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Artesian Water Company, Inc. Files Application for Increase in Customer Rates with Delaware Public Service Commission for the First Time in Nine Years
NEWARK, Del., April 28, 2023 (GLOBE NEWSWIRE) -- Artesian Water Company, Inc. (“Artesian” or the “Company”), a subsidiary of Artesian Resources Corporation
About this update from Artesian Resources Corporation
[{"type":"text","content":"NEWARK, Del., April 28, 2023 (GLOBE NEWSWIRE) -- Artesian Water Company, Inc. (“Artesian” or the “Company”), a subsidiary of Artesian Resources Corporation (Nasdaq: ARTNA), today announced its filing for a change in customer rates with the Delaware Public Service Commission (PSC). For over 115 years, Artesian’s highest priority has been to deliver reliable, high-quality water to customers at a cost-effective rate. Since Artesian’s last request for new rates nine years ago, the Company will have invested over $158 million in critical water infrastructure. It has made these investments not only to add new plant, equipment and elevated storage tanks but also to rehabilitate and renew existing sources of supply, treatment equipment and facilities, and transmission and distribution mains. The Company has made these investments across all three counties in Delaware. These are some of the significant projects Artesian has completed: renewal and replacement of approximately 45 miles of aging water mains before major service disruptions have occurred;addition of a major booster station and upgrades of existing stations;placement into service of a new elevated water storage tank; andupgrades of our treatment equipment and facilities. These investments not only help to preserve our precious water sources by reducing the negative environmental impact of water lost through leaks, but also help to maintain continued compliance with more stringent regulations as the federal government further tightens detection levels for man-made contaminants such as per- and polyfluoroalkyl substances (commonly known as PFAS). Since its last rate application in 2014, Artesian has regularly utilized a variety of strategies to delay the need to file an application for new customer rates, including: Taking advantage of historic low interest rates by issuing new and refinancing existing long-term debt to reduce its average interest rate by 33.7%, from 5.84% to 3.87%. Making investments to add sources of supply, booster facilities and transmission mains to reduce the Company’s need to purchase water, providing better control over costs and quality. As a result of these investments, Artesian was able to reduce the required minimum amount of water it purchases from the Chester Water Authority by 83.3%.Utilizing a mechanism called the Distribution System Infrastruct...