SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended September 30, 2002 Commission File No. 0-690
THE YORK WATER COMPANY
(Exact name of Registrant as specified in its Charter)
PENNSYLVANIA 23-1242500
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
130 East Market Street, York, Pennsylvania 17401
(Address of principal executive offices) (Zip Code)
Registrant's telephone number including Area Code 717-845-3601
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days. YES X NO
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
Common stock, no par value 6,349,851 Shares outstanding
as of November 8, 2002
THE YORK WATER COMPANY
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Balance Sheets
(Unaudited)
As Of As of
Sept. 30, 2002 Dec. 31, 2001
UTILITY PLANT, at original cost $125,879,189 $121,109,335
Less-Reserve for depreciation 20,561,366 19,356,553
105,317,823 101,752,782
OTHER PHYSICAL PROPERTY:
Less-Reserve for depreciation of
$94,213 in 2002 and $89,392 in 2001 509,903 511,007
CURRENT ASSETS:
Cash and cash equivalents - 97,447
Receivables, less reserves of
$130,000 in 2002 and 2001 2,987,008 2,995,000
Materials and supplies, at cost 458,018 449,777
Prepaid expenses 371,568 229,248
Deferred income taxes 88,655 88,655
3,905,249 3,860,127
OTHER LONG-TERM ASSETS:
Prepaid pension cost 2,249,359 2,202,995
Deferred debt expense 324,288 354,346
Deferred rate case expense 85,016 144,042
Notes receivable 860,350 1,121,916
Deferred regulatory assets 2,534,813 1,886,658
Other 1,955,332 1,517,619
8,009,158 7,227,576
$117,742,133 $113,351,492
THE YORK WATER COMPANY
Balance Sheets
(Unaudited)
As Of As Of
Sept. 30, 2002 Dec. 31, 2001
CAPITALIZATION
Common stock, no par value,
authorized 31,000,000 shares,
outstanding 6,349,851 shares
in 2002 and 6,308,664 shares
in 2001 $ 32,106,953 $ 31,473,194
Earnings retained in the business 4,864,339 4,418,280
36,971,292 35,891,474
LONG-TERM DEBT
1.0% Pennvest Loan, due 2019 661,687 690,343
6.00% Industrial Development
Authority Revenue Refunding Bonds,
Series 1995, due 2010 4,300,000 4,300,000
10.05% Senior Notes, Series C,
due 2020 6,500,000 6,500,000
10.17% Senior Notes, Series A,
due 2019 6,000,000 6,000,000
9.6% Senior Notes, Series B,
due 2019 5,000,000 5,000,000
8.43% Senior Notes, Series D,
due 2022 7,500,000 7,500,000
4.40% Industrial Development
Authority Revenue Refunding Bonds,
Series 1994, due 2009 2,700,000 2,700,000
32,661,687 32,690,343
CURRENT LIABILITIES
Short-term borrowings 2,812,610 2,000,000
Current portion of long-term debt 38,161 37,877
Accounts payable 889,184 478,423
Dividends payable 628,820 623,498
Accrued taxes 245,892 527,674
Advance water revenues 27,070 25,037
Accrued interest 494,564 678,163
Other accrued expenses 502,963 470,545
5,639,264 4,841,217
DEFERRED CREDITS
Customers' advances for construction 18,208,370 17,777,685
Contributions in aid of construction 11,388,580 10,784,143
Deferred income taxes 10,119,528 8,519,594
Deferred regulatory liabilities 947,143 970,330
Deferred employee benefits 1,806,269 1,876,706
42,469,890 39,928,458
$117,742,133 $113,351,492
THE YORK WATER COMPANY
Statements of Income
(Unaudited) (Unaudited)
Three Months Ended Nine Months Ended
September 30 September 30
<s> 2002 2001 2002 2001
WATER OPERATING REVENUES <c> <c> <c> <c>
Residential $3,066,866 $3,019,749 $8,718,583 $8,572,316
Commercial and
industrial 1,552,230 1,513,943 4,214,952 4,087,492
Other 657,039 576,592 1,898,539 1,709,308
5,276,135 5,110,284 14,832,074 14,369,116
OPERATING EXPENSES
Operation and
maintenance 1,205,514 1,215,892 3,395,450 3,333,711
Administrative and
general 973,901 883,234 3,081,260 2,762,708
Depreciation and
amortization 415,874 291,565 1,247,621 1,178,580
Taxes other than
income taxes 296,460 (171,078) 666,219 218,075
2,891,749 2,219,613 8,390,550 7,493,074
Operating Income 2,384,386 2,890,671 6,441,524 6,876,042
INTEREST EXPENSE AND
OTHER INCOME
Interest on long-term
debt 689,890 689,984 2,069,742 2,070,003
Interest on short-term
debt 20,097 51,580 51,402 155,928
Allowance for funds used
during construction (40,729) (10,022) (95,773) (36,455)
Other income, net (53,105) 78,520 (137,100) 42,845
616,153 810,062 1,888,271 2,232,321
Income before income
taxes 1,768,233 2,080,609 4,553,253 4,643,721
Federal and state
income taxes 652,690 716,914 1,641,329 1,621,137
Net Income $1,115,543 $1,363,695 $2,911,924 $3,022,584
Basic earnings per share $.18 $.23 $.46 $.50
Cash dividends per share $.13 $.13 $.39 $.38
THE YORK WATER COMPANY
Statements of Shareholders' Investment
Earnings
Retained
Common in the
Stock Business
Balance, December 31, 2001 $31,473,194 $4,418,280
Net Income - 2,911,924
Cash Dividends - (2,465,865)
Issuance of common stock under
dividend reinvestment plan 582,569 -
Issuance of common stock under
employee stock purchase plan 51,190 -
Balance, September 30, 2002 $32,106,953 $4,864,339
THE YORK WATER COMPANY
Statements of Cash Flows
(Unaudited) (Unaudited)
Nine Months Nine Months
Ended Ended
Sept.30, 2002 Sept.30, 2001
<c> <c>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $2,911,924 $3,022,584
Adjustments to reconcile net income
to net cash provided by operating
activities
Depreciation 1,247,621 1,178,581
Provision for losses on accounts
receivable 97,500 97,500
Increase in deferred income taxes
(including regulatory assets and
liabilities) 928,592 1,070,001
Changes in assets and liabilities:
Increase in accounts receivable (89,508) (504,859)
Increase in materials and supplies (8,241) (64,614)
Increase in prepaid expenses and
prepaid pension costs (188,684) (75,741)
Increase (decrease) in accounts
payable, accrued expenses, other
liabilities and deferred employee
benefits 380,097 (769,093)
Decrease in accrued interest and
taxes (465,381) (291,427)
(Increase) decrease in other assets (202,676) 462,402
Net cash provided by operating
activities 4,611,244 4,125,334
CASH FLOWS FROM INVESTING ACTIVITIES:
Construction expenditures (4,957,511) (5,397,600)
Customers' advances for construction
and contributions in aid of
construction 1,035,122 1,344,669
Decrease (increase) in notes
receivable 261,566 (73,792)
Net cash used in investing
activities (3,660,823) (4,126,723)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments of long-term debt (28,372) (28,111)
Net borrowings under line-of-credit
agreements 812,610 444,054
Issuance of 76,930 shares of common
stock - 1,796,674
Issuance of common stock under
dividend reinvestment plan 582,569 520,579
Issuance of common stock under
employee stock purchase plan 51,190 57,749
Dividends paid (2,465,865) (2,307,816)
Net cash (used in) provided by
financing activities (1,047,868) 483,129
Net (decrease) increase in cash and
cash equivalents (97,447) 481,740
Cash and cash equivalents at
beginning of period 97,447 -
Cash and cash equivalents at
end of period $ - $ 481,740
Supplemental disclosures of cash
flow information:
Cash paid during the period for:
Interest, net of amounts
capitalized $2,204,204 $2,407,349
Income taxes 950,777 608,039
THE YORK WATER COMPANY
Notes to Interim Financial Statements
1. Interim Financial Information
The interim financial statements are unaudited but, in the
opinion of management, reflect all adjustments of a normal
recurring nature necessary for a fair presentation of results
for such periods. These financial statements should be read in
conjunction with the financial statements and notes thereto
contained in the Company's Annual Report to Shareholders for the
year ended 2001.
Operating results for the three month and nine month periods
ended September 30, 2002, are not necessarily indicative of the
results that may be expected for the year ending December 31,
2002.
2. Basic Earnings Per Share
Basic earnings per share for the nine months ended September
30, 2002 and 2001 were based on weighted average shares
outstanding of 6,323,782 and 6,105,836, respectively.
3. The Company had a two-for-one stock split during the second
quarter 2002. On May 20, 2002, shareholders of record as of May
10, 2002, received one additional share of common stock for each
share held as of the record date. The transaction had no effect
on total stockholders' equity. All shares outstanding and per
share amounts were restated to reflect the effect of the stock
split.
THE YORK WATER COMPANY
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations
Results of Operations
Three Months Ended September 30, 2002 Compared
with Three Months Ended September 30, 2001
Net income for the third quarter of 2002 was $1,115,543, a
decrease of $248,152, or 18.2%, compared to the same period of
2001.
Water operating revenues for the three months ended September 30,
2002, increased $165,851 or 3.2% compared to the three months
ended September 30, 2001. The increase resulted primarily from
the 4.2% rate increase approved by the Pennsylvania Public
Utility Commission (PPUC), effective September 1, 2001. Drought
conditions lessened the impact of the rate increase and an
increase in customers during the third quarter 2002 compared to
third quarter 2001.
Operating expenses for the third quarter of 2002 increased
$672,136, or 30.3% compared to the third quarter of 2001. Prior
year expenses were substantially reduced by a public utility
realty tax refund and lower depreciation expenses handed down
from the Commonwealth and the PPUC, respectively. In addition,
higher pension expenses due to continued lower plan asset
investment returns, higher health insurance premiums, and
increased realty taxes caused the remaining increase compared to
the three months ended September 30, 2001.
Interest on short-term bank loans decreased $31,483, or 61.0%,
during the third quarter 2002 compared to the same period in 2001
due to lower interest rates and a lower outstanding balance for
most of the quarter.
Allowance for funds used during construction for the third
quarter 2002 increased $30,707 when compared to the third quarter
2001. Capitalized interest on the costs associated with the
pipeline to the river project accounts for the increase.
Other income, net, increased by $131,625 during the third quarter
2002 compared to third quarter 2001, due to a decrease in
supplemental retirement expenses caused by an increase in the
discount rate used in the present value calculations.
Federal and state income taxes decreased $64,224, or 9.0%, due to
a decrease in taxable income. The effective tax rate was 36.9%
for the third quarter 2002 compared with 34.5% for the third
quarter 2001.
Nine Months Ended September 30, 2002 Compared
with Nine Months Ended September 30, 2001
Net income for the first three quarters of 2002 was $2,911,924, a
decrease of $110,660, or 3.7%, compared to the first three
quarters of 2001.
Water operating revenues for the year-to-date period ended
September 30, 2002, increased $462,958, or 3.2%, compared to the
same period in 2001. The increase resulted primarily from the
4.2% rate increase approved by the PPUC, effective September 1,
2001. Drought conditions reduced the impact of the rate increase
and the growth in customers in all classifications.
Operating expenses for the first nine months of 2002 increased
$897,476, or 12.0% compared to the first nine months of 2001. A
substantial public utility realty tax refund was received in 2001
due to the reapportionment of taxes by the Commonwealth. In
addition, asset lives were lengthened in 2001 as part of the
rate case settlement with the PPUC which reduced depreciation
expenses. These two factors resulted in lower than normal
expenses in 2001. Higher pension expenses due to lower
investment returns and higher health insurance premiums added to
the 2002 increase in expenses compared to 2001.
Interest on short-term bank loans decreased $104,526, or 67.0%,
during the first nine months of 2002 compared to the same period
in 2001 due to lower interest rates and a reduction in short-term
debt outstanding for the majority of the period. The average
daily short-term debt outstanding in 2002 and 2001 was $2,370,116
and $3,607,280, respectively.
Allowance for funds used during construction for 2002 increased
$59,318 when compared to 2001. Capitalized interest on the costs
associated with the pipeline to the river project accounts for
the increase.
Other income, net, increased by $179,945 in 2002 due to a
decrease in supplemental retirement expenses caused by an
increase in the discount rate used in the present value
calculations.
Rate Developments
Within the last several years the Company has filed written
applications for rate increases with the PPUC and has been
granted rate relief as a result of such requests. The most
recent request was filed on March 20,2001, seeking a $2,039,790,
or 11.1%, rate increase. Effective September 1, 2001, the PPUC
authorized an increase in rates designed to produce approximately
$800,000 in additional annual operating revenues, an increase of
4.2%. The Company plans to file its next rate increase in
January 2003.
Off-Balance Sheet Transactions
The Company does not use off-balance sheet transactions,
arrangements or obligations that may have a material current or
future effect on financial condition, results of operations,
liquidity, capital expenditures, capital resources, or
significant components of revenues or expenses. The Company does
not use securitization of receivables or unconsolidated entities.
The Company does not engage in trading or risk management
activities, has no lease obligations, and does not have material
transactions involving related parties.
Liquidity and Capital Resources
The Company is not aware of demands, events or uncertainties that
will result in a decrease of liquidity or in a material change in
the mix and relative cost of capital resources.
During the first three quarters of 2002, the Company per capita
volume of water sold decreased approximately 3.4% compared to the
first three quarters of 2001. The Company expects the remainder
of the year to continue at 3-5% reduced per capita consumption
due to the drought.
During the first three quarters of 2002, the Company had
$4,957,511 of construction expenditures. The Company financed
such expenditures through internally generated funds, customers'
advances, short-term borrowings, and proceeds from the issuance
of common stock under its dividend reinvestment plan (stock
issued in lieu of cash dividends), and employee stock purchase
plan. The Company anticipates construction expenditures of
approximately $6,518,500 for the year 2002, and the remaining
projected capital expenditures during the fourth quarter, or
$1,561,000 will be financed in the same manner as the first three
quarters of 2002.
During the first nine months of 2002, net cash used in investing
and financing activities exceeded net cash provided by operating
activities. The Company anticipates that during the remainder of
2002 net cash used in investing and financing activities will
continue to exceed cash provided by operating activities.
Borrowings against the Company's lines of credit, proceeds from
the issuance of common stock under its dividend reinvestment plan
(stock issued in lieu of cash dividends), and employee stock
purchase plan, and customers' advances are expected to be used to
satisfy the need for additional cash.
As of September 30, 2002, current liabilities exceeded current
assets by $1,734,015. Short-term borrowings from lines of credit
as of September 30, 2002, were $2,812,610. The Company maintains
lines of credit aggregating $14,000,000. Loans granted under
these lines of credit bear interest based on the prime or Libor
rates plus 1 to 1.25%. The Company is not required to maintain
compensating balances on its lines of credit.
On April 11, 2002, the PPUC approved the Company's previously
announced two-for-one common stock split. On May 20, 2002,
shareholders of record as of May 10, 2002, received one
additional share for each share held as of the record date.
The permitting process for the Company's pipeline to the
Susquehanna River continued during the third quarter of 2002.
Proposed rule-making has been issued in response to the Company's
petition by the Environmental Quality Board to reclassify the
lakes as warm water fishes. The issue is now in the public
comment stage until November 19, 2002, and will then likely
proceed to final rule-making. This rule-making affects only the
discharge of water from the Susquehanna River into the lakes.
While this process continued, the Environmental Protection Agency
and the Susquehanna River Basin Commission both approved the
Company's allocation permit to withdraw water from the
Susquehanna River. The allocation process now goes to the
Federal Energy Regulatory Commission for its approval.
While the permitting process advanced, the engineering phase for
the design of the intake, the pumphouse, and the first mile of
pipeline proceeded as planned. The engineering is expected to be
completed by March 2003.
Forward Looking Information
Certain statements contained herein and elsewhere in this Form
10-Q which are not historical facts are forward-looking
statements made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. These
forward-looking statements address activities or events which the
Company expects will or may occur in the future. The Company
cautions that a number of important factors could cause the
actual results to differ materially from those expressed in any
forward-looking statements made on behalf of the Company.
The Company is subject to various federal and state regulations
concerning water quality and environmental standards. In
addition, the water industry is generally dependent on the
adequacy of approved rates to allow for a fair rate of return on
the investment in utility plant. The Company's profitability
also depends on the timeliness of rate relief and numerous
factors over which it has little or no control, such as the
quantity of rainfall, temperature, industrial demand, financing
costs, energy rates, and environmental and water quality
regulations.
Because of the continuing drought emergency and conservation
efforts on the part of customers, the Company anticipates that
revenue and net income for the fourth quarter 2002 will be lower
than the fourth quarter 2001. Annual net income for 2002 will be
lower than in 2001.
Drought
On February 12, 2002, the Governor issued a drought emergency
which continued to be effective through the third quarter. The
emergency placed mandatory water use restrictions on the
Company's service territory. The drought has reduced operating
income through the first three quarters (particularly the third
quarter). On November 7, 2002, Pennsylvania Governor Schweiker
upgraded the state of drought emergency to a state of drought
warning within the Company's service territory.
Item 3. Quantitative and Qualitative Disclosures About Market
Risk.
The Company is not aware of demands, events or uncertainties that
will result in a decrease of liquidity or in a material change in
the mix and relative cost of capital resources.
The Company does not use derivative financial instruments for
speculative trading purposes. The Company's operations are
exposed to market risks primarily as a result of changes in
interest rates and foreign currency exchange rates. This
exposure to these market risks relates to the Company's debt
obligations under its lines of credit. Loans granted under
these lines bear interest based upon the prime or LIBOR rate plus
1 to 1.5 percent. The Company has not entered into financial
instruments such as interest rate swaps or interest rate lock
agreements.
The Company's 4.40% Industrial Development Authority Revenue
Refunding Bonds Series 1994 have a mandatory tender date of May
15, 2004. The 6% Series 1995 bonds have a mandatory tender date
of June 1, 2005. The Company is required to purchase any
unremarketed 1994 and 1995 bonds, despite the rate.
Item 4. Controls and Procedures
The Company's President and Chief Executive Officer along with
the Company's Vice President of Finance and Chief Financial
Officer evaluated the Company's disclosure controls and
procedures within 90 days of the filing date of this quarterly
report. Based upon this evaluation, the Company's President and
Chief Executive Officer along with the Company's Vice President
of Finance and Chief Financial Officer concluded that the
Company's disclosure controls and procedures are effective in
ensuring that material information required to be disclosed is
included in the reports that it files with the Securities and
Exchange Commission.
There were no significant changes in the Company's internal
controls or, to the knowledge of the management of the Company,
in other factors that could significantly affect these controls
subsequent to the evaluation date.
THE YORK WATER COMPANY
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
THE YORK WATER COMPANY
_/s/ William T. Morris_________
William T. Morris
Principal Executive Officer
Date: November 11, 2002
_/s/ Jeffrey S. Osman____
Jeffrey S. Osman
Principal Financial and
Accounting Officer
Date: November 11, 2002
THE YORK WATER COMPANY
SECTION 302 CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER
I, William T. Morris, certify that:
1. I have reviewed this quarterly report on Form 10-Q of
The York Water Company;
2. Based on my knowledge, this quarterly report does not
contain any untrue statement of a material fact or omit to state
a material fact necessary to make the statements made, in light
of the circumstances under which such statements were made, not
misleading with respect to the period covered by this quarterly
report;
3. Based on my knowledge, the financial statements, and
other financial information included in this quarterly report,
fairly present in all material respects the financial condition,
results of operations and cash flows of the registrant as of, and
for, the periods presented in this quarterly report;
4. The registrant's other certifying officers and I are
responsible for establishing and maintaining disclosure controls
and procedures (as defined in Exchange Act Rules 13a-14 and
15d-14) for the registrant and we have:
a) designed such disclosure controls and procedures to
ensure that material information relating to the
registrant, including its consolidated subsidiaries, is
made known to us by others within those entities,
particularly during the period in which this quarterly
report is being prepared;
b) evaluated the effectiveness of the registrant's
disclosure controls and procedures as of a date within
90 days prior to the filing date of this quarterly
report (the "evaluation Date"); and
c) presented in this quarterly report our conclusions
about the effectiveness of the disclosure controls and
procedures based on our evaluation as of the Evaluation
Date;
5. The registrant's other certifying officers and I have
disclosed, based on our most recent evaluation, to the
registrant's auditors and the audit committee of registrant's
board of directors (or persons performing the equivalent
function):
a) all significant deficiencies in the design or
operation of internal controls which could adversely
affect the registrant's ability to record process,
summarize and report financial data and have identified
for the registrant's auditors any material weaknesses in
internal controls; and
b) any fraud, whether or not material, that involves
management or other employees who have a significant
role in the registrant's internal controls; and
6. The registrant's other certifying officers and I have
indicated in this quarterly report whether or not there were
significant changes in internal controls or in other factors that
could significantly affect internal controls subsequent to the
date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material
weaknesses.
Date: ____11/12/02___________ _/s/_William_T._Morris____
William T. Morris
President and CEO
THE YORK WATER COMPANY
SECTION 302 CERTIFICATION OF THE CHIEF FINANCIAL OFFICER
I, Jeffrey S. Osman, certify that:
1. I have reviewed this quarterly report on Form 10-Q of
The York Water Company;
2. Based on my knowledge, this quarterly report does not
contain any untrue statement of a material fact or omit to state
a material fact necessary to make the statements made, in light
of the circumstances under which such statements were made, not
misleading with respect to the period covered by this quarterly
report;
3. Based on my knowledge, the financial statements, and
other financial information included in this quarterly report,
fairly present in all material respects the financial condition,
results of operations and cash flows of the registrant as of, and
for, the periods presented in this quarterly report;
4. The registrant's other certifying officers and I are
responsible for establishing and maintaining disclosure controls
and procedures (as defined in Exchange Act Rules 13a-14 and
15d-14) for the registrant and we have:
a) designed such disclosure controls and procedures to
ensure that material information relating to the
registrant, including its consolidated subsidiaries, is
made known to us by others within those entities,
particularly during the period in which this quarterly
report is being prepared;
b) evaluated the effectiveness of the registrant's
disclosure controls and procedures as of a date within
90 days prior to the filing date of this quarterly
report (the "evaluation Date"); and
c) presented in this quarterly report our conclusions
about the effectiveness of the disclosure controls and
procedures based on our evaluation as of the Evaluation
Date;
5. The registrant's other certifying officers and I have
disclosed, based on our most recent evaluation, to the
registrant's auditors and the audit committee of registrant's
board of directors (or persons performing the equivalent
function):
a) all significant deficiencies in the design or
operation of internal controls which could adversely
affect the registrant's ability to record process,
summarize and report financial data and have identified
for the registrant's auditors any material weaknesses in
internal controls; and
b) any fraud, whether or not material, that involves
management or other employees who have a significant
role in the registrant's internal controls; and
6. The registrant's other certifying officers and I have
indicated in this quarterly report whether or not there were
significant changes in internal controls or in other factors that
could significantly affect internal controls subsequent to the
date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material
weaknesses.
Date: ___11/12/02________ _/s/_Jeffrey_S._Osman____
Jeffrey S. Osman
Vice President-Finance
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of The York Water
Company on Form 10-Q for the period ending September 30, 2002 as
filed with the Securities and Exchange Commission on the date
hereof (the "Report"), I, William T. Morris, Chief Executive
Officer of the Company, certify, pursuant to 18 U.S.C. Section
1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002, that:
(1) The Report fully complies with the requirements of
Section 13(a) of the Securities Exchange Act of 1934 (15 U.S.C.
78m(a)); and
(2) The information contained in the Report fairly
presents, in all material respects, the financial condition and
results of operations of the Company.
THE YORK WATER COMPANY
_/s/_William_T._Morris______
William T. Morris
Chief Executive Officer
Date: November 11, 2002
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of The York Water
Company on Form 10-Q for the period ending September 30, 2002 as
filed with the Securities and Exchange Commission on the date
hereof (the "Report"), I, Jeffrey S. Osman, Chief Financial
Officer of the Company, certify, pursuant to 18 U.S.C. Section
1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002, that:
(1) The Report fully complies with the requirements of
Section 13(a) of the Securities Exchange Act of 1934 (15 U.S.C.
78m(a)); and
(2) The information contained in the Report fairly
presents, in all material respects, the financial condition and
results of operations of the Company.
THE YORK WATER COMPANY
_/s/_Jeffrey_S._Osman_______
Jeffrey S. Osman
Chief Financial Officer
Date: November 11, 2002