Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 06, 2020 | |
Cover Page | ||
Entity Registrant Name | YORK WATER CO | |
Entity Central Index Key | 0000108985 | |
Current Fiscal Year End Date | --12-31 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Address, State or Province | PA | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 13,049,958 |
Balance Sheets (Unaudited)
Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
ASSETS | ||
UTILITY PLANT, at original cost | $ 423,676 | $ 401,383 |
Plant acquisition adjustments | (2,973) | (3,318) |
Accumulated depreciation | (90,217) | (84,841) |
Net utility plant | 330,486 | 313,224 |
OTHER PHYSICAL PROPERTY, net of accumulated depreciation of $452 in 2020 and $435 in 2019 | 748 | 769 |
CURRENT ASSETS: | ||
Cash and cash equivalents | 10,901 | 2 |
Accounts receivable, net of reserves of $477 in 2020 and $305 in 2019 | 5,193 | 4,421 |
Unbilled revenues | 2,801 | 2,276 |
Recoverable income taxes | 50 | 547 |
Materials and supplies inventories, at cost | 1,158 | 1,007 |
Prepaid expenses | 1,679 | 1,131 |
Total current assets | 21,782 | 9,384 |
OTHER LONG-TERM ASSETS: | ||
Prepaid pension cost | 3,878 | 1,819 |
Note receivable | 255 | 255 |
Deferred regulatory assets | 37,314 | 34,189 |
Other assets | 3,954 | 3,889 |
Total other long-term assets | 45,401 | 40,152 |
Total Assets | 398,417 | 363,529 |
COMMON STOCKHOLDERS' EQUITY: | ||
Common stock, no par value, authorized 46,500,000 shares, issued and outstanding 13,049,237 shares in 2020 and 13,014,898 shares in 2019 | 85,375 | 83,976 |
Retained earnings | 56,053 | 50,209 |
Total common stockholders' equity | 141,428 | 134,185 |
PREFERRED STOCK, authorized 500,000 shares, no shares issued | 0 | 0 |
LONG-TERM DEBT, excluding current portion | 116,829 | 94,535 |
COMMITMENTS | ||
CURRENT LIABILITIES: | ||
Current portion of long-term debt | 0 | 6,500 |
Accounts payable | 6,770 | 3,452 |
Dividends payable | 2,102 | 2,096 |
Accrued compensation and benefits | 1,175 | 1,247 |
Accrued interest | 1,068 | 914 |
Deferred regulatory liabilities | 453 | 609 |
Other accrued expenses | 352 | 338 |
Total current liabilities | 11,920 | 15,156 |
DEFERRED CREDITS: | ||
Customers' advances for construction | 10,291 | 7,844 |
Deferred income taxes | 42,195 | 40,426 |
Deferred employee benefits | 4,545 | 4,317 |
Deferred regulatory liabilities | 27,149 | 24,790 |
Other deferred credits | 2,919 | 2,247 |
Total deferred credits | 87,099 | 79,624 |
Contributions in aid of construction | 41,141 | 40,029 |
Total Stockholders' Equity and Liabilities | $ 398,417 | $ 363,529 |
Balance Sheets (Unaudited) (Par
Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
ASSETS | ||
Other physical property, accumulated depreciation | $ 452 | $ 435 |
CURRENT ASSETS: | ||
Accounts receivables, reserves | $ 477 | $ 305 |
COMMON STOCKHOLDERS' EQUITY: | ||
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, authorized (in shares) | 46,500,000 | 46,500,000 |
Common stock, issued (in shares) | 13,049,237 | 13,014,898 |
Common stock, outstanding (in shares) | 13,049,237 | 13,014,898 |
Preferred stock, authorized (in shares) | 500,000 | 500,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Statements of Income (Unaudited
Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statements of Income [Abstract] | ||||
OPERATING REVENUES | $ 14,257 | $ 13,680 | $ 40,454 | $ 38,559 |
OPERATING EXPENSES: | ||||
Operation and maintenance | 2,659 | 2,586 | 7,940 | 7,639 |
Administrative and general | 2,257 | 2,172 | 6,573 | 6,181 |
Depreciation and amortization | 2,046 | 1,926 | 6,113 | 5,750 |
Taxes other than income taxes | 274 | 281 | 898 | 914 |
Operating expenses | 7,236 | 6,965 | 21,524 | 20,484 |
Operating income | 7,021 | 6,715 | 18,930 | 18,075 |
OTHER INCOME (EXPENSES): | ||||
Interest on debt | (1,152) | (1,314) | (3,503) | (3,937) |
Allowance for funds used during construction | 115 | 117 | 330 | 273 |
Other pension costs | (341) | (362) | (1,022) | (1,088) |
Gain on life insurance | 0 | 0 | 515 | 0 |
Other income (expenses), net | (41) | (81) | (287) | (353) |
Other income (expenses) | (1,419) | (1,640) | (3,967) | (5,105) |
Income before income taxes | 5,602 | 5,075 | 14,963 | 12,970 |
Income taxes | 898 | 592 | 2,075 | 1,957 |
Net Income | $ 4,704 | $ 4,483 | $ 12,888 | $ 11,013 |
Basic Earnings Per Share (in dollars per share) | $ 0.36 | $ 0.35 | $ 0.99 | $ 0.85 |
Diluted Earnings Per Share (in dollars per share) | $ 0.36 | $ 0.35 | $ 0.99 | $ 0.85 |
Statements of Common Stockholde
Statements of Common Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Retained Earnings [Member] | Total |
Balance at Dec. 31, 2018 | $ 81,305 | $ 44,890 | $ 126,195 |
Balance (in shares) at Dec. 31, 2018 | 12,943,536 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Net income | $ 0 | 11,013 | 11,013 |
Cash dividends declared | 0 | (6,739) | (6,739) |
Issuance of common stock under dividend reinvestment, direct stock and employee stock purchase plans | $ 1,220 | 0 | 1,220 |
Issuance of common stock under dividend reinvestment, direct stock and employee stock purchase plans (in shares) | 34,327 | ||
Stock-based compensation | $ 119 | 0 | 119 |
Stock-based compensation (in shares) | 6,963 | ||
Balance at Sep. 30, 2019 | $ 82,644 | 49,164 | 131,808 |
Balance (in shares) at Sep. 30, 2019 | 12,984,826 | ||
Balance at Jun. 30, 2019 | $ 82,183 | 46,931 | 129,114 |
Balance (in shares) at Jun. 30, 2019 | 12,974,287 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Net income | $ 0 | 4,483 | 4,483 |
Cash dividends declared | 0 | (2,250) | (2,250) |
Issuance of common stock under dividend reinvestment, direct stock and employee stock purchase plans | $ 421 | 0 | 421 |
Issuance of common stock under dividend reinvestment, direct stock and employee stock purchase plans (in shares) | 10,539 | ||
Stock-based compensation | $ 40 | 0 | 40 |
Stock-based compensation (in shares) | 0 | ||
Balance at Sep. 30, 2019 | $ 82,644 | 49,164 | 131,808 |
Balance (in shares) at Sep. 30, 2019 | 12,984,826 | ||
Balance at Dec. 31, 2019 | $ 83,976 | 50,209 | $ 134,185 |
Balance (in shares) at Dec. 31, 2019 | 13,014,898 | 13,014,898 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Net income | $ 0 | 12,888 | $ 12,888 |
Cash dividends declared | 0 | (7,044) | (7,044) |
Issuance of common stock under dividend reinvestment, direct stock and employee stock purchase plans | $ 1,273 | 0 | 1,273 |
Issuance of common stock under dividend reinvestment, direct stock and employee stock purchase plans (in shares) | 29,427 | ||
Stock-based compensation | $ 126 | 0 | 126 |
Stock-based compensation (in shares) | 4,912 | ||
Balance at Sep. 30, 2020 | $ 85,375 | 56,053 | $ 141,428 |
Balance (in shares) at Sep. 30, 2020 | 13,049,237 | 13,049,237 | |
Balance at Jun. 30, 2020 | $ 84,872 | 53,700 | $ 138,572 |
Balance (in shares) at Jun. 30, 2020 | 13,033,999 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Net income | $ 0 | 4,704 | 4,704 |
Cash dividends declared | 0 | (2,351) | (2,351) |
Issuance of common stock under dividend reinvestment, direct stock and employee stock purchase plans | $ 429 | 0 | 429 |
Issuance of common stock under dividend reinvestment, direct stock and employee stock purchase plans (in shares) | 10,326 | ||
Stock-based compensation | $ 74 | 0 | 74 |
Stock-based compensation (in shares) | 4,912 | ||
Balance at Sep. 30, 2020 | $ 85,375 | $ 56,053 | $ 141,428 |
Balance (in shares) at Sep. 30, 2020 | 13,049,237 | 13,049,237 |
Statements of Common Stockhol_2
Statements of Common Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Cash dividends declared (in dollars per share) | $ 0.1802 | $ 0.1733 | $ 0.5406 | $ 0.5199 |
Statements of Cash Flows (Unaud
Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 12,888 | $ 11,013 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Gain on life insurance | (515) | 0 |
Depreciation and amortization | 6,113 | 5,750 |
Stock-based compensation | 126 | 119 |
Increase in deferred income taxes | 93 | 313 |
Other | 342 | 195 |
Changes in assets and liabilities: | ||
(Increase) decrease in accounts receivable and unbilled revenues | (1,657) | 95 |
(Increase) decrease in recoverable income taxes | 497 | (508) |
Increase in materials and supplies, prepaid expenses, prepaid pension cost, regulatory and other assets | (6,184) | (5,166) |
Increase in accounts payable, accrued compensation and benefits, accrued expenses, deferred employee benefits, regulatory liabilities, and other deferred credits | 4,449 | 1,805 |
Increase (decrease) in accrued interest and taxes | 154 | (63) |
Net cash provided by operating activities | 16,306 | 13,553 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Utility plant additions, including debt portion of allowance for funds used during construction of $184 in 2020 and $153 in 2019 | (15,973) | (13,284) |
Acquisition of wastewater systems | (1,158) | (2,088) |
Cash received from surrender of life insurance policies | 672 | 0 |
Net cash used in investing activities | (16,459) | (15,372) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Customers' advances for construction and contributions in aid of construction | 2,760 | 1,336 |
Repayments of customer advances | (225) | (243) |
Proceeds of long-term debt issues | 53,671 | 46,113 |
Debt issuance costs | (162) | (180) |
Repayments of long-term debt | (37,843) | (38,690) |
Repayments under short-term line of credit agreements | 0 | (1,000) |
Changes in cash overdraft position | (1,384) | (7) |
Issuance of common stock | 1,273 | 1,220 |
Dividends paid | (7,038) | (6,730) |
Net cash provided by financing activities | 11,052 | 1,819 |
Net change in cash and cash equivalents | 10,899 | 0 |
Cash and cash equivalents at beginning of period | 2 | 2 |
Cash and cash equivalents at end of period | 10,901 | 2 |
Cash paid during the period for: | ||
Interest, net of amounts capitalized | 3,029 | 3,588 |
Income taxes | $ 1,753 | $ 2,184 |
Statements of Cash Flows (Una_2
Statements of Cash Flows (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Utility plant additions, debt portion of allowance for funds used during construction | $ 184 | $ 153 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Accounts payable for construction of utility plant | 3,647 | $ 2,050 |
Contributions in aid of construction recorded as part of the Felton Borough acquisition | $ 1,024 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | 1. Basis of Presentation The interim financial statements are unaudited but, in the opinion of management, reflect all adjustments, consisting of only normal recurring accruals, necessary for a fair presentation of results for such periods. Because the financial statements cover an interim period, they do not include all disclosures and notes normally provided in annual financial statements, and therefore, should be read in conjunction with the financial statements and notes thereto contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2019 Operating results for the three and nine months ended September 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020 . Additionally, based on the duration and severity of the novel coronavirus ("COVID-19") pandemic, the Company is uncertain of the ultimate impact it could have on the business. |
Reclassifications
Reclassifications | 9 Months Ended |
Sep. 30, 2020 | |
Reclassifications [Abstract] | |
Reclassifications | 2. Reclassifications Certain 2019 2020 |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2020 | |
Acquisitions [Abstract] | |
Acquisitions | 3. Acquisitions On April 9, 2020, the Company completed the acquisition of the wastewater collection and treatment assets of Felton Borough in York County, Pennsylvania. The Company began operating the existing collection and treatment facilities on April 16, 2020. The acquisition resulted in the addition of approximately 130 914 295 On September 14, 2020, the Company completed the acquisition of the wastewater collection and treatment assets and began operating the existing collection and treatment facilities of the Letterkenny Township Municipal Authority in Franklin County, Pennsylvania. The acquisition resulted in the addition of approximately 180 244 |
Accounts Receivable and Contrac
Accounts Receivable and Contract Assets | 9 Months Ended |
Sep. 30, 2020 | |
Accounts Receivable and Contract Assets [Abstract] | |
Accounts Receivable and Contract Assets | 4. Accounts Receivable and Contract Assets Accounts receivable and contract assets are summarized in the following table: As of Sep. 30, 2020 As of Dec. 31, 2019 Change Accounts receivable – customers $ 5,392 $ 4,574 $ 818 Other receivables 278 152 126 5,670 4,726 944 Less: allowance for doubtful accounts (477 ) (305 ) (172 ) Accounts receivable, net $ 5,193 $ 4,421 $ 772 Unbilled revenue $ 2,801 $ 2,276 $ 525 Differences in timing of revenue recognition, billings, and cash collections result in receivables and contract assets. Generally, billing occurs subsequent to revenue recognition, resulting in a contract asset reported as unbilled revenue on the balance sheet. The Company does not receive advances or deposits from customers before revenue is recognized so no contract liabilities are reported. Accounts receivable are recorded when the right to consideration becomes unconditional and are presented separately on the balance sheet. The changes in accounts receivable – customers and in unbilled revenue were primarily due to normal timing difference between performance and the customer’s payments. |
Common Stock and Earnings Per S
Common Stock and Earnings Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Common Stock and Earnings Per Share [Abstract] | |
Common Stock and Earnings Per Share | 5. Common Stock and Earnings Per Share Net income of $ 4,704 4,483 three months ended September 30, 2020 2019 12,888 11,013 nine months ended September 30, 2020 2019 The following table summarizes the shares used in computing basic and diluted earnings per share: Three Months Ended September 30 Nine Ended September 30 2020 2019 2020 2019 Weighted average common shares, basic 13,032,389 12,968,540 13,021,398 12,955,602 Effect of dilutive securities: Employee stock-based compensation 1,164 2,131 565 1,506 Weighted average common shares, diluted 13,033,553 12,970,671 13,021,963 12,957,108 On March 11, 2013, the Board of Directors, or the Board, authorized a share repurchase program granting the Company authority to repurchase up to 1,200,000 No nine months ended September 30, 2020 2019 September 30, 2020 618,004 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2020 | |
Debt [Abstract] | |
Debt | 6. Debt As of Sep. 30, 2020 As of Dec. 31, 2019 10.05% $ – $ 6,500 8.43% 7,500 7,500 Variable Rate Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Refunding Bonds, Series 2008A, due 2029 12,000 12,000 3.00% Facilities Revenue Refunding Bonds, Series A of 2019, due 2036 10,500 10,500 3.10% Facilities Revenue Refunding Bonds, Series B of 2019, due 2038 14,870 14,870 3.23% 15,000 15,000 4.00% 4.50% Facilities Revenue Bonds, Series 2015, due 2029 - 2045 10,000 10,000 4.54% 20,000 20,000 3.24% 30,000 – Committed Line of Credit, due 2022 – 7,672 Total long-term debt 119,870 104,042 Less discount on issuance of long-term debt (184 ) (192 ) Less unamortized debt issuance costs (2,857 ) (2,815 ) Less current maturities – (6,500 ) Long-term portion $ 116,829 $ 94,535 In the third quarter of 2020, the Company entered into an agreement for a $ 50,000 1.05% On September 30, 2020, the Company entered into a note purchase agreement with certain institutional investors relating to the private placement of $ 30,000 3.24% September 30, 2050 29,838 6,500 10.05% September 30, 2020 to refinance line of credit borrowings incurred by the Company as interim financing for various capital projects, to fund acquisitions and for general corporate purposes. |
Interest Rate Swap Agreement
Interest Rate Swap Agreement | 9 Months Ended |
Sep. 30, 2020 | |
Interest Rate Swap Agreement [Abstract] | |
Interest Rate Swap Agreement | 7. Interest Rate Swap Agreement The Company is exposed to certain risks relating to its ongoing business operations. The primary risk managed by using derivative instruments is interest rate risk. The Company utilizes an interest rate swap agreement to effectively convert the Company's $ 12,000 12,000 3.16% 12,000 59% 3.08% 1.88% September 30, 2020 2019 2.76% 1.75% nine months ended September 30, 2020 2019 The interest rate swap agreement is classified as a financial derivative used for non-trading activities. The accounting standards regarding accounting for derivatives and hedging activities require companies to recognize all derivative instruments as either assets or liabilities at fair value on the balance sheet. In accordance with the standards, the interest rate swap is recorded on the balance sheet in other deferred credits at fair value (see Note 8). The Company uses regulatory accounting treatment rather than hedge accounting to defer the unrealized gains and losses on its interest rate swap. These unrealized gains and losses are recorded as a regulatory asset. Based on current ratemaking treatment, the Company expects the unrealized gains and losses to be recognized in rates as a component of interest expense as the swap settlements occur. Swap settlements are recorded in the income statement with the hedged item as interest expense. Swap settlements resulted in the reclassification from regulatory assets to interest expense of $ 93 57 September 30, 2020 2019 249 158 nine months ended September 30, 2020 2019 10 290 September 30, 2020 2019 911 776 nine months ended September 30, 2020 2019 369 The interest rate swap agreement contains provisions that require the Company to maintain a credit rating of at least BBB- with Standard & Poor's. If the Company's rating were to fall below this rating, it would be in violation of these provisions, and the counterparty to the derivative could request immediate payment if the derivative was in a liability position. On April 9, 2020, Standard & Poor's affirmed the Company's credit rating at A-, with a stable outlook and adequate liquidity. The Company's interest rate swap was in a liability position as of September 30, 2020 September 30, 2020 3,045 The interest rate swap will expire on October 1, 2029. Other than the interest rate swap, the Company has no other derivative instruments. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | 8. Fair Value of Financial Instruments The accounting standards regarding fair value measurements establish a fair value hierarchy which indicates the extent to which inputs used in measuring fair value are observable in the market. Level 1 inputs include quoted prices for identical instruments and are the most observable. Level 2 inputs include quoted prices for similar assets and observable inputs such as interest rates, commodity rates and yield curves. Level 3 inputs are not observable in the market and include management’s own judgments about the assumptions market participants would use in pricing the asset or liability. The Company has recorded its interest rate swap liability at fair value in accordance with the standards. The liability is recorded under the caption “Other deferred credits” on the balance sheet. The table below illustrates the fair value of the interest rate swap as of the end of the reporting period. Description September 30, 2020 Fair Value Measurements at Reporting Date Using Significant Other Observable Inputs (Level 2) Interest Rate Swap $2,919 $2,919 Fair values are measured as the present value of all expected future cash flows based on the LIBOR-based swap yield curve as of the date of the valuation. These inputs to this calculation are deemed to be Level 2 inputs. The balance sheet carrying value reflects the Company's credit quality as of September 30, 2020 30-year September 30, 2020 126 September 30, 2020 December 31, 2019 Description December 31, 2019 Fair Value Measurements at Reporting Date Using Significant Other Observable Inputs (Level 2) Interest Rate Swap $2,248 $2,248 The carrying amount of current assets and liabilities that are considered financial instruments approximates fair value as of the dates presented. The Company's total long-term debt, with a carrying value of $ 119,870 September 30, 2020 104,042 December 31, 2019 138,000 115,000 Customers' advances for construction and note receivable had carrying values at September 30, 2020 December 31, 2019 7,844 255 |
Commitments
Commitments | 9 Months Ended |
Sep. 30, 2020 | |
Commitments [Abstract] | |
Commitments | 9. Commitments The Company received approval from the PPUC to provide water and wastewater service to the Amblebrook development in Adams County, Pennsylvania. The developer initiated construction of the water and wastewater systems prior to the Company receiving all necessary approvals. The Company has committed a total of approximately $ 6,000 The Company entered into a consent order agreement with the Pennsylvania Department of Environmental Protection in December 2016 after . The Company did not have an exceedance in any subsequent compliance test. Under the agreement, the Company committed to exceed the LCR replacement schedule by replacing all of the remaining known company-owned lead service lines within four years from the agreement. The cost for these service line replacements was approximately $ 2,734 and $ 2,713 through September 30, 2020 and December 31, 2019 , respectively, and is included in utility plant. As of September 30, 2020 , all known company-owned lead service lines have been replaced. Any additional company-owned lead service lines that are discovered will be replaced but are not expected to have a material impact on the financial position of the Company. The Company was granted approval by the PPUC to modify its tariff to include the cost of the annual replacement of up to 400 lead customer-owned service lines over nine years from the agreement. The tariff modification allows the Company to replace customer-owned service lines at its own initial cost. The Company will record the costs as a regulatory asset to be recovered in future base rates to customers, over a four -year period. The cost for the customer-owned lead service line replacements was approximately $ 1,174 and $ 1,000 through September 30, 2020 and December 31, 2019 , respectively, and is included as a regulatory asset. 1,400 |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2020 | |
Revenue [Abstract] | |
Revenue | 10. Revenue The following table shows the Company’s revenues disaggregated by service and customer type. Three Months Ended September 30 Nine Ended September 30 2020 2019 2020 2019 Water utility service Residential $ 8,902 $ 8,460 $ 25,643 $ 24,060 Commercial and industrial 3,774 3,864 10,331 10,630 Fire protection 795 780 2,379 2,290 Wastewater utility service Residential 446 334 1,281 878 Commercial and industrial 78 72 229 203 Billing and revenue collection services 118 19 147 56 Collection services – 16 14 48 Other revenue 4 4 14 11 Total Revenue from Contracts with Customers 14,117 13,549 40,038 38,176 Rents from regulated property 140 131 416 383 Total Operating Revenue $ 14,257 $ 13,680 $ 40,454 $ 38,559 Utility Service The Company provides utility service as a distinct and single performance obligation to each of its water and wastewater customers. The transaction price is detailed in the tariff pursuant to an order by the PPUC and made publicly available. There is no variable consideration and no free service, special rates, or subnormal charges to any customer. Due to the fact that the contract includes a single performance obligation, no judgment is required to allocate the transaction price. The performance obligation is satisfied over time through the continuous provision of utility service through a stand-ready obligation to perform and the transfer of water or the collection of wastewater through a series of distinct transactions that are identical in nature and have the same pattern of transfer to the customer. The Company uses an output method to recognize the utility service revenue over time. The stand-ready obligation is recognized through the passage of time in the form of a fixed charge and the transfer of water or the collection of wastewater is recognized at a per unit rate based on the actual or estimated flow through the meter. Each customer is invoiced every month and the invoice is due within twenty days Billing and Revenue Collection Service The Company provides billing and revenue collection service as distinct performance obligations to four municipalities within the service territory of the Company. The municipalities provide wastewater service to their residents and the Company acts as the billing and revenue collection agent for the municipalities. The transaction price is a fixed amount per bill prepared as established in the contract. There is no variable consideration. Due to the fact that both the billing performance obligation and the revenue collection performance obligation are materially complete by the end of the reporting period, the Company does not allocate the transaction price between the two performance obligations. The performance obligations are satisfied at a point in time when the bills are sent as the municipalities receive all the benefits and bears all of the risk of non-collection at that time. Each municipality is invoiced when the bills are complete and the invoice is due within thirty days Collection Service The Company provides collection service as a distinct and single performance obligation to several municipalities within the service territory of the Company. The municipalities provide wastewater service to their residents. If those residents are delinquent in paying for their wastewater service, the municipalities request that the Company post for and shut off the supply of water to the premises of those residents. When the resident is no longer delinquent, the Company will restore water service to the premises. The transaction price for each posting, each shut off, and each restoration is a fixed amount as established in the contract. There is no variable consideration. Due to the fact that the contract includes a single performance obligation, no judgment is required to allocate the transaction price. The performance obligation is satisfied at a point in time when the posting, shut off, or restoration is completed as the municipalities receive all the benefits in the form of payment or no longer providing wastewater service. Each municipality is invoiced periodically for the posting, shut offs, and restorations that have been completed since the last billing and the invoice is due within thirty days Service Line Protection Plan The Company provides service line protection as a distinct and single performance obligation to current water customers that choose to participate. The transaction price is detailed in the plan’s terms and conditions and made publicly available. There is no variable consideration. Due to the fact that the contract includes a single performance obligation, no judgment is required to allocate the transaction price. The performance obligation is satisfied over time through the continuous provision of service line protection through a stand-ready obligation to perform. The Company uses an output method to recognize the service line protection revenue over time. The stand-ready obligation is recognized through the passage of time. A customer has a choice to prepay for an entire year or to pay in advance each month. The service line protection plan has no returns or extended warranties associated with it. No revenue is recognized from performance obligations satisfied in prior periods and no material performance obligations remain unsatisfied as of the end of the reporting period. |
Rate Matters
Rate Matters | 9 Months Ended |
Sep. 30, 2020 | |
Rate Matters [Abstract] | |
Rate Matters | 11. Rate Matters From time to time, the Company files applications for rate increases with the PPUC and is granted rate relief as a result of such requests. The most recent rate request was filed by the Company on May 30, 2018, and sought an annual increase in water rates of $ 6,399 289 3,361 289 As part of a rate order approved by the PPUC, the Company has agreed to return $ 2,117 0 14 three months ended September 30, 2020 2019 1 319 nine months ended September 30, 2020 2019 no three months ended September 30, 2020 2019 0 27 nine months ended September 30, 2020 2019 September 30, 2020 2,117 The PPUC permits water utilities to collect a distribution system improvement charge, or DSIC. The DSIC allows the Company to add a charge to customers' bills for qualified replacement costs of certain infrastructure without submitting a rate filing. This surcharge mechanism typically adjusts periodically based on additional qualified capital expenditures completed or anticipated in a future period. The DSIC is capped at 5% zero The DSIC reset to zero when the new base rates took effect March 1, 2019. no September 30, 2020 2019 0 249 nine months ended September 30, 2020 2019 |
Pensions
Pensions | 9 Months Ended |
Sep. 30, 2020 | |
Pensions [Abstract] | |
Pensions | 12. Pensions Components of Net Periodic Pension Cost Three Months Ended September 30 Nine Ended September 30 2020 2019 2020 2019 Service cost $ 234 $ 213 $ 703 $ 637 Interest cost 365 412 1,093 1,234 Expected return on plan assets (800 ) (684 ) (2,399 ) (2,050 ) Amortization of actuarial loss 92 106 277 316 Amortization of prior service cost (3 ) (4 ) (9 ) (10 ) Rate-regulated adjustment 687 532 2,060 1,598 Net periodic pension expense $ 575 $ 575 $ 1,725 $ 1,725 Pension service cost is recorded in operating expenses. All other components of net periodic pension cost are recorded as other pension costs in other income (expenses). Employer Contributions The Company previously disclosed in its financial statements for the year ended December 31, 2019 that it expected to contribute $ 2,300 to its pension plans in 2020 . For the nine months ended September 30, 2020 1,725 575 2020 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2020 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | 13. Stock-Based Compensation On May 2, 2016, the Company’s stockholders approved The York Water Company Long-Term Incentive Plan, or LTIP. The LTIP was adopted to provide the incentive of long-term stock-based awards to officers, directors and key employees. The LTIP provides for the granting of nonqualified stock options, incentive stock options, stock appreciation rights, performance restricted stock grants and units, restricted stock grants and units, and unrestricted stock grants. A maximum of 100,000 shares of common stock may be issued under the LTIP over the ten -year life of the plan. The maximum number of shares of common stock subject to awards that may be granted to any participant in any one calendar year is 2,000 . Shares of common stock issued under the LTIP may be treasury shares or authorized but unissued shares. The LTIP will be administered by the Compensation Committee of the Board, or the full Board, provided that the full Board will administer the LTIP as it relates to awards to non-employee directors of the Company. The Company filed a registration statement with the Securities and Exchange Commission on May 11, 2016 covering the offering of stock under the LTIP. The LTIP was effective on July 1, 2016. On November 20, 2018, the Board accelerated the vesting period for restricted stock granted in 2016, 2017, and 2018 to one retiring officer from three years to that officer’s 2019 retirement date, which had been fully recognized as of March 31, 2019. On August 19, 2019, the Board accelerated the vesting period for restricted stock granted in 2017, 2018, and 2019 to one retiring officer from three years to that officer’s 2020 retirement date which had been fully recognized as of March 31, 2020. On September 18, 2020, the Board awarded stock to non-employee directors effective September 18, 2020. This stock award vested immediately. On September 18, 2020, the Compensation Committee awarded restricted stock to officers and key employees effective September 18, 2020. This restricted stock award vests ratably over three years beginning September 18, 2020. The restricted stock awards provide the grantee with the rights of a shareholder, including the right to receive dividends and to vote such shares, but not the right to sell or otherwise transfer the shares during the restriction period. As a result, the awards are included in common shares outstanding on the balance sheet. Restricted stock awards result in compensation expense valued at the fair market value of the stock on the date of the grant and are amortized ratably over the restriction period. The following tables summarize the stock grant amounts and activity for the nine months ended September 30, 2020 Number of Shares Grant Date Weighted Average Fair Value Nonvested at beginning of the period 7,342 $33.57 Granted 4,912 $44.07 Vested (5,491) $36.00 Forfeited (82) $33.61 Nonvested at end of the period 6,681 $39.30 For the three months ended September 30, 2020 2019 74 40 21 12 nine months ended September 30, 2020 2019 126 119 36 35 nine months ended September 30, 2020 198 263 three year |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Taxes [Abstract] | |
Income Taxes | 14. Income Taxes The Company filed for a change in accounting method under the Internal Revenue Service tangible property regulations, or TPR, effective in 2014. Under the change in accounting method, the Company is permitted to deduct the costs of certain asset improvements that were previously being capitalized and depreciated for tax purposes as an expense on its income tax return. This ongoing deduction results in a reduction in the effective income tax rate, a net reduction in income tax expense, and a reduction in the amount of income taxes currently payable. It also results in increases to deferred tax liabilities and regulatory assets representing the appropriate book and tax basis difference on capital additions. The Company’s effective tax rate was 16.0% 11.7% September 30, 2020 2019 13.9% 15.1% nine months ended September 30, 2020 2019 |
Revenue (Policies)
Revenue (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue [Abstract] | |
Revenue | Utility Service The Company provides utility service as a distinct and single performance obligation to each of its water and wastewater customers. The transaction price is detailed in the tariff pursuant to an order by the PPUC and made publicly available. There is no variable consideration and no free service, special rates, or subnormal charges to any customer. Due to the fact that the contract includes a single performance obligation, no judgment is required to allocate the transaction price. The performance obligation is satisfied over time through the continuous provision of utility service through a stand-ready obligation to perform and the transfer of water or the collection of wastewater through a series of distinct transactions that are identical in nature and have the same pattern of transfer to the customer. The Company uses an output method to recognize the utility service revenue over time. The stand-ready obligation is recognized through the passage of time in the form of a fixed charge and the transfer of water or the collection of wastewater is recognized at a per unit rate based on the actual or estimated flow through the meter. Each customer is invoiced every month and the invoice is due within twenty days Billing and Revenue Collection Service The Company provides billing and revenue collection service as distinct performance obligations to four municipalities within the service territory of the Company. The municipalities provide wastewater service to their residents and the Company acts as the billing and revenue collection agent for the municipalities. The transaction price is a fixed amount per bill prepared as established in the contract. There is no variable consideration. Due to the fact that both the billing performance obligation and the revenue collection performance obligation are materially complete by the end of the reporting period, the Company does not allocate the transaction price between the two performance obligations. The performance obligations are satisfied at a point in time when the bills are sent as the municipalities receive all the benefits and bears all of the risk of non-collection at that time. Each municipality is invoiced when the bills are complete and the invoice is due within thirty days Collection Service The Company provides collection service as a distinct and single performance obligation to several municipalities within the service territory of the Company. The municipalities provide wastewater service to their residents. If those residents are delinquent in paying for their wastewater service, the municipalities request that the Company post for and shut off the supply of water to the premises of those residents. When the resident is no longer delinquent, the Company will restore water service to the premises. The transaction price for each posting, each shut off, and each restoration is a fixed amount as established in the contract. There is no variable consideration. Due to the fact that the contract includes a single performance obligation, no judgment is required to allocate the transaction price. The performance obligation is satisfied at a point in time when the posting, shut off, or restoration is completed as the municipalities receive all the benefits in the form of payment or no longer providing wastewater service. Each municipality is invoiced periodically for the posting, shut offs, and restorations that have been completed since the last billing and the invoice is due within thirty days Service Line Protection Plan The Company provides service line protection as a distinct and single performance obligation to current water customers that choose to participate. The transaction price is detailed in the plan’s terms and conditions and made publicly available. There is no variable consideration. Due to the fact that the contract includes a single performance obligation, no judgment is required to allocate the transaction price. The performance obligation is satisfied over time through the continuous provision of service line protection through a stand-ready obligation to perform. The Company uses an output method to recognize the service line protection revenue over time. The stand-ready obligation is recognized through the passage of time. A customer has a choice to prepay for an entire year or to pay in advance each month. The service line protection plan has no returns or extended warranties associated with it. No revenue is recognized from performance obligations satisfied in prior periods and no material performance obligations remain unsatisfied as of the end of the reporting period. |
Accounts Receivable and Contr_2
Accounts Receivable and Contract Assets (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Accounts Receivable and Contract Assets [Abstract] | |
Accounts Receivable and Contract Assets | Accounts receivable and contract assets are summarized in the following table: As of Sep. 30, 2020 As of Dec. 31, 2019 Change Accounts receivable – customers $ 5,392 $ 4,574 $ 818 Other receivables 278 152 126 5,670 4,726 944 Less: allowance for doubtful accounts (477 ) (305 ) (172 ) Accounts receivable, net $ 5,193 $ 4,421 $ 772 Unbilled revenue $ 2,801 $ 2,276 $ 525 |
Common Stock and Earnings Per_2
Common Stock and Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Common Stock and Earnings Per Share [Abstract] | |
Shares Used in Computing Basic and Diluted Earnings per Share | The following table summarizes the shares used in computing basic and diluted earnings per share: Three Months Ended September 30 Nine Ended September 30 2020 2019 2020 2019 Weighted average common shares, basic 13,032,389 12,968,540 13,021,398 12,955,602 Effect of dilutive securities: Employee stock-based compensation 1,164 2,131 565 1,506 Weighted average common shares, diluted 13,033,553 12,970,671 13,021,963 12,957,108 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt [Abstract] | |
Debt | As of Sep. 30, 2020 As of Dec. 31, 2019 10.05% $ – $ 6,500 8.43% 7,500 7,500 Variable Rate Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Refunding Bonds, Series 2008A, due 2029 12,000 12,000 3.00% Facilities Revenue Refunding Bonds, Series A of 2019, due 2036 10,500 10,500 3.10% Facilities Revenue Refunding Bonds, Series B of 2019, due 2038 14,870 14,870 3.23% 15,000 15,000 4.00% 4.50% Facilities Revenue Bonds, Series 2015, due 2029 - 2045 10,000 10,000 4.54% 20,000 20,000 3.24% 30,000 – Committed Line of Credit, due 2022 – 7,672 Total long-term debt 119,870 104,042 Less discount on issuance of long-term debt (184 ) (192 ) Less unamortized debt issuance costs (2,857 ) (2,815 ) Less current maturities – (6,500 ) Long-term portion $ 116,829 $ 94,535 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Interest Rate Swap | The Company has recorded its interest rate swap liability at fair value in accordance with the standards. The liability is recorded under the caption “Other deferred credits” on the balance sheet. The table below illustrates the fair value of the interest rate swap as of the end of the reporting period. Description September 30, 2020 Fair Value Measurements at Reporting Date Using Significant Other Observable Inputs (Level 2) Interest Rate Swap $2,919 $2,919 Fair values are measured as the present value of all expected future cash flows based on the LIBOR-based swap yield curve as of the date of the valuation. These inputs to this calculation are deemed to be Level 2 inputs. The balance sheet carrying value reflects the Company's credit quality as of September 30, 2020 30-year September 30, 2020 126 September 30, 2020 December 31, 2019 Description December 31, 2019 Fair Value Measurements at Reporting Date Using Significant Other Observable Inputs (Level 2) Interest Rate Swap $2,248 $2,248 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue [Abstract] | |
Revenues Disaggregated by Service and Customer Type | The following table shows the Company’s revenues disaggregated by service and customer type. Three Months Ended September 30 Nine Ended September 30 2020 2019 2020 2019 Water utility service Residential $ 8,902 $ 8,460 $ 25,643 $ 24,060 Commercial and industrial 3,774 3,864 10,331 10,630 Fire protection 795 780 2,379 2,290 Wastewater utility service Residential 446 334 1,281 878 Commercial and industrial 78 72 229 203 Billing and revenue collection services 118 19 147 56 Collection services – 16 14 48 Other revenue 4 4 14 11 Total Revenue from Contracts with Customers 14,117 13,549 40,038 38,176 Rents from regulated property 140 131 416 383 Total Operating Revenue $ 14,257 $ 13,680 $ 40,454 $ 38,559 |
Pensions (Tables)
Pensions (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Pensions [Abstract] | |
Components of Net Periodic Pension Cost | Components of Net Periodic Pension Cost Three Months Ended September 30 Nine Ended September 30 2020 2019 2020 2019 Service cost $ 234 $ 213 $ 703 $ 637 Interest cost 365 412 1,093 1,234 Expected return on plan assets (800 ) (684 ) (2,399 ) (2,050 ) Amortization of actuarial loss 92 106 277 316 Amortization of prior service cost (3 ) (4 ) (9 ) (10 ) Rate-regulated adjustment 687 532 2,060 1,598 Net periodic pension expense $ 575 $ 575 $ 1,725 $ 1,725 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Stock-Based Compensation [Abstract] | |
Restricted Stock | The following tables summarize the stock grant amounts and activity for the nine months ended September 30, 2020 Number of Shares Grant Date Weighted Average Fair Value Nonvested at beginning of the period 7,342 $33.57 Granted 4,912 $44.07 Vested (5,491) $36.00 Forfeited (82) $33.61 Nonvested at end of the period 6,681 $39.30 |
Acquisitions (Details)
Acquisitions (Details) $ in Thousands | Sep. 14, 2020USD ($)Customer | Apr. 09, 2020USD ($)Customer | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) |
Acquisitions [Abstract] | |||||
Purchase price | $ 1,158 | $ 2,088 | |||
Acquisition adjustment | $ (2,973) | $ (3,318) | |||
Wastewater Collection and Treatment Assets of Felton Borough [Member] | |||||
Acquisitions [Abstract] | |||||
Number of customers acquired | Customer | 130 | ||||
Purchase price | $ 914 | ||||
Acquisition adjustment | $ 295 | ||||
Wastewater Collection and Treatment Assets of Letterkenny Township Municipal Authority [Member] | |||||
Acquisitions [Abstract] | |||||
Number of customers acquired | Customer | 180 | ||||
Purchase price | $ 244 |
Accounts Receivable and Contr_3
Accounts Receivable and Contract Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Accounts Receivable and Contract Assets [Abstract] | ||
Accounts receivable - customers | $ 5,392 | $ 4,574 |
Other receivables | 278 | 152 |
Accounts receivable | 5,670 | 4,726 |
Less: allowance for doubtful accounts | (477) | (305) |
Accounts receivable, net | 5,193 | 4,421 |
Unbilled revenue | 2,801 | $ 2,276 |
Change in accounts receivable - customers | 818 | |
Change in other receivables | 126 | |
Change in accounts receivable | 944 | |
Change in allowance for doubtful accounts | (172) | |
Change in accounts receivable, net | 772 | |
Change in unbilled revenue | $ 525 |
Common Stock and Earnings Per_3
Common Stock and Earnings Per Share (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Mar. 11, 2013 | |
Common Stock and Earnings Per Share [Abstract] | |||||
Net income | $ 4,704 | $ 4,483 | $ 12,888 | $ 11,013 | |
Shares Used in Computing Basic and Diluted Earnings per Share [Abstract] | |||||
Weighted average common shares, basic (in shares) | 13,032,389 | 12,968,540 | 13,021,398 | 12,955,602 | |
Effect of dilutive securities [Abstract] | |||||
Employee stock-based compensation (in shares) | 1,164 | 2,131 | 565 | 1,506 | |
Weighted average common shares, diluted (in shares) | 13,033,553 | 12,970,671 | 13,021,963 | 12,957,108 | |
Stock Repurchase Program [Abstract] | |||||
Number of shares authorized to be repurchased under the stock repurchase program (in shares) | 1,200,000 | ||||
Number of shares repurchased under the stock repurchase program (in shares) | 0 | 0 | 0 | 0 | |
Number of remaining shares authorized to be repurchased under the stock repurchase program (in shares) | 618,004 | 618,004 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2019 |
Debt [Abstract] | |||
Total long-term debt | $ 119,870 | $ 119,870 | $ 104,042 |
Less discount on issuance of long-term debt | (184) | (184) | (192) |
Less unamortized debt issuance costs | (2,857) | (2,857) | (2,815) |
Less current maturities | 0 | 0 | (6,500) |
Long-term portion | 116,829 | 116,829 | 94,535 |
10.05% Senior Notes, Series C, due 2020 [Member] | |||
Debt [Abstract] | |||
Total long-term debt | $ 0 | $ 0 | 6,500 |
Interest rate | 10.05% | 10.05% | |
Face value | $ 6,500 | $ 6,500 | |
Maturity date | Sep. 30, 2020 | ||
8.43% Senior Notes, Series D, due 2022 [Member] | |||
Debt [Abstract] | |||
Total long-term debt | $ 7,500 | $ 7,500 | 7,500 |
Interest rate | 8.43% | 8.43% | |
Variable Rate Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Refunding Bonds Series 2008A, due 2029 [Member] | |||
Debt [Abstract] | |||
Total long-term debt | $ 12,000 | $ 12,000 | 12,000 |
3.00% Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Refunding Bonds, Series A of 2019, due 2036 [Member] | |||
Debt [Abstract] | |||
Total long-term debt | $ 10,500 | $ 10,500 | 10,500 |
Interest rate | 3.00% | 3.00% | |
3.10% Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Refunding Bonds, Series B of 2019, due 2038 [Member] | |||
Debt [Abstract] | |||
Total long-term debt | $ 14,870 | $ 14,870 | 14,870 |
Interest rate | 3.10% | 3.10% | |
3.23% Senior Notes, due 2040 [Member] | |||
Debt [Abstract] | |||
Total long-term debt | $ 15,000 | $ 15,000 | 15,000 |
Interest rate | 3.23% | 3.23% | |
4.00% - 4.50% York County Industrial Development Authority Exempt Facilities Revenue Bonds, Series 2015, due 2029 - 2045 [Member] | |||
Debt [Abstract] | |||
Total long-term debt | $ 10,000 | $ 10,000 | 10,000 |
4.00% - 4.50% York County Industrial Development Authority Exempt Facilities Revenue Bonds, Series 2015, due 2029 - 2045 [Member] | Minimum [Member] | |||
Debt [Abstract] | |||
Interest rate | 4.00% | 4.00% | |
4.00% - 4.50% York County Industrial Development Authority Exempt Facilities Revenue Bonds, Series 2015, due 2029 - 2045 [Member] | Maximum [Member] | |||
Debt [Abstract] | |||
Interest rate | 4.50% | 4.50% | |
4.54% Senior Notes, due 2049 [Member] | |||
Debt [Abstract] | |||
Total long-term debt | $ 20,000 | $ 20,000 | 20,000 |
Interest rate | 4.54% | 4.54% | |
3.24% Senior Notes, due 2050 [Member] | |||
Debt [Abstract] | |||
Total long-term debt | $ 30,000 | $ 30,000 | 0 |
Interest rate | 3.24% | 3.24% | |
Face value | $ 30,000 | $ 30,000 | |
Maturity date | Sep. 30, 2050 | ||
Proceeds from debt, net of issuance costs | 29,838 | ||
Committed Line of Credit, due 2022 [Member] | |||
Debt [Abstract] | |||
Total long-term debt | 0 | $ 0 | $ 7,672 |
Borrowing capacity | $ 50,000 | $ 50,000 | |
Committed Line of Credit, due 2022 [Member] | LIBOR [Member] | |||
Debt [Abstract] | |||
Basis adjustment | 1.05% |
Interest Rate Swap Agreement (D
Interest Rate Swap Agreement (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Interest Rate Swap Agreement [Abstract] | |||||
Long-term debt | $ 119,870 | $ 119,870 | $ 104,042 | ||
Interest Rate Swap [Member] | |||||
Interest Rate Swap Agreement [Abstract] | |||||
Notional amount of swap | $ 12,000 | $ 12,000 | |||
Fixed interest rate | 3.16% | 3.16% | |||
Net payment rate on swap | 3.08% | 1.88% | 2.76% | 1.75% | |
Interest rate swap settlements reclassified from regulatory assets to interest expense | $ 93 | $ 57 | $ 249 | $ 158 | |
Overall interest rate swap loss | 10 | $ 290 | 911 | $ 776 | |
Interest rate swap settlements to be reclassified during the next 12 months | 369 | 369 | |||
Potential payment to counterparty | $ 3,045 | $ 3,045 | |||
LIBOR [Member] | Interest Rate Swap [Member] | |||||
Interest Rate Swap Agreement [Abstract] | |||||
Percentage of variable interest rate | 59.00% | 59.00% | |||
Term of variable rate | 1 month | ||||
Variable Rate Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Refunding Bonds Series 2008A, due 2029 [Member] | |||||
Interest Rate Swap Agreement [Abstract] | |||||
Long-term debt | $ 12,000 | $ 12,000 | $ 12,000 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Interest Rate Swap [Abstract] | ||
Term of debt on utilities rated A- used to discount prospective cash flows | 30 years | |
Reduction in fair value of swap liability | $ 126 | |
Fair Value Measurements [Abstract] | ||
Customers' advances for construction | 10,291 | $ 7,844 |
Note receivable | 255 | 255 |
Fair Value on a Recurring Basis [Member] | ||
Interest Rate Swap [Abstract] | ||
Interest rate swap | 2,919 | 2,248 |
Fair Value on a Recurring Basis [Member] | Fair Value Measurements at Reporting Date Using Significant Other Observable Inputs (Level 2) [Member] | ||
Interest Rate Swap [Abstract] | ||
Interest rate swap | 2,919 | 2,248 |
Carrying Amount [Member] | ||
Fair Value, Financial Liabilities [Abstract] | ||
Total long-term debt | 119,870 | 104,042 |
Estimated Fair Value [Member] | ||
Fair Value, Financial Liabilities [Abstract] | ||
Total long-term debt | $ 138,000 | $ 115,000 |
Commitments (Details)
Commitments (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020USD ($)ServiceLine | Dec. 31, 2019USD ($) | |
Company-Owned Lead Service Lines [Member] | ||
Commitments [Abstract] | ||
Term to replace all remaining company-owned lead service lines | 4 years | |
Costs incurred to replace company-owned lead service lines | $ 2,734 | $ 2,713 |
Customer-Owned Lead Service Lines [Member] | ||
Commitments [Abstract] | ||
Number of lead customer-owned service lines to be replaced annually | ServiceLine | 400 | |
Term of tariff modification to replace customer-owned lead service lines | 9 years | |
Recovery period of regulatory asset | 4 years | |
Costs incurred to replace customer-owned lead service lines | $ 1,174 | $ 1,000 |
Costs to be incurred to replace customer-owned lead service lines | 1,400 | |
Water Purification and Distribution and Wastewater Collection and Treatment Assets for Amblebrook Development [Member] | ||
Commitments [Abstract] | ||
Capital expenditures committed | $ 6,000 |
Revenue (Details)
Revenue (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)Municipality | Sep. 30, 2019USD ($) | |
Revenue [Abstract] | ||||
Revenue from contracts with customers | $ 14,117 | $ 13,549 | $ 40,038 | $ 38,176 |
Rents from regulated property | 140 | 131 | 416 | 383 |
Total operating revenue | 14,257 | 13,680 | $ 40,454 | 38,559 |
Utility Service [Member] | ||||
Revenue [Abstract] | ||||
Number of days for customer to make payment after being invoiced | 20 days | |||
Water Utility Service [Member] | Residential [Member] | ||||
Revenue [Abstract] | ||||
Revenue from contracts with customers | 8,902 | 8,460 | $ 25,643 | 24,060 |
Water Utility Service [Member] | Commercial and Industrial [Member] | ||||
Revenue [Abstract] | ||||
Revenue from contracts with customers | 3,774 | 3,864 | 10,331 | 10,630 |
Water Utility Service [Member] | Fire Protection [Member] | ||||
Revenue [Abstract] | ||||
Revenue from contracts with customers | 795 | 780 | 2,379 | 2,290 |
Wastewater Utility Service [Member] | Residential [Member] | ||||
Revenue [Abstract] | ||||
Revenue from contracts with customers | 446 | 334 | 1,281 | 878 |
Wastewater Utility Service [Member] | Commercial and Industrial [Member] | ||||
Revenue [Abstract] | ||||
Revenue from contracts with customers | 78 | 72 | 229 | 203 |
Billing and Revenue Collection Services [Member] | ||||
Revenue [Abstract] | ||||
Revenue from contracts with customers | 118 | 19 | $ 147 | 56 |
Number of municipalities within the service territory provided service | Municipality | 4 | |||
Number of days for customer to make payment after being invoiced | 30 days | |||
Collection Services [Member] | ||||
Revenue [Abstract] | ||||
Revenue from contracts with customers | 0 | 16 | $ 14 | 48 |
Number of days for customer to make payment after being invoiced | 30 days | |||
Other Revenue [Member] | ||||
Revenue [Abstract] | ||||
Revenue from contracts with customers | $ 4 | $ 4 | $ 14 | $ 11 |
Rate Matters (Details)
Rate Matters (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Rate Matters [Abstract] | ||||
Amount agreed to be returned to customers for effects of 2017 Tax Act | $ 2,117 | $ 2,117 | ||
Revenue recorded as regulatory liability for effects of 2017 Tax Act | 0 | $ (14) | (1) | $ (319) |
Reclassification from excess accumulated deferred income taxes on accelerated depreciation | 0 | 0 | 0 | 27 |
Negative surcharges returned to customers for effects of 2017 Tax Act | 2,117 | |||
Rate Request Filed on May 30, 2018 [Member] | PPUC [Member] | Water [Member] | ||||
Rate Matters [Abstract] | ||||
Requested increase in annual revenue | 6,399 | |||
Authorized dollar increase in annual revenues from the PPUC | 3,361 | |||
Rate Request Filed on May 30, 2018 [Member] | PPUC [Member] | Wastewater [Member] | ||||
Rate Matters [Abstract] | ||||
Requested increase in annual revenue | 289 | |||
Authorized dollar increase in annual revenues from the PPUC | 289 | |||
DSIC [Member] | ||||
Rate Matters [Abstract] | ||||
Distribution system improvement charge revenue | $ 0 | $ 0 | $ 0 | $ 249 |
DSIC [Member] | PPUC [Member] | Maximum [Member] | ||||
Rate Matters [Abstract] | ||||
Distribution system improvement charge percentage over base rate | 5.00% | |||
DSIC [Member] | PPUC [Member] | Minimum [Member] | ||||
Rate Matters [Abstract] | ||||
Distribution system improvement charge percentage over base rate | 0.00% |
Pensions (Details)
Pensions (Details) - Pension Plans [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Components of Net Periodic Benefit Cost [Abstract] | |||||
Service cost | $ 234 | $ 213 | $ 703 | $ 637 | |
Interest cost | 365 | 412 | 1,093 | 1,234 | |
Expected return on plan assets | (800) | (684) | (2,399) | (2,050) | |
Amortization of actuarial loss | 92 | 106 | 277 | 316 | |
Amortization of prior service credit | (3) | (4) | (9) | (10) | |
Rate-regulated adjustment | 687 | 532 | 2,060 | 1,598 | |
Net periodic pension expense | 575 | $ 575 | 1,725 | $ 1,725 | |
Employer Contributions [Abstract] | |||||
Estimated employer contributions in 2020 | $ 2,300 | ||||
Contributions made by employer | 1,725 | ||||
Estimated future contributions in 2020 | $ 575 | $ 575 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) $ / shares in Units, $ in Thousands | Aug. 19, 2019Officer | Nov. 20, 2018Officer | Sep. 30, 2020USD ($)$ / sharesshares | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)$ / sharesshares | Sep. 30, 2019USD ($) | May 02, 2016shares |
Officer Retiring in 2019 [Member] | |||||||
Stock-Based Compensation [Abstract] | |||||||
Number of retiring officers receiving accelerated vesting period | Officer | 1 | ||||||
Officer Retiring in 2020 [Member] | |||||||
Stock-Based Compensation [Abstract] | |||||||
Number of retiring officers receiving accelerated vesting period | Officer | 1 | ||||||
LTIP [Member] | |||||||
Stock-Based Compensation [Abstract] | |||||||
Maximum number of shares of common stock that can be issued under the plan (in shares) | 100,000 | ||||||
Term of plan | 10 years | ||||||
Maximum number of shares of common stock subject to awards that may be granted to a participant per calendar year (in shares) | 2,000 | ||||||
Restricted Stock [Member] | LTIP [Member] | |||||||
Number of Shares [Roll Forward] | |||||||
Nonvested at beginning of the period (in shares) | 7,342 | ||||||
Granted (in shares) | 4,912 | ||||||
Vested (in shares) | (5,491) | ||||||
Forfeited (in shares) | (82) | ||||||
Nonvested at end of the period (in shares) | 6,681 | 6,681 | |||||
Grant Date Weighted Average Fair Value [Abstract] | |||||||
Nonvested at beginning of the period (in dollars per share) | $ / shares | $ 33.57 | ||||||
Granted (in dollars per share) | $ / shares | 44.07 | ||||||
Vested (in dollars per share) | $ / shares | 36 | ||||||
Forfeited (in dollars per share) | $ / shares | 33.61 | ||||||
Nonvested at end of the period (in dollars per share) | $ / shares | $ 39.30 | $ 39.30 | |||||
Stock-Based Compensation Expense [Abstract] | |||||||
Stock-based compensation expense | $ | $ 74 | $ 40 | $ 126 | $ 119 | |||
Recognized tax benefits related to stock-based compensation expense | $ | 21 | $ 12 | 36 | $ 35 | |||
Fair value of vested shares | $ | 198 | ||||||
Stock-based compensation expense not yet recognized | $ | $ 263 | $ 263 | |||||
Period of recognition | 3 years | ||||||
Restricted Stock [Member] | LTIP [Member] | Officer Retiring in 2019 [Member] | |||||||
Stock-Based Compensation [Abstract] | |||||||
Vesting period | 3 years | ||||||
Restricted Stock [Member] | LTIP [Member] | Officer Retiring in 2020 [Member] | |||||||
Stock-Based Compensation [Abstract] | |||||||
Vesting period | 3 years | ||||||
Restricted Stock [Member] | LTIP [Member] | Officers and Key Employees [Member] | |||||||
Stock-Based Compensation [Abstract] | |||||||
Vesting period | 3 years |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Taxes [Abstract] | ||||
Effective tax rate | 16.00% | 11.70% | 13.90% | 15.10% |