8-K

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): March 15, 2007

ARTESIAN RESOURCES CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	000-18516	51-0002090
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

664 Churchmans Road, Newark, Delaware	19702
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: 302-453-6900

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:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On March 15, 2007, Artesian Resources Corporation (the “Company”) issued a press release reporting its financial results for the year ended December 31, 2006. A copy of the press release is being furnished as Exhibit 99.1 to this report.

The foregoing information and the information set forth in Exhibit 99.1 attached hereto is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

The following exhibit is furnished with this report:

Exhibit
Number		Exhibit Title
	99.1	Press Release dated March 15, 2007

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.

	ARTESIAN RESOURCES CORPORATION
Date: March 15, 2007	By:	/s/ DIAN C. TAYLOR
		Dian C. Taylor
		President, Chief Executive Officer and Chair of the Board
	ARTESIAN RESOURCES CORPORATION
Date: March 15, 2007	By:	/s/ DAVID B. SPACHT
		David B. Spacht
		Vice President, Chief Financial Officer and Treasurer

INDEX TO EXHIBIT

Exhibit
Number		Exhibit Title
	99.1	Press Release dated March 15, 2007

EX-99.1

Exhibit 99.1

Newark, DE, March 15, 2007 — (ARTNA) Artesian Resources Corporation (Artesian) today announced that basic and diluted net income per common share for 2006 were $1.00 and $0.97, as compared to $0.84 and $0.81 in 2005, increases of 19.0% and 19.8% respectively. Revenues for 2006 were $48.6 million, up 7.3% from $45.3 million in 2005. Net income available to common stockholders was $6.1 million, compared to $5.0 million last year, a 20.6% increase. In 2006, our annual dividend increased 7.5%, from $0.5952 per share in 2005 to $0.64 per share in 2006. Over the past five years, the annualized dividend rate has grown by an average of 5.2% each year.

Revenues and income increased primarily as a result of a $2.6 million, or 6.3%, increase in water sales revenue and a $1.3 million gain on sale of three acres of land. The increase in water sales revenue reflects a 2.0% increase in the number of customers served and rate increases placed in effect in 2006.

In May, we filed for a change in rates to recover $30 million in capital expenditures for infrastructure improvements since our last rate request in 2004 and a 92% increase in electric costs we experienced upon expiration of the price caps placed into effect as part of deregulation of electric service in Delaware. In July, we placed into effect a temporary rate increase of 5.9%, designed to generate an increase in annual revenue of $2.5 million and to begin partial recovery of our investments in infrastructure and increased electric costs. As a result of a settlement agreement approved by the Public Service Commission in December 2006, we were awarded a total increase in annual revenue of $6.0 million, to be implemented in two steps beginning January 1, 2007.

Commenting on Artesian’s results for 2006, Artesian President and CEO, Dian C. Taylor said, “Despite the challenges of significantly higher electric costs and the delay in recovering investments associated with rate proceedings, we were able to achieve continued improvement in our financial results. In 2007, we expect to see the benefit of the full year of additional revenue from settlement of the rate request. In 2006, we also added 20 square miles of water franchise territory. Our Delaware water franchise area has now more than doubled in the past ten years.”

Ms. Taylor reported, “We also entered into agreements with the towns of Elkton and Chesapeake City, Maryland to sell water to them at the Delaware state line and expect the interconnection with Elkton will be in service later this year. In addition, our recently announced agreement to purchase the Carpenters Point Water Company, a regulated water utility in adjacent Cecil County, Maryland, will position us well to serve the County’s rapidly growing needs.”

Ms. Taylor further stated, “Although our core water utility business remains our most significant source of revenue, our expansion into related businesses, including wastewater services and our Service Line Protection Plan, continue to contribute to our earnings. In 2006, we added nearly 2,000 acres to our wastewater franchise area, began operation of four new wastewater facilities, and have twelve new wastewater facilities under design and construction. We recognize that design and construction revenues of our non-regulated wastewater business are variable by their nature, but we are setting a solid foundation for the consistent revenues of our regulated wastewater business.”

Non-utility operating revenue decreased from $2.6 million in 2005 to $1.7 million in 2006. The decrease reflects lower contract revenues associated with wastewater treatment design and construction projects in southern Delaware. Non-utility operating expenses decreased by $891,000 as a result of the decline in wastewater treatment project activity. The decrease in non-utility operating revenue was offset by a $225,000 increase in revenue from our Service Line Protection Plan. The Service Line Protection Plan was initiated in March 2005 and covers parts, material and labor required to repair or replace a participant’s leaking water service line up to an annual limit. As of the end of 2006, about 12% of those eligible had enrolled in the plan.

Artesian Resources Corporation, through our wholly-owned subsidiary Artesian Water Company, is the largest investor owned regulated public water utility in the State of Delaware and has been providing superior water service within the state since 1905. About $185 million has been invested in utility plant over the last 10 years to provide sufficient treated supply, new water mains and additional storage capacity to meet peak demands and provide fire protection. The Company distributes and sells water to residential, commercial, industrial, governmental, municipal and utility customers. As of December 31, 2006, Artesian was serving approximately 73,800 metered customers, providing water service to about 243,000 residents (including contract services). Last year, Artesian distributed 7.6 billion gallons of water. Artesian serves its customers through 107 operating wells. Artesian’s water supply is treated at 50 different locations. Artesian owns and maintains approximately 1,000 miles of water main. Artesian has increased its water customer base by 27% and has more than doubled it franchise area over the past decade. Artesian also provides water and wastewater treatment contract services on the Delmarva Peninsula through Artesian Utility Development, Inc., a non-regulated subsidiary, and wastewater utility services through Artesian Wastewater Management, Inc., a regulated subsidiary.

Statements regarding growth and expansion plans for our water and wastewater subsidiaries, customer base growth opportunities in Cecil County, Maryland, revenues anticipated in 2007 from settlement of our rate request and our expectations regarding the acquisition of Carpenters Point are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that could cause actual results to differ materially from those projected, including risks related to our ability to close the Carpenters Point acquisition, timing of our construction projects, weather and other risks and uncertainties included 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: Nicki Taylor
Investor Relations
( (302) 453-6943 ntaylor@artesianwater.com

Artesian Resources Corporation
Condensed Consolidated Statement of Operations
(In thousands, except per share amounts)

	Three months ended		Three months ended			Twelve months ended		Twelve months ended
	December 31, 2006		December 31, 2005			December 31, 2006		December 31, 2005
Operating Revenues
Utility Operating Revenue		11,508		10,976			45,540		42,711
Non-Utility Operating Revenue		383		525			1,725		2,574
Gain on Sale of Land		0		0			1,322		0
	$	11,891	$	11,501		$	48,587	$	45,285
Operating Expenses
Utility Operating Expenses		6,104		5,598			24,314		22,233
Non-Utility Operating Expenses		527		609			1,419		2,310
Depreciation and Amortization		1,188		1,145			4,610		4,365
State & Federal Taxes		760		786			3,887		3,347
Property and Other Taxes		640		599			2,562		2,389
		9,219		8,737			36,792		34,644
Operating Income		2,672		2,764			11,795		10,641
Other Income, net		45		12			613		515
Income Before Interest Charges		2,717		2,776			12,408		11,156
Interest Charges		1,608		1,578			6,337		6,121
Net Income Applicable to Common Stock	$	1,109	$	1,198		$	6,071	$	5,035
Weighted Average Common Shares Outstanding — Basic		6,082		6,017	*		6,055		5,984	*
Net Income per Common Share — Basic	$	0.18	$	0.20	*	$	1.00	$	0.84	*
Weighted Average Common Shares Outstanding — Diluted		6,258		6,203	*		6,235		6,182	*
Net Income per Common Share — Diluted	$	0.17	$	0.19	*	$	0.97	$	0.81	*

* Shares outstanding and per share amounts restated to reflect a three for two common stock split effective May 30, 2006.

Artesian Resources Corporation
Condensed Consolidated Balance Sheet
(In thousands)

	December 31, 2006		December 31, 2005
ASSETS
Utility Plant, at original cost less accumulated depreciation	$	253,182	$	227,566
Current Assets		10,245		10,406
Regulatory and Other Assets		5,933		5,882
	$	269,360	$	243,854
CAPITALIZATION AND LIABILITIES
Stockholders’ Equity	$	61,800	$	57,813
Long Term Debt, Net of Current Portion		92,073		92,379
Current Liabilities		19,122		12,238
Advances for Construction		24,991		24,404
Contributions in Aid of Construction		48,177		37,350
Other Liabilities		23,197		19,670
	$	269,360	$	243,854