UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): April 4, 2025
ARTESIAN RESOURCES CORP
(Exact name of registrant as specified in its charter)
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Delaware
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000-18516
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51-0002090
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(State or other jurisdiction
of incorporation)
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(Commission
File Number)
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(IRS Employer
Identification No.)
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664 Churchmans Road
Newark, Delaware 19702
(Address of principal executive offices, including zip code)
(302) 453-6900
(Registrant's telephone number, including area code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following
provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities
Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under
the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under
the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Common Stock
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ARTNA
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NASDAQ
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act
of 1934 (§240.12b-2 of this chapter):
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards
provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 8.01 Other Events.
On April 4, 2025, Artesian Water Company, Inc. (“Artesian Water”), the principal subsidiary of Artesian Resources Corporation (the “Company”), filed a
request with the Delaware Public Service Commission to implement new rates to meet a requested increase in revenue of 12.41%, or approximately $10.8 million, on an annualized basis. The actual effective increase is less than 12.41% since Artesian
Water has been permitted to recover specific investments made in infrastructure through the assessment of a 1.66% Distribution System Infrastructure Charge (“DSIC”). Since the DSIC rate is set to zero when temporary rates are placed into effect,
customers would experience an incremental increase of 10.75%, the net of the overall 12.41% increase less the DSIC rate of 1.66% currently in effect, if the requested increase is granted in full by the Delaware Public Service Commission. 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 regulation compliance, taxes, labor and benefits.
In accordance with applicable Delaware law, Artesian Water is permitted to place into effect temporary rates of up to 15% of gross water sales, or $2.5 million, whichever is lower, on an annual basis, 60 days after the application is accepted,
subject to refund, until permanent rates are determined by the Delaware Public Service Commission. Artesian Water’s last comprehensive application for an increase in base rate charges was filed in April 2023.
Item 7.01 Regulation FD Disclosure.
On April 4, 2025, the Company issued a press release relating to Artesian Water’s filing with the Delaware Public Service Commission for a change in
customer rates. A copy of the press release is being furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information contained in Item 7.01 of this Current Report on Form 8-K, including Exhibit 99.1, is being furnished and shall not be deemed “filed” for
purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933,
as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits. The following exhibits are filed with this Current Report on Form 8-K:
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No.
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Description of Exhibits
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Press Release dated April 4, 2025
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104
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Cover Page Interactive Data File (embedded within the Inline XBRL document)
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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.
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ARTESIAN RESOURCES CORPORATION
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Date: April 7, 2025
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By: /s/ David B. Spacht
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David B. Spacht
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Chief Financial Officer
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FOR IMMEDIATE RELEASE
Artesian Water Company, Inc. Files Application with Delaware Public
Service Commission for Increase in Customer Rates
Newark, DE,
April 4, 2025 – Artesian Water Company, Inc. (“Artesian”), a subsidiary of Artesian Resources Corporation (Nasdaq: ARTNA), filed an application with the Delaware Public Service Commission (PSC) today for a change in customer rates. The rate
application submitted to the PSC for review and approval consists of a requested increase in revenue of 12.41%, or approximately $10.8 million, on an annualized basis. The increase also reflects the recovery of investments made under the Distribution
System Improvement Charge (DSIC) of 1.66% currently in place that will reset to 0.0% once new base rates are implemented, meaning the incremental increase to existing billed rates would be 10.75%. This rate filing will undergo extensive review by
both the PSC and the Division of the Public Advocate (DPA).
The request addresses investments in water utility infrastructure made by Artesian since October 1, 2023 and
projected to be made through September 30, 2025. It also addresses increases in costs necessary to provide reliable service while continuing to maintain compliance with more stringent water quality regulations.
“For 120 years, Artesian has been committed to delivering high-quality drinking water and fire protection
services to its customers. Meeting that commitment requires regular investments in infrastructure to maintain system resiliency,” said Nicki Taylor, President and CEO.
Artesian will have invested over $58.5 million in utility plant since its last base rates
filing. A significant portion of the investments made address the ongoing need to maintain current and future compliance with more stringent regulations of man-made contaminants, such as per- and polyfluoroalkyl substances (commonly known as PFAS).
Artesian has long taken a proactive approach to water quality, installing PFAS treatment ahead of final state and federal regulations to provide customers high-quality drinking water. Artesian’s filing in April 2023 included costs associated with the
installation of additional treatment equipment at eleven (11) water treatment facilities to assist in the removal of these chemicals. This filing includes costs for improvements to three (3) additional treatment systems to remove PFAS. During this
same time, the cost to maintain the filter media of the PFAS treatment systems has increased. In addition, electric power costs, which are a substantial portion of operating expenses, have increased significantly.
Artesian is continually upgrading and rehabilitating aging infrastructure. Many of Artesian’s facilities and much
of the underground network of pipes delivering water to homes and businesses were originally designed and built 50-75 years ago. To ensure that these systems continue to
provide reliable, high-quality drinking water and adequate fire flow for customers requires
investments that include upgrading electrical equipment, improving security systems and enhancing water quality analyzing equipment. Artesian also continues to renew aging water mains to reduce the number of water main breaks and leaks, which
improves system reliability.
The average residential customer using 4,000 gallons of water per month is currently billed $52.94. If approved
by the PSC, this bill would increase to $59.76, or an additional $0.23 per day. The typical Artesian residential customer would spend less than $2 per day for their water needs, or about 1.5 cents per gallon.
About Artesian Resources
Artesian Resources Corporation operates as a holding company of wholly owned subsidiaries offering water and
wastewater services, and other related core services, on the Delmarva Peninsula. Artesian Water Company, the principal subsidiary, is the oldest and largest regulated water utility on the Delmarva Peninsula, providing water service since 1905.
Artesian supplies 9.5 billion gallons of water per year through 1,491 miles of water main to over a third of Delaware residents.
Forward-Looking Statements
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform
Act of 1995 regarding, among other things, recovery of investments in water utility plant and increased operating costs in rates charged to customers as presented in our current filing before the Delaware Public Service Commission, expectations
regarding the cost and timing of planned infrastructure investments and our ability to maintain continued compliance with more stringent water quality regulations. These statements involve risks and uncertainties that could cause actual results to
differ materially from those expressed or implied by such forward-looking statements, including the timing and results of our rate request, failure to receive regulatory approvals, changes in our contractual obligations, changes in government
policies, changes in economic and market conditions generally, including inflationary pressures, and other matters discussed in our filings with the Securities and Exchange Commission. While the Company may elect to update forward-looking statements,
we specifically disclaim any obligation to do so, and you should not rely on any forward-looking statement as representation of the Company’s views as of any date subsequent to the date of this release.
Contact:
Virginia Eisenbrey Communications
(302) 453-6900
veisenbrey@artesianwater.com