On April 28, 2023, 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 23.84%, or approximately $17.5 million, on an annualized basis. The actual effective increase is less than 23.84% since
Artesian Water has been permitted to recover specific investments made in infrastructure through the assessment of a 7.50% 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 16.34%, the net of the overall 23.84% increase less the DSIC rate of 7.50% 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 testing, fuel, taxes,
interest, labor and benefits. In accordance with applicable Delaware law, Artesian Water is permitted to implement temporary rates of 15% or $2.5 million, whichever is lower, 60 days after the application is accepted. Since Artesian Water has
DSIC surcharges in excess of the allowable temporary increase and imposing the temporary increase would require DSIC to be reset to zero, Artesian Water has elected not to request the initial temporary rate increase. However, should the
application not be resolved within the seven-month statutory timeframe, Artesian Water would be permitted to place into effect temporary rates of up to 15% of gross water sales on an annual basis, 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 2014.
Item 7.01 Regulation FD Disclosure.
On April 28, 2023, the Company issued a press release relating to Artesian Water’s filing for a change in customer rates with the Delaware Public
Service Commission. 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 28, 2023
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104
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Cover Page Interactive Data File (embedded within the Inline XBRL document)
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