Artesian Resources Corporation, owner of Artesian Water, announced higher earnings and revenues in 2014. Artesian primarily serves northern New Castle County, although it has water and wastewater operations in Delaware and Cecil County, Md.
Revenues were $72.5 million, up 4.9 percent from $69.1 million in 2013. Net income increased 14.6 percent to $9.5 million, compared to $8.3 million last year.
Improved water sales revenue and a decrease in legal expenses associated with litigation against the Chester Water Authority contributed to the increase in net income. The authority supplies water to Artesian.
Water sales revenues increased 4.6 percent to $64.7 million in 2014 from $61.8 million in 2013. The increase in water sales resulted from a 1.2 percent growth in the number of metered customers and greater customer consumption compared to that experienced in 2013. The increase was also a result of the temporary rates placed into effect until permanent rates are determined by the Delaware Public Service Commission.
Non-utility revenue was $4.2 million, up from $4.0 million in 2013, a 4.4 percent increase. The increase was the result of the growth in revenues generated by Artesian’s water and wastewater Service Line Protection Plans, which continue to attract new enrolments. The plans provide coverage for all material and labor required to repair or replace participants’ leaking water service or clogged sewer lines.
“Our improved financial results are not only due to increases in utility revenues but also our success in restraining growth of operating expenditures,” said Dian C. Taylor, Chair, President and CEO. “We also continued to deliver on our commitment of providing superior service to our customers, investing $23.7 million in 2014 for infrastructure and other improvements to replace aging water mains, enhance existing treatment facilities, rehabilitate pumping equipment and upgrade our computer software system.”
For the three months ended December 31, 2014, revenues were $18.1 million, an increase of 7 percent from $16.9 million for the same period in 2013 as a result of increased water sales. Net income increased 38.6 percent to $2.1 million for the three months ended December 31 compared to $1.5 million for the same period in 2013.
Highlights for the year
- Completed eleven water main renewal projects replacing nearly 4 miles of main ranging in age from 49 to 71 years old.
- Completed the first phase of a hydraulic improvement project in the Christiana and Churchmans Crossing area of New Castle County, Delaware, with the installation of 4,150 feet of 16 inch ductile iron main and 1,450 feet of 20 inch high density polyethylene main as well as placing a new 5.1 million gallon per day booster station in service.
- Completed rehabilitation of the 1950’s era Castle Hills 1.3 million gallon per day water treatment plant in northern New Castle County.
- Installed an ultraviolet advanced oxidation treatment process at the Llangollen facility in New Castle County.
- Enrolled more than 19,000 customers to date, about 23% of total in a billing service that enables customers to view, print and pay bills online.
