Artesian Resources Settles Rate Adjustments
Ticker: ARTNB · Form: 8-K · Filed: Jun 17, 2024 · CIK: 863110
| Field | Detail |
|---|---|
| Company | Artesian Resources CORP (ARTNB) |
| Form Type | 8-K |
| Filed Date | Jun 17, 2024 |
| Risk Level | medium |
| Pages | 2 |
| Reading Time | 3 min |
| Key Dollar Amounts | $10.8 m, $11.2 million |
| Sentiment | neutral |
Sentiment: neutral
Topics: regulatory, rates, settlement
TL;DR
Artesian Resources settled rate hike talks with regulators, expect new prices soon.
AI Summary
Artesian Resources Corp. announced on June 12, 2024, that it has entered into a settlement agreement regarding rate adjustments. The company reached an agreement with the Delaware Public Service Commission staff and other parties concerning proposed rate increases for its water and wastewater services. The settlement is expected to be presented to the Commission for approval.
Why It Matters
This settlement impacts the future pricing of water and wastewater services provided by Artesian Resources, directly affecting customer bills and the company's revenue streams.
Risk Assessment
Risk Level: medium — Rate settlements can introduce uncertainty regarding future revenue and profitability, depending on the final approved rates.
Key Players & Entities
- Artesian Resources Corp (company) — Registrant
- Delaware Public Service Commission (company) — Regulatory body involved in settlement
- June 12, 2024 (date) — Date of earliest event reported
FAQ
What is the nature of the event reported in this 8-K?
The 8-K reports on a settlement agreement reached by Artesian Resources Corp. concerning rate adjustments for its water and wastewater services.
Who are the parties involved in the settlement?
The settlement involves Artesian Resources Corp., the Delaware Public Service Commission staff, and other parties.
When did the earliest event reported in this filing occur?
The earliest event reported occurred on June 12, 2024.
What is the expected next step for the settlement?
The settlement agreement is expected to be presented to the Delaware Public Service Commission for approval.
What type of services are subject to the rate adjustments?
The rate adjustments pertain to Artesian Resources Corp.'s water and wastewater services.
Filing Stats: 671 words · 3 min read · ~2 pages · Grade level 12.2 · Accepted 2024-06-17 12:13:43
Key Financial Figures
- $10.8 m — of water sales revenue of approximately $10.8 million, on an annualized basis, or 14.6%
- $11.2 million — otal increase in water sales revenue of $11.2 million on an annualized basis, or approximatel
Filing Documents
- 8k.htm (8-K) — 20KB
- 0000863110-24-000026.txt ( ) — 151KB
- artna-20240612.xsd (EX-101.SCH) — 4KB
- artna-20240612_lab.xml (EX-101.LAB) — 21KB
- artna-20240612_pre.xml (EX-101.PRE) — 16KB
- 8k_htm.xml (XML) — 4KB
01 Other Events
Item 8.01 Other Events On June 12, 2024, a final Delaware Public Service Commission, or DEPSC, order was issued approving the settlement agreement entered into on May 22, 2024 between Artesian Water Company, Inc., or Artesian Water, the Staff of the DEPSC, and the Division of the Public Advocate, or DPA, (collectively, the Parties), to settle Artesian Water's April 2023 application to implement new rates. Temporary rates that were previously approved authorizing an increase of water sales revenue of approximately $10.8 million, on an annualized basis, or 14.6%, have been in effect since November 28, 2023. These temporary rates will be replaced with the final approved rates from the Settlement Agreement that authorizes a total increase in water sales revenue 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 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. In addition, 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 Distribution System Improvement Charges, or DSIC. On June 12, 2024, the DEPSC approved Artesian Water's application to implement a DSIC charge 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
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: June 17, 2024 By: /s/ David B. Spacht David B. Spacht Chief Financial Officer