment of the acquisition price and the assets acquired in Artesian Water’s next base rate case. The pro forma effects of the business acquired are not material to the Company’s financial position or results of operations based on estimated annual revenue of approximately $ million related to customers acquired. As of December 31, 2022, the fair value determinations for TESI and the water operating assets acquired from the Town of Clayton were finalized. |
LEGAL PROCEEDINGS
LEGAL PROCEEDINGS | 12 Months Ended |
Dec. 31, 2023 | |
LEGAL PROCEEDINGS [Abstract] | |
LEGAL PROCEEDINGS | NOTE 17 LEGAL PROCEEDINGS Periodically, we are involved in other proceedings or litigation arising in the ordinary course of business. We do not believe that the ultimate resolution of these matters will materially affect our business, financial position or results of operations. However, we cannot ensure that we will prevail in any litigation and, regardless of the outcome, may incur significant litigation expense and may have significant diversion of management attention. Several of the water systems of Artesian Resources’ subsidiaries are eligible claimants in two multi-district litigation, or MDL, class action settlements designed to resolve Claims for PFAS contamination in Public Water Systems’ Drinking Water, as those terms are defined in the respective Agreements (the “Settlements”), which are with two groups of settling defendants on behalf of: (1) the 3M company (“3M”); and (2) E.I. Du Pont de Nemours and Company (n/k/a Eidp, Inc.), Dupont de Nemours Inc., The Chemours Company, The Chemours Company FC, LLC, and Corteva, Inc. (collectively, “Dupont”). Both of these Settlements are designed to resolve Claims for PFAS contamination in Public Water Systems’ Drinking Water, as those terms are defined in the respective Agreements. Both of the proposed Settlements are still subject to final approval by the MDL Judge, the honorable Richard M. Gergel of the United States District Court for the District of South Carolina. Artesian Resources’ eligible systems have remained in the multi-district litigation class action settlements with 3M and DuPont, having elected not to opt out in advance of the opt-out deadline. The amount of any recovery, if any, by Artesian Resources’ subsidiaries is uncertain. On July 19, 2022, final judgment was entered by the United States District Court, or Court, for a Consent Decree between the Delaware Sand and Gravel Remedial Trust, or Trust, and the United States Environmental Protection Agency, or USEPA, that governs the implementation of Amendment No 2 to the USEPA’s 1988 Record of Decision for the Delaware Sand & Gravel Landfill Superfund Site, or Site, located in New Castle County, Delaware, issued on December 12, 2017, or ROD Amendment No. 2, confirming, among other things, the terms and conditions set forth in a Settlement Agreement upon which The Chemours Company FC, LLC, Hercules, LLC, Waste Management of Delaware, Inc., SC Holdings, Inc., Cytec Industries, Inc., Zeneca Inc., and Bayer CropScience Inc., collectively the Percentage Settlors, and the Trust, on one hand, and Artesian Water, on the other hand, have agreed to resolve certain of Artesian Water’s claims and issues relating to releases of contaminants from the Site. ROD Amendment No. 2 sets forth the remedy for the contamination existing at and emanating from the Site, or the Remedy, to address a release of contaminants of concern and of emerging concern, or COC’s, from the Site into groundwater. Artesian Water has found in groundwater that Artesian Water uses for public potable water supply certain COC’s that the Remedy is designed to address, as a result of which Artesian has incurred, and potentially will incur additional, capital and operating costs to treat the groundwater to meet applicable drinking water standards. The Remedy includes requirements that are directly linked to Artesian’s continued operation of the treatment plant associated with groundwater around the Site. As set forth in the Settlement Agreement, Artesian Water shall have access to financial assurances that the Percentage Settlors have provided, or will provide, to the USEPA in connection with the Consent Decree governing the implementation of the Remedy. In addition, the Trust shall reimburse Artesian Water for past capital and operating costs, totaling approximately $10.0 million. Two installments of approximately $2.5 million each were paid in August 2022 and July 2023. The remaining $5.0 million is due in two equal installments no later than July of 2024 and 2025. In addition, the Trust shall reimburse Artesian Water for documented reasonable and necessary capital and operating costs after July 1, 2021 that Artesian Water incurs to treat Site-related COC’s. Any reimbursements Artesian Water receives from the Trust shall be subject to final determination by the DEPSC as to the appropriate regulatory rate-making treatment. Artesian Water received approval from the DEPSC in October 2022 to refund the reimbursements for past capital and operating costs to its customers. The refund for the reimbursements will be applied to current and future customer bills in annual installments. The first two refunds occurred in October 2022 and August 2023. Future customer refunds will occur no later than August 2024 and August 2025. The amount of the credit is calculated by dividing the amount of the reimbursement by the number of eligible customers. Artesian Water will record 2022 and future recovery of capital expenditures as Contributions in Aid of Construction and will record expense recovery as an offset to operations and maintenance expense, with the intention that those recoveries will then be available for inclusion and consideration in any future rate applications. The Trust’s reimbursement of such costs shall end if and when, based upon testing information from the Trust’s Remedy facilities and Artesian Water’s facilities, treatment of Site-related COC’s is no longer necessary for Artesian Water to meet the treatment levels that Artesian Water chooses to not exceed in water it distributes to the general public throughout its service territory to provide a margin of safety in complying with applicable drinking water standards. |
BUSINESS SEGMENT INFORMATION
BUSINESS SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2023 | |
BUSINESS SEGMENT INFORMATION [Abstract] | |
BUSINESS SEGMENT INFORMATION | NOTE 18 – BUSINESS SEGMENT INFORMATION The Company’s operating segments are comprised of its businesses which generate revenues and incur expenses, for which separate operational financial information is available and is regularly evaluated by management for the purpose of making operating decisions, assessing performance, and allocating resources. The Company operates its businesses primarily through one reportable segment, the Regulated Utility segment. The Regulated Utility segment is the largest component of the Company’s business and includes an aggregation of our five regulated utility subsidiaries that are in the business of providing regulated water and wastewater services on the Delmarva Peninsula. Our regulated water utility services include treating, distributing, and selling water to residential, commercial, industrial, governmental, municipal and utility customers throughout the State of Delaware and in Cecil County, Maryland and to a residential community in Chester County, Pennsylvania. Our regulated wastewater utility services include the treatment and disposal of wastewater for customers in Sussex County, Delaware. The Company is subject to regulations as to its rates, services, and other matters by the states of Delaware, Maryland and Pennsylvania with respect to utility service within these states. The Company also operates other non-utility businesses, primarily comprised of: Service Line Protection Plan services for water, sewer and internal plumbing; design, construction and engineering services; and contract services for the operation and maintenance of water and wastewater systems in Delaware and Maryland. These non-utility businesses do not individually or in the aggregate meet the criteria for disclosure of a reportable segment in accordance with generally accepted accounting principles and are collectively presented throughout this Annual Report on Form 10-K within “Other” or “Non-utility”, which is consistent with how management assesses the results of these businesses. The accounting policies of the operating segments are the same as those described in Note 1-Summary of Significant Accounting Policies. The Regulated Utility segment includes inter-segment costs related to leased office space provided by one non-utility business, calculated on the lower of cost or market method, which are eliminated to reconcile to the Consolidated Statements of Operations. The Regulated Utility segment also allocates certain corporate costs to the non-utility businesses. The measurement of depreciation, interest, and capital expenditures are predominately related to our Regulated Utility segment. These amounts in our non-utility business are negligible and account for approximately less than 1% of consolidated amounts as of December 31, 2023, December 31, 2022, and December 31, 2021. In thousands Years Ended December 31, 2023 2022 2021 Revenues: Regulated Utility $ 92,228 $ 89,818 $ 85,016 Other (non-utility) 6,877 9,248 5,996 Inter-segment elimination (244 ) (169 ) (153 ) Consolidated Revenues $ 98,861 $ 98,897 $ 90,859 Operating Income: Regulated Utility $ 21,246 $ 22,411 $ 20,950 Other (non-utility) 1,200 1,495 1,344 Consolidated Operating Income $ 22,446 $ 23,906 $ 22,294 Income Taxes: Regulated Utility $ 5,216 $ 5,091 $ 5,146 Other (non-utility) 1,132 787 591 Consolidated Income Taxes $ 6,348 $ 5,878 $ 5,737 Assets: Regulated Utility $ 760,339 $ 713,113 Other (non-utility) 6,493 6,678 Consolidated Assets $ 766,832 $ 719,791 |
IMPACT OF RECENT ACCOUNTING PRO
IMPACT OF RECENT ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Dec. 31, 2023 | |
IMPACT OF RECENT ACCOUNTING PRONOUNCEMENTS [Abstract] | |
IMPACT OF RECENT ACCOUNTING PRONOUNCEMENTS | NOTE 19 IMPACT OF RECENT ACCOUNTING PRONOUNCEMENTS In November 2023, the FASB issued amended guidance for improvements to reportable segment disclosures. The amendments in this update require the Company to disclose significant segment expenses that are regularly provided to the chief operating decision makers, or CODM’s, and are included within each reported measure of segment operating results. The standard also requires the Company to disclose the total amount of any other items included in segment operating results which were not deemed to be significant expenses for separate disclosure, along with a qualitative description of the composition of these other items. In addition, the standard also requires disclosure of the CODM’s, title and position, as well as detail on how the CODM uses the reported measure of segment operating results to evaluate segment performance and allocate resources. The standard also aligns interim segment reporting disclosure requirements with annual segment reporting disclosure requirements. The Company will adopt the standard effective with our December 31, 2024 year end reporting and the standard will be effective for interim reporting periods in fiscal years beginning after December 15, 2024, with early adoption permitted. The standard requires retrospective application to all prior periods presented. While the standard requires additional disclosures related to the Company’s reportable segments, management does not expect the standard to have an impact on the Company’s results of operations or cash flows due to the adoption of this guidance. In December 2023, FASB issued amended guidance on Income Taxes: Improvements to Income Tax. The amendments require the Company to provide further disaggregated income tax disclosures for specific categories on the effective In March 2024, the SEC passed rule changes that will require registrants to provide certain climate-related information in their registration statements and annual reports. The new rules enhance and standardize climate-related disclosures in an effort to provide investors with more consistent, comparable and reliable information about the impact of climate-related risks on registrants. The rules require disclosure of greenhouse gas (GHG) emissions in annual reports and registration statements Additionally, all registrants would be required to provide numerous climate-related disclosures within their financial statements and elsewhere in their filings. The Company is currently evaluating the impact of the rule changes. |
INSIDER TRADING ARRANGEMENTS
INSIDER TRADING ARRANGEMENTS | 12 Months Ended |
Dec. 31, 2023 | |
Insider Trading Arrangements [Line Items] | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Basis of Presentation | Basis of Presentation The audited consolidated financial statements are presented in accordance with the requirements of Form 10-K and accounting principles generally accepted in the United States and consequently include all the disclosures required in the consolidated financial statements included in the Company’s Annual Report on Form 10-K. The accompanying consolidated financial statements include the accounts of Artesian Resources Corporation and its subsidiaries and all intercompany balances and transactions between subsidiaries have been eliminated. |
Reclassification | Reclassification Certain accounts in the prior year financial statements have been reclassified for comparative purposes to conform with the presentation in the current year financial statements. These reclassifications had no effect on net income or stockholders’ equity. |
Regulated Utility Accounting | Regulated Utility Accounting The accounting records of Artesian Water Company, Inc., or Artesian Water, Artesian Wastewater Management, Inc., or Artesian Wastewater, and, effective January 14, 2022, Tidewater Environmental Services, Inc. dba Artesian Wastewater, or TESI, are maintained in accordance with the uniform system of accounts as prescribed by the Delaware Public Service Commission, or the DEPSC. The accounting records of Artesian Water Pennsylvania, Inc., or Artesian Water Pennsylvania, are maintained in accordance with the uniform system of accounts as prescribed by the Pennsylvania Public Utility Commission, or the PAPUC. The accounting records of Artesian Water Maryland, Inc., or Artesian Water Maryland, and Artesian Wastewater Maryland, Inc., or Artesian Wastewater Maryland, are maintained in accordance with the uniform system of accounts as prescribed by the Maryland Public Service Commission, or the MDPSC. All these subsidiaries follow the provisions of Financial Accounting Standards Board, or FASB, ASC Topic 980, which provides guidance for companies in regulated industries. These regulated subsidiaries account for the majority of our operating revenue. See Note 18 (Business Segment Information) to our Consolidated Financial Statements for a full description of our segment information. |
Use of Estimates in the Preparation of Consolidated Financial Statements | Use of Estimates in the Preparation of Consolidated Financial Statements The consolidated financial statements were prepared in conformity with generally accepted accounting principles in the U.S., which require management to make certain estimates and assumptions regarding the reported amounts of assets and liabilities including unbilled revenues, credit losses and reserves for bad debt, regulatory asset recovery, lease agreements, goodwill and contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from management’s estimates. All additions to utility plant are recorded at cost. Business combinations pursuant to ASC Topic 805 may result in a purchase price allocation and the acquired assets are required to be evaluated by the applicable regulatory agency. Artesian Wastewater acquired TESI in January 2022 and Artesian Water purchased substantially all of the water operating assets from the Town of Clayton in May 2022. On December 31, 2022, the fair value determinations for TESI and the water operating assets acquired from the Town of Clayton were finalized. |
Utility Plant | Utility Plant Utility plant is stated at original cost. Cost includes direct labor, materials, AFUDC (see description below) and indirect charges for such capitalized items as transportation, supervision, pension, medical, and other fringe benefits related to employees engaged in construction activities. When depreciable units of utility plant are retired, the historical costs of plant retired is charged to accumulated depreciation. Any cost associated with retirement, less any salvage value or proceeds received, is charged to the regulated retirement liability. Maintenance, repairs, and replacement of minor items of utility plant are charged to expense as incurred. Allowance for Funds Used during Construction, or AFUDC, is a non-cash credit to income with a corresponding charge to utility plant that represents the cost of borrowed funds or a return on equity funds devoted to plant under construction. Presented in the table below is AFUDC for the years ended December 31: In thousands 2023 2022 2021 AFUDC - Debt $ 759 $ 435 $ 267 AFUDC - Equity $ 1,243 $ 894 $ 556 Utility plant comprises In thousands December 31, Estimated Useful Life (In Years) 2023 2022 Utility plant at original cost Utility plant in service-Water Intangible plant — $ 140 $ 140 Source of supply plant 45-85 29,960 25,223 Pumping and water treatment plant 8-62 130,337 116,915 Transmission and distribution plant Mains 81 370,977 338,368 Services 39 60,818 56,396 Storage tanks 76 40,933 34,567 Meters 26 30,318 29,720 Hydrants 60 18,980 17,751 General plant 5-31 67,317 65,632 Utility plant in service-Wastewater Intangible plant — 116 117 Treatment and disposal plant 21-81 67,789 66,178 Collection mains & lift stations 81 51,539 49,431 General plant 5-31 2,478 1,845 Property held for future use — 4,028 4,489 Construction work in progress — 23,724 34,213 899,454 840,985 Less – accumulated depreciation 185,170 172,954 $ 714,284 $ 668,031 |
Depreciation and Amortization | Depreciation and Amortization For financial reporting purposes, depreciation is recorded using the straight-line method at rates based on estimated economic useful lives, which range from to years. Composite depreciation rates for water utility plant were , and for , and , respectively. Other deferred assets are amortized using the straight-line method over applicable lives, which range from to years. |
Regulatory Assets | 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 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. Debt related costs include debt issuance costs and other debt related expense. The DEPSC has approved deferred regulatory accounting treatment for issuance costs associated with Artesian Water’s First Mortgage bonds. Debt issuance costs and other debt related expenses are reviewed during Artesian Water’s rate applications as part of its cost of capital calculations. Affiliated interest agreement deferred costs relate to the regulatory and administrative costs resulting from efforts necessary to secure water allocations in Artesian Water Pennsylvania’s territory for the provision of service to the surrounding area and interconnection to Artesian Water Pennsylvania’s affiliate regulated water utility Artesian Water. These costs were specifically included for cost recovery pursuant to an Affiliated Interest Agreement between Artesian Water and Artesian Water Pennsylvania and were approved for recovery by the PAPUC and were reclassed from deferred costs to a regulatory asset in 2022. Amortization of these deferred costs began in the fourth quarter of 2023. Regulatory expenses amortized on a straight-line basis are noted below: Expense Years Amortized Deferred contract costs and other 5 Rate case studies 5 Delaware rate proceedings 3 Maryland rate proceedings 5 Debt related costs 15 to 30 (based on term of related debt) Deferred costs affiliated interest agreement 20 Goodwill (resulting from acquisition of Mountain Hill Water Company in 2008) 50 Deferred acquisition costs (resulting from purchase of water assets in Cecil County, Maryland in 2011 and Port Deposit, Maryland in 2010) 20 Franchise Costs (resulting from purchase of water assets in Cecil County, Maryland in 2011) 80 Regulatory assets, net of amortization, comprise: (in thousands) December 31, 2023 December 31, 2022 Deferred contract costs and other $ 209 $ 227 Rate case studies 136 57 Rate proceedings 385 — Deferred income taxes 444 465 Debt related costs 4,322 4,682 Deferred costs affiliated interest agreement 1,110 1,114 Goodwill 258 266 Deferred acquisition and franchise costs 425 463 $ 7,289 $ 7,274 |
Impairment or Disposal of Long-Lived Assets | Impairment or Disposal of Long-Lived Assets Our long-lived assets consist primarily of utility plant in service and regulatory assets. A review of our long-lived assets is performed in accordance with the requirements of FASB ASC Topic 360. In addition, the regulatory assets are reviewed for the continued application of FASB ASC Topic 980. The review determines whether there have been changes in circumstances or events that have occurred requiring adjustments to the carrying value of these assets. FASB ASC Topic 980 stipulates that adjustments to the carrying value of these assets would be made in instances where the inclusion in the rate-making process is unlikely. For the years ended December 31, 2023, 2022 and 2021, there was no impairment or regulatory disallowance identified in our review. |
Goodwill | Goodwill The Company records goodwill when the purchase price of a business combination exceeds the estimated fair value of net identified tangible and intangible assets acquired. At December 31, 2023 and December 31, 2022, the Company had approximately $1.9 million of goodwill, respectively. The $1.9 million of goodwill arose from the January 2022 acquisition of Tidewater Environmental Services, Inc. Artesian Wastewater operates as the parent holding company of Tidewater Environmental Services, Inc. dba Artesian Wastewater, or TESI, and is a subsidiary of our Regulated Utility segment. In accordance with the accounting guidance for testing goodwill for impairment, the Company performs an annual assessment. In 2023, the Company used the optional qualitative assessment, "step zero", to identify and evaluate relevant events and circumstances to conclude whether it is more likely than not that the fair value of its reporting unit is less than its carrying amount, including goodwill. Relevant events and circumstances assessed included macroeconomic conditions, industry and market conditions, cost factors, financial performance, management and overall strategy. After evaluating and weighing these relevant events and circumstances, it was concluded that there was no impairment of goodwill and it was not necessary to perform quantitative testing. |
Other Deferred Assets | Other Deferred Assets The investment in CoBank, which is a cooperative bank, is related to certain outstanding First Mortgage Bonds and is a required investment in the bank based on the underlying long-term debt agreements. The settlement agreement receivable is related to the long-term portion of reimbursements due in years 2024 and 2025 as further discussed in Note 1 – Accounts Receivable. Other deferred assets at December 31, net of amortization, comprise: In thousands 2023 2022 Investment in CoBank $ 5,882 $ 5,351 Settlement agreement receivable-long term 2,496 4,991 Other deferred assets 126 194 $ 8,504 $ 10,536 |
Advances for Construction | Advances for Construction Cash advances to reimburse Artesian Water for its costs to construct water mains, services and hydrants are contributed to Artesian Water by real estate developers and builders in order to extend water service to their properties. The value of these contributions is recorded as Advances for Construction. Artesian Water makes refunds on these advances over a specific period of time based on operating revenues generated by the specific plant or as new customers are connected to the mains. After all refunds are made within the contract period, any remaining balance is transferred to CIAC. |
Contributions in Aid of Construction | Contributions in Aid of Construction CIAC includes the non-refundable portion of advances for construction and direct contributions of water mains, services and hydrants, and wastewater treatment facilities and collection systems, or cash to reimburse our water and wastewater subsidiaries for costs to construct water mains, services and hydrants, and wastewater treatment and disposal plants. Effective with the Tax Cuts and Jobs Act, or TCJA, in 2017 CIAC was taxable and the DEPSC, MDPSC and PAPUC allowed the Company to collect additional CIAC to pay the associated tax. In 2021, legislation was enacted to amend the TCJA, which now exempts CIAC from income taxes for regulated water and wastewater utilities, effective for all of 2021 and forward. In 2022 the Company refunded developers a total of $3.6 million for the additional CIAC collected in 2021 to pay the associated tax. For the years ended December 31, 2023 and December 31, 2022, Artesian Water received approximately $3.8 million and $2.0 million, respectively, in grant funding from the State of Delaware, Delaware Department of Health and Social Services, Division of Public Health, or DPH, pursuant to grant agreements. The grants were used by Artesian Water to cover the costs associated with certain construction projects. The grant funds received under the grant agreements were recorded in accordance with the requirements under FASB ASC Topic 980, in Net contributions in aid of construction in the Consolidated Balance Sheets. Pursuant to the grant agreements, Artesian Water is no longer eligible to receive grant funds under these grants. |
Regulatory Liabilities | Regulatory Liabilities 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. Deferred settlement refunds consist of reimbursements from the Delaware Sand and Gravel Remedial Trust for Artesian Water’s past capital and operating costs, totaling approximately $10.0 million, related to the treatment costs associated with the release of contaminants from the Delaware Sand & Gravel Landfill Superfund Site in groundwater that Artesian Water uses for public potable water supply, pursuant to the Settlement Agreement. Two installments for approximately $2.5 million each were paid in August 2022 and July 2023. The remaining $5.0 million is due in two equal installments no later than July of 2024 and 2025. Artesian Water received approval from the DEPSC in October 2022 to refund to its customers these reimbursements for past capital and operating costs. The refund for the reimbursements will be applied to current and future customer bills in annual installments. The first two refunds occurred in October 2022 and August 2023. Future customer refunds will occur no later than August 2024 and August 2025. The amount of the credit will be calculated by dividing the amount of the reimbursement by the number of eligible customers. Beginning in 2022, Artesian Water began recording 2022 and future recovery of capital expenditures as Contributions in Aid of Construction and began recording expense recovery as an offset to operations and maintenance expense, with the intention that those recoveries will be available for inclusion and consideration in any future rate applications. For a full discussion of the Settlement Agreement, refer to Note 17 – Legal Proceedings. The deferred settlement refunds were $5.0 million and $7.5 million at December 31, 2023 and December 31, 2022, respectively. Pursuant to the enactment of the Tax Cuts and Jobs Act, or 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 5 – Income Taxes) resulting in a decrease in the net deferred income tax liability of $24.3 million, of which $22.8 million was reclassified to a regulatory liability related to Artesian Water and Artesian Water Maryland. 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. In May 2022, the Company received a rate order from the DEPSC instructing the Company to continue amortizing the liability over a period of 49.5 years, subject to review in the Company’s next base rate filing. 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. The deferred income taxes, related to TCJA, were $20.7 million and $21.2 million at December 31, 2023 and December 31, 2022, respectively. |
Income Taxes | Income Taxes Deferred income taxes are provided in accordance with FASB ASC Topic 740 on all differences between the tax basis of assets and liabilities and the amounts at which they are carried in the consolidated financial statements based on the enacted tax rates expected to be in effect when such temporary differences are expected to reverse. The Company’s rate regulated subsidiaries 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 , an uncertain tax position represents our expected treatment of a tax position taken, or planned to be taken in the future, that has not been reflected in measuring income tax expense for financial reporting purposes. The Company establishes reserves for uncertain tax positions based upon management’s judgment as to the sustainability of these positions. These accounting estimates related to the uncertain tax position reserve require judgments to be made as to the sustainability of each uncertain tax position based on its technical merits. The Company believes its tax positions comply with applicable law and that it has adequately recorded reserves as required. However, to the extent the final tax outcome of these matters is different than the estimates recorded, the Company would then adjust its tax reserves or unrecognized tax benefits in the period that this information becomes known. $ in penalties and interest, leaving a zero balance. The Company remains subject to examination by federal and state authorities for the tax years 2020 through 2023 . Investment tax credits were deferred through 1986 and are recognized as a reduction of deferred income tax expense over the estimated economic useful lives of the related assets. |
Stock Compensation Plans | Stock Compensation Plans See Note 9 (Stock Compensation Plans) to our Consolidated Financial Statements for a full description of our stock compensation plans. |
Revenue Recognition and Unbilled Revenues | Revenue Recognition and Unbilled Revenues See Note 2 (Revenue Recognition) to our Consolidated Financial Statements for a full description of our revenue recognition . |
Leases | Leases The Company has agreements for land easements and office equipment under operating leases. 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. See Note 3 (Leases) to our Consolidated Financial Statements for a full description of our leases. |
Accounts Receivable | Accounts Receivable Accounts receivable are recorded at the invoiced amounts. As set forth in a settlement agreement, Artesian Water will receive reimbursements from the Delaware Sand and Gravel Remedial Trust, or Trust, for Artesian Water’s past capital and operating costs, totaling approximately $10.0 million, related to the treatment costs associated with the release of contaminants from the Delaware Sand & Gravel Landfill Superfund Site, or Site, in groundwater that Artesian Water uses for public potable water supply. Two installments for approximately $2.5 million each were paid in August 2022 and July 2023. The remaining $5.0 million is due in two equal installments no later than July of 2024 and 2025. In addition, the Trust shall reimburse Artesian Water for documented reasonable and necessary capital and operating costs after July 1, 2021 that Artesian Water incurs to treat contaminants of concern and of emerging concern. A provision for expected credit loss is calculated as a percentage of total associated revenues based upon historical trends and adjusted for current and reasonable projections based upon expected economic conditions. We mitigate our exposure to credit losses by discontinuing services in the event of non-payment; accordingly, the related provision for expected credit loss and associated bad debt expense has not been significant. The was $ million and $ million at and , respectively. The corresponding expense for the years ended and was $ million and $ million, respectively, The following table summarizes the changes in the Company’s accounts receivable balance: December 31, In thousands 2023 2022 2021 Customer accounts receivable – water $ 6,573 $ 5,981 $ 5,986 Customer accounts receivable – wastewater 513 482 1,326 Settlement agreement receivable – short term 2,747 2,532 — Miscellaneous accounts receivable 1,236 3,781 786 Developer receivable 2,089 1,151 698 13,158 13,927 8,796 Less provision for expected credit loss 328 416 429 Net accounts receivable $ 12,830 $ 13,511 $ 8,367 The activities in the provision for expected credit loss are as follows: December 31, In thousands 2023 2022 Beginning balance $ 416 $ 429 Provision adjustments 92 146 Recoveries 48 28 Write off of uncollectible accounts (228 ) (187 ) Ending balance $ 328 $ 416 |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of the Consolidated Statement of Cash Flows, Artesian Resources considers all temporary cash investments with an original maturity of three months or less to be cash equivalents. Artesian Resources and its subsidiaries utilize their bank’s zero balance account disbursement service to reduce the use of their lines of credit by funding checks as they are presented to the bank for payment rather than at issuance. If the checks currently outstanding, but not yet funded, exceed the cash balance on our books, the net liability is recorded as a current liability on the Consolidated Balance Sheet in the Overdraft Payable account. |
Inventories | Inventories Inventories consist of materials and supplies related to water and wastewater utility plant. These materials and supplies are used for new construction and repairs and are recorded at the purchase cost. Usage costs are determined by the first-in, first-out method. The Company adjusts inventory value based on historical usage and forecasted demand. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Schedule of AFUDC | Presented in the table below is AFUDC for the years ended December 31: In thousands 2023 2022 2021 AFUDC - Debt $ 759 $ 435 $ 267 AFUDC - Equity $ 1,243 $ 894 $ 556 |
Schedule of Utility Plant | Utility plant comprises In thousands December 31, Estimated Useful Life (In Years) 2023 2022 Utility plant at original cost Utility plant in service-Water Intangible plant — $ 140 $ 140 Source of supply plant 45-85 29,960 25,223 Pumping and water treatment plant 8-62 130,337 116,915 Transmission and distribution plant Mains 81 370,977 338,368 Services 39 60,818 56,396 Storage tanks 76 40,933 34,567 Meters 26 30,318 29,720 Hydrants 60 18,980 17,751 General plant 5-31 67,317 65,632 Utility plant in service-Wastewater Intangible plant — 116 117 Treatment and disposal plant 21-81 67,789 66,178 Collection mains & lift stations 81 51,539 49,431 General plant 5-31 2,478 1,845 Property held for future use — 4,028 4,489 Construction work in progress — 23,724 34,213 899,454 840,985 Less – accumulated depreciation 185,170 172,954 $ 714,284 $ 668,031 |
Amortization Period of Other Regulatory Expense | Regulatory expenses amortized on a straight-line basis are noted below: Expense Years Amortized Deferred contract costs and other 5 Rate case studies 5 Delaware rate proceedings 3 Maryland rate proceedings 5 Debt related costs 15 to 30 (based on term of related debt) Deferred costs affiliated interest agreement 20 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) December 31, 2023 December 31, 2022 Deferred contract costs and other $ 209 $ 227 Rate case studies 136 57 Rate proceedings 385 — Deferred income taxes 444 465 Debt related costs 4,322 4,682 Deferred costs affiliated interest agreement 1,110 1,114 Goodwill 258 266 Deferred acquisition and franchise costs 425 463 $ 7,289 $ 7,274 |
Other Deferred Assets, Net of Amortization | Other deferred assets at December 31, net of amortization, comprise: In thousands 2023 2022 Investment in CoBank $ 5,882 $ 5,351 Settlement agreement receivable-long term 2,496 4,991 Other deferred assets 126 194 $ 8,504 $ 10,536 |
Changes in Accounts Receivable | December 31, In thousands 2023 2022 2021 Customer accounts receivable – water $ 6,573 $ 5,981 $ 5,986 Customer accounts receivable – wastewater 513 482 1,326 Settlement agreement receivable – short term 2,747 2,532 — Miscellaneous accounts receivable 1,236 3,781 786 Developer receivable 2,089 1,151 698 13,158 13,927 8,796 Less provision for expected credit loss 328 416 429 Net accounts receivable $ 12,830 $ 13,511 $ 8,367 |
Provision for Expected Credit Loss | The activities in the provision for expected credit loss are as follows: December 31, In thousands 2023 2022 Beginning balance $ 416 $ 429 Provision adjustments 92 146 Recoveries 48 28 Write off of uncollectible accounts (228 ) (187 ) Ending balance $ 328 $ 416 |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
REVENUE RECOGNITION [Abstract] | |
Disaggregation of Revenues | The following table shows the Company’s revenues disaggregated by service type; all revenues are generated within a similar geographical location: For the Year Ended December 31, (in thousands) 2023 2022 2021 Tariff Revenue Consumption charges $ 49,051 $ 47,809 $ 47,924 Fixed fees 33,074 31,431 27,977 Service charges 682 597 579 DSIC 4,727 5,085 5,093 Metered wastewater services 602 649 — Industrial wastewater services 1,851 1,853 675 Total Revenue $ 89,987 $ 87,424 $ 82,248 Non- Revenue Service line protection plans $ 5,632 $ 5,020 $ 4,594 Contract operations 1,046 931 884 Design and installation 181 3,315 562 Inspection fees 424 326 341 Total Non- Revenue $ 7,283 $ 9,592 $ 6,381 Other Operating Revenue $ 1,591 $ 1,881 $ 2,230 Total Operating Revenue $ 98,861 $ 98,897 $ 90,859 |
Contract Assets and Contract Liabilities | Our contract assets and liabilities consist of the following: (in thousands) December 31, 2023 December 31, 2022 December 31, 2021 Contract Assets Tariff $ 3,043 $ 2,618 $ 2,144 Deferred Revenue Deferred Revenue – Tariff $ 1,300 $ 1,231 $ 1,227 Deferred Revenue – Non-Tariff 539 438 287 Total Deferred Revenue $ 1,839 $ 1,669 $ 1,514 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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: For the Twelve Months Ended December 31, (in thousands) 2023 2022 Minimum rentals $ 34 $ 32 Contingent rentals — — $ 34 $ 32 |
Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases is as follows: (in thousands) Twelve Months Ended Twelve Months Ended December 31, December 31, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 34 $ 32 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 506 $ 467 |
Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases is as follows: (in thousands, except lease term and discount rate) December 31, 2023 December 31, 2022 Operating Leases: Operating lease right-of-use assets $ 506 $ 467 Other current liabilities $ 9 $ 2 Operating lease liabilities 503 466 Total operating lease liabilities $ 512 $ 468 Weighted Average Remaining Lease Term Operating leases 58 years 61 years Weighted Average Discount Rate Operating leases 5.0 % 5.0 % |
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 December 31, 2023 (in thousands) Operating Leases Year 2024 $ 35 2025 35 2026 35 2027 35 2028 29 Thereafter 1,429 Total undiscounted lease payments $ 1,598 Less effects of discounting (1,086 ) Total lease liabilities recognized 512 |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract] | |
Carrying Amount and Fair Value of Long-Term Debt | In thousands December 31, 2023 2022 Carrying amount $ 180,542 $ 177,622 Estimated fair value 162,720 155,425 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
INCOME TAXES [Abstract] | |
Components of Income Tax Expense | Components of Income Tax Expense In thousands For the Year Ended December 31, Federal income taxes 2023 2022 2021 Current $ 1,946 $ 2,912 $ 2,144 Deferred 1,968 930 1,601 Total federal income tax expense $ 3,914 $ 3,842 $ 3,745 For the Year Ended December 31, State income taxes 2023 2022 2021 Current $ 1,016 $ 1,373 $ 1,216 Deferred 1,418 663 776 Total state income tax expense $ 2,434 $ 2,036 $ 1,992 |
Reconciliation of Effective Tax Rate | Reconciliation of effective tax rate: For the Year Ended December 31, In thousands 2023 2023 2022 2022 2021 2021 Amount Percent Amount Percent Amount Percent Reconciliation of effective tax rate Income before federal and state income taxes $ 23,047 100.0 % $ 23,876 100.0 % $ 22,564 100.0 % Amount computed at statutory rate 4,840 21.0 % 5,014 21.0 % 4,738 21.0 % Reconciling items State income tax-net of federal tax benefit 1,918 8.3 % 1,696 7.1 % 1,600 7.1 % Regulatory liability adjustment (449 ) (1.9 )% (450 ) (1.9 )% (451 ) (2.0 )% Other 39 0.2 % (382 ) (1.6 )% (150 ) (0.7 )% Total income tax expense and effective rate $ 6,348 27.6 % $ 5,878 24.6 % $ 5,737 25.4 % |
Deferred Income Taxes | Deferred income taxes at December 31, 2023 and 2022 were comprised of the following: For the Year Ended December 31, In thousands 2023 2022 Deferred tax assets related to: State operating loss carry-forwards $ 1,037 $ 922 Less: valuation allowance (906 ) (600 ) Bad debt allowance 92 116 Stock options 47 47 Other 48 28 Total deferred tax assets $ 318 $ 513 Deferred tax liabilities related to: Property plant and equipment basis differences $ (56,012 ) $ (52,565 ) Bond retirement costs (982 ) (1,058 ) Property taxes (624 ) (609 ) Other (1,081 ) (833 ) Total deferred tax liabilities $ (58,699 ) $ (55,065 ) Net deferred tax liability $ (58,381 ) $ (54,552 ) |
Schedule of Valuation Allowance | Schedule of Valuation Allowance Balance at Beginning of Period Additions Charged to Costs and Expenses Deductions Balance at End of Period In thousands Classification For the Year Ended December 31, 2023 $ 600 $ 312 $ 6 $ 906 For the Year Ended December 31, 2022 $ 546 $ 54 $ — $ 600 For the Year Ended December 31, 2021 $ 493 $ 53 $ — $ 546 |
Schedule of Unrecognized Tax Benefits Roll Forward | The following table provides the changes in the Company’s uncertain tax position: For the years ended December 31, In thousands 2023 2022 Balance at beginning of year $ 146 $ 202 Additions based on tax positions related to the current year — 146 Additions based on tax positions related to prior years 12 10 Reductions for tax positions of prior years — — Lapses in statutes of limitations — (212 ) Balance at end of year $ 158 $ 146 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
DEBT [Abstract] | |
Schedule of Long-term debt | Long-term debt consists of: December 31, In thousands 2023 2022 First mortgage bonds Series R, 5.96 December 31, 2028 $ 25,000 $ 25,000 Series S, 4.45 December 31, 2033 6,000 6,600 Series T, 4.24 December 20, 2036 40,000 40,000 Series U, 4.71 January 31, 2038 25,000 25,000 Series V, 4.42 October 31, 2049 30,000 30,000 Series W, 4.43%, due April 30, 2047 30,000 30,000 156,000 156,600 State revolving fund loans 3.57 September 1, 2023 — 102 3.64 May 1, 2025 228 373 3.41 February 1, 2031 1,415 1,577 3.40 July 1, 2032 1,445 1,590 1.187 November 1, 2041 588 617 1.187 November 1, 2041 690 724 1.187 November 1, 2041 1,075 1,128 2.00%, due February 1, 2043 828 846 2.00%, due February 1, 2043 1,143 974 2.00%, due June 1, 2043 1,002 1,044 2.00%, due June 1, 2043 1,022 — 2.00%, due February 1, 2044 2,696 — 2.00%, due January 1, 2043 1,000 — 13,132 8,975 Notes Payable Promissory Note, 5.12 December 30, 2028 $ 10,155 $ 10,478 Asset Purchase, 2.00%, due May 26, 2027 1,255 1,569 11,410 12,047 Sub-total 180,542 177,622 Less: current maturities (principal amount) 2,235 2,003 Total long-term debt $ 178,307 $ 175,619 |
Future Minimum Payments | Payments of principal amounts due during the next five years and thereafter: In thousands 2024 2025 2026 2027 2028 Thereafter First Mortgage bonds $ 600 $ 600 $ 600 $ 600 $ 25,600 $ 128,000 State revolving fund loans 756 852 794 813 834 9,083 Asset Purchase-Contractual Obligation 314 314 314 313 — — Promissory note 565 480 505 532 559 7,514 Total payments $ 2,235 $ 2,246 $ 2,213 $ 2,258 $ 26,993 $ 144,597 Substantially all of Artesian Water’s utility plant is pledged as security for our First Mortgage Bonds. As of December 31, 2023, no other water utility plant has been pledged as security for loans. Two parcels of land in Artesian Wastewater are pledged as security for the promissory note. |
STOCK COMPENSATION PLANS (Table
STOCK COMPENSATION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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 under option: 2023 Shares 2023 Weighted Average Exercise Price 2022 Shares 2022 Weighted Average Exercise Price 2021 Shares 2021 Weighted Average Exercise Price Plan options Outstanding at beginning of year 6,750 $ 21.86 83,000 $ 21.65 116,347 $ 20.90 Granted — — — — — — Exercised (6,750) 21.86 (76,250) 21.63 (33,347) 19.04 Expired — — — — — — Outstanding at end of year — $ — 6,750 $ 21.86 83,000 $ 21.65 Options exercisable at year end — $ — 6,750 $ 21.86 83,000 $ 21.65 |
Employee and Director Stock Options | The following table summarizes information about employee and director stock options outstanding and exercisable at December 31, 2023: Options Outstanding and Exercisable Range of Exercise Price Shares Outstanding at December 31, 2023 Weighted Average Remaining Life Weighted Average Exercise Price Aggregate Intrinsic Value $ 00.00 0 0 Years $ 00.00 $ 0 |
Changes in Shares of Class A Stock in Restricted Stock Awards (RSA) | The following summary reflects changes in the shares of Class A Non-Voting Stock Restricted Stock Awards (RSA): 2023 Shares 2023 Weighted Average Grant Date Fair Value 2022 Shares 2022 Weighted Average Grant Date Fair Value 2021 Shares 2021 Weighted Average Exercise Price Plan RSA’s Outstanding at beginning of year 5,000 $ 45.58 5,000 $ 40.11 5,000 $ 35.01 Granted 5,000 54.88 5,000 45.58 5,000 40.11 Vested/Released (5,000 ) 45.58 (5,000 ) 40.11 (5,000 ) 35.01 Cancelled — — — — — — Unvested Outstanding at end of year 5,000 $ 54.88 5,000 $ 45.58 5,000 $ 40.11 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
Future Minimum Annual Payments | Future minimum annual payments related to the easement agreements noted above for the years subsequent to 2023 are as follows: In thousands 2024 $ 67 2025 47 2026 49 2027 50 2028 52 2029 through 2043 868 $ 1,133 |
Budgeted Mandatory Utility Plant Expenditures | Budgeted mandatory utility plant expenditures, due to planned governmental highway projects, which require the relocation of Artesian Water’s water service mains, expected to be incurred in 2024 through 2026 are as follows: In thousands 2024 $ 8,200 2025 8,500 2026 8,550 $ 25,250 |
Minimum Annual Purchase Commitments | The minimum annual purchase commitments for all interconnection agreements for 2024 through 2028, calculated at the noticed rates, are as follows: In thousands 2024 $ 870 2025 881 2026 881 2027 57 2028 57 $ 2,746 |
REGULATORY PROCEEDINGS (Tables)
REGULATORY PROCEEDINGS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
REGULATORY PROCEEDINGS [Abstract] | |
Eligible Plant Improvements | The following table summarizes (1) Artesian Water’s application with the DEPSC to collect DSIC rates and (2) the rate upon which eligible plant improvements are based: Application Date 11/20/2020 DEPSC Approval Date 12/14/2020 Effective Date 01/01/2021 Cumulative DSIC Rate 7.50% Net Eligible Plant Improvements – Cumulative Dollars (in millions) $ Eligible Plant Improvements – Installed Beginning Date 10/01/2014 Eligible Plant Improvements – Installed Ending Date 04/30/2019 |
NET INCOME PER COMMON SHARE A_2
NET INCOME PER COMMON SHARE AND EQUITY PER COMMON SHARE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
NET INCOME PER COMMON SHARE AND EQUITY PER COMMON SHARE [Abstract] | |
Shares Used in Computing Basic and Diluted Net Income Per Share | Basic net income per share is based on the weighted average number of common shares outstanding. Diluted net income per share is based on the weighted average number of common shares outstanding, the potentially dilutive effect of employee stock options and restricted stock awards. The following table summarizes the shares used in computing basic and diluted net income per share: For the Year Ended December 31, 2023 2022 2021 (in thousands) Weighted average common shares outstanding during the period for basic computation $ 10,018 $ 9,462 $ 9,394 Dilutive effect of employee stock options 4 19 32 Weighted average common shares outstanding during the period for diluted computation $ 10,022 $ 9,481 $ 9,426 |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
BUSINESS COMBINATIONS [Abstract] | |
Preliminary Purchase Price Allocation | The table below sets forth the final purchase price allocation of this acquisition as of December 31, 2022. (in thousands) TESI Utility plant $ 25,354 Cash 280 Goodwill 1,939 Other assets 1,033 Total assets 28,606 Less: Liabilities and contributions in aid of construction (CIAC) Liabilities 2,808 CIAC 22,676 Net cash purchase price $ 3,122 |
BUSINESS SEGMENT INFORMATION (T
BUSINESS SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
BUSINESS SEGMENT INFORMATION [Abstract] | |
Segment Reporting Information, by Segment | The accounting policies of the operating segments are the same as those described in Note 1-Summary of Significant Accounting Policies. The Regulated Utility segment includes inter-segment costs related to leased office space provided by one non-utility business, calculated on the lower of cost or market method, which are eliminated to reconcile to the Consolidated Statements of Operations. The Regulated Utility segment also allocates certain corporate costs to the non-utility businesses. The measurement of depreciation, interest, and capital expenditures are predominately related to our Regulated Utility segment. These amounts in our non-utility business are negligible and account for approximately less than 1% of consolidated amounts as of December 31, 2023, December 31, 2022, and December 31, 2021. In thousands Years Ended December 31, 2023 2022 2021 Revenues: Regulated Utility $ 92,228 $ 89,818 $ 85,016 Other (non-utility) 6,877 9,248 5,996 Inter-segment elimination (244 ) (169 ) (153 ) Consolidated Revenues $ 98,861 $ 98,897 $ 90,859 Operating Income: Regulated Utility $ 21,246 $ 22,411 $ 20,950 Other (non-utility) 1,200 1,495 1,344 Consolidated Operating Income $ 22,446 $ 23,906 $ 22,294 Income Taxes: Regulated Utility $ 5,216 $ 5,091 $ 5,146 Other (non-utility) 1,132 787 591 Consolidated Income Taxes $ 6,348 $ 5,878 $ 5,737 Assets: Regulated Utility $ 760,339 $ 713,113 Other (non-utility) 6,493 6,678 Consolidated Assets $ 766,832 $ 719,791 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Part 1 (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Utility Plant [Abstract] | |||
AFUDC - Debt | $ 759 | $ 435 | $ 267 |
AFUDC - Equity | 1,243 | 894 | $ 556 |
Summary of utility plant comprises [Abstract] | |||
Utility plant, gross | 899,454 | 840,985 | |
Less - accumulated depreciation | 185,170 | 172,954 | |
Utility plant, net | $ 714,284 | $ 668,031 | |
Depreciation and Amortization [Abstract] | |||
Depreciation rates of water utility plant | 2.13% | 2.16% | 2.17% |
Minimum [Member] | |||
Depreciation and Amortization [Abstract] | |||
Amortization period of other deferred assets | 20 years | ||
Maximum [Member] | |||
Depreciation and Amortization [Abstract] | |||
Amortization period of other deferred assets | 24 years | ||
Property Held for Future Use [Member] | |||
Summary of utility plant comprises [Abstract] | |||
Estimated useful life | 0 years | ||
Utility plant, gross | $ 4,028 | $ 4,489 | |
Construction in Progress [Member] | |||
Summary of utility plant comprises [Abstract] | |||
Estimated useful life | 0 years | ||
Utility plant, gross | $ 23,724 | 34,213 | |
Utility plant in service-Water [Member] | Mains [Member] | |||
Summary of utility plant comprises [Abstract] | |||
Estimated useful life | 81 years | ||
Utility plant, gross | $ 370,977 | 338,368 | |
Utility plant in service-Water [Member] | Services [Member] | |||
Summary of utility plant comprises [Abstract] | |||
Estimated useful life | 39 years | ||
Utility plant, gross | $ 60,818 | 56,396 | |
Utility plant in service-Water [Member] | Storage Tanks [Member] | |||
Summary of utility plant comprises [Abstract] | |||
Estimated useful life | 76 years | ||
Utility plant, gross | $ 40,933 | 34,567 | |
Utility plant in service-Water [Member] | Meters [Member] | |||
Summary of utility plant comprises [Abstract] | |||
Estimated useful life | 26 years | ||
Utility plant, gross | $ 30,318 | 29,720 | |
Utility plant in service-Water [Member] | Hydrants [Member] | |||
Summary of utility plant comprises [Abstract] | |||
Estimated useful life | 60 years | ||
Utility plant, gross | $ 18,980 | 17,751 | |
Utility plant in service-Water [Member] | Intangible plant [Member] | |||
Summary of utility plant comprises [Abstract] | |||
Estimated useful life | 0 years | ||
Utility plant, gross | $ 140 | 140 | |
Utility plant in service-Water [Member] | Source of supply plant [Member] | |||
Summary of utility plant comprises [Abstract] | |||
Utility plant, gross | $ 29,960 | 25,223 | |
Utility plant in service-Water [Member] | Source of supply plant [Member] | Minimum [Member] | |||
Summary of utility plant comprises [Abstract] | |||
Estimated useful life | 45 years | ||
Utility plant in service-Water [Member] | Source of supply plant [Member] | Maximum [Member] | |||
Summary of utility plant comprises [Abstract] | |||
Estimated useful life | 85 years | ||
Utility plant in service-Water [Member] | Pumping and water treatment plant [Member] | |||
Summary of utility plant comprises [Abstract] | |||
Utility plant, gross | $ 130,337 | 116,915 | |
Utility plant in service-Water [Member] | Pumping and water treatment plant [Member] | Minimum [Member] | |||
Summary of utility plant comprises [Abstract] | |||
Estimated useful life | 8 years | ||
Utility plant in service-Water [Member] | Pumping and water treatment plant [Member] | Maximum [Member] | |||
Summary of utility plant comprises [Abstract] | |||
Estimated useful life | 62 years | ||
Utility plant in service-Water [Member] | General plant [Member] | |||
Summary of utility plant comprises [Abstract] | |||
Utility plant, gross | $ 67,317 | 65,632 | |
Utility plant in service-Water [Member] | General plant [Member] | Minimum [Member] | |||
Summary of utility plant comprises [Abstract] | |||
Estimated useful life | 5 years | ||
Utility plant in service-Water [Member] | General plant [Member] | Maximum [Member] | |||
Summary of utility plant comprises [Abstract] | |||
Estimated useful life | 31 years | ||
Utility plant in service-Wastewater [Member] | Intangible plant [Member] | |||
Summary of utility plant comprises [Abstract] | |||
Estimated useful life | 0 years | ||
Utility plant, gross | $ 116 | 117 | |
Utility plant in service-Wastewater [Member] | General plant [Member] | |||
Summary of utility plant comprises [Abstract] | |||
Utility plant, gross | $ 2,478 | 1,845 | |
Utility plant in service-Wastewater [Member] | General plant [Member] | Minimum [Member] | |||
Summary of utility plant comprises [Abstract] | |||
Estimated useful life | 5 years | ||
Utility plant in service-Wastewater [Member] | General plant [Member] | Maximum [Member] | |||
Summary of utility plant comprises [Abstract] | |||
Estimated useful life | 31 years | ||
Utility plant in service-Wastewater [Member] | Treatment and Disposal Plant [Member] | |||
Summary of utility plant comprises [Abstract] | |||
Utility plant, gross | $ 67,789 | 66,178 | |
Utility plant in service-Wastewater [Member] | Treatment and Disposal Plant [Member] | Minimum [Member] | |||
Summary of utility plant comprises [Abstract] | |||
Estimated useful life | 21 years | ||
Utility plant in service-Wastewater [Member] | Treatment and Disposal Plant [Member] | Maximum [Member] | |||
Summary of utility plant comprises [Abstract] | |||
Estimated useful life | 81 years | ||
Utility plant in service-Wastewater [Member] | Collection Mains & Lift Stations [Member] | |||
Summary of utility plant comprises [Abstract] | |||
Estimated useful life | 81 years | ||
Utility plant, gross | $ 51,539 | $ 49,431 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Part 2 (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||
Jul. 19, 2022 USD ($) Installment | Jul. 31, 2023 USD ($) | Aug. 31, 2022 USD ($) | Jan. 31, 2017 | Dec. 31, 2023 USD ($) Installment Refund | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2018 USD ($) | Dec. 31, 2017 | Jan. 31, 2019 USD ($) | |
Amortization period of other regulatory expense [Abstract] | ||||||||||
Deferred contract costs and other | 5 years | |||||||||
Rate case studies | 5 years | |||||||||
Deferred costs affiliated interest agreement | 20 years | |||||||||
Goodwill | 50 years | |||||||||
Deferred acquisition costs | 20 years | |||||||||
Franchise costs | 80 years | |||||||||
Regulatory assets net of amortization, comprise [Abstract] | ||||||||||
Regulatory assets, net | $ 7,289 | $ 7,274 | ||||||||
Impairment or Disposal of Long-Lived Assets [Abstract] | ||||||||||
Impairment | 0 | 0 | $ 0 | |||||||
Goodwill [Abstract] | ||||||||||
Goodwill | 1,939 | 1,939 | ||||||||
Summary of other deferred assets net of amortization [Abstract] | ||||||||||
Investment in Co Bank | 5,882 | 5,351 | ||||||||
Settlement agreement receivable-long term | 2,496 | 4,991 | ||||||||
Other deferred assets | 126 | 194 | ||||||||
Other deferred assets | 8,504 | 10,536 | ||||||||
Contributions in Aid of Construction [Abstract] | ||||||||||
Refund for contributions in aid of construction due to tax status change | $ 3,600 | |||||||||
Regulatory Liabilities [Line Items] | ||||||||||
Litigation settlement amount | $ 10,000 | 10,000 | ||||||||
Litigation settlement amount received | $ 2,500 | $ 2,500 | ||||||||
Litigation settlement, remaining amount | $ 5,000 | |||||||||
Number of installments | Installment | 2 | 2 | ||||||||
Number of refunds | Refund | 2 | |||||||||
Federal corporate tax rate | 21% | 21% | 21% | 34% | ||||||
Decrease in the net deferred income tax liability | $ (24,300) | |||||||||
Net regulatory liability amount | $ 22,800 | |||||||||
Regulatory Liabilities | $ 25,676 | $ 28,721 | ||||||||
Minimum [Member] | ||||||||||
Amortization period of other regulatory expense [Abstract] | ||||||||||
Amortization period of debt related cost | 15 years | |||||||||
Maximum [Member] | ||||||||||
Amortization period of other regulatory expense [Abstract] | ||||||||||
Amortization period of debt related cost | 30 years | |||||||||
Maryland [Member] | ||||||||||
Amortization period of other regulatory expense [Abstract] | ||||||||||
Rate proceedings | 5 years | |||||||||
Delaware [Member] | ||||||||||
Amortization period of other regulatory expense [Abstract] | ||||||||||
Rate proceedings | 3 years | |||||||||
DEPSC [Member] | ||||||||||
Regulatory Liabilities [Line Items] | ||||||||||
Net regulatory liability amount | $ 22,200 | |||||||||
Regulatory liabilities, amortization period | 49 years 6 months | |||||||||
MDPSC [Member] | ||||||||||
Regulatory Liabilities [Line Items] | ||||||||||
Net regulatory liability amount | $ 600 | |||||||||
Artesian Water [Member] | ||||||||||
Contributions in Aid of Construction [Abstract] | ||||||||||
Amount received in grant | 3,800 | 2,000 | ||||||||
Deferred Settlement Refunds [Member] | ||||||||||
Regulatory Liabilities [Line Items] | ||||||||||
Regulatory Liabilities | 5,000 | 7,500 | ||||||||
Deferred Income Taxes [Member] | ||||||||||
Regulatory Liabilities [Line Items] | ||||||||||
Regulatory Liabilities | 20,700 | 21,200 | ||||||||
Deferred Contract Costs and Other [Member] | ||||||||||
Regulatory assets net of amortization, comprise [Abstract] | ||||||||||
Regulatory assets, net | 209 | 227 | ||||||||
Rate Case Studies [Member] | ||||||||||
Regulatory assets net of amortization, comprise [Abstract] | ||||||||||
Regulatory assets, net | 136 | 57 | ||||||||
Rate Proceedings [Member] | ||||||||||
Regulatory assets net of amortization, comprise [Abstract] | ||||||||||
Regulatory assets, net | 385 | 0 | ||||||||
Deferred Income Taxes [Member] | ||||||||||
Regulatory assets net of amortization, comprise [Abstract] | ||||||||||
Regulatory assets, net | 444 | 465 | ||||||||
Debt Related Costs [Member] | ||||||||||
Regulatory assets net of amortization, comprise [Abstract] | ||||||||||
Regulatory assets, net | 4,322 | 4,682 | ||||||||
Deferred Costs Affiliated Interest Agreement [Member] | ||||||||||
Regulatory assets net of amortization, comprise [Abstract] | ||||||||||
Regulatory assets, net | 1,110 | 1,114 | ||||||||
Goodwill [Member] | ||||||||||
Regulatory assets net of amortization, comprise [Abstract] | ||||||||||
Regulatory assets, net | 258 | 266 | ||||||||
Deferred Acquisition and Franchise Costs [Member] | ||||||||||
Regulatory assets net of amortization, comprise [Abstract] | ||||||||||
Regulatory assets, net | $ 425 | $ 463 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Part 3 (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | |
Income Tax [Abstract] | |||
Reversal of reserve related to uncertain tax positions | $ 0 | $ 212 | |
Reversal of penalties and interest | $ (10) | ||
Income tax penalties and interest accrued for unrecognized tax position | $ 12 | ||
Federal [Member] | Minimum [Member] | |||
Income Tax [Abstract] | |||
Tax year open to examination | 2020 | ||
Federal [Member] | Maximum [Member] | |||
Income Tax [Abstract] | |||
Tax year open to examination | 2023 | ||
State [Member] | Minimum [Member] | |||
Income Tax [Abstract] | |||
Tax year open to examination | 2020 | ||
State [Member] | Maximum [Member] | |||
Income Tax [Abstract] | |||
Tax year open to examination | 2023 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Part 4 (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Jul. 19, 2022 USD ($) Installment | Jul. 31, 2023 USD ($) | Aug. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) Installment | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
ACCOUNTS RECEIVABLE [Abstract] | ||||||
Litigation settlement amount | $ 10,000 | $ 10,000 | ||||
Litigation settlement amount received | $ 2,500 | $ 2,500 | ||||
Litigation settlement, remaining amount | $ 5,000 | |||||
Number of installments | Installment | 2 | 2 | ||||
Expense related to expected credit loss | $ 100 | $ 100 | ||||
Changes in Accounts Receivable [Abstract] | ||||||
Gross accounts receivable | 13,158 | 13,927 | $ 8,796 | |||
Less: provision for expected credit loss | 328 | 416 | 429 | |||
Total Accounts Receivable | 12,830 | 13,511 | 8,367 | |||
Summary of allowance for doubtful accounts [Abstract] | ||||||
Beginning balance | 416 | 429 | ||||
Provision adjustments | 92 | 146 | ||||
Recoveries | 48 | 28 | ||||
Write off of uncollectible accounts | (228) | (187) | ||||
Ending balance | $ 328 | 416 | ||||
Cash and Cash Equivalents [Abstract] | ||||||
Maximum maturity period of temporary cash investments considered as cash equivalents | 3 months | |||||
Customer Accounts Receivable - Water [Member] | ||||||
Changes in Accounts Receivable [Abstract] | ||||||
Gross accounts receivable | $ 6,573 | 5,981 | 5,986 | |||
Customer accounts receivable - wastewater [Member] | ||||||
Changes in Accounts Receivable [Abstract] | ||||||
Gross accounts receivable | 513 | 482 | 1,326 | |||
Settlement Agreement Receivable - Short Term [Member] | ||||||
Changes in Accounts Receivable [Abstract] | ||||||
Gross accounts receivable | 2,747 | 2,532 | 0 | |||
Miscellaneous accounts receivable [Member] | ||||||
Changes in Accounts Receivable [Abstract] | ||||||
Gross accounts receivable | 1,236 | 3,781 | 786 | |||
Developer receivable [Member] | ||||||
Changes in Accounts Receivable [Abstract] | ||||||
Gross accounts receivable | $ 2,089 | $ 1,151 | $ 698 |
REVENUE RECOGNITION, Disaggrega
REVENUE RECOGNITION, Disaggregated Revenues (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) Contract | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
REVENUE RECOGNITION [Abstract] | |||
Minimum number of days due for accounts receivable from tariff contract customers | 25 days | ||
Reserve or reduction to revenue | $ 0 | $ 0 | |
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 | ||
Number of operation contracts paid in advance | Contract | 1 | ||
Disaggregation of Revenue [Abstract] | |||
Other Operating Revenue not in scope of ASC 606 | $ 1,591 | 1,881 | $ 2,230 |
Revenue from acquisition | 98,861 | 98,897 | 90,859 |
Tariff Revenue [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Revenue from acquisition | 89,987 | 87,424 | 82,248 |
Tariff Revenue [Member] | Consumption Charges [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Revenue from acquisition | 49,051 | 47,809 | 47,924 |
Tariff Revenue [Member] | Fixed Fees [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Revenue from acquisition | 33,074 | 31,431 | 27,977 |
Tariff Revenue [Member] | Service Charges [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Revenue from acquisition | 682 | 597 | 579 |
Tariff Revenue [Member] | DSIC [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Revenue from acquisition | 4,727 | 5,085 | 5,093 |
Tariff Revenue [Member] | Metered Wastewater Services [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Revenue from acquisition | 602 | 649 | 0 |
Tariff Revenue [Member] | Industrial Wastewater Services [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Revenue from acquisition | 1,851 | 1,853 | 675 |
Non-Tariff Revenue [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Revenue from acquisition | 7,283 | 9,592 | 6,381 |
Non-Tariff Revenue [Member] | Service Line Protection Plans [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Revenue from acquisition | 5,632 | 5,020 | 4,594 |
Non-Tariff Revenue [Member] | Contract Operations [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Revenue from acquisition | 1,046 | 931 | 884 |
Non-Tariff Revenue [Member] | Design and Installation [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Revenue from acquisition | 181 | 3,315 | 562 |
Non-Tariff Revenue [Member] | Inspection Fees [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Revenue from acquisition | $ 424 | $ 326 | $ 341 |
REVENUE RECOGNITION, Contract A
REVENUE RECOGNITION, Contract Assets and Contract Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Contract with Customer, Asset and Liability [Abstract] | |||
Total Deferred Revenue | $ 1,839 | $ 1,669 | $ 1,514 |
Tariff Revenue [Member] | |||
Contract with Customer, Asset and Liability [Abstract] | |||
Contract Assets | 3,043 | 2,618 | 2,144 |
Total Deferred Revenue | 1,300 | 1,231 | 1,227 |
Deferred revenue recognized | 1,200 | 1,200 | |
Non-Tariff Revenue [Member] | |||
Contract with Customer, Asset and Liability [Abstract] | |||
Total Deferred Revenue | 539 | 438 | $ 287 |
Deferred revenue recognized | $ 300 | $ 300 |
REVENUE RECOGNITION, Remaining
REVENUE RECOGNITION, Remaining Performance Obligation (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Dec. 31, 2023 |
Tariff Revenue [Member] | |
Remaining Performance Obligation [Abstract] | |
Expected timing of satisfaction for remaining performance obligation | 3 months |
Wastewater Inspection Revenue [Member] | |
Remaining Performance Obligation [Abstract] | |
Expected timing of satisfaction for remaining performance obligation | 3 months |
Contract Services Revenue [Member] | |
Remaining Performance Obligation [Abstract] | |
Expected timing of satisfaction for remaining performance obligation | 6 years |
SLP Plan Revenue [Member] | |
Remaining Performance Obligation [Abstract] | |
Expected timing of satisfaction for remaining performance obligation | 1 year |
LEASES (Details)
LEASES (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating Lease, Description [Abstract] | |||
Option to extend lease term | 66 years | ||
Percentage of increase in annual lease payments | 3% | ||
Rent Expense [Abstract] | |||
Minimum rentals | $ 34,000 | $ 32,000 | |
Contingent rentals | 0 | 0 | |
Rent expenses | 34,000 | 32,000 | |
Cash paid for amounts included in the measurement of lease liabilities [Abstract] | |||
Operating cash flows from operating leases | 34,000 | 32,000 | |
Right-of-use assets obtained in exchange for lease obligations [Abstract] | |||
Operating leases | 506,000 | 467,000 | |
Operating leases [Abstract] | |||
Operating lease right-of-use assets | 506,000 | 467,000 | |
Operating lease, liability [Abstract] | |||
Other current liabilities | $ 9,000 | $ 2,000 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other | Other | |
Operating lease liabilities | $ 503,000 | $ 466,000 | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Operating lease liabilities | Operating lease liabilities | |
Total operating lease liabilities | $ 512,000 | $ 468,000 | |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Total lease liabilities recognized | Total lease liabilities recognized | |
Weighted Average Remaining Lease Term [Abstract] | |||
Operating leases | 58 years | 61 years | |
Weighted Average Discount Rate [Abstract] | |||
Operating leases | 5% | 5% | |
Maturities of Operating Lease Liabilities [Abstract] | |||
2024 | $ 35,000 | ||
2025 | 35,000 | ||
2026 | 35,000 | ||
2027 | 35,000 | ||
2028 | 29,000 | ||
Thereafter | 1,429,000 | ||
Total | 1,598,000 | ||
Less effects of discounting | (1,086,000) | ||
Total lease liabilities recognized | $ 512,000 | $ 468,000 | |
Artesian Water [Member] | Land Improvements [Member] | |||
Operating Lease, Description [Abstract] | |||
Operating lease period | 33 years | ||
Portion of lease term determining annual lease payment | 11 years | ||
Rental payments | $ 19,000 | 19,000 | $ 17,000 |
Artesian Water [Member] | Office Equipment [Member] | |||
Operating Lease, Description [Abstract] | |||
Operating lease period | 5 years | ||
Rental payments | $ 6,000 | $ 5,000 | $ 19,000 |
Minimum [Member] | |||
Operating Lease, Description [Abstract] | |||
Remaining lease term | 4 years | ||
Maximum [Member] | |||
Operating Lease, Description [Abstract] | |||
Remaining lease term | 73 years |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Carrying Amount [Member] | ||
Long-term Financial Liabilities [Abstract] | ||
Long-term debt | $ 180,542 | $ 177,622 |
Estimated Fair Value [Member] | ||
Long-term Financial Liabilities [Abstract] | ||
Long-term debt | $ 162,720 | $ 155,425 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 31, 2019 | |
Income Taxes [Abstract] | ||||||
Federal corporate tax rate | 21% | 21% | 21% | 34% | ||
Decrease in the net deferred income tax liability | $ (24,300,000) | |||||
Net regulatory liability amount | $ 22,800,000 | |||||
Income Tax Examination, Operating Loss Carryforwards [Abstract] | ||||||
Valuation allowance | $ 906,000 | $ 600,000 | ||||
Federal income taxes [Abstract] | ||||||
Current | 1,946,000 | 2,912,000 | $ 2,144,000 | |||
Deferred | 1,968,000 | 930,000 | 1,601,000 | |||
Total federal income tax expense | 3,914,000 | 3,842,000 | 3,745,000 | |||
State income taxes [Abstract] | ||||||
Current | 1,016,000 | 1,373,000 | 1,216,000 | |||
Deferred | 1,418,000 | 663,000 | 776,000 | |||
Total state income tax expense | 2,434,000 | 2,036,000 | 1,992,000 | |||
Reconciliation of effective tax rate [Abstract] | ||||||
Income before federal and state income taxes | $ 23,047,000 | $ 23,876,000 | $ 22,564,000 | |||
Income before federal and state income taxes | 100% | 100% | 100% | |||
Income Tax Expense (Benefit) [Abstract] | ||||||
Amount computed at statutory rate | $ 4,840,000 | $ 5,014,000 | $ 4,738,000 | |||
Amount computed at statutory rate | 21% | 21% | 21% | 34% | ||
State income tax-net of federal tax benefit | $ 1,918,000 | $ 1,696,000 | $ 1,600,000 | |||
State income tax-net of federal tax benefit | 8.30% | 7.10% | 7.10% | |||
Regulatory liability adjustment | $ (449,000) | $ (450,000) | $ (451,000) | |||
Regulatory liability adjustment | (1.90%) | (1.90%) | (2.00%) | |||
Other | $ 39,000 | $ (382,000) | $ (150,000) | |||
Other | 0.20% | (1.60%) | (0.70%) | |||
Total income tax expense | $ 6,348,000 | $ 5,878,000 | $ 5,737,000 | |||
Total effective income tax rate | 27.60% | 24.60% | 25.40% | |||
Deferred tax assets related to [Abstract] | ||||||
State operating loss carry-forwards | $ 1,037,000 | $ 922,000 | ||||
Valuation allowance | (906,000) | (600,000) | ||||
Bad debt allowance | 92,000 | 116,000 | ||||
Stock options | 47,000 | 47,000 | ||||
Other | 48,000 | 28,000 | ||||
Total deferred tax assets | 318,000 | 513,000 | ||||
Deferred tax liabilities related to [Abstract] | ||||||
Property plant and equipment basis differences | (56,012,000) | (52,565,000) | ||||
Bond retirement costs | (982,000) | (1,058,000) | ||||
Property taxes | (624,000) | (609,000) | ||||
Other | (1,081,000) | (833,000) | ||||
Total deferred tax liabilities | (58,699,000) | (55,065,000) | ||||
Net deferred tax liability | (58,381,000) | (54,552,000) | ||||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense [Abstract] | ||||||
Balance at beginning of year | 146,000 | 202,000 | ||||
Additions based on tax positions related to the current year | 0 | 146,000 | ||||
Additions based on tax positions related to prior years | 12,000 | 10,000 | ||||
Reductions for tax positions of prior years | 0 | 0 | ||||
Lapses in statutes of limitations | 0 | (212,000) | ||||
Balance at end of year | 158,000 | 146,000 | $ 202,000 | |||
Valuation Allowance for Deferred Tax Assets [Member] | ||||||
Valuation Allowances and Reserves [Roll Forward] | ||||||
Balance at Beginning Of Period | 600,000 | 546,000 | 493,000 | |||
Additions Charged to Costs and Expenses | 312,000 | 54,000 | 53,000 | |||
Deductions | 6,000 | 0 | 0 | |||
Balance at End of Period | 906,000 | $ 600,000 | $ 546,000 | |||
DEPSC [Member] | ||||||
Income Taxes [Abstract] | ||||||
Net regulatory liability amount | $ 22,200,000 | |||||
MDPSC [Member] | ||||||
Income Taxes [Abstract] | ||||||
Net regulatory liability amount | 600,000 | |||||
State Authorities [Member] | ||||||
Income Tax Examination, Operating Loss Carryforwards [Abstract] | ||||||
Net operating loss carry-forwards | $ 15,700,000 |
PREFERRED STOCK (Details)
PREFERRED STOCK (Details) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
PREFERRED STOCK [Abstract] | ||
Preferred stock outstanding (in shares) | 0 | 0 |
Preferred stock authorized (in shares) | 100,000 | 100,000 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
COMMON STOCK AND ADDITIONAL P_2
COMMON STOCK AND ADDITIONAL PAID-IN CAPITAL (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
COMMON STOCK AND ADDITIONAL PAID-IN CAPITAL [Abstract] | |||
Dividend reinvestment plan (in shares) | 8,000 | 7,000 | 10,000 |
Dividend reinvestment plan | $ 381 | $ 373 | $ 392 |
DEBT, Lines of Credit (Details)
DEBT, Lines of Credit (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Aug. 03, 2023 | May 20, 2022 | Oct. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Artesian Water [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Weighted average interest rate paid on the lines of credit | 6.27% | ||||
Citizens Bank [Member] | Artesian Resources [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Line of credit | $ 40 | ||||
Available funds under this line of credit | $ 40 | ||||
Expiration date of line of credit | May 20, 2024 | ||||
Citizens Bank [Member] | LIBOR [Member] | Artesian Resources [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Variable rate for credit facility | LIBOR | ||||
Interest rate | 1% | ||||
Citizens Bank [Member] | SOFR [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Interest rate | 0.10% | ||||
Citizens Bank [Member] | SOFR [Member] | Artesian Resources [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Term of variable rate | 1 month | ||||
Variable rate for credit facility | SOFR | ||||
Citizens Bank [Member] | Term SOFR [Member] | Artesian Resources [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Interest rate | 1.10% | 0.85% | |||
Citizens Bank [Member] | Term SOFR [Member] | Artesian Resources [Member] | Minimum [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Debt instrument variable rate percentage | 0% | ||||
CoBank [Member] | Artesian Resources [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Line of credit | $ 20 | ||||
Available funds under this line of credit | $ 20 | ||||
CoBank [Member] | Artesian Water [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Expiration date of line of credit | Oct. 31, 2024 | ||||
Patronage refunds | $ 1.6 | $ 1.5 | |||
CoBank [Member] | Artesian Water Maryland [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Line of credit | $ 10 | ||||
CoBank [Member] | LIBOR [Member] | Artesian Water [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Variable rate for credit facility | LIBOR | ||||
Interest rate | 1.50% | ||||
CoBank [Member] | SOFR [Member] | Artesian Water [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Interest rate | 1.45% | ||||
CoBank [Member] | Term SOFR [Member] | Artesian Water [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Interest rate | 1.45% | ||||
CoBank [Member] | Term SOFR [Member] | Artesian Water [Member] | Minimum [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Term of variable rate | 1 month | ||||
CoBank [Member] | Term SOFR [Member] | Artesian Water [Member] | Maximum [Member] | |||||
Line of Credit Facility [Abstract] | |||||
Term of variable rate | 3 months |
DEBT, Long-Term Debt (Details)
DEBT, Long-Term Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Long-term debt consists of [Abstract] | ||
Long term debt | $ 180,542 | $ 177,622 |
Less: current maturities (principal amount) | 2,235 | 2,003 |
Total long-term debt | 178,307 | 175,619 |
Payments of principal amounts due during the next five years and thereafter [Abstract] | ||
2024 | 2,235 | |
2025 | 2,246 | |
2026 | 2,213 | |
2027 | 2,258 | |
2028 | 26,993 | |
Thereafter | 144,597 | |
Asset Purchase-Contractual Obligation [Member] | ||
Payments of principal amounts due during the next five years and thereafter [Abstract] | ||
2024 | 314 | |
2025 | 314 | |
2026 | 314 | |
2027 | 313 | |
2028 | 0 | |
Thereafter | 0 | |
First Mortgage Bonds [Member] | ||
Long-term debt consists of [Abstract] | ||
Long term debt | 156,000 | 156,600 |
Payments of principal amounts due during the next five years and thereafter [Abstract] | ||
2024 | 600 | |
2025 | 600 | |
2026 | 600 | |
2027 | 600 | |
2028 | 25,600 | |
Thereafter | 128,000 | |
First Mortgage Bonds [Member] | Series R [Member] | ||
Long-term debt consists of [Abstract] | ||
Long term debt | $ 25,000 | 25,000 |
Interest rate, stated percentage | 5.96% | |
Maturity date | Dec. 31, 2028 | |
First Mortgage Bonds [Member] | Series S [Member] | ||
Long-term debt consists of [Abstract] | ||
Long term debt | $ 6,000 | 6,600 |
Interest rate, stated percentage | 4.45% | |
Maturity date | Dec. 31, 2033 | |
First Mortgage Bonds [Member] | Series T [Member] | ||
Long-term debt consists of [Abstract] | ||
Long term debt | $ 40,000 | 40,000 |
Interest rate, stated percentage | 4.24% | |
Maturity date | Dec. 20, 2036 | |
First Mortgage Bonds [Member] | Series U [Member] | ||
Long-term debt consists of [Abstract] | ||
Long term debt | $ 25,000 | 25,000 |
Interest rate, stated percentage | 4.71% | |
Maturity date | Jan. 31, 2038 | |
First Mortgage Bonds [Member] | Series V [Member] | ||
Long-term debt consists of [Abstract] | ||
Long term debt | $ 30,000 | 30,000 |
Interest rate, stated percentage | 4.42% | |
Maturity date | Oct. 31, 2049 | |
First Mortgage Bonds [Member] | Series W [Member] | ||
Long-term debt consists of [Abstract] | ||
Long term debt | $ 30,000 | 30,000 |
Interest rate, stated percentage | 4.43% | |
Maturity date | Apr. 30, 2047 | |
State Revolving Fund Loans [Member] | ||
Long-term debt consists of [Abstract] | ||
Long term debt | $ 13,132 | 8,975 |
Payments of principal amounts due during the next five years and thereafter [Abstract] | ||
2024 | 756 | |
2025 | 852 | |
2026 | 794 | |
2027 | 813 | |
2028 | 834 | |
Thereafter | 9,083 | |
State Revolving Fund Loans [Member] | 3.57%, due 09/01/2023 [Member] | ||
Long-term debt consists of [Abstract] | ||
Long term debt | $ 0 | 102 |
Interest rate, stated percentage | 3.57% | |
Maturity date | Sep. 01, 2023 | |
State Revolving Fund Loans [Member] | 3.64%, due 05/01/2025 [Member] | ||
Long-term debt consists of [Abstract] | ||
Long term debt | $ 228 | 373 |
Interest rate, stated percentage | 3.64% | |
Maturity date | May 01, 2025 | |
State Revolving Fund Loans [Member] | 3.41%, due 02/01/2031 [Member] | ||
Long-term debt consists of [Abstract] | ||
Long term debt | $ 1,415 | 1,577 |
Interest rate, stated percentage | 3.41% | |
Maturity date | Feb. 01, 2031 | |
State Revolving Fund Loans [Member] | 3.40%, due 07/01/2032 [Member] | ||
Long-term debt consists of [Abstract] | ||
Long term debt | $ 1,445 | 1,590 |
Interest rate, stated percentage | 3.40% | |
Maturity date | Jul. 01, 2032 | |
State Revolving Fund Loans [Member] | 1.187% due 11/01/2041 [Member] | ||
Long-term debt consists of [Abstract] | ||
Long term debt | $ 588 | 617 |
Interest rate, stated percentage | 1.187% | |
Maturity date | Nov. 01, 2041 | |
State Revolving Fund Loans [Member] | 1.187% due 11/01/2041 [Member] | ||
Long-term debt consists of [Abstract] | ||
Long term debt | $ 690 | 724 |
Interest rate, stated percentage | 1.187% | |
Maturity date | Nov. 01, 2041 | |
State Revolving Fund Loans [Member] | 1.187% due 11/01/2041 [Member] | ||
Long-term debt consists of [Abstract] | ||
Long term debt | $ 1,075 | 1,128 |
Interest rate, stated percentage | 1.187% | |
Maturity date | Nov. 01, 2041 | |
State Revolving Fund Loans [Member] | 2.00% Due 02/01/2043 [Member] | ||
Long-term debt consists of [Abstract] | ||
Long term debt | $ 828 | 846 |
Interest rate, stated percentage | 2% | |
Maturity date | Feb. 01, 2043 | |
State Revolving Fund Loans [Member] | 2.00% Due 02/01/2043 [Member] | ||
Long-term debt consists of [Abstract] | ||
Long term debt | $ 1,143 | 974 |
Interest rate, stated percentage | 2% | |
Maturity date | Feb. 01, 2043 | |
State Revolving Fund Loans [Member] | 2.00% Due 06/01/2043 [Member] | ||
Long-term debt consists of [Abstract] | ||
Long term debt | $ 1,002 | 1,044 |
Interest rate, stated percentage | 2% | |
Maturity date | Jun. 01, 2043 | |
State Revolving Fund Loans [Member] | 2.00% Due 06/01/2043 [Member] | ||
Long-term debt consists of [Abstract] | ||
Long term debt | $ 1,022 | 0 |
Interest rate, stated percentage | 2% | |
Maturity date | Jun. 01, 2043 | |
State Revolving Fund Loans [Member] | 2.00% Due 02/01/2044 [Member] | ||
Long-term debt consists of [Abstract] | ||
Long term debt | $ 2,696 | 0 |
Interest rate, stated percentage | 2% | |
Maturity date | Feb. 01, 2044 | |
State Revolving Fund Loans [Member] | 2.00% Due 01/01/2043 [Member] | ||
Long-term debt consists of [Abstract] | ||
Long term debt | $ 1,000 | 0 |
Interest rate, stated percentage | 2% | |
Maturity date | Jan. 01, 2043 | |
State Revolving Fund Loans [Member] | Promissory Note [Member] | ||
Payments of principal amounts due during the next five years and thereafter [Abstract] | ||
2024 | $ 565 | |
2025 | 480 | |
2026 | 505 | |
2027 | 532 | |
2028 | 559 | |
Thereafter | 7,514 | |
Notes Payable [Member] | ||
Long-term debt consists of [Abstract] | ||
Long term debt | 11,410 | 12,047 |
Notes Payable [Member] | Promissory Note [Member] | ||
Long-term debt consists of [Abstract] | ||
Long term debt | $ 10,155 | 10,478 |
Interest rate, stated percentage | 5.12% | |
Maturity date | Dec. 30, 2028 | |
Notes Payable [Member] | Asset Purchase-Contractual Obligation [Member] | ||
Long-term debt consists of [Abstract] | ||
Long term debt | $ 1,255 | $ 1,569 |
Interest rate, stated percentage | 2% | |
Maturity date | May 26, 2027 |
STOCK COMPENSATION PLANS (Detai
STOCK COMPENSATION PLANS (Details) | 12 Months Ended | |||||
May 09, 2023 $ / shares shares | May 03, 2022 $ / shares shares | May 04, 2021 $ / shares shares | Dec. 31, 2023 USD ($) Director $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | |
Stock Compensation Plans [Abstract] | ||||||
Number of directors in committee | Director | 3 | |||||
Weighted Average Exercise Price [Abstract] | ||||||
Total intrinsic value of options exercised | $ | $ 137,000 | $ 2,226,000 | $ 736,000 | |||
Received cash from the exercise of options | $ | 148,000 | |||||
Tax benefit realized during the period | $ | 410,000 | |||||
Weighted Average Exercise Price [Abstract] | ||||||
Intrinsic value of awards | $ | $ 272,600 | |||||
Employee and Director [Member] | ||||||
Options Outstanding [Abstract] | ||||||
Shares Outstanding (in shares) | shares | 0 | |||||
Weighted Average Exercise Price (in dollars per shares) | $ 0 | |||||
Aggregate Intrinsic Value | $ | $ 0 | |||||
Options Exercisable [Abstract] | ||||||
Shares Exercisable (in shares) | shares | 0 | |||||
Weighted Average Exercise Price (in dollars per shares) | $ 0 | |||||
Aggregate Intrinsic Value | $ | $ 0 | |||||
Restricted Stock Awards [Member] | ||||||
Stock Compensation Plans [Abstract] | ||||||
Share-based compensation expense | $ | 254,000 | $ 152,000 | $ 193,000 | |||
Restricted Stock Awards [Member] | 2015 Equity Compensation Plan [Member] | ||||||
Weighted Average Exercise Price [Abstract] | ||||||
Unrecognized expense related to non-vested option shares | $ | $ 97,000 | |||||
Award vesting period | 4 months 6 days | |||||
Class A Stock [Member] | Stock Options [Member] | ||||||
Shares [Roll Forward] | ||||||
Outstanding at beginning of period (in shares) | shares | 6,750 | 83,000 | 116,347 | |||
Granted (in shares) | shares | 0 | 0 | 0 | |||
Exercised/vested and released (in shares) | shares | (6,750) | (76,250) | (33,347) | |||
Expired (in shares) | shares | 0 | 0 | 0 | |||
Outstanding at end of period (in shares) | shares | 0 | 6,750 | 83,000 | |||
Options exercisable at year end (in shares) | shares | 0 | 6,750 | 83,000 | |||
Weighted Average Exercise Price [Abstract] | ||||||
Outstanding at beginning of period (in dollars per shares) | $ 21.86 | $ 21.65 | $ 20.9 | |||
Granted, weighted average exercise price (in dollars per share) | 0 | 0 | 0 | |||
Exercised/vested and released, weighted average exercise price (in dollars per shares) | 21.86 | 21.63 | 19.04 | |||
Expired/cancelled, weighted average exercise price (in dollars per share) | 0 | 0 | 0 | |||
Outstanding at end of period (in dollars per shares) | 0 | 21.86 | 21.65 | |||
Options exercisable at period end (in dollars per shares) | $ 0 | $ 21.86 | $ 21.65 | |||
Class A Stock [Member] | Restricted Stock Awards [Member] | ||||||
Shares [Roll Forward] | ||||||
Outstanding at beginning of period (in shares) | shares | 5,000 | 5,000 | 5,000 | |||
Granted (in shares) | shares | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 |
Exercised/vested and released (in shares) | shares | (5,000) | (5,000) | (5,000) | |||
Cancelled (in shares) | shares | 0 | 0 | 0 | |||
Outstanding at end of period (in shares) | shares | 5,000 | 5,000 | 5,000 | |||
Weighted Average Grant Date Fair Value [Abstract] | ||||||
Outstanding at beginning of period (in dollars per shares) | $ 45.58 | $ 40.11 | ||||
Granted (in dollars per shares) | 54.88 | 45.58 | ||||
Vested/Released (in dollars per shares) | 45.58 | 40.11 | ||||
Cancelled (in dollars per shares) | 0 | 0 | ||||
Outstanding at end of period (in dollars per shares) | $ 54.88 | 45.58 | $ 40.11 | |||
Weighted Average Exercise Price [Abstract] | ||||||
Outstanding at beginning of year (in dollars per shares) | $ 40.11 | 35.01 | ||||
Granted (in dollars per shares) | 40.11 | |||||
Vested/Released (in dollars per shares) | 35.01 | |||||
Cancelled (in dollars per shares) | 0 | |||||
Unvested Outstanding at end of year (in dollars per shares) | $ 40.11 | |||||
Period after grant date in which shares vested and were released | 1 year | 1 year | ||||
Fair market value (in dollars per share) | $ 54.88 | $ 45.58 | $ 40.11 |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) - 401(k) Plan [Member] - Artesian Resources [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Retirement Benefits, Description [Abstract] | |||
Percentages of contribution of eligible salaries and wages by Artesian Resources | 2% | ||
Percentages of matched employee contributions | 6% | ||
Gross pay rate of matched employee contributions | 50% | ||
Entity contributions and administrative fees | $ 1.4 | $ 1.3 | $ 1.2 |
Maximum [Member] | |||
Retirement Benefits, Description [Abstract] | |||
Percentages of additional contribution of eligible salaries and wages by Artesian Resources | 6% |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) | 1 Months Ended | 12 Months Ended | |||
Sep. 30, 2022 USD ($) | Apr. 30, 2021 USD ($) | Dec. 31, 2023 USD ($) a gal / d Agreement Term | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Summary of minimum annual payments related to easement agreements [Abstract] | |||||
2024 | $ 35,000 | ||||
2025 | 35,000 | ||||
2026 | 35,000 | ||||
2027 | 35,000 | ||||
2028 | 29,000 | ||||
2029 through 2044 | 1,429,000 | ||||
Total | 1,598,000 | ||||
Summary of minimum annual purchase commitments for all interconnection agreements [Abstract] | |||||
2024 | 870,000 | ||||
2025 | 881,000 | ||||
2026 | 881,000 | ||||
2027 | 57,000 | ||||
2028 | 57,000 | ||||
Total | 2,746,000 | ||||
Expenses for purchased water | $ 1,300,000 | $ 1,800,000 | $ 4,300,000 | ||
Artesian Water [Member] | |||||
Interconnections [Abstract] | |||||
Number of water service interconnection agreements | Agreement | 1 | ||||
Term of renewal for water service interconnection agreements | 5 years | ||||
Minimum purchase requirements of water | gal / d | 0.5 | ||||
Other Commitments [Abstract] | |||||
Agreement period | 4 years | 3 years | |||
Expenditure from agreement | $ 2,200,000 | $ 1,200,000 | |||
Tank painting expense | $ 689,000 | 531,000 | 222,000 | ||
Summary of other commitment [Abstract] | |||||
2024 | 8,200,000 | ||||
2025 | 8,500,000 | ||||
2026 | 8,550,000 | ||||
Total | $ 25,250,000 | ||||
Artesian Water Pennsylvania [Member] | |||||
Easements [Abstract] | |||||
Easement agreement period | 40 years | ||||
Easement payments | $ 45,000 | 43,000 | 42,000 | ||
Summary of minimum annual payments related to easement agreements [Abstract] | |||||
2024 | 67,000 | ||||
2025 | 47,000 | ||||
2026 | 49,000 | ||||
2027 | 50,000 | ||||
2028 | 52,000 | ||||
2029 through 2044 | 868,000 | ||||
Total | $ 1,133,000 | ||||
Artesian Wastewater [Member] | |||||
Easements [Abstract] | |||||
Area of land use as per perpetual agreement (in acres) | a | 460 | ||||
Minimum rentals payment per year | $ 40,000 | ||||
Termination Period | 180 days | ||||
Rental payments | $ 126,000 | $ 113,000 | $ 65,000 | ||
Artesian Water Maryland [Member] | |||||
Interconnections [Abstract] | |||||
Number of water service interconnection agreements | Agreement | 1 | ||||
Number of renewal terms for water service interconnection agreements | Term | 2 | ||||
Term of renewal for water service interconnection agreements | 5 years | ||||
Minimum purchase requirements of water | gal / d | 35,000 |
GEOGRAPHIC CONCENTRATION OF C_2
GEOGRAPHIC CONCENTRATION OF CUSTOMERS (Details) | 12 Months Ended |
Dec. 31, 2023 Customer County | |
Concentration Risks [Abstract] | |
Number of counties in which water utility service provided | County | 3 |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | |
Concentration Risks [Abstract] | |
Number of customers | 1 |
Artesian Water [Member] | |
Concentration Risks [Abstract] | |
Number of customers | 95,900 |
Artesian Water Maryland [Member] | |
Concentration Risks [Abstract] | |
Number of customers | 2,600 |
Artesian Water Pennsylvania [Member] | |
Concentration Risks [Abstract] | |
Number of customers | 40 |
Artesian Wastewater [Member] | |
Concentration Risks [Abstract] | |
Number of customers | 8,100 |
REGULATORY PROCEEDINGS (Details
REGULATORY PROCEEDINGS (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Apr. 28, 2023 | Nov. 20, 2020 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Water and Wastewater Rates [Abstract] | |||||
Percentage of DSIC rate upon implementation of temporary increase in base rates charged to customers | 15.16% | ||||
Percentage of revenue increase requested for new rates | 22.66% | ||||
Annual revenue performance obligation | $ 16.7 | ||||
Percentage of distribution system infrastructure charge | 7.50% | ||||
Percentage of DSIC rate upon implementation of temporary increase in base rates charged to customers | 15.16% | ||||
Percentage of temporary rates permitted | 15% | ||||
Amount of temporary rates permitted | $ 2.5 | ||||
Period permitted to implement temporary rates | 60 days | ||||
Term of statutory resolve timeframe | 7 months | ||||
Other Proceedings [Abstract] | |||||
Cumulative DSIC Rate | 7.50% | ||||
Net Eligible Plant Improvements - Cumulative Dollars | $ 43.1 | ||||
Maximum [Member] | |||||
Water and Wastewater Rates [Abstract] | |||||
Percentage of gross water sales in temporary rate increase placed into effect until new rates approved | 15% | ||||
Delaware [Member] | |||||
Water and Wastewater Rates [Abstract] | |||||
Temporary annual rate increase subject to 15% gross water sales limitation | $ 2.5 | ||||
Percentage of DSIC rate upon implementation of temporary increase in base rates charged to customers | 0% | ||||
Percentage of gross water sales | 15% | ||||
Period to complete rate case by law | 7 months | ||||
Percentage of rate relief allowed should a rate case not complete | 15% | ||||
Percentage of DSIC rate upon implementation of temporary increase in base rates charged to customers | 0% | ||||
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% | ||||
Artesian Water [Member] | |||||
Other Proceedings [Abstract] | |||||
Revenue earned in DSIC rate increases | $ 4.7 | $ 5.1 | $ 5.1 |
NET INCOME PER COMMON SHARE A_3
NET INCOME PER COMMON SHARE AND EQUITY PER COMMON SHARE (Details) - $ / shares | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | May 23, 2023 | ||
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) | 10,018,000 | 9,462,000 | 9,394,000 | ||
Dilutive effect of employee stock options and awards (in shares) | 4,000 | 19,000 | 32,000 | ||
Weighted average common shares outstanding during the period for Diluted computation (in shares) | 10,022,000 | 9,481,000 | 9,426,000 | ||
Earnings Per Share [Abstract] | |||||
Equity per common share (in dollars per share) | $ 1.67 | $ 1.9 | $ 1.79 | ||
Class A Stock [Member] | |||||
Common Stock [Abstract] | |||||
Common stock, par value (in dollars per share) | $ 1 | ||||
Common Stock [Member] | |||||
Earnings Per Share [Abstract] | |||||
Equity per common share (in dollars per share) | $ 23 | $ 19.86 | $ 18.94 | ||
Common Stock [Member] | Class A Stock [Member] | |||||
Common Stock [Abstract] | |||||
Common stock, shares authorized (in shares) | 15,000,000 | 15,000,000 | 15,000,000 | ||
Common stock, shares issued (in shares) | 9,404,311 | 8,621,415 | 8,532,795 | ||
Common stock, shares outstanding (in shares) | 9,404,311 | 8,621,415 | 8,532,795 | ||
Common stock, par value (in dollars per share) | $ 1 | ||||
Common stock, shares issued during period (in shares) | [1],[2],[3] | 763,000 | |||
Common Stock [Member] | Class B Stock [Member] | |||||
Common Stock [Abstract] | |||||
Common stock, shares authorized (in shares) | 1,040,000 | 1,040,000 | 1,040,000 | ||
Common stock, shares issued (in shares) | 881,452 | 881,452 | 881,452 | ||
Common stock, shares outstanding (in shares) | 881,452 | 881,452 | 881,452 | ||
Common stock, par value (in dollars per share) | $ 1 | ||||
Stock Option [Member] | |||||
Common Stock [Abstract] | |||||
Shares excluded from calculations of diluted net income per share (in shares) | 0 | 0 | 0 | ||
Restricted Stock [Member] | |||||
Common Stock [Abstract] | |||||
Shares excluded from calculations of diluted net income per share (in shares) | 0 | 0 | 0 | ||
[1] Artesian Resources Corporation registered shares of Class A Stock, subsequently adjusted for stock splits, available for purchase through |
COMMON STOCK OFFERING (Details)
COMMON STOCK OFFERING (Details) - Class A Stock [Member] - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jun. 16, 2023 | May 23, 2023 | Dec. 31, 2023 | |
Sale of Common Stock [Abstract] | |||
Sale of common stock (in shares) | 695,650 | ||
Common stock, par value (in dollars per share) | $ 1 | ||
Sale of stock, share price (in dollars per share) | $ 50 | ||
Net proceeds from issuance of common stock | $ 3.2 | $ 33 | |
Option for underwriters to purchase additional units, term | 30 days | ||
Option to purchase additional common shares (in shares) | 67,689 | 104,348 |
BUSINESS COMBINATIONS (Details)
BUSINESS COMBINATIONS (Details) $ in Thousands | 12 Months Ended | ||||
May 26, 2022 USD ($) Installment | Jan. 14, 2022 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Business Combinations [Abstract] | |||||
Consideration transferred | $ 0 | $ 6,341 | $ 0 | ||
Amount of purchase price paid | 0 | 6,621 | 0 | ||
Remaining purchase price | 0 | 1,569 | 0 | ||
Preliminary purchase price allocation [Abstract] | |||||
Utility plant | 0 | 33,345 | 0 | ||
Cash | 0 | 280 | 0 | ||
Goodwill | 1,939 | 1,939 | |||
Other assets | 0 | 1,033 | 0 | ||
Total assets | 0 | 36,597 | 0 | ||
Less: Liabilities and contributions in aid of construction (CIAC) [Abstract] | |||||
Liabilities | 0 | 2,828 | 0 | ||
CIAC | 0 | $ 25,597 | $ 0 | ||
Utility Plant [Member] | |||||
Less: Liabilities and contributions in aid of construction (CIAC) [Abstract] | |||||
CIAC | $ 2,900 | ||||
Net cash purchase price | 7,900 | ||||
Tidewater Environmental Services Inc [Member] | |||||
Business Combinations [Abstract] | |||||
Consideration transferred | $ 6,400 | ||||
Note forgiven | 2,100 | ||||
Amount of purchase price paid | $ 3,100 | ||||
Preliminary purchase price allocation [Abstract] | |||||
Utility plant | 25,354 | ||||
Cash | 280 | ||||
Goodwill | 1,939 | ||||
Other assets | 1,033 | ||||
Total assets | 28,606 | ||||
Less: Liabilities and contributions in aid of construction (CIAC) [Abstract] | |||||
Liabilities | 2,808 | ||||
CIAC | 22,676 | ||||
Net cash purchase price | 3,122 | ||||
Clayton [Member] | |||||
Business Combinations [Abstract] | |||||
Amount of purchase price paid | 3,400 | ||||
Remaining purchase price | $ 1,600 | ||||
Number of installments | Installment | 5 | ||||
Interest rate | 2% | ||||
Estimated annual revenue from customers acquired | $ 500 | ||||
Less: Liabilities and contributions in aid of construction (CIAC) [Abstract] | |||||
Net cash purchase price | $ 5,000 |
LEGAL PROCEEDINGS (Details)
LEGAL PROCEEDINGS (Details) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Jul. 19, 2022 USD ($) Installment | Jul. 31, 2023 USD ($) | Aug. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) Refund Installment | |
LEGAL PROCEEDINGS [Abstract] | ||||
Litigation settlement amount | $ 10 | $ 10 | ||
Litigation settlement amount to be received | $ 2.5 | $ 2.5 | ||
Litigation settlement, remaining amount | $ 5 | |||
Number of installments | Installment | 2 | 2 | ||
Number of refunds from Trust | Refund | 2 |
BUSINESS SEGMENT INFORMATION (D
BUSINESS SEGMENT INFORMATION (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) Segment Business Subsidiary | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
BUSINESS SEGMENT INFORMATION [Abstract] | |||
Number of reportable segments | Segment | 1 | ||
Number of regulated utility subsidiaries | Subsidiary | 5 | ||
Number of non-utility businesses | Business | 1 | ||
Segment Reporting, Revenue [Abstract] | |||
Revenues | $ 98,861 | $ 98,897 | $ 90,859 |
Segment Reporting, Operating Income [Abstract] | |||
Operating Income | 22,446 | 23,906 | 22,294 |
Segment Reporting, Income Taxes [Abstract] | |||
Income Taxes | 6,348 | 5,878 | 5,737 |
Segment Reporting, Assets [Abstract] | |||
Assets | 766,832 | 719,791 | |
Intersegment Eliminations [Member] | |||
Segment Reporting, Revenue [Abstract] | |||
Revenues | (244) | (169) | (153) |
Regulated Utility [Member] | Operating Segments [Member] | |||
Segment Reporting, Revenue [Abstract] | |||
Revenues | 92,228 | 89,818 | 85,016 |
Segment Reporting, Operating Income [Abstract] | |||
Operating Income | 21,246 | 22,411 | 20,950 |
Segment Reporting, Income Taxes [Abstract] | |||
Income Taxes | 5,216 | 5,091 | 5,146 |
Segment Reporting, Assets [Abstract] | |||
Assets | 760,339 | 713,113 | |
Other (non-utility) [Member] | Operating Segments [Member] | |||
Segment Reporting, Revenue [Abstract] | |||
Revenues | 6,877 | 9,248 | 5,996 |
Segment Reporting, Operating Income [Abstract] | |||
Operating Income | 1,200 | 1,495 | 1,344 |
Segment Reporting, Income Taxes [Abstract] | |||
Income Taxes | 1,132 | 787 | $ 591 |
Segment Reporting, Assets [Abstract] | |||
Assets | $ 6,493 | $ 6,678 |