Artesian Resources Corp. Enters Rate Settlement Agreement

TL;DR

Artesian Resources (ART) signed a Rate Settlement Agreement, details to follow.

AI Summary

Artesian Resources Corp. announced on May 22, 2024, that it has entered into a Rate Settlement Agreement. The details of this agreement, including specific financial terms and the parties involved, are not fully disclosed in this initial 8-K filing but are expected to be elaborated upon.

Why It Matters

This agreement could impact the company's future revenue streams and customer rates, potentially affecting its financial performance and investor outlook.

Risk Assessment

Risk Level: medium — The filing indicates a significant event (Rate Settlement Agreement) but lacks specific details, creating uncertainty about its financial implications.

Key Players & Entities

• Artesian Resources Corp (company) — Registrant
• May 22, 2024 (date) — Date of earliest event reported
• Delaware (location) — State of incorporation
• Newark, Delaware (location) — Principal executive offices

FAQ

Key Financial Figures

• $16.7 m — ed increase in revenue of approximately $16.7 million, on an annualized basis, or 22.7%
• $10.8 m — tive November 28, 2023 of approximately $10.8 million, on an annualized basis, or 14.6%
• $11.2 m — increase in the revenue requirement of $11.2 million, on an annualized basis, or appro

Filing Documents

• 8k.htm (8-K) — 21KB
• 0000863110-24-000023.txt ( ) — 153KB
• artna-20240522.xsd (EX-101.SCH) — 4KB
• artna-20240522_lab.xml (EX-101.LAB) — 21KB
• artna-20240522_pre.xml (EX-101.PRE) — 16KB
• 8k_htm.xml (XML) — 4KB

01 Other Events

Item 8.01 Other Events On May 22, 2024, Artesian Water Company, Inc., or Artesian Water, the Staff of the Delaware Public Service Commission, or 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. The Settlement Agreement is expressly conditioned upon the DEPSC's approval of all the specific terms and conditions contained in the Settlement Agreement without modification. 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 Distribution System Improvement Charge previously in effect from approximately 7.5% to zero. 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%. The new rates are designed to support Artesian Water's ongoing capital improvement program and to cover increased costs of operations, including chemicals and electricity for water treatment, water quality testing, fuel, taxes, interest, labor and benefits. Artesian Water's last comprehensive application for an increase in base rate charges was filed in April 2014.

Forward Looking Statements

Forward Looking Statements related matters are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended and the Private Securities Litigation Reform Act of 1995. Forward-looking statements are predictions based on Artesian Resources Corporation's, or our or we, current expectations and assumptions regarding future events. They are not guarantees or assurances of any outcomes, financial results, levels of activity, performance or achievements, and readers are cautioned not to place undue reliance upon them. These statements involve risks and uncertainties that could cause our rate increase and timing to differ materially from those projected, including without limitation, the interpretation of the final order by the PSC and certain factors disclosed under Item 1A, "Risk factors" in our Annual Report on Form 10-K for the year ended December 31, 2023. The forward-looking statements are based on our beliefs as of the date on which the statements were made and we undertake no obligation to update the forward-looking statements except as required by law.

SIGNATURES

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 hereunto duly authorized. ARTESIAN RESOURCES CORPORATION Date: May 22, 2024 By: /s/ David B. Spacht David B. Spacht Chief Financial Officer

View Full Filing

View this 8-K filing on SEC EDGAR