Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2024 | Aug. 05, 2024 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Document Transition Report | false | |
Entity File Number | 000-18516 | |
Entity Registrant Name | ARTESIAN RESOURCES CORPORATION | |
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 Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Class A Stock [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 9,414,108 | |
Class B Stock [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 881,452 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
ASSETS | ||
Utility plant, at original cost (less accumulated depreciation - 2024 - $185,089; 2023 - $185,170) | $ 723,823 | $ 714,284 |
Current assets | ||
Cash and cash equivalents | 6,251 | 2,505 |
Accounts and other receivables (less provision for expected credit loss - 2024 $338; 2023 - $328) | 11,676 | 12,830 |
Income tax receivable | 163 | 1,799 |
Unbilled operating revenues | 2,813 | 1,934 |
Materials and supplies | 4,763 | 5,983 |
Prepaid property taxes | 3 | 2,269 |
Prepaid expenses and other | 3,471 | 3,297 |
Total current assets | 29,140 | 30,617 |
Other assets | ||
Non-utility property (less accumulated depreciation - 2024 - $1,084; 2023 - $1,052) | 3,624 | 3,693 |
Other deferred assets | 8,962 | 8,504 |
Goodwill | 1,939 | 1,939 |
Operating lease right of use assets | 501 | 506 |
Total other assets | 15,026 | 14,642 |
Regulatory assets, net | 15,142 | 7,289 |
Total Assets | 783,131 | 766,832 |
Stockholders' equity | ||
Common stock | 10,296 | 10,285 |
Preferred stock | 0 | 0 |
Additional paid-in capital | 143,663 | 143,369 |
Retained earnings | 80,457 | 76,743 |
Total stockholders' equity | 234,416 | 230,397 |
Long-term debt, net of current portion | 177,493 | 178,307 |
Total stockholders' equity and long-term debt | 411,909 | 408,704 |
Current liabilities | ||
Lines of credit | 0 | 0 |
Current portion of long-term debt | 2,228 | 2,235 |
Accounts payable | 7,801 | 9,697 |
Accrued expenses | 4,870 | 3,519 |
Overdraft payable | 74 | 9 |
Accrued interest | 2,246 | 2,275 |
Income taxes payable | 645 | 2 |
Customer and other deposits | 2,898 | 2,983 |
Other | 1,672 | 1,694 |
Total current liabilities | 22,434 | 22,414 |
Commitments and contingencies | ||
Deferred credits and other liabilities | ||
Net advances for construction | 2,593 | 2,797 |
Operating lease liabilities | 499 | 503 |
Regulatory liabilities | 33,467 | 25,676 |
Deferred investment tax credits | 416 | 423 |
Deferred income taxes | 51,044 | 58,381 |
Total deferred credits and other liabilities | 88,019 | 87,780 |
Net contributions in aid of construction | 260,769 | 247,934 |
Total Liabilities and Stockholders' Equity | $ 783,131 | $ 766,832 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
ASSETS | ||
Utility Plant, accumulated depreciation | $ 185,089 | $ 185,170 |
Current assets | ||
Accounts receivable, allowance for doubtful accounts | 338 | 328 |
Other assets | ||
Non-utility property, accumulated depreciation | $ 1,084 | $ 1,052 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Operating revenues | ||||
Total Operating Revenues | $ 27,416 | $ 25,251 | $ 51,960 | $ 47,746 |
Operating expenses | ||||
Utility operating expenses | 12,179 | 11,626 | 24,136 | 22,899 |
Non-utility operating expenses | 1,145 | 1,122 | 2,261 | 2,206 |
Depreciation and amortization | 3,425 | 3,215 | 6,889 | 6,439 |
State and federal income taxes | 1,945 | 1,593 | 3,627 | 2,906 |
Property and other taxes | 1,524 | 1,487 | 3,130 | 3,027 |
Total Operating Expenses | 20,218 | 19,043 | 40,043 | 37,477 |
Operating income | 7,198 | 6,208 | 11,917 | 10,269 |
Other income | ||||
Allowance for funds used during construction (AFUDC) | 367 | 588 | 653 | 1,046 |
Miscellaneous (expense) income | (65) | (12) | 1,508 | 1,591 |
Income before interest charges | 7,500 | 6,784 | 14,078 | 12,906 |
Interest charges | 2,175 | 2,341 | 4,342 | 4,758 |
Net income applicable to common stock | $ 5,325 | $ 4,443 | $ 9,736 | $ 8,148 |
Income per common share: | ||||
Basic (in dollars per share) | $ 0.52 | $ 0.44 | $ 0.95 | $ 0.84 |
Diluted (in dollars per share) | $ 0.52 | $ 0.44 | $ 0.95 | $ 0.84 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 10,293 | 9,998 | 10,290 | 9,752 |
Diluted (in shares) | 10,295 | 10,002 | 10,293 | 9,757 |
Cash dividends per share of common stock (in dollars per share) | $ 0.2955 | $ 0.284 | $ 0.5852 | $ 0.5624 |
Water Sales [Member] | ||||
Operating revenues | ||||
Total Operating Revenues | $ 22,501 | $ 20,636 | $ 42,326 | $ 38,652 |
Other Utility Operating Revenue [Member] | ||||
Operating revenues | ||||
Total Operating Revenues | 3,288 | 3,032 | 6,303 | 5,848 |
Non-Utility Operating Revenue [Member] | ||||
Operating revenues | ||||
Total Operating Revenues | $ 1,627 | $ 1,583 | $ 3,331 | $ 3,246 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 9,736 | $ 8,148 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 6,889 | 6,439 |
Amortization of debt expense | 177 | 178 |
Amortization of deferred income tax regulatory liability | (267) | (222) |
Provision for expected credit loss | 97 | 91 |
Deferred income taxes, net | 264 | 647 |
Stock compensation | 125 | 116 |
AFUDC, equity portion | (443) | (648) |
Changes in assets and liabilities: | ||
Accounts and other receivables | 690 | 1,468 |
Income tax receivable | 1,636 | 640 |
Unbilled operating revenues | (879) | (45) |
Materials and supplies | 1,220 | (1,086) |
Income tax payable | 643 | 181 |
Prepaid property taxes | 2,266 | 2,183 |
Prepaid expenses and other | (174) | (948) |
Other deferred assets | (475) | (494) |
Regulatory assets | (187) | (279) |
Regulatory liabilities | (177) | (38) |
Accounts payable | (1,752) | (1,095) |
Accrued expenses | 34 | 158 |
Accrued interest | (29) | (91) |
Deposits and other | 65 | (82) |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 19,459 | 15,221 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Capital expenditures (net of AFUDC, equity portion) | (18,372) | (32,314) |
Proceeds from sale of assets | 612 | 64 |
NET CASH USED IN INVESTING ACTIVITIES | (17,760) | (32,250) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Repayments under lines of credit agreements | 0 | (23,477) |
Borrowings under lines of credit agreements | 0 | 3,303 |
Increase in overdraft payable | 65 | 515 |
Proceeds from contributions in aid of construction and advances | 8,965 | 10,951 |
Payouts for contributions in aid of construction and advances | (687) | (802) |
Net proceeds from issuance of common stock | 180 | 36,573 |
Issuance of long-term debt | 758 | 1,235 |
Equity issuance costs | 0 | (313) |
Dividends paid | (6,022) | (5,182) |
Principal repayments of long-term debt | (1,212) | (1,160) |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 2,047 | 21,643 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 3,746 | 4,614 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 2,505 | 1,309 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 6,251 | 5,923 |
Non-cash Investing and Financing Activity: | ||
Utility plant received as construction advances and contributions | 6,696 | 1,726 |
Change in amounts included in accounts payable, accrued payables and other related to capital expenditures | 1,008 | (1,168) |
Supplemental Disclosures of Cash Flow Information: | ||
Interest paid | 4,193 | 4,849 |
Income taxes paid | 1,984 | 2,076 |
Income taxes refunded | $ 701 | $ 0 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] Common Shares Class A Non-Voting [Member] | Common Stock [Member] Common Shares Class B Voting [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total | |||
Balance at Dec. 31, 2022 | $ 8,621 | $ 881 | $ 107,143 | $ 71,286 | $ 187,931 | |||
Balance (in shares) at Dec. 31, 2022 | 8,621 | [1],[2],[3] | 881 | [4] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | $ 0 | $ 0 | 0 | 3,705 | 3,705 | |||
Cash dividends declared | ||||||||
Common stock | 0 | 0 | 0 | (2,646) | (2,646) | |||
Issuance of common stock | ||||||||
Dividend reinvestment plan | $ 2 | $ 0 | 91 | 0 | 93 | |||
Dividend reinvestment plan (in shares) | 2 | [1],[2],[3] | 0 | [4] | ||||
Employee stock options and awards | [3] | $ 0 | $ 0 | 56 | 0 | 56 | ||
Employee stock options and awards (in shares) | [3] | 0 | [1],[2] | 0 | [4] | |||
Employee Retirement Plan | [1] | $ 0 | $ 0 | 0 | 0 | 0 | ||
Employee Retirement Plan (in shares) | [1] | 0 | [2],[3] | 0 | [4] | |||
Balance at Mar. 31, 2023 | $ 8,623 | $ 881 | 107,290 | 72,345 | 189,139 | |||
Balance (in shares) at Mar. 31, 2023 | 8,623 | [1],[2],[3] | 881 | [4] | ||||
Balance at Dec. 31, 2022 | $ 8,621 | $ 881 | 107,143 | 71,286 | 187,931 | |||
Balance (in shares) at Dec. 31, 2022 | 8,621 | [1],[2],[3] | 881 | [4] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 8,148 | |||||||
Balance at Jun. 30, 2023 | $ 9,394 | $ 881 | 142,910 | 74,088 | 227,273 | |||
Balance (in shares) at Jun. 30, 2023 | 9,394 | [1],[2],[3] | 881 | [4] | ||||
Balance at Mar. 31, 2023 | $ 8,623 | $ 881 | 107,290 | 72,345 | 189,139 | |||
Balance (in shares) at Mar. 31, 2023 | 8,623 | [1],[2],[3] | 881 | [4] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | $ 0 | $ 0 | 0 | 4,443 | 4,443 | |||
Cash dividends declared | ||||||||
Common stock | 0 | 0 | 0 | (2,700) | (2,700) | |||
Issuance of common stock | ||||||||
Public offering, net of costs | $ 764 | $ 0 | 35,467 | 0 | 36,231 | |||
Public offering, net of costs (in shares) | 764 | [1],[2],[3] | 0 | [4] | ||||
Dividend reinvestment plan | $ 2 | $ 0 | 98 | 0 | 100 | |||
Dividend reinvestment plan (in shares) | 2 | [1],[2],[3] | 0 | [4] | ||||
Employee stock options and awards | [3] | $ 5 | $ 0 | 55 | 0 | 60 | ||
Employee stock options and awards (in shares) | [3] | 5 | [1],[2] | 0 | [4] | |||
Employee Retirement Plan | [1] | $ 0 | $ 0 | 0 | 0 | 0 | ||
Employee Retirement Plan (in shares) | [1] | 0 | [2],[3] | 0 | [4] | |||
Balance at Jun. 30, 2023 | $ 9,394 | $ 881 | 142,910 | 74,088 | 227,273 | |||
Balance (in shares) at Jun. 30, 2023 | 9,394 | [1],[2],[3] | 881 | [4] | ||||
Balance at Dec. 31, 2023 | $ 9,404 | $ 881 | 143,369 | 76,743 | 230,397 | |||
Balance (in shares) at Dec. 31, 2023 | 9,404 | [1],[2],[3] | 881 | [4] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | $ 0 | $ 0 | 0 | 4,411 | 4,411 | |||
Cash dividends declared | ||||||||
Common stock | 0 | 0 | 0 | (2,980) | (2,980) | |||
Issuance of common stock | ||||||||
Dividend reinvestment plan | $ 3 | $ 0 | 87 | 0 | 90 | |||
Dividend reinvestment plan (in shares) | 3 | [1],[2],[3] | 0 | [4] | ||||
Employee stock options and awards | [3] | $ 0 | $ 0 | 68 | 0 | 68 | ||
Employee stock options and awards (in shares) | [3] | 0 | [1],[2] | 0 | [4] | |||
Employee Retirement Plan | [1] | $ 0 | $ 0 | 0 | 0 | 0 | ||
Employee Retirement Plan (in shares) | [1] | 0 | [2],[3] | 0 | [4] | |||
Balance at Mar. 31, 2024 | $ 9,407 | $ 881 | 143,524 | 78,174 | 231,986 | |||
Balance (in shares) at Mar. 31, 2024 | 9,407 | [1],[2],[3] | 881 | [4] | ||||
Balance at Dec. 31, 2023 | $ 9,404 | $ 881 | 143,369 | 76,743 | 230,397 | |||
Balance (in shares) at Dec. 31, 2023 | 9,404 | [1],[2],[3] | 881 | [4] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 9,736 | |||||||
Balance at Jun. 30, 2024 | $ 9,415 | $ 881 | 143,663 | 80,457 | 234,416 | |||
Balance (in shares) at Jun. 30, 2024 | 9,415 | [1],[2],[3] | 881 | [4] | ||||
Balance at Mar. 31, 2024 | $ 9,407 | $ 881 | 143,524 | 78,174 | 231,986 | |||
Balance (in shares) at Mar. 31, 2024 | 9,407 | [1],[2],[3] | 881 | [4] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | $ 0 | $ 0 | 0 | 5,325 | 5,325 | |||
Cash dividends declared | ||||||||
Common stock | 0 | 0 | 0 | (3,042) | (3,042) | |||
Issuance of common stock | ||||||||
Dividend reinvestment plan | [3] | $ 3 | $ 0 | 87 | 0 | 90 | ||
Dividend reinvestment plan (in shares) | [3] | 3 | [1],[2] | 0 | [4] | |||
Employee stock options and awards | [3] | $ 5 | $ 0 | 52 | 0 | 57 | ||
Employee stock options and awards (in shares) | [3] | 5 | [1],[2] | 0 | [4] | |||
Employee Retirement Plan | [1] | $ 0 | $ 0 | 0 | 0 | 0 | ||
Employee Retirement Plan (in shares) | 0 | [1],[2],[3] | 0 | [4] | ||||
Balance at Jun. 30, 2024 | $ 9,415 | $ 881 | $ 143,663 | $ 80,457 | $ 234,416 | |||
Balance (in shares) at Jun. 30, 2024 | 9,415 | [1],[2],[3] | 881 | [4] | ||||
[1] Artesian Resources Corporation registered 200,000 shares of Class A Stock, subsequently adjusted for stock splits, available for purchase through the Company’s 401(k) retirement plan. At June 30, 2024 and June 30, 2023 , Class A Stock had 15,000,000 shares authorized. For the same periods, shares issued, inclusive of treasury shares, were 9,443,071 and 9,422,321 , respectively. Under the Equity Compensation Plan, effective December 9, 2015, or the 2015 Plan, Artesian Resources Corporation authorized up to 331,500 shares of Class A Stock for issuance of grants in the form of stock options, stock units, dividend equivalents and other stock-based awards, subject to adjustment in certain circumstances as discussed in the 2015 Plan. Includes stock compensation expense for June 30, 2024 , and June 30, 2023 . See Note 8 - Stock Compensation Plans. At June 30, 2024 and June 30, 2023 , Class B Stock had 1,040,000 shares authorized and 881,452 shares issued. |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 09, 2015 |
Common Stock [Member] | Common Shares Class A Non-Voting [Member] | |||
Common stock, par value (in dollars per share) | $ 1 | $ 1 | |
Common stock, shares authorized (in shares) | 15,000,000 | 15,000,000 | |
Common Stock Shares Issued (in shares) | 9,443,071 | 9,422,321 | |
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 | $ 1 | |
Common stock, shares authorized (in shares) | 1,040,000 | 1,040,000 | |
Common Stock Shares Issued (in shares) | 881,452 | 881,452 |
GENERAL
GENERAL | 6 Months Ended |
Jun. 30, 2024 | |
GENERAL [Abstract] | |
GENERAL | NOTE 1 Artesian Resources Corporation, or Artesian Resources, includes income from the earnings of all of our wholly-owned subsidiaries. The terms "we", "our", "Artesian" and the "Company" as used herein refer to Artesian Resources and its subsidiaries. DELAWARE REGULATED UTILITY SUBSIDIARIES Artesian Water Company, Inc., or Artesian Water, distributes and sells water to residential, commercial, industrial, governmental, municipal and utility customers throughout the State of Delaware. In addition, Artesian Water provides services to other water utilities, including operations and billing functions, and has contract operation agreements with private, municipal and state water providers. Artesian Water also provides water for public and private fire protection to customers in our service territories. Artesian Wastewater Management, Inc., or Artesian Wastewater, began providing wastewater services in July 2005. Artesian Wastewater operates as the parent holding company of Tidewater Environmental Services, Inc. dba Artesian Wastewater, or TESI. TESI was incorporated in 2004. Artesian Wastewater and TESI are regulated entities that own wastewater collection and treatment infrastructure MARYLAND REGULATED UTILITY SUBSIDIARIES Artesian Water Maryland, Inc., or Artesian Water Maryland, began operations in August 2007. Artesian Water Maryland distributes and sells water to residential, commercial, industrial and municipal customers in Cecil County, Maryland. Artesian Wastewater Maryland, Inc., or Artesian Wastewater Maryland, was incorporated on June 3, 2008 and is authorized and able to provide regulated wastewater services to customers in the State of Maryland. PENNSYLVANIA REGULATED UTILITY SUBSIDIARY Artesian Water Pennsylvania, Inc., or Artesian Water Pennsylvania, began operations in 2002. It provides water service to a residential community in Chester County, Pennsylvania. OTHER NON-UTILITY SUBSIDIARIES We have two other subsidiaries, neither of which are regulated. They are Artesian Utility Development, Inc., or Artesian Utility, and Artesian Development Corporation, or Artesian Development. Artesian Utility designs and builds water and wastewater infrastructure and provides contract water and wastewater operation services on the Delmarva Peninsula to private, municipal and governmental institutions. Artesian Utility also evaluates land parcels, provides recommendations to developers on the size of water or wastewater facilities and the type of technology that should be used for treatment at such facilities, and operates water and wastewater facilities in Delaware for municipal and governmental agencies. Artesian Utility also contracts with developers and government agencies for design and construction of wastewater infrastructure throughout the Delmarva Peninsula. Artesian Utility currently operates wastewater treatment facilities for the Town of Middletown, in southern New Castle County, Delaware, or Middletown, under a 20-year contract that expires in July 2039. Artesian Utility also offers three protection plans to customers, the Water Service Line Protection Plan, or WSLP Plan, the Sewer Service Line Protection Plan, or SSLP Plan, and the Internal Service Line Protection Plan, or ISLP Plan (collectively, SLP Plan or SLP Plans). The WSLP Plan covers all parts, material and labor required to repair or replace participating customers’ leaking water service lines up to an annual limit. The SSLP Plan covers all parts, material and labor required to repair or replace participating customers’ leaking or clogged sewer lines up to an annual limit. The ISLP Plan enhances available coverage to include water and wastewater lines within customers’ residences up to an annual limit. Artesian Development is a real estate holding company that owns properties, including land approved for office buildings, a water treatment plant and wastewater facility, as well as property for current operations, including an office facility in Sussex County, Delaware. The office facility consists of approximately 10,000 square feet of office space along with nearly 7,000 square feet of warehouse space. |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2024 | |
BASIS OF PRESENTATION [Abstract] | |
BASIS OF PRESENTATION | NOTE Basis of Presentation The unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission, or SEC, for Form 10-Q. Certain information and note disclosures normally included in the annual financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information provided not misleading. Accordingly, these condensed consolidated financial statements and related notes should be read in conjunction with the consolidated financial statements and related notes in the Company’s annual report on Form 10-K for fiscal year 2023 as filed with the SEC on March 18, 2024. The condensed consolidated financial statements include the accounts of Artesian Resources Corporation and its wholly owned subsidiaries, including its principal operating company, Artesian Water. In the opinion of the Company, the accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments (unless otherwise noted) necessary to present fairly the Company’s balance sheet position as of , the results of its operations for the three and -month periods ended and , its cash flows for the -month periods ended and and the changes in stockholders’ equity for the three and -month periods ended and . The , Condensed Consolidated Balance Sheet was derived from the Company’s , audited consolidated financial statements, but does not include all disclosures and notes normally provided in annual financial statements. The results of operations for the interim periods presented are not necessarily indicative of the results for the full year or for future periods. 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, Artesian Wastewater and 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 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 and 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 17 - Business Segment Information to our Condensed Consolidated Financial Statements for a full description of our segment information. Use of Estimates The condensed 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 condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from management's estimates. 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 and a return on equity funds devoted to plant under construction. Utility plant comprises In thousands Estimated Useful Life (In Years) Estimated Useful Life (In Years) Effective June 12, 2024 June 30, 2024 December 31, 2023 Utility plant at original cost Utility plant in service-Water Intangible plant — $ 140 — $ 140 Source of supply plant 45-85 30,214 45-85 29,960 Pumping and water treatment plant 15-64 129,961 8-62 130,337 Transmission and distribution plant Mains 73-81 373,562 81 370,977 Services 39-58 61,935 39 60,818 Storage tanks 70-76 39,704 76 40,933 Meters 16-26 30,301 26 30,318 Hydrants 60-68 19,293 60 18,980 General plant 5-81 57,955 5-31 67,317 Utility plant in service-Wastewater Intangible plant — 116 — 116 Treatment and disposal plant 20-81 69,812 20-81 67,789 Collection mains & lift stations 81 55,294 81 51,539 General plant 5-31 2,556 5-31 2,478 Property held for future use — 3,705 — 4,028 Construction work in progress — 34,364 — 23,724 908,912 899,454 Less – accumulated depreciation 185,089 185,170 $ 723,823 $ 714,284 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 5 to 85 years. Composite depreciation rates for water utility plant were 1.92% and 2.13% for June 30, 2024 and December 31, 2023, respectively. In a rate order issued by the DEPSC, the Company was directed effective June 12, 2024, to begin using revised depreciation rates for utility plant in Artesian Water, which are based on the estimated useful life years noted in the table above. Artesian Water offsets depreciation recorded on utility plant by depreciation on utility property funded by Contributions in Aid of Construction, or CIAC, and Advances for Construction, or Advances, respectively. This reduction in depreciation expense is also applied to outstanding CIAC and Advances. Other deferred assets are amortized using the straight-line method over applicable lives, which range from 20 to 24 years. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 6 Months Ended |
Jun. 30, 2024 | |
REVENUE RECOGNITION [Abstract] | |
REVENUE RECOGNITION | NOTE 3 – REVENUE RECOGNITION Background Artesian’s operating revenues are primarily derived from 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, are derived from SLP Plan fees, water and wastewater contract operations, design and installation contract services, and wastewater inspection fees. Other regulated operating revenue are derived from 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 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 Condensed 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 final 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. Temporary rates that were previously effective as of November 28, 2023, were replaced with final rates effective June 12, 2024, with no reserve or reduction to previously recorded revenue, as approved by the DEPSC. Accounts receivable related to tariff contract revenues are typically due within 25 days of invoicing. A provision for expected credit loss is calculated as a percentage of total associated revenues based upon historical trends and adjusted for current 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. 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 25 days of invoicing. A provision for expected credit loss is calculated as a percentage of total SLP Plan contract revenue. We mitigate our exposure to credit losses by discontinuing services in the event of non-payment; accordingly, the related provision for expected credit loss and associated bad debt expense has not been significant. Artesian generates contract operation revenue from water and wastewater operation services provided to customers. We recognize revenue from these operation contracts, which consist primarily of monthly operation and maintenance services, over time as customers receive and consume the benefits of such services performed. 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 June 30, 2024, 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 Three Months Ended June 30, For the Six Months Ended June 30, (in thousands) 2024 2023 2024 2023 Tariff Revenue Consumption charges $ 15,176 $ 12,936 $ 27,486 $ 23,383 Fixed fees 9,102 8,028 18,422 16,066 Service charges 178 174 380 354 DSIC — 1,340 — 2,519 Metered wastewater services 205 146 344 251 Industrial wastewater services 524 402 923 848 Total Tariff Revenue $ 25,185 $ 23,026 $ 47,555 $ 43,421 Non-Tariff Revenue Service line protection plans $ 1,424 $ 1,372 $ 2,854 $ 2,735 Contract operations 238 276 505 521 Design and installation 5 16 59 121 Inspection fees 136 109 212 187 Total Non-Tariff Revenue $ 1,803 $ 1,773 $ 3,630 $ 3,564 Other Operating Revenue $ 428 $ 452 $ 775 $ 761 Total Operating Revenue $ 27,416 $ 25,251 $ 51,960 $ 47,746 Contract Assets and Contract Liabilities Our contract assets and liabilities consist of the following: (in thousands) June 30, 2024 December 31, 2023 Contract Assets – $ 3,442 $ 3,043 Deferred Revenue Deferred Revenue – Tariff $ 1,744 $ 1,300 Deferred Revenue – Non-Tariff 873 539 Total Deferred Revenue $ 2,617 $ 1,839 For the six months ended June 30, 2024, the Company recognized revenue of $1.3 million from amounts that were included in Deferred Revenue – Tariff at the beginning of the year and revenue of $0.4 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 June 30, 2024 and December 31, 2023, 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 June 30, 2024 and December 31, 2023, 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 five years and one year, respectively. |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 6 Months Ended |
Jun. 30, 2024 | |
ACCOUNTS RECEIVABLE [Abstract] | |
ACCOUNTS RECEIVABLE | NOTE 4 – 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 payable in two equal installments, one of which was paid in July 2024 and the final payment is due no later than July 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 following table summarizes the changes in the Company’s accounts receivable balance: June 30, December 31, December 31, (in thousands) 2024 2023 2022 Customer accounts receivable – water $ 7,437 $ 6,573 $ 5,981 Customer accounts receivable – wastewater 696 644 637 Customer accounts receivable – SLP Plan 392 409 384 Settlement agreement receivable – short term 2,500 2,747 2,532 Developer receivable 798 2,089 1,151 Miscellaneous receivable 191 696 3,242 12,014 13,158 13,927 Less: provision for expected credit loss 338 328 416 Net accounts receivable $ 11,676 $ 12,830 $ 13,511 |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2024 | |
LEASES [Abstract] | |
LEASES | NOTE 5 – 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 72 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 condensed consolidated statement of operations on a straight-line basis over the period of the lease. The annual lease payments for the land operating leases increase each year either by the most recent increase in the Consumer Price Index or by 3%, as applicable based on the lease agreements. Periodically, the annual lease payment for one operating land lease is determined based on the fair market value of the applicable parcel of land. None of the operating leases contain contingent rent provisions. The commencement date of all the operating leases is the earlier of the date we become legally obligated to make rent payments or the date we may exercise control over the use of the land or equipment. The Company currently does not have any financing leases and does not have any lessor leases that require disclosure. Management made certain assumptions related to the separation of lease and nonlease components and to the discount rate used when calculating the right of use asset and liability amounts for the operating leases. As our leases do not provide an implicit rate, we use our incremental borrowing rates for long-term and short-term agreements and apply the rates accordingly based on the term of the lease agreements to determine the present value of lease payments. Rent expense for all operating leases, except those with terms of 12 months or less comprises: (in thousands) Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Minimum rentals $ 4 $ 4 $ 8 $ 6 Contingent rentals — — — — $ 4 $ 4 $ 8 $ 6 Supplemental cash flow information related to leases is as follows: (in thousands) Six Months Ended Six Months Ended June 30, 2024 June 30, 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 8 $ 6 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 501 $ 500 Supplemental balance sheet information related to leases is as follows: (in thousands, except lease term and discount rate) June 30, 2024 December 31, 2023 Operating Leases: Operating lease right-of-use assets $ 501 $ 506 Other current liabilities $ 9 9 Operating lease liabilities 499 503 Total operating lease liabilities $ 508 $ 512 Weighted Average Remaining Lease Term Operating leases 57 years 58 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 June 30, 2024 are as follows: (in thousands) Operating Leases Year 2024 $ 35 2025 35 2026 35 2027 34 2028 27 Thereafter 1,424 Total undiscounted lease payments $ 1,590 Less effects of discounting (1,082 ) Total lease liabilities recognized $ 508 As of June 30, 2024, we have not entered into operating or finance leases that will commence at a future date. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2024 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | N OTE 6 – FAIR VALUE OF FINANC The following methods and assumptions were used to estimate the fair value of each class of financial instrument for which it is practicable to estimate that value. Current Assets and Liabilities For those current assets and liabilities that are considered financial instruments, the carrying amounts approximate fair value because of the short maturity of those instruments. Long-term Financial Liabilities As of and ng-term debt interest rates (in thousands) June 30, 2024 December 31, 2023 Carrying amount $ 179,721 $ 180,542 Estimated fair value 157,520 162,720 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 | 6 Months Ended |
Jun. 30, 2024 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | NOTE 7 – 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 condensed 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 740, an uncertain tax position represents our expected treatment of a tax position taken, or planned to be taken in the future, that has not been reflected in measuring income tax expense for financial reporting purposes. The Company establishes reserves for uncertain tax positions based upon management’s judgment as to the sustainability of these positions. These accounting estimates related to the uncertain tax position reserve require judgments to be made as to the sustainability of each uncertain tax position based on its technical merits. The Company believes its tax positions comply with applicable law and that it has adequately recorded reserves as required. However, to the extent the final tax outcome of these matters is different than the estimates recorded, the Company would then adjust its tax reserves or unrecognized tax benefits in the period that this information becomes known. 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 | 6 Months Ended |
Jun. 30, 2024 | |
STOCK COMPENSATION PLANS [Abstract] | |
STOCK COMPENSATION PLANS | NOTE 8 – STOCK COMPENSATION PLANS On December 9, 2015, the Company’s stockholders approved the 2015 Equity Compensation Plan, or the 2015 Plan, that replaced the 2005 Equity Compensation Plan, or the 2005 Plan, which expired on May 24, 2015. The 2015 Plan provides that grants may be in any of the following forms: incentive stock options, nonqualified stock options, stock units, stock awards, dividend equivalents and other stock-based awards. The 2015 Plan is administered and interpreted by the Compensation Committee of the Board of Directors, or the Committee. The Committee has the authority to determine the individuals to whom grants will be made under the 2015 Plan, determine the type, size and terms of the grants, determine the time when grants will be made and the duration of any applicable exercise or restriction period (subject to the limitations of the 2015 Plan) and deal with any other matters arising under the 2015 Plan. The Committee presently consists of directors, On May 6, 2024, 5,000 shares of Class A Common Stock, or Class A Stock, were granted as restricted stock awards. The fair value per share was $37.07, the closing price of the Class A Stock as recorded on the Nasdaq Global Select Market on May 6, 2024. These restricted stock awards will be fully vested and released one year after the grant date and, prior to their vesting date, are subject to forfeiture in the event of the recipient’s termination of service. On May 9, 2023, 5,000 shares of Class A Common Stock, or Class A Stock, were granted as restricted stock awards. The fair value per share was $54.88, the closing price of the Class A Stock as recorded on the Nasdaq Global Select Market on May 9, 2023. These restricted stock awards were fully vested and released one year after the grant date. Compensation expense, for the three and six months ended June 30, 2024 of approximately $57,000 and $125,000, respectively, was recorded for restricted stock awards issued in May 2023 and May 2024. Compensation expense, for the three and six months ended June 30, 2023 of approximately $60,000 and $116,000, respectively, was recorded for restricted stock awards issued in May 2022 and May 2023. Costs were determined based on the fair value on the dates of the awards and those costs were charged to income over the service periods associated with the awards. There was no stock compensation cost capitalized as part of an asset. The following summary reflects changes in the shares of Class A Stock underlying options and restricted stock awards for the six months ended June 30, 2024: Restricted Awards Outstanding Restricted Stock Awards Weighted Average Grant Date FairValue Restricted stock awards Outstanding at January 1, 2024 5,000 $ 54.88 Granted 5,000 37.07 Exercised/vested and released (5,000 ) 54.88 Expired/cancelled — — Outstanding at June 30, 2024 5,000 $ 37.07 Exercisable/vested at June 30, 2024 — — There were no options exercised during the six months ended June 30, 2024. There were no unvested option shares outstanding under the 2015 Plan during the six months ended June 30, 2024 . As of June 30, 2024, there were no unrecognized expenses related to non-vested option shares granted under the 2015 Plan. As of June 30, 2024, there was $157,000 total unrecognized expenses related to non-vested awards of restricted shares awarded under the 2015 Plan. The cost will be recognized over 0.85 years, the remaining vesting period for the restricted stock awards. |
GEOGRAPHIC CONCENTRATION OF CUS
GEOGRAPHIC CONCENTRATION OF CUSTOMERS | 6 Months Ended |
Jun. 30, 2024 | |
GEOGRAPHIC CONCENTRATION OF CUSTOMERS [Abstract] | |
GEOGRAPHIC CONCENTRATION OF CUSTOMERS | NOTE 9 – 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 June 30, 2024, Artesian Water was serving approximately 96,600 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. As of June 30, 2024, Artesian Wastewater and TESI were serving approximately 8,300 customers combined, including one large industrial customer. |
OTHER DEFERRED ASSETS
OTHER DEFERRED ASSETS | 6 Months Ended |
Jun. 30, 2024 | |
OTHER DEFERRED ASSETS [Abstract] | |
OTHER DEFERRED ASSETS | NOTE 10 – OTHER DEFERRED ASSETS The investment in CoBank, ACB, or 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 2025 as further discussed in Note 4 - Accounts Receivable. (in thousands) June 30, 2024 December 31, 2023 Investment in CoBank $ 6,425 $ 5,882 Settlement agreement receivable-long term 2,496 2,496 Other deferred assets 41 126 $ 8,962 $ 8,504 |
REGULATORY ASSETS
REGULATORY ASSETS | 6 Months Ended |
Jun. 30, 2024 | |
REGULATORY ASSETS [Abstract] | |
REGULATORY ASSETS | N OTE 11 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 reclassified from deferred costs to a regulatory asset in 2022. Amortization of these deferred costs began in the fourth quarter of 2023. Deferred acquisition adjustments represent the excess payment for purchases of utility plant from Delaware municipalities over the determined original cost net of depreciation. Deferred acquisition costs represent the closing cost associated with the acquisitions. Costs of $3.7 million were reclassified from net utility plant and $0.1 million were reclassified from contributions in aid of construction, which will be recovered in customer rates effective June 12, 2024 as part of the DEPSC approved settlement agreement for the Artesian Water rate application filed on April 28, 2023. Unrecovered reserve for depreciation of $4.3 million is the result of the implementation of a change in depreciation methods for certain general plant assets that will be recovered in customer rates effective June 12, 2024 as part of the DEPSC approved settlement agreement for the Artesian Water rate application filed on April 28, 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 Debt related costs 15 to 30 (based on term of related debt) Deferred costs affiliated interest agreement 20 Goodwill (Mountain Hill Water Company acquisition in 2008) 50 Deferred acquisition and franchise costs - Maryland 20 – Deferred acquisition costs - Delaware 20 Deferred acquisition adjustments - Delaware 36 – Unrecovered reserve for depreciation (general plant assets) 5 Regulatory assets, net of amortization, comprise: (in thousands) June 30, 2024 December 31, 2023 Deferred contract costs and other $ 175 $ 209 Rate case studies 159 166 Delaware rate proceedings 559 355 Deferred income taxes 434 444 Debt related costs 4,145 4,322 Deferred costs affiliated interest agreement 1,082 1,110 Goodwill 254 258 Deferred acquisition and franchise costs – 407 425 Deferred acquisition costs – 237 – Deferred acquisition adjustments – 3,395 – Unrecovered reserve for depreciation 4,295 – $ 15,142 $ 7,289 |
REGULATORY LIABILITIES
REGULATORY LIABILITIES | 6 Months Ended |
Jun. 30, 2024 | |
REGULATORY LIABILITIES [Abstract] | |
REGULATORY LIABILITIES | NOTE 12 FASB ASC Topic 980 stipulates generally accepted accounting principles for companies whose rates are established or subject to approvals by a third-party regulatory agency. Certain obligations are deferred and/or amortized as determined by the DEPSC, MDPSC, and PAPUC. Regulatory liabilities represent excess recovery of cost or other items that have been deferred because it is probable such amounts will be returned to customers through future regulated rates. Utility plant retirement cost obligation consists of estimated costs related to the potential removal and replacement of facilities and equipment on the Company’s water and wastewater properties. As authorized by the DEPSC, when depreciable units of utility plant are retired, any cost associated with retirement, less any salvage value or proceeds received, is charged to a regulated retirement liability. The annual amortization currently authorized by the DEPSC could be adjusted in future rate applications. 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 payable in two equal installments, one of which was paid in July 2024 and the final payment is due no later than July 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. 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 7 – 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 Artesian Water to amortize 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, Artesian Water received a rate order from the DEPSC instructing Artesian Water to continue amortizing the liability over a period of 49.5 years, subject to review in Artesian Water’s next base rate filing. On June 12, 2024, the DEPSC approved a settlement agreement for the Artesian Water rate application, filed on April 28, 2023, that required two changes to the deferred income tax regulatory liability effective June 12, 2024. A $7.6 million gross-up adjustment was recorded to reflect the benefit customers would receive from the implementation of new base rates and $4.0 million of the regulatory liability, which represents costs not subject to IRS normalization rules, is now required to be amortized over a six-year period rather than 49.5 years. The MDPSC has not issued a final order on the regulatory liability amount of $0.6 million regarding the effects of the TCJA on Maryland customers. Regulatory liabilities comprise: (in thousands) June 30, 2024 December 31, 2023 Utility plant retirement cost obligation $ 334 $ — Deferred settlement refunds 4,991 4,991 Deferred income taxes (related to TCJA) 28,142 20,685 $ 33,467 $ 25,676 |
REGULATORY PROCEEDINGS
REGULATORY PROCEEDINGS | 6 Months Ended |
Jun. 30, 2024 | |
REGULATORY PROCEEDINGS [Abstract] | |
REGULATORY PROCEEDINGS | N OTE 13 REGULATO RY 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 subsidiaries 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. Any DSIC rate in effect will be reset to zero upon implementation of a temporary increase in base rates charged to customers. 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 approximately $16.7 million, on an annualized basis, or 22.7%. The DEPSC approved and Artesian Water implemented a temporary rate increase effective November 28, 2023 of approximately $10.8 million, on an annualized basis, or 14.6%, subject to refund, and reduced the DSIC previously in effect from approximately 7.5% to zero. On May 22, 2024, Artesian Water, the Staff of the DEPSC, and the Division of the Public Advocate, or DPA, (collectively, the Parties) entered into an agreement, or Settlement Agreement, to settle Artesian Water’s April 2023 application to implement new rates. On June 12, 2024, a DEPSC order was issued approving the settlement agreement entered into on May 22, 2024 between the Parties. The Settlement Agreement authorizes a total increase in the revenue requirement of $11.2 million, on an annualized basis, or approximately 15.2%, with a rate effective date of June 12, 2024, which encompasses a 9.5% return on common equity and an overall rate of return on rate base of 6.75%. Temporary rates that were in effect since November 28, 2023 were replaced with the final approved rates from the Settlement Agreement. Revised depreciation rates for utility plant and revised amortization rates for certain regulatory assets and liabilities were also approved effective June 12, 2024. 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 last two applications with the DEPSC to collect DSIC rates and (2) the rate upon which eligible plant improvements was based: Application Date 11/20/2020 05/30/2024 DEPSC Approval Date 12/14/2020 06/12/2024 Effective Date 01/01/2021 07/01/2024 Cumulative DSIC Rate 7.50% 0.34% Net Eligible Plant Improvements – Cumulative Dollars (in millions) $43.1 $2.0 Eligible Plant Improvements – Installed Beginning Date 10/01/2014 10/01/2023 Eligible Plant Improvements – Installed Ending Date 04/30/2019 04/30/2024 On June 12, 2024, the DEPSC approved Artesian Water’s application to implement a DSIC rate of 0.34%, effective July 1, 2024. Effective January 1, 2021, Artesian Water was permitted to recover specific investments made in infrastructure through the assessment of a 7.50% DSIC. The January 1, 2021 DSIC rate was reset to zero when the temporary base rate increase was placed into effect on November 28, 2023. The July 1, 2024 DSIC is subject to periodic audit by the DEPSC. For the three and six months ended June 30, 2024, DSIC revenue was zero. For the three and six months ended June 30, 2023, we earned approximately $1.3 million and $2.5 million in DSIC revenue. |
NET INCOME PER COMMON SHARE AND
NET INCOME PER COMMON SHARE AND EQUITY PER COMMON SHARE | 6 Months Ended |
Jun. 30, 2024 | |
NET INCOME PER COMMON SHARE AND EQUITY PER COMMON SHARE [Abstract] | |
NET INCOME PER COMMON SHARE AND EQUITY PER COMMON SHARE | NOTE 14 Basic net income per share is based on the weighted average number of common shares outstanding. Diluted net income per share is based on the weighted average number of common shares outstanding, the potentially dilutive effect of employee stock options and restricted stock awards. The following table summarizes the shares used in computing basic and diluted net income per share: For the Three Months Ended June 30, For the Six Months Ended June 30, 2024 2023 2024 2023 (in thousands) Weighted average common shares outstanding during the period for basic computation 10,293 9,998 10,290 9,752 Dilutive effect of employee stock options and awards 2 4 3 5 Weighted average common shares outstanding during the period for diluted computation 10,295 10,002 10,293 9,757 For the three and six months ended June 30, 2024 and 2023, no shares of restricted stock awards were excluded from the calculations of diluted net income per share. The Company has 15,000,000 authorized shares of Class A Non-Voting Stock, and 1,040,000 authorized shares of Class B Stock. As of June 30, 2024, 9,414,094 shares of Class A Non-Voting Stock and 881,452 shares of Class B Stock were issued and outstanding. As of June 30, 2023 , $ per Equity per common share was $ and $ at and , respectively. These amounts were computed by dividing common stockholders' equity by the number of shares of common stock outstanding on and , respectively. |
COMMON STOCK OFFERING
COMMON STOCK OFFERING | 6 Months Ended |
Jun. 30, 2024 | |
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 Stock, par value $1.00 per share, at a price to the public of $50 per share. The net proceeds to the Company from the offering, after deducting the underwriting discounts and commissions and other offering costs, were approximately $33.0 million. The Company also granted the underwriter a -day option to purchase up to an additional shares of Class A Stock . On June 16, 2023, the underwriter exercised its over-allotment option, to purchase shares of Class A 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 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, including borrowings incurred under 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. |
LEGAL PROCEEDINGS
LEGAL PROCEEDINGS | 6 Months Ended |
Jun. 30, 2024 | |
LEGAL PROCEEDINGS [Abstract] | |
LEGAL PROCEEDINGS | NOTE 16 – LEGAL PROCEEDINGS Periodically, we are involved in other proceedings or litigation arising in the ordinary course of business. We do not believe that the ultimate resolution of these matters will materially affect our business, financial position or results of operations. However, we cannot 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 claimants in two multi-district litigation, or MDL, class action settlements designed to resolve Claims for per - and polyfluoroalkyl substances, or 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”). Phase One Public Water System Settlement Claims Forms have been submitted on behalf of Artesian Resources’ eligible systems in each of the Settlements. The amount of any recovery, if any, by Artesian Resources’ subsidiaries is uncertain. Several of the water systems of Artesian Resources’ subsidiaries are eligible claimants in the MDL class action settlement designed to resolve Claims for PFAS contamination in Public Water Systems’ Drinking Water, as those terms are defined in the settlement agreement of settling defendants Tyco Fire Products LP and Chemguard, Inc. (the “Tyco Settlement”). The Tyco Settlement is not yet effective. The deadline for eligible claimants to submit requests for exclusion from the settlement is September 23, 2024. The amount of any recovery, if any, by Artesian Resources’ subsidiaries is uncertain. Several of the water systems of Artesian Resources’ subsidiaries may be eligible claimants in the MDL class action settlement designed to resolve Claims for PFAS contamination in Public Water Systems’ Drinking Water, as those terms are defined in the settlement agreement of settling defendant BASF Corporation (the “BASF Settlement”). The BASF Settlement is not yet effective. The deadline for eligible claimants to submit requests for exclusion from the settlement is October 15, 2024. The amount of any recovery, if any, by Artesian Resources’ subsidiaries is uncertain. |
BUSINESS SEGMENT INFORMATION
BUSINESS SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2024 | |
BUSINESS SEGMENT INFORMATION [Abstract] | |
BUSINESS SEGMENT INFORMATION | NOTE 17 – 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 Quarterly Report on Form 10-Q 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 2 – Basis of Presentation. 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 Condensed 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 condensed consolidated amounts as of June 30, 2024 and June 30, 2023. (in thousands) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Revenues: Regulated Utility $ 25,789 $ 23,668 $ 48,630 $ 44,501 Other (non-utility) 1,685 1,637 3,448 3,353 Inter-segment elimination (58 ) (54 ) (118 ) (108 ) Consolidated Revenues $ 27,416 $ 25,251 $ 51,960 $ 47,746 Operating Income: Regulated Utility $ 6,907 $ 6,013 $ 11,265 $ 9,717 Other (non-utility) 291 195 652 552 Consolidated Operating Income $ 7,198 $ 6,208 $ 11,917 $ 10,269 Income Taxes: Regulated Utility $ 1,725 $ 1,303 $ 3,151 $ 2,370 Other (non-utility) 220 290 476 536 Consolidated Income Taxes $ 1,945 $ 1,593 $ 3,627 $ 2,906 June 30, 2024 December 31, 2023 Assets: Regulated Utility $ 773,350 $ 760,339 Other (non-utility) 9,781 6,493 Consolidated Assets $ 783,131 $ 766,832 |
IMPACT OF RECENT ACCOUNTING PRO
IMPACT OF RECENT ACCOUNTING PRONOUNCEMENTS | 6 Months Ended |
Jun. 30, 2024 | |
IMPACT OF RECENT ACCOUNTING PRONOUNCEMENTS [Abstract] | |
IMPACT OF RECENT ACCOUNTING PRONOUNCEMENTS | NOTE 18 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 CODMs, 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 |
INSIDER TRADING ARRANGEMENTS
INSIDER TRADING ARRANGEMENTS | 6 Months Ended |
Jun. 30, 2024 | |
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 |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
BASIS OF PRESENTATION [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission, or SEC, for Form 10-Q. Certain information and note disclosures normally included in the annual financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information provided not misleading. Accordingly, these condensed consolidated financial statements and related notes should be read in conjunction with the consolidated financial statements and related notes in the Company’s annual report on Form 10-K for fiscal year 2023 as filed with the SEC on March 18, 2024. The condensed consolidated financial statements include the accounts of Artesian Resources Corporation and its wholly owned subsidiaries, including its principal operating company, Artesian Water. In the opinion of the Company, the accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments (unless otherwise noted) necessary to present fairly the Company’s balance sheet position as of , the results of its operations for the three and -month periods ended and , its cash flows for the -month periods ended and and the changes in stockholders’ equity for the three and -month periods ended and . The , Condensed Consolidated Balance Sheet was derived from the Company’s , audited consolidated financial statements, but does not include all disclosures and notes normally provided in annual financial statements. The results of operations for the interim periods presented are not necessarily indicative of the results for the full year or for future periods. 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, Artesian Wastewater and 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 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 and 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 17 - Business Segment Information to our Condensed Consolidated Financial Statements for a full description of our segment information. |
Use of Estimates | Use of Estimates The condensed 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 condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from management's estimates. |
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 and a return on equity funds devoted to plant under construction. Utility plant comprises In thousands Estimated Useful Life (In Years) Estimated Useful Life (In Years) Effective June 12, 2024 June 30, 2024 December 31, 2023 Utility plant at original cost Utility plant in service-Water Intangible plant — $ 140 — $ 140 Source of supply plant 45-85 30,214 45-85 29,960 Pumping and water treatment plant 15-64 129,961 8-62 130,337 Transmission and distribution plant Mains 73-81 373,562 81 370,977 Services 39-58 61,935 39 60,818 Storage tanks 70-76 39,704 76 40,933 Meters 16-26 30,301 26 30,318 Hydrants 60-68 19,293 60 18,980 General plant 5-81 57,955 5-31 67,317 Utility plant in service-Wastewater Intangible plant — 116 — 116 Treatment and disposal plant 20-81 69,812 20-81 67,789 Collection mains & lift stations 81 55,294 81 51,539 General plant 5-31 2,556 5-31 2,478 Property held for future use — 3,705 — 4,028 Construction work in progress — 34,364 — 23,724 908,912 899,454 Less – accumulated depreciation 185,089 185,170 $ 723,823 $ 714,284 |
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 5 to 85 years. Composite depreciation rates for water utility plant were 1.92% and 2.13% for June 30, 2024 and December 31, 2023, respectively. In a rate order issued by the DEPSC, the Company was directed effective June 12, 2024, to begin using revised depreciation rates for utility plant in Artesian Water, which are based on the estimated useful life years noted in the table above. Artesian Water offsets depreciation recorded on utility plant by depreciation on utility property funded by Contributions in Aid of Construction, or CIAC, and Advances for Construction, or Advances, respectively. This reduction in depreciation expense is also applied to outstanding CIAC and Advances. Other deferred assets are amortized using the straight-line method over applicable lives, which range from 20 to 24 years. |
BASIS OF PRESENTATION (Tables)
BASIS OF PRESENTATION (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
BASIS OF PRESENTATION [Abstract] | |
Schedule of Utility Plant | Utility plant comprises In thousands Estimated Useful Life (In Years) Estimated Useful Life (In Years) Effective June 12, 2024 June 30, 2024 December 31, 2023 Utility plant at original cost Utility plant in service-Water Intangible plant — $ 140 — $ 140 Source of supply plant 45-85 30,214 45-85 29,960 Pumping and water treatment plant 15-64 129,961 8-62 130,337 Transmission and distribution plant Mains 73-81 373,562 81 370,977 Services 39-58 61,935 39 60,818 Storage tanks 70-76 39,704 76 40,933 Meters 16-26 30,301 26 30,318 Hydrants 60-68 19,293 60 18,980 General plant 5-81 57,955 5-31 67,317 Utility plant in service-Wastewater Intangible plant — 116 — 116 Treatment and disposal plant 20-81 69,812 20-81 67,789 Collection mains & lift stations 81 55,294 81 51,539 General plant 5-31 2,556 5-31 2,478 Property held for future use — 3,705 — 4,028 Construction work in progress — 34,364 — 23,724 908,912 899,454 Less – accumulated depreciation 185,089 185,170 $ 723,823 $ 714,284 |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 Three Months Ended June 30, For the Six Months Ended June 30, (in thousands) 2024 2023 2024 2023 Tariff Revenue Consumption charges $ 15,176 $ 12,936 $ 27,486 $ 23,383 Fixed fees 9,102 8,028 18,422 16,066 Service charges 178 174 380 354 DSIC — 1,340 — 2,519 Metered wastewater services 205 146 344 251 Industrial wastewater services 524 402 923 848 Total Tariff Revenue $ 25,185 $ 23,026 $ 47,555 $ 43,421 Non-Tariff Revenue Service line protection plans $ 1,424 $ 1,372 $ 2,854 $ 2,735 Contract operations 238 276 505 521 Design and installation 5 16 59 121 Inspection fees 136 109 212 187 Total Non-Tariff Revenue $ 1,803 $ 1,773 $ 3,630 $ 3,564 Other Operating Revenue $ 428 $ 452 $ 775 $ 761 Total Operating Revenue $ 27,416 $ 25,251 $ 51,960 $ 47,746 |
Contract Assets and Contract Liabilities | Our contract assets and liabilities consist of the following: (in thousands) June 30, 2024 December 31, 2023 Contract Assets – $ 3,442 $ 3,043 Deferred Revenue Deferred Revenue – Tariff $ 1,744 $ 1,300 Deferred Revenue – Non-Tariff 873 539 Total Deferred Revenue $ 2,617 $ 1,839 |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
ACCOUNTS RECEIVABLE [Abstract] | |
Changes in Accounts Receivable | The following table summarizes the changes in the Company’s accounts receivable balance: June 30, December 31, December 31, (in thousands) 2024 2023 2022 Customer accounts receivable – water $ 7,437 $ 6,573 $ 5,981 Customer accounts receivable – wastewater 696 644 637 Customer accounts receivable – SLP Plan 392 409 384 Settlement agreement receivable – short term 2,500 2,747 2,532 Developer receivable 798 2,089 1,151 Miscellaneous receivable 191 696 3,242 12,014 13,158 13,927 Less: provision for expected credit loss 338 328 416 Net accounts receivable $ 11,676 $ 12,830 $ 13,511 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
LEASES [Abstract] | |
Rent Expense for All Operating Leases Except Those with Terms of 12 Months or Less | Rent expense for all operating leases, except those with terms of 12 months or less comprises: (in thousands) Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Minimum rentals $ 4 $ 4 $ 8 $ 6 Contingent rentals — — — — $ 4 $ 4 $ 8 $ 6 |
Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases is as follows: (in thousands) Six Months Ended Six Months Ended June 30, 2024 June 30, 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 8 $ 6 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 501 $ 500 |
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) June 30, 2024 December 31, 2023 Operating Leases: Operating lease right-of-use assets $ 501 $ 506 Other current liabilities $ 9 9 Operating lease liabilities 499 503 Total operating lease liabilities $ 508 $ 512 Weighted Average Remaining Lease Term Operating leases 57 years 58 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 June 30, 2024 are as follows: (in thousands) Operating Leases Year 2024 $ 35 2025 35 2026 35 2027 34 2028 27 Thereafter 1,424 Total undiscounted lease payments $ 1,590 Less effects of discounting (1,082 ) Total lease liabilities recognized $ 508 |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract] | |
Carrying Amount and Fair Value of Long-Term Debt | As of and ng-term debt interest rates (in thousands) June 30, 2024 December 31, 2023 Carrying amount $ 179,721 $ 180,542 Estimated fair value 157,520 162,720 |
STOCK COMPENSATION PLANS (Table
STOCK COMPENSATION PLANS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
STOCK COMPENSATION PLANS [Abstract] | |
Changes in Shares of Class A Common Stock Underlying Options and Restricted Stock Awards | The following summary reflects changes in the shares of Class A Stock underlying options and restricted stock awards for the six months ended June 30, 2024: Restricted Awards Outstanding Restricted Stock Awards Weighted Average Grant Date FairValue Restricted stock awards Outstanding at January 1, 2024 5,000 $ 54.88 Granted 5,000 37.07 Exercised/vested and released (5,000 ) 54.88 Expired/cancelled — — Outstanding at June 30, 2024 5,000 $ 37.07 Exercisable/vested at June 30, 2024 — — |
OTHER DEFERRED ASSETS (Tables)
OTHER DEFERRED ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
OTHER DEFERRED ASSETS [Abstract] | |
Other Deferred Assets | The investment in CoBank, ACB, or 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 2025 as further discussed in Note 4 - Accounts Receivable. (in thousands) June 30, 2024 December 31, 2023 Investment in CoBank $ 6,425 $ 5,882 Settlement agreement receivable-long term 2,496 2,496 Other deferred assets 41 126 $ 8,962 $ 8,504 |
REGULATORY ASSETS (Tables)
REGULATORY ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
REGULATORY ASSETS [Abstract] | |
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 Debt related costs 15 to 30 (based on term of related debt) Deferred costs affiliated interest agreement 20 Goodwill (Mountain Hill Water Company acquisition in 2008) 50 Deferred acquisition and franchise costs - Maryland 20 – Deferred acquisition costs - Delaware 20 Deferred acquisition adjustments - Delaware 36 – Unrecovered reserve for depreciation (general plant assets) 5 |
Regulatory Assets, Net of Amortization, Comprise | Regulatory assets, net of amortization, comprise: (in thousands) June 30, 2024 December 31, 2023 Deferred contract costs and other $ 175 $ 209 Rate case studies 159 166 Delaware rate proceedings 559 355 Deferred income taxes 434 444 Debt related costs 4,145 4,322 Deferred costs affiliated interest agreement 1,082 1,110 Goodwill 254 258 Deferred acquisition and franchise costs – 407 425 Deferred acquisition costs – 237 – Deferred acquisition adjustments – 3,395 – Unrecovered reserve for depreciation 4,295 – $ 15,142 $ 7,289 |
REGULATORY LIABILITIES (Tables)
REGULATORY LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
REGULATORY LIABILITIES [Abstract] | |
Regulatory Liabilities | Regulatory liabilities comprise: (in thousands) June 30, 2024 December 31, 2023 Utility plant retirement cost obligation $ 334 $ — Deferred settlement refunds 4,991 4,991 Deferred income taxes (related to TCJA) 28,142 20,685 $ 33,467 $ 25,676 |
REGULATORY PROCEEDINGS (Tables)
REGULATORY PROCEEDINGS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
REGULATORY PROCEEDINGS [Abstract] | |
Eligible Plant Improvements | The following table summarizes (1) Artesian Water’s last two applications with the DEPSC to collect DSIC rates and (2) the rate upon which eligible plant improvements was based: Application Date 11/20/2020 05/30/2024 DEPSC Approval Date 12/14/2020 06/12/2024 Effective Date 01/01/2021 07/01/2024 Cumulative DSIC Rate 7.50% 0.34% Net Eligible Plant Improvements – Cumulative Dollars (in millions) $43.1 $2.0 Eligible Plant Improvements – Installed Beginning Date 10/01/2014 10/01/2023 Eligible Plant Improvements – Installed Ending Date 04/30/2019 04/30/2024 |
NET INCOME PER COMMON SHARE A_2
NET INCOME PER COMMON SHARE AND EQUITY PER COMMON SHARE (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
NET INCOME PER COMMON SHARE AND EQUITY PER COMMON SHARE [Abstract] | |
Shares Used in Computing Basic and Diluted Net Income Per Share | The following table summarizes the shares used in computing basic and diluted net income per share: For the Three Months Ended June 30, For the Six Months Ended June 30, 2024 2023 2024 2023 (in thousands) Weighted average common shares outstanding during the period for basic computation 10,293 9,998 10,290 9,752 Dilutive effect of employee stock options and awards 2 4 3 5 Weighted average common shares outstanding during the period for diluted computation 10,295 10,002 10,293 9,757 |
BUSINESS SEGMENT INFORMATION (T
BUSINESS SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
BUSINESS SEGMENT INFORMATION [Abstract] | |
Segment Reporting Information, by Segment | The accounting policies of the operating segments are the same as those described in Note 2 – Basis of Presentation. 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 Condensed 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 condensed consolidated amounts as of June 30, 2024 and June 30, 2023. (in thousands) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Revenues: Regulated Utility $ 25,789 $ 23,668 $ 48,630 $ 44,501 Other (non-utility) 1,685 1,637 3,448 3,353 Inter-segment elimination (58 ) (54 ) (118 ) (108 ) Consolidated Revenues $ 27,416 $ 25,251 $ 51,960 $ 47,746 Operating Income: Regulated Utility $ 6,907 $ 6,013 $ 11,265 $ 9,717 Other (non-utility) 291 195 652 552 Consolidated Operating Income $ 7,198 $ 6,208 $ 11,917 $ 10,269 Income Taxes: Regulated Utility $ 1,725 $ 1,303 $ 3,151 $ 2,370 Other (non-utility) 220 290 476 536 Consolidated Income Taxes $ 1,945 $ 1,593 $ 3,627 $ 2,906 June 30, 2024 December 31, 2023 Assets: Regulated Utility $ 773,350 $ 760,339 Other (non-utility) 9,781 6,493 Consolidated Assets $ 783,131 $ 766,832 |
GENERAL (Details)
GENERAL (Details) gal / d in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2024 Plan | Jun. 30, 2024 gal / d Squarefeet Subsidiary Facility | |
Business Operations [Abstract] | ||
Number of subsidiaries not regulated | Subsidiary | 2 | |
Artesian Development purchased area of office space (in square feet) | 10,000 | |
Artesian Development purchased area of warehouse space (in square feet) | 7,000 | |
Artesian Utility [Member] | ||
Business Operations [Abstract] | ||
Initial contract period of operating wastewater treatment facilities in Middletown | 20 years | |
Number of wastewater treatment systems facility operations in Middletown | Facility | 3 | |
Capacity of wastewater treatment facilities | gal / d | 3.8 | |
Number of protection plans offered to customers | Plan | 3 |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Summary of utility plant comprises [Abstract] | ||
Utility plant, gross | $ 908,912 | $ 899,454 |
Less - accumulated depreciation | 185,089 | 185,170 |
Utility plant, net | $ 723,823 | $ 714,284 |
Depreciation and Amortization [Abstract] | ||
Depreciation rates of water utility plant | 1.92% | 2.13% |
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] | ||
Utility plant, gross | $ 3,705 | $ 4,028 |
Construction in Progress [Member] | ||
Summary of utility plant comprises [Abstract] | ||
Utility plant, gross | 34,364 | $ 23,724 |
Utility plant in service-Water [Member] | Mains [Member] | ||
Summary of utility plant comprises [Abstract] | ||
Estimated useful life | 81 years | |
Utility plant, gross | $ 373,562 | $ 370,977 |
Utility plant in service-Water [Member] | Mains [Member] | Minimum [Member] | ||
Summary of utility plant comprises [Abstract] | ||
Estimated useful life | 73 years | |
Utility plant in service-Water [Member] | Mains [Member] | Maximum [Member] | ||
Summary of utility plant comprises [Abstract] | ||
Estimated useful life | 81 years | |
Utility plant in service-Water [Member] | Services [Member] | ||
Summary of utility plant comprises [Abstract] | ||
Estimated useful life | 39 years | |
Utility plant, gross | $ 61,935 | $ 60,818 |
Utility plant in service-Water [Member] | Services [Member] | Minimum [Member] | ||
Summary of utility plant comprises [Abstract] | ||
Estimated useful life | 39 years | |
Utility plant in service-Water [Member] | Services [Member] | Maximum [Member] | ||
Summary of utility plant comprises [Abstract] | ||
Estimated useful life | 58 years | |
Utility plant in service-Water [Member] | Storage Tanks [Member] | ||
Summary of utility plant comprises [Abstract] | ||
Estimated useful life | 76 years | |
Utility plant, gross | $ 39,704 | $ 40,933 |
Utility plant in service-Water [Member] | Storage Tanks [Member] | Minimum [Member] | ||
Summary of utility plant comprises [Abstract] | ||
Estimated useful life | 70 years | |
Utility plant in service-Water [Member] | Storage Tanks [Member] | Maximum [Member] | ||
Summary of utility plant comprises [Abstract] | ||
Estimated useful life | 76 years | |
Utility plant in service-Water [Member] | Meters [Member] | ||
Summary of utility plant comprises [Abstract] | ||
Estimated useful life | 26 years | |
Utility plant, gross | $ 30,301 | $ 30,318 |
Utility plant in service-Water [Member] | Meters [Member] | Minimum [Member] | ||
Summary of utility plant comprises [Abstract] | ||
Estimated useful life | 16 years | |
Utility plant in service-Water [Member] | Meters [Member] | Maximum [Member] | ||
Summary of utility plant comprises [Abstract] | ||
Estimated useful life | 26 years | |
Utility plant in service-Water [Member] | Hydrants [Member] | ||
Summary of utility plant comprises [Abstract] | ||
Estimated useful life | 60 years | |
Utility plant, gross | $ 19,293 | $ 18,980 |
Utility plant in service-Water [Member] | Hydrants [Member] | Minimum [Member] | ||
Summary of utility plant comprises [Abstract] | ||
Estimated useful life | 60 years | |
Utility plant in service-Water [Member] | Hydrants [Member] | Maximum [Member] | ||
Summary of utility plant comprises [Abstract] | ||
Estimated useful life | 68 years | |
Utility plant in service-Water [Member] | Intangible plant [Member] | ||
Summary of utility plant comprises [Abstract] | ||
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 | $ 30,214 | $ 29,960 |
Utility plant in service-Water [Member] | Source of supply plant [Member] | Minimum [Member] | ||
Summary of utility plant comprises [Abstract] | ||
Estimated useful life | 45 years | 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 | 85 years |
Utility plant in service-Water [Member] | Pumping and water treatment plant [Member] | ||
Summary of utility plant comprises [Abstract] | ||
Utility plant, gross | $ 129,961 | $ 130,337 |
Utility plant in service-Water [Member] | Pumping and water treatment plant [Member] | Minimum [Member] | ||
Summary of utility plant comprises [Abstract] | ||
Estimated useful life | 15 years | 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 | 64 years | 62 years |
Utility plant in service-Water [Member] | General plant [Member] | ||
Summary of utility plant comprises [Abstract] | ||
Utility plant, gross | $ 57,955 | $ 67,317 |
Utility plant in service-Water [Member] | General plant [Member] | Minimum [Member] | ||
Summary of utility plant comprises [Abstract] | ||
Estimated useful life | 5 years | 5 years |
Utility plant in service-Water [Member] | General plant [Member] | Maximum [Member] | ||
Summary of utility plant comprises [Abstract] | ||
Estimated useful life | 81 years | 31 years |
Utility plant in service-Wastewater [Member] | Intangible plant [Member] | ||
Summary of utility plant comprises [Abstract] | ||
Utility plant, gross | $ 116 | $ 116 |
Utility plant in service-Wastewater [Member] | Treatment and Disposal Plant [Member] | ||
Summary of utility plant comprises [Abstract] | ||
Utility plant, gross | $ 69,812 | $ 67,789 |
Utility plant in service-Wastewater [Member] | Treatment and Disposal Plant [Member] | Minimum [Member] | ||
Summary of utility plant comprises [Abstract] | ||
Estimated useful life | 20 years | 20 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 | 81 years |
Utility plant in service-Wastewater [Member] | Collection Mains & Lift Stations [Member] | ||
Summary of utility plant comprises [Abstract] | ||
Estimated useful life | 81 years | 81 years |
Utility plant, gross | $ 55,294 | $ 51,539 |
Utility plant in service-Wastewater [Member] | General plant [Member] | ||
Summary of utility plant comprises [Abstract] | ||
Utility plant, gross | $ 2,556 | $ 2,478 |
Utility plant in service-Wastewater [Member] | General plant [Member] | Minimum [Member] | ||
Summary of utility plant comprises [Abstract] | ||
Estimated useful life | 5 years | 5 years |
Utility plant in service-Wastewater [Member] | General plant [Member] | Maximum [Member] | ||
Summary of utility plant comprises [Abstract] | ||
Estimated useful life | 31 years | 31 years |
REVENUE RECOGNITION, Disaggrega
REVENUE RECOGNITION, Disaggregated Revenues (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 USD ($) Contract | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | |
REVENUE RECOGNITION [Abstract] | ||||
Minimum number of days due for accounts receivable from tariff contract customers | 25 days | |||
Reserve or reduction to revenue | $ 0 | $ 0 | $ 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 | $ 428 | 452 | $ 775 | 761 |
Revenues | 27,416 | 25,251 | 51,960 | 47,746 |
Tariff Revenue [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Revenues | 25,185 | 23,026 | 47,555 | 43,421 |
Tariff Revenue [Member] | Consumption Charges [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Revenues | 15,176 | 12,936 | 27,486 | 23,383 |
Tariff Revenue [Member] | Fixed Fees [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Revenues | 9,102 | 8,028 | 18,422 | 16,066 |
Tariff Revenue [Member] | Service Charges [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Revenues | 178 | 174 | 380 | 354 |
Tariff Revenue [Member] | DSIC [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Revenues | 0 | 1,340 | 0 | 2,519 |
Tariff Revenue [Member] | Metered Wastewater Services [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Revenues | 205 | 146 | 344 | 251 |
Tariff Revenue [Member] | Industrial Wastewater Services [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Revenues | 524 | 402 | 923 | 848 |
Non-Tariff Revenue [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Revenues | 1,803 | 1,773 | 3,630 | 3,564 |
Non-Tariff Revenue [Member] | Service Line Protection Plans [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Revenues | 1,424 | 1,372 | 2,854 | 2,735 |
Non-Tariff Revenue [Member] | Contract Operations [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Revenues | 238 | 276 | 505 | 521 |
Non-Tariff Revenue [Member] | Design and Installation [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Revenues | 5 | 16 | 59 | 121 |
Non-Tariff Revenue [Member] | Inspection Fees [Member] | ||||
Disaggregation of Revenue [Abstract] | ||||
Revenues | $ 136 | $ 109 | $ 212 | $ 187 |
REVENUE RECOGNITION, Contract A
REVENUE RECOGNITION, Contract Assets and Contract Liabilities (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Contract with Customer, Asset and Liability [Abstract] | ||
Total Deferred Revenue | $ 2,617 | $ 1,839 |
Tariff Revenue [Member] | ||
Contract with Customer, Asset and Liability [Abstract] | ||
Contract Assets | 3,442 | 3,043 |
Total Deferred Revenue | 1,744 | 1,300 |
Deferred revenue recognized | 1,300 | |
Non-Tariff Revenue [Member] | ||
Contract with Customer, Asset and Liability [Abstract] | ||
Total Deferred Revenue | 873 | $ 539 |
Deferred revenue recognized | $ 400 |
REVENUE RECOGNITION, Remaining
REVENUE RECOGNITION, Remaining Performance Obligation (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01 | Jun. 30, 2024 |
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 | 1 year |
Contract Services Revenue [Member] | |
Remaining Performance Obligation [Abstract] | |
Expected timing of satisfaction for remaining performance obligation | 5 years |
SLP Plan Revenue [Member] | |
Remaining Performance Obligation [Abstract] | |
Expected timing of satisfaction for remaining performance obligation | 3 months |
ACCOUNTS RECEIVABLE (Details)
ACCOUNTS RECEIVABLE (Details) $ in Thousands | 1 Months Ended | 6 Months Ended | |||
Jul. 31, 2023 USD ($) | Aug. 31, 2022 USD ($) | Jun. 30, 2024 USD ($) Installment | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Accounts Receivable [Abstract] | |||||
Litigation settlement amount | $ 10,000 | ||||
Litigation settlement amount received | $ 2,500 | $ 2,500 | |||
Litigation settlement, remaining amount | $ 5,000 | ||||
Number of installments | Installment | 2 | ||||
Number of upcoming installments | Installment | 2 | ||||
Changes in Accounts Receivable [Abstract] | |||||
Gross accounts receivable | $ 12,014 | $ 13,158 | $ 13,927 | ||
Less: provision for expected credit loss | 338 | 328 | 416 | ||
Net accounts receivable | 11,676 | 12,830 | 13,511 | ||
Customer Accounts Receivable - Water [Member] | |||||
Changes in Accounts Receivable [Abstract] | |||||
Gross accounts receivable | 7,437 | 6,573 | 5,981 | ||
Customer Accounts Receivable - Wastewater [Member] | |||||
Changes in Accounts Receivable [Abstract] | |||||
Gross accounts receivable | 696 | 644 | 637 | ||
Customer Accounts Receivable - SLP Plan [Member] | |||||
Changes in Accounts Receivable [Abstract] | |||||
Gross accounts receivable | 392 | 409 | 384 | ||
Settlement Agreement Receivable - Short Term [Member] | |||||
Changes in Accounts Receivable [Abstract] | |||||
Gross accounts receivable | 2,500 | 2,747 | 2,532 | ||
Developer Receivable [Member] | |||||
Changes in Accounts Receivable [Abstract] | |||||
Gross accounts receivable | 798 | 2,089 | 1,151 | ||
Miscellaneous Receivable [Member] | |||||
Changes in Accounts Receivable [Abstract] | |||||
Gross accounts receivable | $ 191 | $ 696 | $ 3,242 |
LEASES (Details)
LEASES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Operating Lease, Description [Abstract] | |||||
Percentage of increase in annual lease payments | 3% | ||||
Rent Expense [Abstract] | |||||
Minimum rentals | $ 4 | $ 4 | $ 8 | $ 6 | |
Contingent rentals | 0 | 0 | 0 | 0 | |
Rent expenses | 4 | $ 4 | 8 | 6 | |
Cash paid for amounts included in the measurement of lease liabilities [Abstract] | |||||
Operating cash flows from operating leases | 8 | 6 | |||
Right-of-use assets obtained in exchange for lease obligations [Abstract] | |||||
Operating leases | 501 | $ 500 | |||
Operating leases [Abstract] | |||||
Operating lease right-of-use assets | 501 | 501 | $ 506 | ||
Operating lease, liability [Abstract] | |||||
Other current liabilities | 9 | 9 | 9 | ||
Operating lease liabilities | 499 | 499 | 503 | ||
Total operating lease liabilities | $ 508 | $ 508 | $ 512 | ||
Weighted Average Remaining Lease Term [Abstract] | |||||
Operating leases | 57 years | 57 years | 58 years | ||
Weighted Average Discount Rate [Abstract] | |||||
Operating leases | 5% | 5% | 5% | ||
Maturities of Operating Lease Liabilities [Abstract] | |||||
2024 | $ 35 | $ 35 | |||
2025 | 35 | 35 | |||
2026 | 35 | 35 | |||
2027 | 34 | 34 | |||
2028 | 27 | 27 | |||
Thereafter | 1,424 | 1,424 | |||
Total undiscounted lease payments | 1,590 | 1,590 | |||
Less effects of discounting | (1,082) | (1,082) | |||
Total lease liabilities recognized | $ 508 | $ 508 | $ 512 | ||
Minimum [Member] | |||||
Operating Lease, Description [Abstract] | |||||
Remaining lease term | 4 years | 4 years | |||
Maximum [Member] | |||||
Operating Lease, Description [Abstract] | |||||
Remaining lease term | 72 years | 72 years | |||
Option to extend lease term | 66 years | 66 years |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Carrying Amount [Member] | ||
Long-term Financial Liabilities [Abstract] | ||
Long-term debt | $ 179,721 | $ 180,542 |
Estimated Fair Value [Member] | ||
Long-term Financial Liabilities [Abstract] | ||
Long-term debt | $ 157,520 | $ 162,720 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Income Taxes [Abstract] | ||
Income tax penalties and interest accrued for unrecognized tax position | $ 9,000 | $ 12,000 |
State Authorities [Member] | ||
Income Taxes [Abstract] | ||
Tax year open to examination | 2020 2021 2022 2023 | |
Federal Authorities [Member] | ||
Income Taxes [Abstract] | ||
Tax year open to examination | 2020 2021 2022 2023 |
STOCK COMPENSATION PLANS (Detai
STOCK COMPENSATION PLANS (Details) | 3 Months Ended | 6 Months Ended | ||||
May 06, 2024 $ / shares shares | May 09, 2023 $ / shares shares | Jun. 30, 2024 USD ($) $ / shares shares | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) Director $ / shares shares | Jun. 30, 2023 USD ($) | |
Stock Compensation Plans [Abstract] | ||||||
Compensation expense | $ | $ 125,000 | $ 116,000 | ||||
Number of directors in committee | Director | 3 | |||||
Stock Options [Member] | ||||||
Stock Compensation Plans [Abstract] | ||||||
Options exercised (in shares) | 0 | |||||
Stock Options [Member] | 2015 Equity Compensation Plan [Member] | ||||||
Stock Compensation Plans [Abstract] | ||||||
Unvested shares outstanding (in shares) | 0 | 0 | ||||
Unrecognized expense related to non-vested option shares | $ | $ 0 | $ 0 | ||||
Restricted Stock [Member] | ||||||
Stock Compensation Plans [Abstract] | ||||||
Compensation expense | $ | 125,000 | $ 116,000 | ||||
Restricted Stock [Member] | 2015 Equity Compensation Plan [Member] | ||||||
Stock Compensation Plans [Abstract] | ||||||
Unrecognized expense related to non-vested option shares | $ | 157,000 | $ 157,000 | ||||
Period over which unvested options cost will recognized | 10 months 6 days | |||||
Class A Stock [Member] | Restricted Stock [Member] | ||||||
Stock Compensation Plans [Abstract] | ||||||
Compensation expense | $ | $ 57,000 | $ 60,000 | ||||
Granted (in shares) | 5,000 | 5,000 | ||||
Fair value per share (in dollars per share) | $ / shares | $ 37.07 | $ 54.88 | ||||
Period after grant date in which shares vested and were released | 1 year | |||||
Shares [Roll Forward] | ||||||
Outstanding at beginning of period (in shares) | 5,000 | |||||
Granted (in shares) | 5,000 | |||||
Exercised/vested and released (in shares) | (5,000) | |||||
Cancelled (in shares) | 0 | |||||
Outstanding at end of period (in shares) | 5,000 | 5,000 | ||||
Weighted Average Grant Date Fair Value [Abstract] | ||||||
Outstanding at beginning of period (in dollars per shares) | $ / shares | $ 54.88 | |||||
Granted (in dollars per share) | $ / shares | 37.07 | |||||
Exercised/vested and released (in dollars per shares) | $ / shares | 54.88 | |||||
Expired/cancelled (in dollars per share) | $ / shares | 0 | |||||
Outstanding at end of period (in dollars per shares) | $ / shares | $ 37.07 | $ 37.07 |
GEOGRAPHIC CONCENTRATION OF C_2
GEOGRAPHIC CONCENTRATION OF CUSTOMERS (Details) | 6 Months Ended |
Jun. 30, 2024 Customer County | |
Concentration Risks [Abstract] | |
Number of counties in which water utility service provided | County | 3 |
Large Industrial Customer [Member] | |
Concentration Risks [Abstract] | |
Number of customers | 1 |
Artesian Water [Member] | |
Concentration Risks [Abstract] | |
Number of customers | 96,600 |
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 | 8,300 |
OTHER DEFERRED ASSETS (Details)
OTHER DEFERRED ASSETS (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Other Deferred Assets [Abstract] | ||
Investment in CoBank | $ 6,425 | $ 5,882 |
Settlement agreement receivable-long-terrm | 2,496 | 2,496 |
Other deferred assets | 41 | 126 |
Other deferred assets | $ 8,962 | $ 8,504 |
REGULATORY ASSETS (Details)
REGULATORY ASSETS (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Reclassification of deferred acquisition costs [Abstract] | ||
Reclassification of deferred acquisition costs from net utility plant | $ 3,700 | |
Reclassification of deferred acquisition costs from contributions in aid of construction | $ 100 | |
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 | |
Unrecovered reserve for depreciation (general plant assets) | 5 years | |
Regulatory assets net of amortization, comprise [Abstract] | ||
Regulatory assets, net | $ 15,142 | $ 7,289 |
Maximum [Member] | ||
Amortization period of other regulatory expense [Abstract] | ||
Debt related cost | 30 years | |
Minimum [Member] | ||
Amortization period of other regulatory expense [Abstract] | ||
Debt related cost | 15 years | |
Delaware [Member] | ||
Amortization period of other regulatory expense [Abstract] | ||
Regulatory rate proceedings | 3 years | |
Deferred acquisition costs | 20 years | |
Delaware [Member] | Maximum [Member] | ||
Amortization period of other regulatory expense [Abstract] | ||
Deferred acquisition adjustments | 62 years | |
Delaware [Member] | Minimum [Member] | ||
Amortization period of other regulatory expense [Abstract] | ||
Deferred acquisition adjustments | 36 years | |
Maryland [Member] | Maximum [Member] | ||
Amortization period of other regulatory expense [Abstract] | ||
Deferred acquisition and franchise costs | 80 years | |
Maryland [Member] | Minimum [Member] | ||
Amortization period of other regulatory expense [Abstract] | ||
Deferred acquisition and franchise costs | 20 years | |
Deferred Contract Costs and Other [Member] | ||
Regulatory assets net of amortization, comprise [Abstract] | ||
Regulatory assets, net | $ 175 | 209 |
Rate Case Studies [Member] | ||
Regulatory assets net of amortization, comprise [Abstract] | ||
Regulatory assets, net | 159 | 166 |
Delaware Rate Proceedings [Member] | ||
Regulatory assets net of amortization, comprise [Abstract] | ||
Regulatory assets, net | 559 | 355 |
Deferred Income Taxes [Member] | ||
Regulatory assets net of amortization, comprise [Abstract] | ||
Regulatory assets, net | 434 | 444 |
Debt Related Costs [Member] | ||
Regulatory assets net of amortization, comprise [Abstract] | ||
Regulatory assets, net | 4,145 | 4,322 |
Deferred Costs Affiliated Interest Agreement [Member] | ||
Regulatory assets net of amortization, comprise [Abstract] | ||
Regulatory assets, net | 1,082 | 1,110 |
Goodwill [Member] | ||
Regulatory assets net of amortization, comprise [Abstract] | ||
Regulatory assets, net | 254 | 258 |
Deferred Acquisition and Franchise Costs - Maryland [Member] | ||
Regulatory assets net of amortization, comprise [Abstract] | ||
Regulatory assets, net | 407 | 425 |
Deferred Acquisition Costs - Delaware [Member] | ||
Regulatory assets net of amortization, comprise [Abstract] | ||
Regulatory assets, net | 237 | 0 |
Deferred Acquisition Adjustments - Delaware [Member] | ||
Regulatory assets net of amortization, comprise [Abstract] | ||
Regulatory assets, net | 3,395 | 0 |
Unrecovered Reserve for Depreciation [Member] | ||
Regulatory assets net of amortization, comprise [Abstract] | ||
Regulatory assets, net | $ 4,295 | $ 0 |
REGULATORY LIABILITIES (Details
REGULATORY LIABILITIES (Details) $ in Thousands | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jul. 31, 2023 USD ($) | Aug. 31, 2022 USD ($) | Jun. 30, 2024 USD ($) Installment Refund | Dec. 31, 2017 USD ($) | Jun. 12, 2024 USD ($) | Dec. 31, 2023 USD ($) | Jan. 31, 2019 USD ($) | |
REGULATORY LIABILITIES [Abstract] | |||||||
Litigation settlement amount | $ 10,000 | ||||||
Litigation settlement amount received | $ 2,500 | $ 2,500 | |||||
Litigation settlement, remaining amount | $ 5,000 | ||||||
Number of installments | Installment | 2 | ||||||
Number of upcoming installments | Installment | 2 | ||||||
Number of refunds | Refund | 2 | ||||||
Federal corporate tax rate | 21% | 34% | |||||
Decrease in the net deferred income tax liability | $ 24,300 | ||||||
Regulatory Liabilities [Abstract] | |||||||
Regulatory liabilities | $ 33,467 | $ 22,800 | $ 25,676 | ||||
DEPSC [Member] | |||||||
Regulatory Liabilities [Abstract] | |||||||
Regulatory liabilities | $ 4,000 | $ 22,200 | |||||
Regulatory liabilities, amortization period | 49 years 6 months | 6 years | |||||
Gross-up adjustment | $ 7,600 | ||||||
MDPSC [Member] | |||||||
Regulatory Liabilities [Abstract] | |||||||
Regulatory liabilities | $ 600 | ||||||
Utility Plant Retirement Cost Obligation [Member] | |||||||
Regulatory Liabilities [Abstract] | |||||||
Regulatory liabilities | 334 | 0 | |||||
Deferred Settlement Refunds [Member] | |||||||
Regulatory Liabilities [Abstract] | |||||||
Regulatory liabilities | 4,991 | 4,991 | |||||
Deferred Income Taxes [Member] | |||||||
Regulatory Liabilities [Abstract] | |||||||
Regulatory liabilities | $ 28,142 | $ 20,685 |
REGULATORY PROCEEDINGS (Details
REGULATORY PROCEEDINGS (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||||||
Jun. 12, 2024 USD ($) | May 30, 2024 USD ($) | Nov. 20, 2020 USD ($) | Jun. 30, 2024 USD ($) Application | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) Application | Jun. 30, 2023 USD ($) | Nov. 28, 2023 USD ($) | Apr. 28, 2023 USD ($) | |
Rate Proceedings [Abstract] | |||||||||
Percentage of revenue increase requested for new rates | 15.20% | 14.60% | 22.70% | ||||||
Annual revenue performance obligation | $ 11.2 | $ 10.8 | $ 16.7 | ||||||
Percentage of distribution system infrastructure charge | 7.50% | ||||||||
Percentage of return on common equity | 9.50% | ||||||||
Overall rate of return on rate base | 6.75% | ||||||||
Other Proceedings [Abstract] | |||||||||
Number of applications | Application | 2 | 2 | |||||||
Cumulative DSIC Rate | 0.34% | 7.50% | |||||||
Net Eligible Plant Improvements - Cumulative Dollars | $ 2 | $ 43.1 | |||||||
Percentage of gross water sales in temporary rate increase placed into effect until new rates approved | 0% | ||||||||
Delaware [Member] | |||||||||
Rate Proceedings [Abstract] | |||||||||
Percentage of gross water sales | 15% | ||||||||
Period to complete rate case by law | 7 months | ||||||||
Delaware [Member] | Maximum [Member] | |||||||||
Rate Proceedings [Abstract] | |||||||||
Temporary annual rate increase subject to 15% gross water sales limitation | $ 2.5 | ||||||||
Percentage of rate relief allowed should a rate case not complete | 15% | ||||||||
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 | $ 0 | $ 1.3 | $ 0 | $ 2.5 |
NET INCOME PER COMMON SHARE A_3
NET INCOME PER COMMON SHARE AND EQUITY PER COMMON SHARE (Details) - $ / shares | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | 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) | 10,293,000 | 9,998,000 | 10,290,000 | 9,752,000 | ||
Dilutive effect of employee stock options and awards (in shares) | 2,000 | 4,000 | 3,000 | 5,000 | ||
Weighted average common shares outstanding during the period for Diluted computation (in shares) | 10,295,000 | 10,002,000 | 10,293,000 | 9,757,000 | ||
Earnings Per Share [Abstract] | ||||||
Equity per common share (in dollars per share) | $ 0.52 | $ 0.44 | $ 0.95 | $ 0.84 | ||
Class A Stock [Member] | ||||||
Common Stock [Abstract] | ||||||
Common stock, par value (in dollars per share) | $ 1 | |||||
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 | 15,000,000 | ||
Common stock, shares issued (in shares) | 9,414,094 | 9,393,344 | 9,414,094 | 9,393,344 | ||
Common stock, shares outstanding (in shares) | 9,414,094 | 9,393,344 | 9,414,094 | 9,393,344 | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 | $ 1 | $ 1 | ||
Earnings Per Share [Abstract] | ||||||
Equity per common share (in dollars per share) | $ 22.78 | $ 23 | ||||
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 | 1,040,000 | ||
Common stock, shares issued (in shares) | 881,452 | 881,452 | 881,452 | 881,452 | ||
Common stock, shares outstanding (in shares) | 881,452 | 881,452 | 881,452 | 881,452 | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 | $ 1 | $ 1 | ||
Restricted Stock [Member] | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Abstract] | ||||||
Shares excluded from calculations of diluted net income per share (in shares) | 0 | 0 | 0 | 0 |
COMMON STOCK OFFERING (Details)
COMMON STOCK OFFERING (Details) - Class A Stock [Member] - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | ||
Jun. 16, 2023 | May 23, 2023 | Jun. 30, 2024 | |
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 |
LEGAL PROCEEDINGS (Details)
LEGAL PROCEEDINGS (Details) | Jun. 30, 2024 Phase Litigation Defendant |
LEGAL PROCEEDINGS [Abstract] | |
Number of multi-district litigations | Litigation | 2 |
Number of groups of settling defendants | Defendant | 2 |
Number of phases of settlement claim | Phase | 1 |
BUSINESS SEGMENT INFORMATION (D
BUSINESS SEGMENT INFORMATION (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) Segment Subsidiary Business | Jun. 30, 2023 USD ($) | Dec. 31, 2023 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 | $ 27,416 | $ 25,251 | $ 51,960 | $ 47,746 | |
Segment Reporting, Operating Income [Abstract] | |||||
Operating Income | 7,198 | 6,208 | 11,917 | 10,269 | |
Segment Reporting, Income Taxes [Abstract] | |||||
Income Taxes | 1,945 | 1,593 | 3,627 | 2,906 | |
Segment Reporting, Assets [Abstract] | |||||
Assets | 783,131 | 766,832 | 783,131 | 766,832 | $ 766,832 |
Intersegment Eliminations [Member] | |||||
Segment Reporting, Revenue [Abstract] | |||||
Revenues | (58) | (54) | (118) | (108) | |
Regulated Utility [Member] | Operating Segments [Member] | |||||
Segment Reporting, Revenue [Abstract] | |||||
Revenues | 25,789 | 23,668 | 48,630 | 44,501 | |
Segment Reporting, Operating Income [Abstract] | |||||
Operating Income | 6,907 | 6,013 | 11,265 | 9,717 | |
Segment Reporting, Income Taxes [Abstract] | |||||
Income Taxes | 1,725 | 1,303 | 3,151 | 2,370 | |
Segment Reporting, Assets [Abstract] | |||||
Assets | 773,350 | 760,339 | 773,350 | 760,339 | |
Other (non-utility) [Member] | Operating Segments [Member] | |||||
Segment Reporting, Revenue [Abstract] | |||||
Revenues | 1,685 | 1,637 | 3,448 | 3,353 | |
Segment Reporting, Operating Income [Abstract] | |||||
Operating Income | 291 | 195 | 652 | 552 | |
Segment Reporting, Income Taxes [Abstract] | |||||
Income Taxes | 220 | 290 | 476 | 536 | |
Segment Reporting, Assets [Abstract] | |||||
Assets | $ 9,781 | $ 6,493 | $ 9,781 | $ 6,493 |