Artesian reports higher earnings thanks to rate hike, drier weather

Net income in the third quarter was  was $6.8 million, a $1.7 million, or 34.4%, increase compared to net income recorded during the same period a year ago.

Revenues totaled $29.1 million in the third quarter,  $2.6 million, or 9.7%, more than revenues for the same period in 2023.

Water sales revenue increased $2.5 million, or 11.3%, primarily due to  a temporary rate increase of 14.6%, which went into effect last year. A final rate was later approved.

The increase in both temporary rates and final approved customer base rates was partially offset by the end of company’s Distribution System Improvement Charge rate of 7.50%.

In addition, there was an increase in overall water consumption due to drier weather during the late summer and fall, along with  an increase in customers. 

 “We are pleased to report an increase in water sales revenues as a result of new customers served, higher customer consumption and the resolution of our Delaware water rate case. In addition to the increase in revenues, we continue to successfully manage expenses despite inflationary pressures and more stringent regulatory requirements,” said Dian C. Taylor, CEO.

Operating expenses, excluding depreciation and income taxes, increased $700,000 or 4.9%. Utility operating expenses increased $500,000  or 4.6%.

In the first nine months of 2024, water sales revenue increased $6.1 million, or 10.2%, primarily as a result of a temporary rate increase of 14.6%, which went into effect last year. 

The  temporary rates were replaced with the final approved rates that authorized a total increase of about  15.2%, effective  in June. The increase was partially offset by the end of the 7.5% Distribution System Improvement Charge.

The company spent  $30.9 million in the first nine months of 2024 in water and wastewater  projects. The utility is replacing aging infrastructure and making other upgrades.

 “Artesian continues to proactively invest in water quality initiatives, ahead of the evolving regulatory landscape, addressing matters such as PFAS contamination and lead in water service lines. With the EPA’s recent regulation concerning lead in water pipes, Artesian is working diligently to identify lead service lines throughout our system in order to mitigate any potential risks to customers,” said Nicki Taylor, president of Artesian Water.

Artesian offers water and wastewater services on the Delmarva Peninsula, primarily in Delaware.

Artesian  supplies 8.8 billion gallons of water per year through 1,470 miles of main to over a third of Delawareans. 

Publicly traded Artesian operates under the voting  control of the families who founded the company more than a century ago.