Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 09, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Entity Registrant Name | YORK WATER CO | ||
Entity Central Index Key | 0000108985 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Address, State or Province | PA | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
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 Public Float | $ 625,110,599 | ||
Entity Common Stock, Shares Outstanding | 13,063,448 |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
UTILITY PLANT, at original cost | $ 438,670 | $ 401,383 |
Plant acquisition adjustments | (3,707) | (3,318) |
Accumulated depreciation | (91,340) | (84,841) |
Net utility plant | 343,623 | 313,224 |
OTHER PHYSICAL PROPERTY, net of accumulated depreciation of $458 in 2020 and $435 in 2019 | 742 | 769 |
CURRENT ASSETS: | ||
Cash and cash equivalents | 2 | 2 |
Restricted cash | 5,000 | 0 |
Accounts receivable, net of reserves of $655 in 2020 and $305 in 2019 | 5,184 | 4,421 |
Unbilled revenues | 2,847 | 2,276 |
Recoverable income taxes | 721 | 547 |
Materials and supplies inventories, at cost | 1,010 | 1,007 |
Prepaid expenses | 1,526 | 1,131 |
Total current assets | 16,290 | 9,384 |
OTHER LONG-TERM ASSETS: | ||
Prepaid pension cost | 2,209 | 1,819 |
Note receivable | 255 | 255 |
Deferred regulatory assets | 39,893 | 34,189 |
Other assets | 3,945 | 3,889 |
Total other long-term assets | 46,302 | 40,152 |
Total Assets | 406,957 | 363,529 |
COMMON STOCKHOLDERS' EQUITY: | ||
Common stock, no par value, authorized 46,500,000 shares, issued and outstanding 13,060,817 shares in 2020 and 13,014,898 shares in 2019 | 85,935 | 83,976 |
Retained earnings | 57,317 | 50,209 |
Total common stockholders' equity | 143,252 | 134,185 |
PREFERRED STOCK, authorized 500,000 shares, no shares issued | 0 | 0 |
LONG-TERM DEBT, excluding current portion | 123,573 | 94,535 |
COMMITMENTS | ||
CURRENT LIABILITIES: | ||
Current portion of long-term debt | 0 | 6,500 |
Accounts payable | 6,540 | 3,452 |
Dividends payable | 2,192 | 2,096 |
Accrued compensation and benefits | 1,417 | 1,247 |
Accrued interest | 959 | 914 |
Deferred regulatory liabilities | 525 | 609 |
Other accrued expenses | 360 | 338 |
Total current liabilities | 11,993 | 15,156 |
DEFERRED CREDITS: | ||
Customers' advances for construction | 10,326 | 7,844 |
Deferred income taxes | 43,538 | 40,426 |
Deferred employee benefits | 4,793 | 4,317 |
Deferred regulatory liabilities | 25,444 | 24,790 |
Other deferred credits | 2,731 | 2,247 |
Total deferred credits | 86,832 | 79,624 |
Contributions in aid of construction | 41,307 | 40,029 |
Total Stockholders' Equity and Liabilities | $ 406,957 | $ 363,529 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Other physical property, accumulated depreciation | $ 458 | $ 435 |
CURRENT ASSETS: | ||
Accounts receivables, reserves | $ 655 | $ 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) | 13,060,817 | 13,014,898 |
Common stock, outstanding (in shares) | 13,060,817 | 13,014,898 |
Preferred stock, authorized (in shares) | 500,000 | 500,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Statements of Income
Statements of Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Statements of Income [Abstract] | ||
OPERATING REVENUES | $ 53,852 | $ 51,578 |
OPERATING EXPENSES: | ||
Operation and maintenance | 10,781 | 10,387 |
Administrative and general | 9,258 | 8,517 |
Depreciation and amortization | 8,177 | 7,688 |
Taxes other than income taxes | 1,205 | 1,200 |
Operating expenses | 29,421 | 27,792 |
Operating income | 24,431 | 23,786 |
OTHER INCOME (EXPENSES): | ||
Interest on debt | (4,707) | (5,124) |
Allowance for funds used during construction | 530 | 366 |
Other pension costs | (1,362) | (1,451) |
Gain on life insurance | 515 | 0 |
Other income (expenses), net | (791) | (935) |
Other income (expenses) | (5,815) | (7,144) |
Income before income taxes | 18,616 | 16,642 |
Income taxes | 2,018 | 2,240 |
Net Income | $ 16,598 | $ 14,402 |
Basic Earnings Per Share (in dollars per share) | $ 1.27 | $ 1.11 |
Diluted Earnings Per Share (in dollars per share) | $ 1.27 | $ 1.11 |
Statements of Common Stockholde
Statements of Common Stockholders' Equity - 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 | 14,402 | 14,402 |
Cash dividends declared | 0 | (9,083) | (9,083) |
Issuance of common stock under dividend reinvestment, direct stock and employee stock purchase plans | $ 2,505 | 0 | 2,505 |
Issuance of common stock under dividend reinvestment, direct stock and employee stock purchase plans (in shares) | 64,399 | ||
Stock-based compensation | $ 166 | 0 | 166 |
Stock-based compensation (in shares) | 6,963 | ||
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 | 16,598 | $ 16,598 |
Cash dividends declared | 0 | (9,490) | (9,490) |
Issuance of common stock under dividend reinvestment, direct stock and employee stock purchase plans | $ 1,805 | 0 | 1,805 |
Issuance of common stock under dividend reinvestment, direct stock and employee stock purchase plans (in shares) | 41,088 | ||
Stock-based compensation | $ 154 | 0 | 154 |
Stock-based compensation (in shares) | 4,831 | ||
Balance at Dec. 31, 2020 | $ 85,935 | $ 57,317 | $ 143,252 |
Balance (in shares) at Dec. 31, 2020 | 13,060,817 | 13,060,817 |
Statements of Common Stockhol_2
Statements of Common Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Cash dividends declared (in dollars per share) | $ 0.7280 | $ 0.7001 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 16,598 | $ 14,402 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Gain on life insurance | (515) | 0 |
Depreciation and amortization | 8,177 | 7,688 |
Stock-based compensation | 154 | 166 |
Increase in deferred income taxes | 88 | 641 |
Other | 552 | 251 |
Changes in assets and liabilities: | ||
(Increase) decrease in accounts receivable and unbilled revenues | (1,948) | 282 |
Increase in recoverable income taxes | (174) | (547) |
Increase in materials and supplies, prepaid expenses, prepaid pension cost, regulatory and other assets | (8,205) | (5,903) |
Increase in accounts payable, accrued compensation and benefits, accrued expenses, deferred employee benefits, regulatory liabilities, and other deferred credits | 5,463 | 2,129 |
Increase (decrease) in accrued interest and taxes | 45 | (228) |
Net cash provided by operating activities | 20,235 | 18,881 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Utility plant additions, including debt portion of allowance for funds used during construction of $296 in 2020 and $205 in 2019 | (32,123) | (18,425) |
Acquisitions of wastewater systems | (1,176) | (2,112) |
Cash received from surrender of life insurance policies | 672 | 0 |
Net cash used in investing activities | (32,627) | (20,537) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Customers' advances for construction and contributions in aid of construction | 3,155 | 1,695 |
Repayments of customer advances | (419) | (396) |
Proceeds of long-term debt issues | 62,156 | 94,043 |
Debt issuance costs | (162) | (613) |
Repayments of long-term debt | (39,628) | (85,906) |
Repayments under short-term line of credit agreements | 0 | (1,000) |
Changes in cash overdraft position | (121) | 314 |
Issuance of common stock | 1,805 | 2,505 |
Dividends paid | (9,394) | (8,986) |
Net cash provided by financing activities | 17,392 | 1,656 |
Net change in cash, cash equivalents, and restricted cash | 5,000 | 0 |
Cash, cash equivalents, and restricted cash at beginning of period | 2 | 2 |
Cash, cash equivalents, and restricted cash at end of period | 5,002 | 2 |
Cash paid during the period for: | ||
Interest, net of amounts capitalized | 4,180 | 4,821 |
Income taxes | $ 2,429 | $ 2,230 |
Supplemental schedule of non-cash investing and financing activities: | ||
Accounts payable includes $3,022 in 2020 and $1,029 in 2019 for the construction of utility plant | ||
Contributions in aid of construction includes $1,024 recorded as part of the Felton Borough acquisition. | ||
Reconciliation of cash, cash equivalents, and restricted cash reported in the Balance Sheets | ||
Cash and cash equivalents | $ 2 | $ 2 |
Restricted cash | 5,000 | 0 |
Cash, cash equivalents, and restricted cash at end of period | $ 5,002 | $ 2 |
Statements of Cash Flows (Paren
Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Utility plant additions, debt portion of allowance for funds used during construction | $ 296 | $ 205 |
Supplemental schedule of non-cash investing and financing activities: | ||
Accounts payable for construction of utility plant | 3,022 | $ 1,029 |
Contributions in aid of construction recorded as part of the Felton Borough acquisition | $ 1,024 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Significant Accounting Policies [Abstract] | |
Significant Accounting Policies | 1. Significant Accounting Policies The primary business of The York Water Company, or the Company, is to impound, purify and distribute water. The Company also owns and operates two The Company operates within its franchised territory located in three counties within south-central Pennsylvania and is subject to regulation by the Pennsylvania Public Utility Commission, or PPUC. The following summarizes the significant accounting policies employed by The York Water Company. Utility Plant and Depreciation The cost of additions includes contracted cost, direct labor and fringe benefits, materials, overhead and, for certain utility plant, allowance for funds used during construction. In accordance with regulatory accounting requirements, water and wastewater systems acquired are recorded at estimated original cost of utility plant when first devoted to utility service and the applicable depreciation is recorded to accumulated depreciation. The difference between the estimated original cost less applicable accumulated depreciation, and the purchase price and acquisition costs is recorded as an acquisition adjustment within utility plant as permitted by the PPUC. At December 31, 2020 and 2019, utility plant includes a net credit acquisition adjustment of $3,707 and $3,318, respectively. For those amounts approved by the PPUC, the net acquisition adjustment is being amortized over the remaining life of the respective assets. Certain amounts are still awaiting approval from the PPUC before amortization will commence. Amortization amounted to $67 and $61 for the years ended December 31, 2020 and 2019, respectively. Upon normal retirement of depreciable property, the estimated or actual cost of the asset is credited to the utility plant account, and such amounts, together with the cost of removal less salvage value, are charged to the reserve for depreciation. To the extent the Company recovers cost of removal or other retirement costs through rates after the retirement costs are incurred, a regulatory asset is reported. Gains or losses from abnormal retirements are reflected in income currently. The straight-line remaining life method is used to compute depreciation on utility plant cost, exclusive of land and land rights. Annual provisions for depreciation of transportation and mechanical equipment included in utility plant are computed on a straight-line basis over the estimated service lives. Such provisions are charged to clearing accounts and apportioned therefrom to operating expenses and other accounts in accordance with the Uniform System of Accounts as prescribed by the PPUC. The Company charges to maintenance expense the cost of repairs and replacements and renewals of minor items of property. Maintenance of transportation equipment is charged to clearing accounts and apportioned therefrom in a manner similar to depreciation. The cost of replacements, renewals and betterments of units of property is capitalized to the utility plant accounts. The following remaining lives are used for financial reporting purposes: December 31 Approximate range Utility Plant Asset Category 2020 2019 of remaining lives Mains and accessories $ 212,164 $ 200,954 10 – 86 years Services, meters and hydrants 80,590 77,501 17 – 51 years Operations structures, reservoirs and water tanks 65,617 63,530 9 – 58 years Pumping and treatment equipment 34,163 33,124 6 – 30 years Office, transportation and operating equipment 15,520 14,464 3 – 22 years Land and other non-depreciable assets 3,478 3,393 – Utility plant in service 411,532 392,966 Construction work in progress 27,138 8,417 – Total Utility Plant $ 438,670 $ 401,383 The effective rate of depreciation was 2.33% in 2020 and 2.29% in 2019, on average utility plant, net of customers’ advances and contributions. Larger depreciation provisions resulting from allowable accelerated methods are deducted for tax purposes. Cash and Cash Equivalents For the purposes of the statements of cash flows, the Company considers all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents except for those instruments earmarked to fund construction expenditures or repay long-term debt. The Company periodically maintains cash balances in major financial institutions in excess of the federally insured limit by the Federal Deposit Insurance Corporation (FDIC). The Company has not experienced any losses and believes it is not exposed to any significant credit risk on cash and cash equivalents. Restricted Cash The Company considers any cash account that it cannot access on demand due to contractual or legal reasons to be restricted cash. At December 31, 2020, the Company held $5,000 in restricted cash which was a bid deposit held in escrow for a potential acquisition. At December 31, 2019, the Company held no restricted cash. Accounts Receivable Accounts receivable are stated at outstanding balances, less a reserve for doubtful accounts. The reserve for doubtful accounts is established through provisions charged against income. Accounts deemed to be uncollectible are charged against the reserve and subsequent recoveries, if any, are credited to the reserve. The reserve for doubtful accounts is maintained at a level considered adequate to provide for losses that can be reasonably anticipated. Management’s periodic evaluation of the adequacy of the reserve is based on past experience, agings of the receivables, adverse situations that may affect a customer’s ability to pay, current economic conditions, and other relevant factors. This evaluation is inherently subjective. Unpaid balances remaining after the stated payment terms are considered past due. Materials and Supplies Inventories Materials and supplies inventories are stated at cost. Costs are determined using the average cost method. Note Receivable Note receivable is recorded at cost and represents amounts due from a municipality for construction of water mains in their municipality. Management, considering current information and events regarding the borrowers’ ability to repay their obligations, considers a note to be impaired when it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the note agreement. When a note is considered to be impaired, the carrying value of the note is written down. The amount of the impairment is measured based on the present value of expected future cash flows discounted at the note’s effective interest rate. Regulatory Assets and Liabilities The Company is subject to the provisions of generally accepted accounting principles regarding rate-regulated entities. The accounting standards provide for the recognition of regulatory assets and liabilities as allowed by regulators for costs or credits that are reflected in current customer rates or are considered probable of being included in future rates. The regulatory assets or liabilities are then relieved as the cost or credit is reflected in rates. Regulatory assets represent costs that are expected to be fully recovered from customers in future rates while regulatory liabilities represent amounts that are expected to be refunded to customers in future rates. These deferred costs have been excluded from the Company’s rate base and, therefore, no return is being earned on the unamortized balances. Regulatory assets and liabilities are comprised of the following: December 31 Remaining Recovery 2020 2019 Periods Assets Income taxes $ 28,200 $ 24,405 Various Postretirement benefits – 365 - Unrealized swap losses 2,700 2,227 1 – 9 years Utility plant retirement costs 5,968 5,012 5 years Customer-owned lead service line replacements 1,081 944 Various Income taxes on customers’ advances for construction and contributions in aid of 1,815 998 Various Service life study expenses 8 13 2 years Rate case filing expenses 121 225 1 year $ 39,893 $ 34,189 Liabilities Excess accumulated deferred income taxes on accelerated depreciation $ 13,826 $ 14,008 Various Income taxes 8,706 7,494 Various IRS TPR catch-up deduction 3,412 3,671 13 years Postretirement benefits 25 – Not yet known Revenue reduction for tax rate change – 226 - $ 25,969 $ 25,399 The regulatory asset for income taxes includes (a) deferred state income taxes related primarily to differences between book and tax depreciation expense, (b) deferred income taxes related to the differences that arise between specific asset improvement costs capitalized for book purposes and deducted as a repair expense for tax purposes, and (c) deferred income taxes associated with the gross-up of revenues related to the differences. These assets are recognized for ratemaking purposes on a cash or flow-through basis and will be recovered in rates as they reverse. The Company uses regulatory accounting treatment to defer the mark-to-market unrealized gains and losses on its interest rate swap to reflect that the gain or loss is included in the ratemaking formula when the transaction actually settles. The value of the swap as of the balance sheet date is recorded as part of other deferred credits. Realized gains or losses on the swap will be recorded as interest expense in the statement of income over its remaining term of 9 years. Utility plant retirement costs represents costs already incurred for the removal of assets, which are expected to be recovered over a five-year period in rates, through depreciation expense. The Company was granted approval by the PPUC to modify its tariff to replace lead customer-owned service lines that are discovered when the Company replaces its lead service lines over the remaining three years, and to include the cost of the annual replacement of up to 400 lead customer-owned service lines whenever they are discovered, regardless of the material used for the company-owned service line over nine years. The tariff modification allows the Company to replace customer-owned service lines at its own initial cost and record the costs as a regulatory asset to be recovered in future base rates to customers. The recovery period was established in the most recent rate order at four years beginning March 1, 2019. The recovery period for the customer-owned lead service line replacements completed subsequent to the most recent rate order will begin after the next rate order. Service life study expenses are deferred and amortized over their remaining life of two years. Rate case filing expenses are deferred and amortized over their remaining life of one year. Pursuant to the Tax Cuts and Jobs Act of 2017, or 2017 Tax Act, customers’ advances for construction and contributions in aid of construction are considered taxable income. The Company’s tariff allows the Company to record these income taxes for inclusion in rate base. This asset is recognized for ratemaking purposes on a cash or flow-through basis and will be recovered in rates as it reverses. Under normalization rules applicable to public utility property included in the 2017 Tax Act, the excess accumulated deferred income taxes on accelerated depreciation from lowering of the enacted federal statutory corporate tax rate is recorded as a regulatory liability. The benefit will be given back to customers in rates over the remaining regulatory life of the property. The regulatory liability for income taxes includes deferred taxes related to excess accumulated deferred income taxes on accelerated depreciation, other postretirement benefits, customers’ advances for construction and contributions in aid of construction, and bad debts, as well as deferred investment tax credits. These liabilities will be given back to customers in rates, as tax deductions occur over the next 1 to 50 years. The regulatory liability for the Internal Revenue Service, or IRS, tangible property regulations, or TPR, catch-up deduction represents the tax benefits realized on the Company’s 2014 income tax return for qualifying capital expenditures made prior to 2014. The period over which it will be given back to customers in rates was established in the most recent rate order at 15 years beginning March 1, 2019. Postretirement benefits include the difference between contributions and deferred pension expense and the overfunded status of the pension plans. The overfunded status represents the difference between the projected benefit obligation and the fair market value of the assets. This liability will change in future years based on the amount of contributions made and market returns. The liability will be given back to customers in rates over some period determined by the PPUC in a future rate filing. Postretirement benefits was a regulatory asset as of December 31, 2019. Pursuant to a rate order approved by the PPUC, the Company has agreed to return the 2018 income tax savings pursuant to the 2017 Tax Act, the associated tax gross-up, and the excess accumulated deferred income taxes on accelerated depreciation to customers as a reconcilable negative surcharge on bills. The Company began giving back the liability over one year beginning March 1, 2019 and was fully returned to customers in 2020. Other Assets Other assets consist mainly of the cash value of life insurance policies held as an investment by the Company for reimbursement of costs and benefits associated with its supplemental retirement and deferred compensation programs. Deferred Debt Expense Deferred debt expense is amortized on a straight-line basis over the term of the related debt and is presented on the balance sheet as a direct reduction from long-term debt. Customers’ Advances for Construction Customer advances are cash payments from developers, municipalities, customers, or builders for construction of utility plant, and are refundable upon completion of construction, as operating revenues are earned. If the Company loans funds for construction to the customer, the refund amount is credited to the note receivable rather than paid out in cash. After all refunds to which the customer is entitled are made, any remaining balance is transferred to contributions in aid of construction. Contributions in Aid of Construction Contributions in Aid of Construction is composed of (i) direct, non-refundable contributions from developers, customers, or builders for construction of water infrastructure and (ii) customer advances that have become non-refundable. Contributions in aid of construction are deducted from the Company’s rate base, and therefore, no return is earned on property financed with contributions. The PPUC requires that contributions received remain on the Company’s balance sheets indefinitely as a long-term liability. 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 convert its variable-rate debt to a fixed rate. Interest rate swaps are contracts in which a series of interest rate cash flows are exchanged over a prescribed period. The notional amount on which the interest payments are based is not exchanged. The Company has designated the interest rate swap agreement as a cash flow hedge, 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 sheets. In accordance with the standards, the interest rate swap is recorded on the balance sheets in other deferred credits at fair value. 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 gains and losses to be recognized in rates and in 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 $342 in 2020 and $221 in 2019. The overall swap result was a loss of $815 in 2020 and $649 in 2019. During the twelve months ending December 31, 2021, the Company expects to reclassify $370 (before tax) from regulatory assets to interest expense. The interest rate swap will expire on October 1, 2029. Stock-Based Compensation The Company records compensation expense in the financial statements for stock-based awards based on the grant date fair value of those awards. Stock-based compensation expense is recognized over the requisite service periods of the awards on a straight-line basis, which is generally commensurate with the vesting term. Forfeitures are recognized as they occur. Income Taxes Certain income and expense items are accounted for in different time periods for financial reporting than for income tax reporting purposes. Deferred income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. To the extent such income taxes increase or decrease future rates, an offsetting regulatory asset or liability has been recorded. Investment tax credits have been deferred and are being amortized to income over the average estimated service lives of the related assets. As of December 31, 2020 and 2019, deferred investment tax credits amounted to $500 and $539, respectively. The Company filed for a change in accounting method under the IRS 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. The Company was permitted to make this deduction for prior years (the “catch-up deduction”) and each year going forward, beginning with 2014 (the “ongoing deduction”). After receiving approval from the PPUC in its most recent rate order, the Company began to recognize the catch-up deduction, recorded as a regulatory liability, over 15 years beginning March 1, 2019. The 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. The catch-up deduction resulted in a decrease in current income taxes payable and an increase to regulatory liabilities. Both the ongoing and catch-up deductions resulted in increases to deferred tax liabilities and regulatory assets representing the appropriate book and tax basis difference on capital additions. The 2017 Tax Act, among other things, reduces the federal statutory corporate tax rate for tax years beginning in 2018 from 34% to 21%, eliminates certain deductions, and eliminates bonus depreciation on qualified water and wastewater property. This resulted in the remeasurement of the federal portion of the Company’s deferred taxes as of December 31, 2017 to the 21% rate. The effect was recognized in income for the year ended December 31, 2017 for all deferred tax assets and liabilities except accelerated depreciation. Under normalization rules applicable to public utility property included in the 2017 Tax Act, the excess accumulated deferred income taxes on accelerated depreciation is recorded as a regulatory liability. The regulatory liability is a temporary difference, so a deferred tax asset is recorded including the gross-up of revenue necessary to return, in rates, the effect of the temporary difference. Allowance for Funds Used During Construction Allowance for funds used during construction (AFUDC) represents the estimated cost of funds used for construction purposes during the period of construction. These costs are reflected as non-cash income during the construction period and as an addition to the cost of plant constructed. AFUDC includes the net cost of borrowed funds and a rate of return on other funds. The PPUC approved rate of 10.04% was applied for 2020 and 2019. AFUDC is recovered through water and wastewater rates as utility plant is depreciated. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Reclassifications Certain 2019 amounts have been reclassified to conform to the 2020 presentation. This reclassification had no impact on the statements of income, the statement of common stockholders’ equity, or the statement of cash flows. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2020 | |
Acquisitions [Abstract] | |
Acquisitions | 2. Acquisitions On August 29, 2019, the Company completed the acquisition of the wastewater collection assets of the Jacobus Borough Sewer Authority in York County, Pennsylvania. The Company began operating the existing collection facilities on August 30, 2019. The acquisition resulted in the addition of approximately 700 wastewater customers with purchase price and acquisition cost of approximately $2,112, which is less than the depreciated original cost of the assets. The Company recorded a negative acquisition adjustment of approximately $271 and will seek approval from the PPUC to amortize the acquisition adjustment over the remaining life of the acquired assets. This acquisition is immaterial to Company results. 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 wastewater customers with purchase price and acquisition costs of approximately $914, which is more than the depreciated original cost of the assets net of contributions in aid of construction. The Company recorded an acquisition adjustment of $295 and will seek approval from the PPUC to amortize the acquisition adjustment over the remaining life of the acquired assets. This acquisition is immaterial to Company results. 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 wastewater customers with purchase price and acquisition costs of approximately $262 which is less than the depreciated original cost of the assets. The Company recorded a negative acquisition adjustment of $751 and will seek approval from the PPUC to amortize the acquisition adjustment over the remaining life of the acquired assets. This acquisition is immaterial to Company results. |
Accounts Receivable and Contrac
Accounts Receivable and Contract Assets | 12 Months Ended |
Dec. 31, 2020 | |
Accounts Receivable and Contract Assets [Abstract] | |
Accounts Receivable and Contract Assets | 3. Accounts Receivable and Contract Assets Accounts receivable and contract assets are summarized in the following table: As of As of Dec. 31, 2020 Dec. 31, 2019 Change Accounts receivable – customers $ 5,633 $ 4,574 $ 1,059 Other receivables 206 152 54 5,839 4,726 1,113 Less: allowance for doubtful accounts (655 ) (305 ) (350 ) Accounts receivable, net $ 5,184 $ 4,421 $ 763 Unbilled revenue $ 2,847 $ 2,276 $ 571 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. In 2020, a weakening in the timeliness of payments due to the COVID-19 pandemic increased the accounts receivable – customers. This was considered in the review of the allowance for doubtful accounts resulting in the increase in the balance in 2020. |
Note Receivable and Customers'
Note Receivable and Customers' Advances for Construction | 12 Months Ended |
Dec. 31, 2020 | |
Note Receivable and Customers' Advances for Construction [Abstract] | |
Note Receivable and Customers' Advances for Construction | 4. Note Receivable and Customers’ Advances for Construction The Company entered into an agreement with a municipality to extend water service into a previously formed water district. The Company loaned funds to the municipality to cover the costs related to the project. The municipality concurrently advanced these funds back to the Company in the form of customers’ advances for construction. The municipality is required by enacted ordinance to charge application fees and water revenue surcharges (fees) to customers connected to the system, which are remitted to the Company. The note principal and the related customer advance that could be used to settle the note receivable are reduced periodically as operating revenues are earned by the Company from customers connected to the system and refunds of the advance are made. There is no due date for the notes or expiration date for the advance. The Company recorded interest income of $139 in 2020 and $121 in 2019. The interest rate on the note outstanding is 7.5%. Included in the accompanying balance sheets at December 31, 2020 and 2019 were the following amounts related to this project. 2020 2019 Note receivable, including interest $ 255 $ 255 Customers’ advances for construction 302 303 The Company has other customers’ advances for construction totaling $10,024 and $7,541 at December 31, 2020 and 2019, respectively. |
Common Stock and Earnings Per S
Common Stock and Earnings Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Common Stock and Earnings Per Share [Abstract] | |
Common Stock and Earnings Per Share | 5. Common Stock and Earnings Per Share Net income of $16,598 and $14,402 for the years ended December 31, 2020 and 2019 respectively, is used to calculate both basic and diluted earnings per share. Basic net income per share is based on the weighted average number of common shares outstanding. Diluted net income per share is based on the weighted average number of common shares outstanding plus potentially dilutive shares. The dilutive effect of employee stock-based compensation is included in the computation of diluted net income per share. The dilutive effect of stock-based compensation is calculated using the treasury stock method and expected proceeds upon exercise or issuance of the stock-based compensation. The following table summarizes the shares used in computing basic and diluted net income per share: 2020 2019 Weighted average common shares, basic 13,033,681 12,964,080 Effect of dilutive securities: Employee stock-based compensation 839 2,212 Weighted average common shares, diluted 13,034,520 12,966,292 Under the employee stock purchase plan, all full-time employees who have been employed at least ninety consecutive days may purchase shares of the Company’s common stock limited to 10% of gross compensation. The purchase price is 95% of the fair market value (as defined). Shares issued during 2020 and 2019 were 3,718 and 3,914, respectively. As of December 31, 2020, 58,007 authorized shares remain unissued under the plan. The Company has a Dividend Reinvestment and Direct Stock Purchase and Sale Plan (“the Plan”), which is available to both current shareholders and the general public. On November 8, 2019, the Company filed a Registration Statement on Form S-3 with the Securities and Exchange Commission (SEC) to authorize an additional 157,000 shares and rollover the unissued 344,379 shares authorized under the 2016 Form S-3, for issuance under the new Prospectus for the Plan. Under the optional dividend reinvestment portion of the Plan, holders of the Company’s common stock may purchase additional shares instead of receiving cash dividends. The purchase price is 95% of the fair market value (as defined). Under the direct stock purchase portion of the Plan, purchases are made monthly at 100% of the stock’s fair market value, as defined in the new Prospectus. The Registration Statement was declared effective by the SEC on November 18, 2019. Shares issued during 2020 and 2019 were 37,370 and 60,485, respectively. As of December 31, 2020, 438,519 authorized shares remain unissued under the Plan. 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 shares of the Company’s common stock from time to time. The stock repurchase program has no specific end date and the Company may repurchase shares in the open market or through privately negotiated transactions. The Company may suspend or discontinue the repurchase program at any time. During both 2020 and 2019, the Company did not repurchase or retire any shares. As of December 31, 2020, 618,004 shares remain available for repurchase. |
Long-Term Debt and Short-Term B
Long-Term Debt and Short-Term Borrowings | 12 Months Ended |
Dec. 31, 2020 | |
Long-Term Debt and Short-Term Borrowings [Abstract] | |
Long-Term Debt and Short-Term Borrowings | 6. Long-Term Debt and Short-Term Borrowings Long-term debt as of December 31, 2020 and 2019 is summarized in the following table: 2020 2019 10.05% Senior Notes, Series C, due 2020 $ – $ 6,500 8.43% Senior Notes, Series D, due 2022 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% Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Refunding Bonds, Series A of 2019, due 2036 10,500 10,500 3.10% Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Refunding Bonds, Series B of 2019, due 2038 14,870 14,870 3.23% Senior Notes, due 2040 15,000 15,000 4.00% - 4.50% York County Industrial Development Authority Exempt Facilities Revenue Bonds, Series 2015, due 2029 - 2045 10,000 10,000 4.54% Senior Notes, due 2049 20,000 20,000 3.24% Senior Notes, due 2050 30,000 – Committed Line of Credit, due 2022 6,700 7,672 Total long-term debt 126,570 104,042 Less discount on issuance of long-term debt (181 ) (192 ) Less unamortized debt issuance costs (2,816 ) (2,815 ) Less current maturities – (6,500 ) Long-term portion $ 123,573 $ 94,535 Payments due by year as of December 31, 2020: 2021 2022 2023 2024 2025 $ – $ 26,200 $ – $ – $ – Payments due in 2022 include payback of the committed line of credit. The committed line of credit is reviewed annually, and upon favorable outcome, would likely be extended for another year. Payments due in 2022 also include potential payments of $12,000 on the variable rate bonds (due 2029) which would only be payable if all bonds were tendered and could not be remarketed, or in the event the Company was unable to, or chose not to, renew the letter of credit backing the bonds. There is currently no such indication of this happening. Fixed Rate Long-Term Debt On September 30, 2020, the Company entered into a note purchase agreement with certain institutional investors relating to the private placement of $30,000 aggregate principal amount of the Company’s senior notes. The senior notes bear interest at 3.24% per annum payable semiannually and mature on September 30, 2050. The senior notes are unsecured and unsubordinated obligations of the Company. The Company received net proceeds, after deducting issuance costs, of approximately $29,838. The net proceeds were used to refinance the $6,500 aggregate principal amount of the Company’s 10.05% Senior Notes, Series C, due 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. On January 31, 2019, the Company entered into a note purchase agreement with certain institutional investors relating to the private placement of $ aggregate principal amount of the Company’s senior notes. The senior notes bear interest at per annum payable semiannually and mature on . The senior notes are unsecured and unsubordinated obligations of the Company. The Company received net proceeds, after deducting issuance costs, of approximately $ . The net proceeds were used to refinance the $ aggregate principal amount of the Company’s Series A Senior Notes due and the Series B Senior Notes due , and to refinance line of credit borrowings incurred by the Company as interim financing for various capital projects of the Company. On October 1, 2019, the Company entered into a note purchase agreement with certain institutional investors relating to the private placement of $ aggregate principal amount of the Company’s senior notes. The senior notes bear interest at per annum payable semiannually and mature on . The senior notes are unsecured and unsubordinated obligations of the Company. The Company received net proceeds, after deducting issuance costs, of approximately $ . The net proceeds were used to refinance the $ aggregate principal amount of the Company’s Monthly Senior Notes Series 2010A due . On October 8, 2019, the Pennsylvania Economic Development Financing Authority, or PEDFA, issued and sold $ aggregate principal amount of PEDFA Exempt Facilities Revenue Refunding Bonds, Series A of 2019, or the Series A Bonds, and $ aggregate principal amount of PEDFA Exempt Facilities Revenue Refunding Bonds, Series B of 2019, or the Series B Bonds, for the Company’s benefit pursuant to the terms of a trust indenture, dated as of September 1, 2019, between the PEDFA and Manufacturers and Traders Trust Company, as trustee. The PEDFA then loaned the proceeds of the issuance and sale of the Series A and the Series B Bonds to the Company pursuant to a loan agreement dated as of September 1, 2019, between the Company and the PEDFA. The Series A Bonds, and therefore the loan, bears interest at per annum payable semiannually and the maturity date of the loan is subject to optional and mandatory redemption provisions. The Series B Bonds, and therefore the loan, bears interest at per annum payable semiannually and the maturity date of the loan is subject to optional and mandatory redemption provisions. Amounts outstanding under the loan agreement are direct, unsecured and unsubordinated obligations of the Company. The Company received net proceeds, after deducting issuance costs, of approximately $ . The net proceeds were used to refinance the $ aggregate principal amount of the Company’s York County Industrial Development Authority Revenue Bonds Series 2006 due and the $ aggregate principal amount of the Company’s PEDFA Exempt Facilities Revenue Refunding Bonds Series 2014 due . Variable Rate Long-Term Debt On May 7, 2008, the PEDFA issued $12,000 aggregate principal amount of PEDFA Exempt Facilities Revenue Refunding Bonds, Series A of 2008 (the “Series A Bonds”) for the Company’s benefit pursuant to the terms of a trust indenture, dated as of May 1, 2008, between the PEDFA and Manufacturers and Traders Trust Company, as trustee. The PEDFA then loaned the proceeds of the offering of the Series A Bonds to the Company pursuant to a loan agreement, dated as of May 1, 2008, between the Company and the PEDFA. The loan agreement provides for a $12,000 loan with a maturity date of October 1, 2029. Amounts outstanding under the loan agreement are the Company’s direct general obligations. The proceeds of the loan were used to redeem the PEDFA Exempt Facilities Revenue Bonds, Series B of 2004 (the “2004 Series B Bonds”). The 2004 Series B Bonds were redeemed because the bonds were tendered and could not be remarketed due to the downgrade of the bond insurer’s credit rating. Borrowings under the loan agreement bear interest at a variable rate as determined by PNC Capital Markets, as remarketing agent, on a periodic basis elected by the Company, which has currently elected that the interest rate be determined on a weekly basis. The remarketing agent determines the interest rate based on the current market conditions in order to determine the lowest interest rate which would cause the Series A Bonds to have a market value equal to the principal amount thereof plus accrued interest thereon. The variable interest rate under the loan agreement averaged 0.62% in 2020 and 1.50% in 2019. As of December 31, 2020 and 2019, the interest rate was 0.12% and 1.78%, respectively. The holders of the $12,000 Series A Bonds may tender their bonds at any time. When the bonds are tendered, they are subject to an annual remarketing agreement, pursuant to which a remarketing agent attempts to remarket the tendered bonds according to the terms of the indenture. In order to keep variable interest rates down and to enhance the marketability of the Series A Bonds, the Company entered into a Reimbursement, Credit and Security Agreement with PNC Bank, National Association (“the Bank”) dated as of May 1, 2008. This agreement provides for a direct pay letter of credit issued by the Bank to the trustee for the Series A Bonds. The Bank is responsible for providing the trustee with funds for the timely payment of the principal and interest on the Series A Bonds and for the purchase price of the Series A Bonds that have been tendered or deemed tendered for purchase and have not been remarketed. The Company’s responsibility is to reimburse the Bank the same day as regular interest payments are made, and within fourteen months for the purchase price of tendered bonds that have not been remarketed. The reimbursement period for the principal is immediate at maturity, upon default by the Company, or if the Bank does not renew the Letter of Credit. The current expiration date of the Letter of Credit is June 30, 2022. It is reviewed annually for a potential extension of the expiration date. The Company may elect to have the Series A Bonds redeemed, in whole or in part, on any date that interest is payable for a redemption price equal to the principal amount thereof plus accrued interest to the date of redemption. The Series A Bonds are also subject to mandatory redemption for the same redemption price in the event that the IRS determines that the interest payable on the Series A Bonds is includable in gross income of the holders of the bonds for federal tax purposes. Interest Rate Swap Agreement In connection with the issuance of the PEDFA 2004 Series B Bonds, the Company entered into an interest rate swap agreement with a counterparty, in the notional principal amount of $12,000. The Company elected to retain the swap agreement for the 2008 Series A Bonds. Interest rate swap agreements derive their value from underlying interest rates. These transactions involve both credit and market risk. The notional amounts are amounts on which calculations, payments, and the value of the derivative are based. Notional amounts do not represent direct credit exposure. Direct credit exposure is limited to the net difference between the calculated amounts to be received and paid, if any. Such difference, which represents the fair value of the swap, is reflected on the Company’s balance sheets. See Note 7 for additional information regarding the fair value of the swap. The interest rate swap will terminate on the maturity date of the 2008 Series A Bonds (which is the same date as the maturity date of the loan under the loan agreement), unless sooner terminated pursuant to its terms. In the event the interest rate swap terminates prior to the maturity date of the 2008 Series A Bonds, either the Company or the swap counterparty may be required to make a termination payment to the other based on market conditions at such time. The Company is exposed to credit-related losses in the event of nonperformance by the counterparty. The Company controls the credit risk of its financial contracts through credit approvals, limits and monitoring procedures, and does not expect the counterparty to default on its obligations. Notwithstanding the terms of the swap agreement, the Company is ultimately obligated for all amounts due and payable under the loan agreement. The interest rate swap agreement contains provisions that require the Company to maintain a credit rating of at least BBB- with Standard & Poor’s. On April 9, 2020, Standard & Poor’s affirmed the Company’s credit rating at A-, with a stable outlook and adequate liquidity. 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. The Company’s interest rate swap was in a liability position as of December 31, 2020. If a violation was triggered on December 31, 2020, the Company would have been required to pay the counterparty approximately $2,830. The Company’s interest rate swap agreement provides that it pays the counterparty a fixed interest rate of 3.16% on the notional amount of $12,000. In exchange, the counterparty pays the Company a floating interest rate (based on 59% of the U.S. Dollar one-month LIBOR rate) on the notional amount. The floating interest rate paid to the Company is intended, over the term of the swap, to approximate the variable interest rate on the loan agreement and the interest rate paid to bondholders, thereby managing its exposure to fluctuations in prevailing interest rates. The Company’s net payment rate on the swap averaged 2.87% in 2020 and 1.84% in 2019. As of December 31, 2020, there was a spread of 3 basis points between the variable rate paid to bondholders and the variable rate received from the swap counterparty, which equated to an overall effective rate of 3.19% (including variable interest and swap payments). As of December 31, 2019, there was a spread of 75 basis points which equated to an overall effective rate of 3.91% (including variable interest and swap payments). Line of Credit Borrowings In 2020, the Company entered into an agreement for a $50,000 unsecured, committed line of credit maturing in September 2022 at an interest rate of LIBOR plus 1.05% with an unused commitment fee and an interest rate floor. Simultaneously, the Company paid off and terminated all prior existing line of credit agreements. As of December 31, 2019, the Company maintained unsecured lines of credit aggregating $41,500 with four banks. The first line of credit, in the amount of $13,000, was a committed line of credit with a revolving 2-year maturity and carried an interest rate of LIBOR plus 1.20%. The Company had $3,672 outstanding under this line of credit as of December 31, 2019. The second line of credit, in the amount of $11,000, was a committed line of credit and carried an interest rate of LIBOR plus 1.25%. The third line of credit, in the amount of $7,500, was a committed line of credit and carried an interest rate of LIBOR plus 1.15%. The Company had $4,000 outstanding under this line of credit as of December 31, 2019. The fourth line of credit, in the amount of $10,000, was a committed line of credit and carried an interest rate of LIBOR plus 1.20%. Average borrowings outstanding under the lines of credit were $7,467 in 2020 and $5,070 in 2019. The average cost of borrowings under the lines of credit was 1.59% during 2020 and 3.47% during 2019. The weighted average interest rate on the line of credit borrowings was 1.30% as of December 31, 2020 and 2.92% as of December 31, 2019. Debt Covenants and Restrictions The terms of the debt agreements carry certain covenants and limit in some cases the Company’s ability to borrow additional funds, to prepay its borrowings and include certain restrictions with respect to declaration and payment of cash dividends and the Company’s acquisition of its stock. Under the terms of the most restrictive agreements, the Company cannot borrow in excess of 60% of its utility plant, and cumulative payments for dividends and acquisition of stock since December 31, 1982 may not exceed $1,500 plus net income since that date. As of December 31, 2020, none of the earnings retained in the business are restricted under these provisions. The Company’s debt is unsecured. The Company’s line of credit requires it to maintain a minimum equity to total capitalization ratio (defined as the sum of equity plus funded debt) and a minimum interest coverage ratio (defined as net income plus interest expense plus income tax expense divided by interest expense). As of December 31, 2020, the Company was in compliance with these covenants. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | 7. 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 sheets. The table below illustrates the fair value of the interest rate swap as of the end of the reporting period. Description December 31, 2020 Fair Value Measurements at Reporting Date Using Significant Other Observable Inputs (Level 2) Interest Rate Swap $2,731 $2,731 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 December 31, 2020. The rate used in discounting all prospective cash flows anticipated to be made under this swap reflects a representation of the yield to maturity for 30-year debt on utilities rated A- as of December 31, 2020. The use of the Company’s credit quality resulted in a reduction in the swap liability of $99 as of December 31, 2020. The fair value of the swap reflecting the Company’s credit quality as of December 31, 2019 is shown in the table below. 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 $126,570 at December 31, 2020, and $104,042 at December 31, 2019, had an estimated fair value of approximately $151,000 and $115,000, respectively. The estimated fair value of debt was calculated using a discounted cash flow technique that incorporates a market interest yield curve with adjustments for duration and risk profile. These inputs to this calculation are deemed to be Level 2 inputs. The Company recognized its credit rating in determining the yield curve, and did not factor in third party credit enhancements including the letter of credit on the 2008 PEDFA Series A issue. Customers’ advances for construction and note receivable have carrying values at December 31, 2020 of $10,326 and $255, respectively. At December 31, 2019, customers’ advances for construction and note receivable had carrying values of $7,844 and $255, respectively. The relative fair values of these amounts cannot be accurately estimated since the timing of future payment streams is dependent upon several factors, including new customer connections, customer consumption levels and future rate increases. |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2020 | |
Commitments [Abstract] | |
Commitments | 8. Commitments Based on its capital budget, the Company anticipates construction and acquisition expenditures for 2021 and 2022 of approximately $36,000 and $40,000, respectively, exclusive of any acquisitions not yet approved. The Company plans to finance ongoing capital expenditures with internally-generated funds, borrowings against the Company’s line of credit, proceeds from the issuance of common stock under its dividend reinvestment and direct stock purchase and sale plan and ESPP, potential common stock or debt issues and customer advances and contributions. The Company entered into a consent order agreement with the Pennsylvania Department of Environmental Protection in December 2016 after the Company determined it exceeded the action level for lead as established by the Lead and Copper Rule, or LCR, issued by the U.S. Environmental Protection Agency. 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 from the agreement. The cost for these service line replacements was approximately $ and $ through and is included in utility plant. As of , 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 lead customer-owned service lines over 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 period. The cost for the customer-owned lead service line replacements was approximately $ and $ through and is included as a regulatory asset. Based on its experience, the Company estimates that lead customer-owned service lines replacements will cost $ . This estimate is subject to adjustment as more facts become available. As of December 31, 2020, approximately 33% of the Company’s full time employees are under union contract. The current contract was ratified in October 2020 and expires on April 30, 2023. The Company is involved in certain legal and administrative proceedings before various courts and governmental agencies concerning water service and other matters. The Company expects that the ultimate disposition of these proceedings will not have a material effect on the Company’s financial position, results of operations and cash flows. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2020 | |
Revenue [Abstract] | |
Revenue | 9. Revenue The following table shows the Company’s revenues disaggregated by service and customer type. 2020 2019 Water utility service: Residential $ 33,987 $ 32,118 Commercial and industrial 13,764 14,161 Fire protection 3,191 3,074 Wastewater utility service: Residential 1,746 1,291 Commercial and industrial 304 280 Billing and revenue collection services 266 70 Collection services 15 52 Other revenue 23 13 Total Revenue from Contracts with Customers 53,296 51,059 Rents from regulated property 556 519 Total Operating Revenue $ 53,852 $ 51,578 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. The utility service has no returns or warranties associated with it. No revenue is recognized from performance obligations satisfied in prior periods and no performance obligations remain unsatisfied as of the end of the reporting period. A contract asset for unbilled revenue is recognized for the passage of time and the actual or estimated usage from the latest meter reading to the end of the accounting period. The methodology is standardized and consistently applied to reduce bias and the need for judgment. Billing and Revenue Collection Service The Company provides billing and revenue collection service as distinct performance obligations to three 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. The billing and revenue collection service has no returns or warranties associated with it. No revenue is recognized from performance obligations satisfied in prior periods and no performance obligations remain unsatisfied as of the end of the reporting period. 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. The collection service has no returns or warranties associated with it. No revenue is recognized from performance obligations satisfied in prior periods and no performance obligations remain unsatisfied as of the end of the reporting period. A contract asset for unbilled revenue is recognized for postings, shut offs, and restorations that have been completed from the last billing to the end of the accounting period. 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 | 12 Months Ended |
Dec. 31, 2020 | |
Rate Matters [Abstract] | |
Rate Matters | 10. 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 and an annual increase in wastewater rates of $289. Effective March 1, 2019, the PPUC authorized an increase in water rates designed to produce approximately $3,361 in additional annual revenues and an increase in wastewater rates designed to produce approximately $289 in additional annual revenues. As part of a rate order approved by the PPUC, the Company has agreed to return $2,117 to customers as a reconcilable negative surcharge on their bills generated from March 2019 through February 2020 for the benefit of the lower tax rate effective January 1, 2018 resulting from the enactment of the Tax Cuts and Jobs Act of 2017, or 2017 Tax Act. During the years ended December 31, 2020 and 2019, the Company increased its regulatory liability by reducing revenue by $1 and $325, respectively, including the gross-up of revenue necessary to return, in rates, the effect of this temporary tax difference, and reclassified $0 and $27, respectively, from excess accumulated deferred income taxes on accelerated depreciation recorded at December 31, 2017. As of December 31, 2020 the Company returned $2,117 in negative surcharges to customers. 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% of base rates, and is reset to zero when new base rates that reflect the costs of those additions become effective or when a utility’s earnings exceed a regulatory benchmark. The DSIC reset to zero when the new base rates took effect March 1, 2019. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Employee Benefit Plans [Abstract] | |
Employee Benefit Plans | 11. Employee Benefit Plans Pensions The Company maintains a general and administrative and a union-represented defined benefit pension plan covering all of its employees hired prior to May 1, 2010. Employees hired after May 1, 2010 are eligible for an enhanced 401(k) plan rather than a defined benefit plan. The benefits under the defined benefit plans are based upon years of service and compensation near retirement. The Company amended its defined benefit pension plans in 2014, generally limiting the years of eligible service under the plans to 30 years. The Company’s funding policy is to contribute annually the amount permitted by the PPUC to be collected from customers in rates, but in no case less than the minimum Employee Retirement Income Security Act (ERISA) required contribution. The following table sets forth the plans’ funded status as of December 31, 2020 and 2019. The measurement of assets and obligations of the plans is as of December 31, 2020 and 2019. Obligations and Funded Status At December 31 2020 2019 Change in Benefit Obligation Pension benefit obligation, beginning of year $ 47,530 $ 41,511 Service cost 938 849 Interest cost 1,457 1,645 Actuarial loss 6,165 5,241 Benefit payments (1,984 ) (1,716 ) Pension benefit obligation, end of year 54,106 47,530 Change in Plan Assets Fair value of plan assets, beginning of year 49,349 40,624 Actual return on plan assets 6,650 8,141 Employer contributions 2,300 2,300 Benefits paid (1,984 ) (1,716 ) Fair value of plan assets, end of year 56,315 49,349 Funded Status of Plans at End of Year $ 2,209 $ 1,819 The accounting standards require that the funded status of defined benefit pension plans be fully recognized on the balance sheets. They also call for the unrecognized actuarial gain or loss, the unrecognized prior service cost and the unrecognized transition costs to be adjustments to shareholders’ equity (accumulated other comprehensive income). Due to a rate order granted by the PPUC, the Company is permitted under the accounting standards to defer the charges otherwise recorded in accumulated other comprehensive income as a regulatory asset. Management believes these costs will be recovered in future rates charged to customers. The asset for the funded status of the Company’s pension plans as of December 31, 2020 and 2019 is recorded in “Prepaid pension cost” on its balance sheets. In 2020, the plans recognized a significant actuarial loss. The Company adopted the new mortality improvement scale (MP-2020) but recognized an 80 basis point decrease in the discount rate. In 2019, the plans recognized a significant actuarial loss. The Company adopted the new mortality table (Pri-2012) and the new mortality improvement scale (MP-2019) but recognized a 100 basis point decrease in the discount rate. The Company uses the corridor method to amortize actuarial gains and losses. Gains and losses over 10% of the greater of pension benefit obligation or the market value of assets are amortized over the average future service of plan participants expected to receive benefits. Changes in plan assets and benefit obligations recognized in regulatory assets are as follows: 2020 2019 Net gain (loss) arising during the period $ 2,713 $ (167 ) Recognized net actuarial loss (370 ) (421 ) Recognized prior service credit 13 13 Total changes in regulatory asset during the year $ 2,356 $ (575 ) Amounts recognized in regulatory assets that have not yet been recognized as components of net periodic benefit cost consist of the following at December 31: 2020 2019 Net loss $ 10,497 $ 8,154 Prior service credit (63 ) (76 ) Regulatory asset $ 10,434 $ 8,078 Components of net periodic benefit cost are as follows: 2020 2019 Service cost $ 938 $ 849 Interest cost 1,457 1,645 Expected return on plan assets (3,198 ) (2,733 ) Amortization of loss 370 421 Amortization of prior service credit (13 ) (13 ) Rate-regulated adjustment 2,746 2,131 Net periodic benefit cost $ 2,300 $ 2,300 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). The rate-regulated adjustment set forth above is required in order to reflect pension expense for the Company in accordance with the method used in establishing water rates. The Company is permitted by rate order of the PPUC to expense pension costs to the extent of contributions and defer the remaining expense to regulatory assets to be collected in rates at a later date as additional contributions are made. During 2020, the deferral decreased by $2,746. The estimated costs for the defined benefit pension plans relating to the December 31, 2020 balance sheet that will be amortized from regulatory assets into net periodic benefit cost over the next fiscal year are as follows: Net loss $ 582 Net prior service credit (13 ) $ 569 The Company plans to contribute $2,300 to the plans in 2021. The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid in each of the next five years and the subsequent five years in the aggregate: 2021 2022 2023 2024 2025 2026 2030 $ 1,903 $ 1,984 $ 2,163 $ 2,224 $ 2,216 $ 12,472 The following tables show the projected benefit obligation, the accumulated benefit obligation and the fair value of plan assets as of December 31: 2020 2019 Projected benefit obligation $ 54,106 $ 47,530 Fair value of plan assets 56,315 49,349 2020 2019 Accumulated benefit obligation $ 50,578 $ 44,587 Fair value of plan assets 56,315 49,349 Weighted-average assumptions used to determine benefit obligations at December 31: 2020 2019 Discount rate 2.30% 3.10% Rate of compensation increase 2.50% – 3.00% 2.50% – 3.00% Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31: 2020 2019 Discount rate 3.10% 4.10% Expected long-term return on plan assets 6.50% 6.50% Rate of compensation increase 2.50% – 3.00% 2.50% – 3.00% The selected long-term rate of return on plan assets was primarily based on the asset allocation of each of the plan’s assets (approximately 50% to 70% equity securities and 30% to 50% fixed income securities). Analysis of the historic returns of these asset classes and projections of expected future returns were considered in setting the long-term rate of return. The investment objective of the Company’s defined benefit pension plans is that of Growth and Income. The weighted-average target asset allocations are 50% to 70% equity securities, 30% to 50% fixed income securities, and 0% to 10% reserves (cash and cash equivalents). Within the equity category, the Company’s target allocation is approximately 60-95% large cap, 0-25% mid cap, 0-10% small cap, 0-25% International Developed Nations, and 0-10% International Emerging Nations. Within the fixed income category, its target allocation is approximately 15-55% U.S. Treasuries, 0–22% Federal Agency securities, 0-40% corporate bonds, 15-55% mortgage-backed securities, 0-20% international, and 0-20% high yield bonds. The Company’s investment performance objectives over a three to five-year period are to exceed the annual rate of inflation as measured by the Consumer Price Index by 3%, and to exceed the annualized total return of specified benchmarks applicable to the funds within the asset categories. Further guidelines within equity securities include: (1) holdings in any one company cannot exceed 5% of the portfolio; (2) a minimum of 20 individual stocks must be included in the domestic stock portfolio; (3) a minimum of 30 individual stocks must be included in the international stock portfolio; (4) equity holdings in any one industry cannot exceed 20-25% of the portfolio; and (5) only U.S.-denominated currency securities are permitted. Further guidelines for fixed income securities include: (1) fixed income holdings in a single issuer are limited to 5% of the portfolio; (2) acceptable investments include money market securities, U.S. Government and its agencies and sponsored entities’ securities, mortgage-backed and asset-backed securities, corporate securities and mutual funds offering high yield bond portfolios; (3) purchases must be limited to investment grade or higher; (4) non-U.S. dollar denominated securities are not permissible; and (5) high risk derivatives are prohibited. The fair values of the Company’s pension plan assets at December 31, 2020 and 2019 by asset category and fair value hierarchy level are as follows. The majority of the valuations are based on quoted prices on active markets (Level 1), with the remaining valuations based on broker/dealer quotes, active market makers, models, and yield curves (Level 2). Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Asset Category 2020 2019 2020 2019 2020 2019 Cash and Money Market Funds (a) $ 624 $ 682 $ 624 $ 682 $ – $ – Equity Securities: Common Equity Securities (b) – 662 – 662 – – Equity Mutual Funds (c) 35,707 29,677 35,707 29,677 – – Fixed Income Securities: U.S. Treasury Obligations 631 615 – – 631 615 Corporate and Foreign Bonds (d) 5,615 6,078 – – 5,615 6,078 Fixed Income Mutual Funds (e) 13,738 11,635 13,738 11,635 – – Total Plan Assets $ 56,315 $ 49,349 $ 50,069 $ 42,656 $ 6,246 $ 6,693 (a) The portfolios are designed to keep up to one year of distributions in immediately available funds. (b) This category includes investments in U.S. common stocks and foreign stocks trading in the U.S. widely distributed among consumer discretionary, consumer staples, healthcare, information technology, financial services, telecommunications, industrials, real estate, materials, and energy. The individual stocks are primarily large cap stocks which track with the S&P 500. (c) This category currently includes a majority of investments in closed-end mutual funds as well as domestic equity mutual funds and international mutual funds which give the portfolio exposure to mid and large cap index funds as well as international diversified index funds. (d) This category currently includes only U.S. corporate bonds and notes widely distributed among consumer discretionary, consumer staples, healthcare, information technology, energy, transportation, and financial services. (e) This category includes fixed income investments in mutual funds which include government, corporate and mortgage securities of both the U.S. and other countries. The mortgage-backed securities and non-U.S. corporate and sovereign investments add further diversity to the fixed income portion of the portfolio. Defined Contribution Plan The Company has a savings plan pursuant to the provisions of section 401(k) of the Internal Revenue Code. For employees hired before May 1, 2010, this plan provides for elective employee contributions of up to 15% of compensation and Company matching contributions of 100% of the participant’s contribution, up to a maximum annual Company contribution of $2.8 for each employee. Employees hired after May 1, 2010 are entitled to an enhanced feature of the plan. This feature provides for elective employee contributions of up to 15% of compensation and Company matching contributions of 100% of the participant’s contribution, up to a maximum of 4% of the employee’s compensation. In addition, the Company will make an annual contribution of $1.2 to each employee’s account whether or not they defer their own compensation. Employees eligible for this enhanced 401(k) plan feature are not eligible for the defined benefit plans. As of December 31, 2020, 56 employees were participating in the enhanced feature of the plan. The Company’s contributions to both portions of the plan amounted to $313 in 2020 and $300 in 2019. Deferred Compensation The Company has non-qualified deferred compensation and supplemental retirement agreements with certain members of management. The future commitments under these arrangements are offset by corporate-owned life insurance policies. At December 31, 2020 and 2019, the present value of the future obligations included in "Accrued compensation and benefits" and "Deferred employee benefits" was approximately $4,757 and $4,416, respectively. The insurance policies included in "Other assets" had a total cash value of approximately $3,735 and $3,667 at December 31, 2020 and 2019, respectively. The Company’s net expenses under the plans amounted to $585 in 2020 and $670 in 2019. Other The Company has a retiree life insurance program which pays the beneficiary of a retiree $2 upon the retiree’s death. At December 31, 2020 and 2019, the present value of the future obligations was approximately $165 and $137, respectively. There is no trust or insurance covering this future liability, instead the Company will pay these benefits out of its general assets. The Company’s net expenses under the plan amounted to $38 in 2020 and $34 in 2019. |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | 12. 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 is administered by the Compensation Committee of the Board, or the full Board, provided that the full Board administers the LTIP as it relates to awards to non-employee directors of the Company. The Company filed a registration statement with the SEC on May 11, 2016 covering the offering of stock under the LTIP. The LTIP was effective on July 1, 2016. On November 21, 2016, the Board awarded stock to non-employee directors effective November 28, 2016. This stock award vested immediately. On the same date, the Compensation Committee awarded restricted stock to officers and key employees effective November 28, 2016. This restricted stock award vested ratably over three years beginning November 28, 2016 and has been fully recognized as of December 31, 2019. On April 26, 2017, the Board awarded stock to non-employee directors effective May 1, 2017. This stock award vested immediately. On April 26, 2017, the Compensation Committee awarded restricted stock to officers and key employees effective May 1, 2017. This restricted stock award vested ratably over beginning May 1, 2017 and has been fully recognized as of December 31, 2020. On May 7, 2018, the Board awarded stock to non-employee directors effective May 7, 2018. This stock award vested immediately. On May 7, 2018, the Compensation Committee awarded restricted stock to officers and key employees effective May 7, 2018. This restricted stock award vests ratably over beginning May 7, 2018. On November 20, 2018, the Board accelerated the vesting period for restricted stock granted in 2016, 2017, and 2018 to retiring officer from to that officer’s 2019 retirement date and has been fully recognized as of December 31, 2019. On May 6, 2019, the Board awarded stock to non-employee directors effective May 6, 2019. This stock award vested immediately. On May 6, 2019, the Compensation Committee awarded restricted stock to officers and key employees effective May 6, 2019. This restricted stock award vests ratably over three years beginning May 6, 2019. On August 19, 2019, the Board accelerated the vesting period for restricted stock granted in 2017, 2018, and 2019 to retiring officer from three years to that officer’s 2020 retirement date and has been fully recognized as of December 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 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 table summarizes the stock grant amounts and activity for the years ended December 31, 2019 and 2020. Number of Shares Grant Date Weighted Average Fair Value Nonvested at beginning of the year 2019 3,080 $33.85 Granted 6,963 $33.61 Vested (2,701) $33.99 Forfeited - - Nonvested at end of the year 2019 7,342 $33.57 Granted 4,912 $44.07 Vested (5,491) $36.00 Forfeited (81) $33.61 Nonvested at end of the year 2020 6,682 $39.30 For the years ended December 31, 2020 and 2019, the statement of income includes $154 and $166 of stock based compensation and related recognized tax benefits of $45 and $48, respectively. The total fair value of the shares vested in the years ended December 31, 2020 and 2019 was $198 and $92, respectively. Total stock based compensation related to nonvested awards not yet recognized is $263 at December 31, 2020 which will be recognized over the remaining three-year vesting period. |
Taxes Other than Income Taxes
Taxes Other than Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Taxes Other than Income Taxes [Abstract] | |
Taxes Other than Income Taxes | 13. Taxes Other than Income Taxes The following table provides the components of taxes other than income taxes: 2020 2019 Regulatory Assessment $ 298 $ 285 Property 353 348 Payroll, net of amounts capitalized 551 564 Other 3 3 Total taxes other than income taxes $ 1,205 $ 1,200 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes [Abstract] | |
Income Taxes | 14. Income Taxes The provisions for income taxes consist of: 2020 2019 Federal current $ 1,376 $ 1,148 State current 554 451 Federal deferred 247 475 State deferred (120 ) 205 Federal investment tax credit, net of current utilization (39 ) (39 ) Total income taxes $ 2,018 $ 2,240 A reconciliation of the statutory Federal tax provision to the total provision follows: 2020 2019 Statutory Federal tax provision $ 3,909 $ 3,495 State income taxes, net of Federal benefit 426 574 IRS TPR deduction (1,979 ) (1,642 ) Tax-exempt interest (29 ) (25 ) Amortization of investment tax credit (39 ) (39 ) Cash value of life insurance (110 ) 6 Amortization of excess accumulated deferred income taxes on accelerated depreciation (182 ) (149 ) Other, net 22 20 Total income taxes $ 2,018 $ 2,240 The Company filed for a change in accounting method under the IRS 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. The Company was permitted to make this deduction for prior years (the “catch-up deduction”) and for each year going forward (the “ongoing deduction”). As a result of the catch-up deduction, income tax benefits of $3,887 were deferred as a regulatory liability. After receiving approval from the PPUC in its most recent rate order, the Company began to recognize the catch-up deduction, recorded as a regulatory liability, over 15 years beginning March 1, 2019. As a result, the Company recognized $259 and $216 in income taxes during the years ended December 31, 2020 and 2019, respectively. As a result of the ongoing deduction, the net income tax benefits of $1,720 and $1,426 for the years ended December 31, 2020 and 2019, respectively, reduced income tax expense and flowed through to net income. The 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. Both the ongoing and catch-up deductions result in increases to deferred tax liabilities and regulatory assets representing the appropriate book and tax basis difference on capital additions. The 2017 Tax Act, among other things, reduces the federal statutory corporate tax rate for tax years beginning in 2018 from 34% to 21%, eliminates certain deductions, and eliminates bonus depreciation on qualified water and wastewater property. This resulted in the remeasurement of the federal portion of the Company’s deferred taxes as of December 31, 2017 to the 21% rate. The effect was recognized in income for the year ended December 31, 2017 for all deferred tax assets and liabilities except accelerated depreciation. Under normalization rules applicable to public utility property included in the 2017 Tax Act, the excess accumulated deferred income taxes on accelerated depreciation is recorded as a regulatory liability. The regulatory liability is a temporary difference so a deferred tax asset is recorded including the gross-up of revenue necessary to return, in rates, the effect of the temporary difference. The Company is recognizing the excess accumulated deferred income taxes on accelerated depreciation, recorded as a regulatory liability, over the remaining useful life of the underlying assets. As a result, the Company recognized $182 and $149 in income taxes during the years ended December 31, 2020 and 2019, respectively. The tax effects of temporary differences between book and tax balances that give rise to significant portions of the deferred tax assets and deferred tax liabilities as of December 31, 2020 and 2019 are summarized in the following table: 2020 2019 Deferred tax assets: Reserve for doubtful accounts $ 189 $ 88 Compensated absences 151 148 Deferred compensation 1,375 1,276 Excess accumulated deferred income taxes on accelerated depreciation 3,995 4,047 Deferred taxes associated with the gross-up of revenues necessary to return, in rates, the effect of temporary differences 2,456 2,104 Customers’ advances for construction and contributions in aid of construction 1,815 998 Revenue reduction for tax rate change – 7 Tax effect of pension regulatory liability 7 – Other costs deducted for book, not for tax 64 69 Total deferred tax assets 10,052 8,737 Deferred tax liabilities: Accelerated depreciation 29,893 28,891 Basis differences from IRS TPR 13,671 11,311 Investment tax credit 356 384 Deferred taxes associated with the gross-up of revenues necessary to recover, in rates, the effect of temporary differences 8,088 6,987 Pensions 638 525 Tax effect of pension regulatory asset – 106 Unamortized debt issuance costs 500 531 Other costs deducted for tax, not for book 444 428 Total deferred tax liabilities 53,590 49,163 Net deferred tax liability $ 43,538 $ 40,426 In accordance with accounting standards, the net deferred tax liability is classified as a noncurrent deferred income tax liability on the balance sheets. No valuation allowance was required for deferred tax assets as of December 31, 2020 and 2019. In assessing the value of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based upon expected future taxable income and the current regulatory environment, management believes it is more likely than not that the Company will realize the benefits of these deductible differences. The Company determined that there were no uncertain tax positions meeting the recognition and measurement test of the accounting standards recorded in the years that remain open for review by taxing authorities, which are 2017 through 2019 for both federal and state income tax returns. The Company has not yet filed tax returns for 2020. The Company believes that it has fully complied with any changes pursuant to the 2017 Tax Act and has not taken any new positions in its 2020 income tax provision. The Company’s policy is to recognize interest and penalties related to income tax matters in other expenses. The Company paid no interest or penalties for the years ended December 31, 2020 and 2019, respectively. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2020 | |
Schedule II - Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | THE YORK WATER COMPANY Schedule II Valuation and Qualifying Accounts For the Two Years Ended December 31, 2020 Additions Description Balance at Beginning of Year Charged to Cost and Expenses Recoveries Deductions Balance at End of Year For the Year Ended December 31, 2020 Reserve for uncollectible accounts $ 305,000 $ 613,556 $ 54,653 $ 318,209 $ 655,000 For the Year Ended December 31, 2019 Reserve for uncollectible accounts $ 305,000 $ 258,542 $ 51,900 $ 310,442 $ 305,000 The Deductions column above represents write-offs of accounts receivable during the applicable year. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Significant Accounting Policies [Abstract] | |
Utility Plant and Depreciation | Utility Plant and Depreciation The cost of additions includes contracted cost, direct labor and fringe benefits, materials, overhead and, for certain utility plant, allowance for funds used during construction. In accordance with regulatory accounting requirements, water and wastewater systems acquired are recorded at estimated original cost of utility plant when first devoted to utility service and the applicable depreciation is recorded to accumulated depreciation. The difference between the estimated original cost less applicable accumulated depreciation, and the purchase price and acquisition costs is recorded as an acquisition adjustment within utility plant as permitted by the PPUC. At December 31, 2020 and 2019, utility plant includes a net credit acquisition adjustment of $3,707 and $3,318, respectively. For those amounts approved by the PPUC, the net acquisition adjustment is being amortized over the remaining life of the respective assets. Certain amounts are still awaiting approval from the PPUC before amortization will commence. Amortization amounted to $67 and $61 for the years ended December 31, 2020 and 2019, respectively. Upon normal retirement of depreciable property, the estimated or actual cost of the asset is credited to the utility plant account, and such amounts, together with the cost of removal less salvage value, are charged to the reserve for depreciation. To the extent the Company recovers cost of removal or other retirement costs through rates after the retirement costs are incurred, a regulatory asset is reported. Gains or losses from abnormal retirements are reflected in income currently. The straight-line remaining life method is used to compute depreciation on utility plant cost, exclusive of land and land rights. Annual provisions for depreciation of transportation and mechanical equipment included in utility plant are computed on a straight-line basis over the estimated service lives. Such provisions are charged to clearing accounts and apportioned therefrom to operating expenses and other accounts in accordance with the Uniform System of Accounts as prescribed by the PPUC. The Company charges to maintenance expense the cost of repairs and replacements and renewals of minor items of property. Maintenance of transportation equipment is charged to clearing accounts and apportioned therefrom in a manner similar to depreciation. The cost of replacements, renewals and betterments of units of property is capitalized to the utility plant accounts. The following remaining lives are used for financial reporting purposes: December 31 Approximate range Utility Plant Asset Category 2020 2019 of remaining lives Mains and accessories $ 212,164 $ 200,954 10 – 86 years Services, meters and hydrants 80,590 77,501 17 – 51 years Operations structures, reservoirs and water tanks 65,617 63,530 9 – 58 years Pumping and treatment equipment 34,163 33,124 6 – 30 years Office, transportation and operating equipment 15,520 14,464 3 – 22 years Land and other non-depreciable assets 3,478 3,393 – Utility plant in service 411,532 392,966 Construction work in progress 27,138 8,417 – Total Utility Plant $ 438,670 $ 401,383 The effective rate of depreciation was 2.33% in 2020 and 2.29% in 2019, on average utility plant, net of customers’ advances and contributions. Larger depreciation provisions resulting from allowable accelerated methods are deducted for tax purposes. |
Cash and Cash Equivalents | Cash and Cash Equivalents For the purposes of the statements of cash flows, the Company considers all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents except for those instruments earmarked to fund construction expenditures or repay long-term debt. The Company periodically maintains cash balances in major financial institutions in excess of the federally insured limit by the Federal Deposit Insurance Corporation (FDIC). The Company has not experienced any losses and believes it is not exposed to any significant credit risk on cash and cash equivalents. |
Restricted Cash | Restricted Cash The Company considers any cash account that it cannot access on demand due to contractual or legal reasons to be restricted cash. At December 31, 2020, the Company held $5,000 in restricted cash which was a bid deposit held in escrow for a potential acquisition. At December 31, 2019, the Company held no restricted cash. |
Accounts Receivable | Accounts Receivable Accounts receivable are stated at outstanding balances, less a reserve for doubtful accounts. The reserve for doubtful accounts is established through provisions charged against income. Accounts deemed to be uncollectible are charged against the reserve and subsequent recoveries, if any, are credited to the reserve. The reserve for doubtful accounts is maintained at a level considered adequate to provide for losses that can be reasonably anticipated. Management’s periodic evaluation of the adequacy of the reserve is based on past experience, agings of the receivables, adverse situations that may affect a customer’s ability to pay, current economic conditions, and other relevant factors. This evaluation is inherently subjective. Unpaid balances remaining after the stated payment terms are considered past due. |
Materials and Supplies Inventories | Materials and Supplies Inventories Materials and supplies inventories are stated at cost. Costs are determined using the average cost method. |
Note Receivable | Note Receivable Note receivable is recorded at cost and represents amounts due from a municipality for construction of water mains in their municipality. Management, considering current information and events regarding the borrowers’ ability to repay their obligations, considers a note to be impaired when it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the note agreement. When a note is considered to be impaired, the carrying value of the note is written down. The amount of the impairment is measured based on the present value of expected future cash flows discounted at the note’s effective interest rate. |
Regulatory Assets and Liabilities | Regulatory Assets and Liabilities The Company is subject to the provisions of generally accepted accounting principles regarding rate-regulated entities. The accounting standards provide for the recognition of regulatory assets and liabilities as allowed by regulators for costs or credits that are reflected in current customer rates or are considered probable of being included in future rates. The regulatory assets or liabilities are then relieved as the cost or credit is reflected in rates. Regulatory assets represent costs that are expected to be fully recovered from customers in future rates while regulatory liabilities represent amounts that are expected to be refunded to customers in future rates. These deferred costs have been excluded from the Company’s rate base and, therefore, no return is being earned on the unamortized balances. Regulatory assets and liabilities are comprised of the following: December 31 Remaining Recovery 2020 2019 Periods Assets Income taxes $ 28,200 $ 24,405 Various Postretirement benefits – 365 - Unrealized swap losses 2,700 2,227 1 – 9 years Utility plant retirement costs 5,968 5,012 5 years Customer-owned lead service line replacements 1,081 944 Various Income taxes on customers’ advances for construction and contributions in aid of 1,815 998 Various Service life study expenses 8 13 2 years Rate case filing expenses 121 225 1 year $ 39,893 $ 34,189 Liabilities Excess accumulated deferred income taxes on accelerated depreciation $ 13,826 $ 14,008 Various Income taxes 8,706 7,494 Various IRS TPR catch-up deduction 3,412 3,671 13 years Postretirement benefits 25 – Not yet known Revenue reduction for tax rate change – 226 - $ 25,969 $ 25,399 The regulatory asset for income taxes includes (a) deferred state income taxes related primarily to differences between book and tax depreciation expense, (b) deferred income taxes related to the differences that arise between specific asset improvement costs capitalized for book purposes and deducted as a repair expense for tax purposes, and (c) deferred income taxes associated with the gross-up of revenues related to the differences. These assets are recognized for ratemaking purposes on a cash or flow-through basis and will be recovered in rates as they reverse. The Company uses regulatory accounting treatment to defer the mark-to-market unrealized gains and losses on its interest rate swap to reflect that the gain or loss is included in the ratemaking formula when the transaction actually settles. The value of the swap as of the balance sheet date is recorded as part of other deferred credits. Realized gains or losses on the swap will be recorded as interest expense in the statement of income over its remaining term of 9 years. Utility plant retirement costs represents costs already incurred for the removal of assets, which are expected to be recovered over a five-year period in rates, through depreciation expense. The Company was granted approval by the PPUC to modify its tariff to replace lead customer-owned service lines that are discovered when the Company replaces its lead service lines over the remaining three years, and to include the cost of the annual replacement of up to 400 lead customer-owned service lines whenever they are discovered, regardless of the material used for the company-owned service line over nine years. The tariff modification allows the Company to replace customer-owned service lines at its own initial cost and record the costs as a regulatory asset to be recovered in future base rates to customers. The recovery period was established in the most recent rate order at four years beginning March 1, 2019. The recovery period for the customer-owned lead service line replacements completed subsequent to the most recent rate order will begin after the next rate order. Service life study expenses are deferred and amortized over their remaining life of two years. Rate case filing expenses are deferred and amortized over their remaining life of one year. Pursuant to the Tax Cuts and Jobs Act of 2017, or 2017 Tax Act, customers’ advances for construction and contributions in aid of construction are considered taxable income. The Company’s tariff allows the Company to record these income taxes for inclusion in rate base. This asset is recognized for ratemaking purposes on a cash or flow-through basis and will be recovered in rates as it reverses. Under normalization rules applicable to public utility property included in the 2017 Tax Act, the excess accumulated deferred income taxes on accelerated depreciation from lowering of the enacted federal statutory corporate tax rate is recorded as a regulatory liability. The benefit will be given back to customers in rates over the remaining regulatory life of the property. The regulatory liability for income taxes includes deferred taxes related to excess accumulated deferred income taxes on accelerated depreciation, other postretirement benefits, customers’ advances for construction and contributions in aid of construction, and bad debts, as well as deferred investment tax credits. These liabilities will be given back to customers in rates, as tax deductions occur over the next 1 to 50 years. The regulatory liability for the Internal Revenue Service, or IRS, tangible property regulations, or TPR, catch-up deduction represents the tax benefits realized on the Company’s 2014 income tax return for qualifying capital expenditures made prior to 2014. The period over which it will be given back to customers in rates was established in the most recent rate order at 15 years beginning March 1, 2019. Postretirement benefits include the difference between contributions and deferred pension expense and the overfunded status of the pension plans. The overfunded status represents the difference between the projected benefit obligation and the fair market value of the assets. This liability will change in future years based on the amount of contributions made and market returns. The liability will be given back to customers in rates over some period determined by the PPUC in a future rate filing. Postretirement benefits was a regulatory asset as of December 31, 2019. Pursuant to a rate order approved by the PPUC, the Company has agreed to return the 2018 income tax savings pursuant to the 2017 Tax Act, the associated tax gross-up, and the excess accumulated deferred income taxes on accelerated depreciation to customers as a reconcilable negative surcharge on bills. The Company began giving back the liability over one year beginning March 1, 2019 and was fully returned to customers in 2020. |
Other Assets | Other Assets Other assets consist mainly of the cash value of life insurance policies held as an investment by the Company for reimbursement of costs and benefits associated with its supplemental retirement and deferred compensation programs. |
Deferred Debt Expense | Deferred Debt Expense Deferred debt expense is amortized on a straight-line basis over the term of the related debt and is presented on the balance sheet as a direct reduction from long-term debt. |
Customers' Advances for Construction | Customers’ Advances for Construction Customer advances are cash payments from developers, municipalities, customers, or builders for construction of utility plant, and are refundable upon completion of construction, as operating revenues are earned. If the Company loans funds for construction to the customer, the refund amount is credited to the note receivable rather than paid out in cash. After all refunds to which the customer is entitled are made, any remaining balance is transferred to contributions in aid of construction. |
Contributions in Aid of Construction | Contributions in Aid of Construction Contributions in Aid of Construction is composed of (i) direct, non-refundable contributions from developers, customers, or builders for construction of water infrastructure and (ii) customer advances that have become non-refundable. Contributions in aid of construction are deducted from the Company’s rate base, and therefore, no return is earned on property financed with contributions. The PPUC requires that contributions received remain on the Company’s balance sheets indefinitely as a long-term liability. |
Interest Rate Swap Agreement | 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 convert its variable-rate debt to a fixed rate. Interest rate swaps are contracts in which a series of interest rate cash flows are exchanged over a prescribed period. The notional amount on which the interest payments are based is not exchanged. The Company has designated the interest rate swap agreement as a cash flow hedge, 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 sheets. In accordance with the standards, the interest rate swap is recorded on the balance sheets in other deferred credits at fair value. 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 gains and losses to be recognized in rates and in 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 $342 in 2020 and $221 in 2019. The overall swap result was a loss of $815 in 2020 and $649 in 2019. During the twelve months ending December 31, 2021, the Company expects to reclassify $370 (before tax) from regulatory assets to interest expense. The interest rate swap will expire on October 1, 2029. |
Stock-Based Compensation | Stock-Based Compensation The Company records compensation expense in the financial statements for stock-based awards based on the grant date fair value of those awards. Stock-based compensation expense is recognized over the requisite service periods of the awards on a straight-line basis, which is generally commensurate with the vesting term. Forfeitures are recognized as they occur. |
Income Taxes | Income Taxes Certain income and expense items are accounted for in different time periods for financial reporting than for income tax reporting purposes. Deferred income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. To the extent such income taxes increase or decrease future rates, an offsetting regulatory asset or liability has been recorded. Investment tax credits have been deferred and are being amortized to income over the average estimated service lives of the related assets. As of December 31, 2020 and 2019, deferred investment tax credits amounted to $500 and $539, respectively. The Company filed for a change in accounting method under the IRS 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. The Company was permitted to make this deduction for prior years (the “catch-up deduction”) and each year going forward, beginning with 2014 (the “ongoing deduction”). After receiving approval from the PPUC in its most recent rate order, the Company began to recognize the catch-up deduction, recorded as a regulatory liability, over 15 years beginning March 1, 2019. The 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. The catch-up deduction resulted in a decrease in current income taxes payable and an increase to regulatory liabilities. Both the ongoing and catch-up deductions resulted in increases to deferred tax liabilities and regulatory assets representing the appropriate book and tax basis difference on capital additions. The 2017 Tax Act, among other things, reduces the federal statutory corporate tax rate for tax years beginning in 2018 from 34% to 21%, eliminates certain deductions, and eliminates bonus depreciation on qualified water and wastewater property. This resulted in the remeasurement of the federal portion of the Company’s deferred taxes as of December 31, 2017 to the 21% rate. The effect was recognized in income for the year ended December 31, 2017 for all deferred tax assets and liabilities except accelerated depreciation. Under normalization rules applicable to public utility property included in the 2017 Tax Act, the excess accumulated deferred income taxes on accelerated depreciation is recorded as a regulatory liability. The regulatory liability is a temporary difference, so a deferred tax asset is recorded including the gross-up of revenue necessary to return, in rates, the effect of the temporary difference. |
Allowance for Funds Used During Construction | Allowance for Funds Used During Construction Allowance for funds used during construction (AFUDC) represents the estimated cost of funds used for construction purposes during the period of construction. These costs are reflected as non-cash income during the construction period and as an addition to the cost of plant constructed. AFUDC includes the net cost of borrowed funds and a rate of return on other funds. The PPUC approved rate of 10.04% was applied for 2020 and 2019. AFUDC is recovered through water and wastewater rates as utility plant is depreciated. |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Reclassifications | Reclassifications Certain 2019 amounts have been reclassified to conform to the 2020 presentation. This reclassification had no impact on the statements of income, the statement of common stockholders’ equity, or the statement of cash flows. |
Revenue (Policies)
Revenue (Policies) | 12 Months Ended |
Dec. 31, 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. The utility service has no returns or warranties associated with it. No revenue is recognized from performance obligations satisfied in prior periods and no performance obligations remain unsatisfied as of the end of the reporting period. A contract asset for unbilled revenue is recognized for the passage of time and the actual or estimated usage from the latest meter reading to the end of the accounting period. The methodology is standardized and consistently applied to reduce bias and the need for judgment. Billing and Revenue Collection Service The Company provides billing and revenue collection service as distinct performance obligations to three 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. The billing and revenue collection service has no returns or warranties associated with it. No revenue is recognized from performance obligations satisfied in prior periods and no performance obligations remain unsatisfied as of the end of the reporting period. 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. The collection service has no returns or warranties associated with it. No revenue is recognized from performance obligations satisfied in prior periods and no performance obligations remain unsatisfied as of the end of the reporting period. A contract asset for unbilled revenue is recognized for postings, shut offs, and restorations that have been completed from the last billing to the end of the accounting period. 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. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Significant Accounting Policies [Abstract] | |
Utility Plant | The following remaining lives are used for financial reporting purposes: December 31 Approximate range Utility Plant Asset Category 2020 2019 of remaining lives Mains and accessories $ 212,164 $ 200,954 10 – 86 years Services, meters and hydrants 80,590 77,501 17 – 51 years Operations structures, reservoirs and water tanks 65,617 63,530 9 – 58 years Pumping and treatment equipment 34,163 33,124 6 – 30 years Office, transportation and operating equipment 15,520 14,464 3 – 22 years Land and other non-depreciable assets 3,478 3,393 – Utility plant in service 411,532 392,966 Construction work in progress 27,138 8,417 – Total Utility Plant $ 438,670 $ 401,383 |
Regulatory Assets and Liabilities | Regulatory assets and liabilities are comprised of the following: December 31 Remaining Recovery 2020 2019 Periods Assets Income taxes $ 28,200 $ 24,405 Various Postretirement benefits – 365 - Unrealized swap losses 2,700 2,227 1 – 9 years Utility plant retirement costs 5,968 5,012 5 years Customer-owned lead service line replacements 1,081 944 Various Income taxes on customers’ advances for construction and contributions in aid of 1,815 998 Various Service life study expenses 8 13 2 years Rate case filing expenses 121 225 1 year $ 39,893 $ 34,189 Liabilities Excess accumulated deferred income taxes on accelerated depreciation $ 13,826 $ 14,008 Various Income taxes 8,706 7,494 Various IRS TPR catch-up deduction 3,412 3,671 13 years Postretirement benefits 25 – Not yet known Revenue reduction for tax rate change – 226 - $ 25,969 $ 25,399 |
Accounts Receivable and Contr_2
Accounts Receivable and Contract Assets (Tables) | 12 Months Ended |
Dec. 31, 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 As of Dec. 31, 2020 Dec. 31, 2019 Change Accounts receivable – customers $ 5,633 $ 4,574 $ 1,059 Other receivables 206 152 54 5,839 4,726 1,113 Less: allowance for doubtful accounts (655 ) (305 ) (350 ) Accounts receivable, net $ 5,184 $ 4,421 $ 763 Unbilled revenue $ 2,847 $ 2,276 $ 571 |
Note Receivable and Customers_2
Note Receivable and Customers' Advances for Construction (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Note Receivable and Customers' Advances for Construction [Abstract] | |
Amounts Related to Water District Projects | Included in the accompanying balance sheets at December 31, 2020 and 2019 were the following amounts related to this project. 2020 2019 Note receivable, including interest $ 255 $ 255 Customers’ advances for construction 302 303 |
Common Stock and Earnings Per_2
Common Stock and Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 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 net income per share: 2020 2019 Weighted average common shares, basic 13,033,681 12,964,080 Effect of dilutive securities: Employee stock-based compensation 839 2,212 Weighted average common shares, diluted 13,034,520 12,966,292 |
Long-Term Debt and Short-Term_2
Long-Term Debt and Short-Term Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Long-Term Debt and Short-Term Borrowings [Abstract] | |
Long-Term Debt | Long-term debt as of December 31, 2020 and 2019 is summarized in the following table: 2020 2019 10.05% Senior Notes, Series C, due 2020 $ – $ 6,500 8.43% Senior Notes, Series D, due 2022 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% Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Refunding Bonds, Series A of 2019, due 2036 10,500 10,500 3.10% Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Refunding Bonds, Series B of 2019, due 2038 14,870 14,870 3.23% Senior Notes, due 2040 15,000 15,000 4.00% - 4.50% York County Industrial Development Authority Exempt Facilities Revenue Bonds, Series 2015, due 2029 - 2045 10,000 10,000 4.54% Senior Notes, due 2049 20,000 20,000 3.24% Senior Notes, due 2050 30,000 – Committed Line of Credit, due 2022 6,700 7,672 Total long-term debt 126,570 104,042 Less discount on issuance of long-term debt (181 ) (192 ) Less unamortized debt issuance costs (2,816 ) (2,815 ) Less current maturities – (6,500 ) Long-term portion $ 123,573 $ 94,535 |
Payments Due by Year | Payments due by year as of December 31, 2020: 2021 2022 2023 2024 2025 $ – $ 26,200 $ – $ – $ – |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 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 sheets. The table below illustrates the fair value of the interest rate swap as of the end of the reporting period. Description December 31, 2020 Fair Value Measurements at Reporting Date Using Significant Other Observable Inputs (Level 2) Interest Rate Swap $2,731 $2,731 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 December 31, 2020. The rate used in discounting all prospective cash flows anticipated to be made under this swap reflects a representation of the yield to maturity for 30-year debt on utilities rated A- as of December 31, 2020. The use of the Company’s credit quality resulted in a reduction in the swap liability of $99 as of December 31, 2020. The fair value of the swap reflecting the Company’s credit quality as of December 31, 2019 is shown in the table below. 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) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue [Abstract] | |
Revenues Disaggregated by Service and Customer Type | The following table shows the Company’s revenues disaggregated by service and customer type. 2020 2019 Water utility service: Residential $ 33,987 $ 32,118 Commercial and industrial 13,764 14,161 Fire protection 3,191 3,074 Wastewater utility service: Residential 1,746 1,291 Commercial and industrial 304 280 Billing and revenue collection services 266 70 Collection services 15 52 Other revenue 23 13 Total Revenue from Contracts with Customers 53,296 51,059 Rents from regulated property 556 519 Total Operating Revenue $ 53,852 $ 51,578 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Employee Benefit Plans [Abstract] | |
Obligations and Funded Status | The following table sets forth the plans’ funded status as of December 31, 2020 and 2019. The measurement of assets and obligations of the plans is as of December 31, 2020 and 2019. Obligations and Funded Status At December 31 2020 2019 Change in Benefit Obligation Pension benefit obligation, beginning of year $ 47,530 $ 41,511 Service cost 938 849 Interest cost 1,457 1,645 Actuarial loss 6,165 5,241 Benefit payments (1,984 ) (1,716 ) Pension benefit obligation, end of year 54,106 47,530 Change in Plan Assets Fair value of plan assets, beginning of year 49,349 40,624 Actual return on plan assets 6,650 8,141 Employer contributions 2,300 2,300 Benefits paid (1,984 ) (1,716 ) Fair value of plan assets, end of year 56,315 49,349 Funded Status of Plans at End of Year $ 2,209 $ 1,819 |
Changes in Plan Assets and Benefit Obligations Recognized in Regulatory Assets | Changes in plan assets and benefit obligations recognized in regulatory assets are as follows: 2020 2019 Net gain (loss) arising during the period $ 2,713 $ (167 ) Recognized net actuarial loss (370 ) (421 ) Recognized prior service credit 13 13 Total changes in regulatory asset during the year $ 2,356 $ (575 ) |
Amounts Recognized in Regulatory Assets That Have Not Yet Been Recognized as Components of Net Periodic Benefit Cost | Amounts recognized in regulatory assets that have not yet been recognized as components of net periodic benefit cost consist of the following at December 31: 2020 2019 Net loss $ 10,497 $ 8,154 Prior service credit (63 ) (76 ) Regulatory asset $ 10,434 $ 8,078 |
Components of Net Periodic Benefit Cost | Components of net periodic benefit cost are as follows: 2020 2019 Service cost $ 938 $ 849 Interest cost 1,457 1,645 Expected return on plan assets (3,198 ) (2,733 ) Amortization of loss 370 421 Amortization of prior service credit (13 ) (13 ) Rate-regulated adjustment 2,746 2,131 Net periodic benefit cost $ 2,300 $ 2,300 |
Regulatory Assets to be Reclassified into Net Periodic Benefit Cost Over Next Fiscal Year | The estimated costs for the defined benefit pension plans relating to the December 31, 2020 balance sheet that will be amortized from regulatory assets into net periodic benefit cost over the next fiscal year are as follows: Net loss $ 582 Net prior service credit (13 ) $ 569 |
Benefit Payments Expected to be Paid | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid in each of the next five years and the subsequent five years in the aggregate: 2021 2022 2023 2024 2025 2026 2030 $ 1,903 $ 1,984 $ 2,163 $ 2,224 $ 2,216 $ 12,472 |
Projected Benefit Obligation and Fair Value of Plan Assets | The following tables show the projected benefit obligation, the accumulated benefit obligation and the fair value of plan assets as of December 31: 2020 2019 Projected benefit obligation $ 54,106 $ 47,530 Fair value of plan assets 56,315 49,349 |
Accumulated Benefit Obligation and Fair Value of Plan Assets | 2020 2019 Accumulated benefit obligation $ 50,578 $ 44,587 Fair value of plan assets 56,315 49,349 |
Weighted-Average Assumptions Used | Weighted-average assumptions used to determine benefit obligations at December 31: 2020 2019 Discount rate 2.30% 3.10% Rate of compensation increase 2.50% – 3.00% 2.50% – 3.00% Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31: 2020 2019 Discount rate 3.10% 4.10% Expected long-term return on plan assets 6.50% 6.50% Rate of compensation increase 2.50% – 3.00% 2.50% – 3.00% |
Fair Values of Pension Plan Assets | The fair values of the Company’s pension plan assets at December 31, 2020 and 2019 by asset category and fair value hierarchy level are as follows. The majority of the valuations are based on quoted prices on active markets (Level 1), with the remaining valuations based on broker/dealer quotes, active market makers, models, and yield curves (Level 2). Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Asset Category 2020 2019 2020 2019 2020 2019 Cash and Money Market Funds (a) $ 624 $ 682 $ 624 $ 682 $ – $ – Equity Securities: Common Equity Securities (b) – 662 – 662 – – Equity Mutual Funds (c) 35,707 29,677 35,707 29,677 – – Fixed Income Securities: U.S. Treasury Obligations 631 615 – – 631 615 Corporate and Foreign Bonds (d) 5,615 6,078 – – 5,615 6,078 Fixed Income Mutual Funds (e) 13,738 11,635 13,738 11,635 – – Total Plan Assets $ 56,315 $ 49,349 $ 50,069 $ 42,656 $ 6,246 $ 6,693 (a) The portfolios are designed to keep up to one year of distributions in immediately available funds. (b) This category includes investments in U.S. common stocks and foreign stocks trading in the U.S. widely distributed among consumer discretionary, consumer staples, healthcare, information technology, financial services, telecommunications, industrials, real estate, materials, and energy. The individual stocks are primarily large cap stocks which track with the S&P 500. (c) This category currently includes a majority of investments in closed-end mutual funds as well as domestic equity mutual funds and international mutual funds which give the portfolio exposure to mid and large cap index funds as well as international diversified index funds. (d) This category currently includes only U.S. corporate bonds and notes widely distributed among consumer discretionary, consumer staples, healthcare, information technology, energy, transportation, and financial services. (e) This category includes fixed income investments in mutual funds which include government, corporate and mortgage securities of both the U.S. and other countries. The mortgage-backed securities and non-U.S. corporate and sovereign investments add further diversity to the fixed income portion of the portfolio. |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Stock-Based Compensation [Abstract] | |
Restricted Stock | The following table summarizes the stock grant amounts and activity for the years ended December 31, 2019 and 2020. Number of Shares Grant Date Weighted Average Fair Value Nonvested at beginning of the year 2019 3,080 $33.85 Granted 6,963 $33.61 Vested (2,701) $33.99 Forfeited - - Nonvested at end of the year 2019 7,342 $33.57 Granted 4,912 $44.07 Vested (5,491) $36.00 Forfeited (81) $33.61 Nonvested at end of the year 2020 6,682 $39.30 |
Taxes Other than Income Taxes (
Taxes Other than Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Taxes Other than Income Taxes [Abstract] | |
Components of Taxes Other than Income Taxes | The following table provides the components of taxes other than income taxes: 2020 2019 Regulatory Assessment $ 298 $ 285 Property 353 348 Payroll, net of amounts capitalized 551 564 Other 3 3 Total taxes other than income taxes $ 1,205 $ 1,200 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes [Abstract] | |
Provisions for Income Taxes | The provisions for income taxes consist of: 2020 2019 Federal current $ 1,376 $ 1,148 State current 554 451 Federal deferred 247 475 State deferred (120 ) 205 Federal investment tax credit, net of current utilization (39 ) (39 ) Total income taxes $ 2,018 $ 2,240 |
Reconciliation of Statutory Federal Tax Provision to Total Provision | A reconciliation of the statutory Federal tax provision to the total provision follows: 2020 2019 Statutory Federal tax provision $ 3,909 $ 3,495 State income taxes, net of Federal benefit 426 574 IRS TPR deduction (1,979 ) (1,642 ) Tax-exempt interest (29 ) (25 ) Amortization of investment tax credit (39 ) (39 ) Cash value of life insurance (110 ) 6 Amortization of excess accumulated deferred income taxes on accelerated depreciation (182 ) (149 ) Other, net 22 20 Total income taxes $ 2,018 $ 2,240 |
Deferred Tax Assets and Liabilities | The tax effects of temporary differences between book and tax balances that give rise to significant portions of the deferred tax assets and deferred tax liabilities as of December 31, 2020 and 2019 are summarized in the following table: 2020 2019 Deferred tax assets: Reserve for doubtful accounts $ 189 $ 88 Compensated absences 151 148 Deferred compensation 1,375 1,276 Excess accumulated deferred income taxes on accelerated depreciation 3,995 4,047 Deferred taxes associated with the gross-up of revenues necessary to return, in rates, the effect of temporary differences 2,456 2,104 Customers’ advances for construction and contributions in aid of construction 1,815 998 Revenue reduction for tax rate change – 7 Tax effect of pension regulatory liability 7 – Other costs deducted for book, not for tax 64 69 Total deferred tax assets 10,052 8,737 Deferred tax liabilities: Accelerated depreciation 29,893 28,891 Basis differences from IRS TPR 13,671 11,311 Investment tax credit 356 384 Deferred taxes associated with the gross-up of revenues necessary to recover, in rates, the effect of temporary differences 8,088 6,987 Pensions 638 525 Tax effect of pension regulatory asset – 106 Unamortized debt issuance costs 500 531 Other costs deducted for tax, not for book 444 428 Total deferred tax liabilities 53,590 49,163 Net deferred tax liability $ 43,538 $ 40,426 |
Significant Accounting Polici_4
Significant Accounting Policies, Utility Plant and Depreciation (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)SystemCounty | Dec. 31, 2019USD ($) | |
Significant Accounting Policies [Abstract] | ||
Number of wastewater collection systems operated | System | 2 | |
Number of wastewater collection and treatment systems operated | System | 5 | |
Number of counties in which franchised territory is located | County | 3 | |
Utility Plant and Depreciation [Abstract] | ||
Utility plant acquisition adjustments | $ 3,707 | $ 3,318 |
Amortization of utility plant acquisition adjustments | 67 | 61 |
Utility plant | $ 438,670 | $ 401,383 |
Effective rate of depreciation | 2.33% | 2.29% |
Mains and Accessories [Member] | ||
Utility Plant and Depreciation [Abstract] | ||
Utility plant | $ 212,164 | $ 200,954 |
Mains and Accessories [Member] | Minimum [Member] | ||
Utility Plant and Depreciation [Abstract] | ||
Remaining life | 10 years | |
Mains and Accessories [Member] | Maximum [Member] | ||
Utility Plant and Depreciation [Abstract] | ||
Remaining life | 86 years | |
Services, Meters and Hydrants [Member] | ||
Utility Plant and Depreciation [Abstract] | ||
Utility plant | $ 80,590 | 77,501 |
Services, Meters and Hydrants [Member] | Minimum [Member] | ||
Utility Plant and Depreciation [Abstract] | ||
Remaining life | 17 years | |
Services, Meters and Hydrants [Member] | Maximum [Member] | ||
Utility Plant and Depreciation [Abstract] | ||
Remaining life | 51 years | |
Operations Structures, Reservoirs and Water Tanks [Member] | ||
Utility Plant and Depreciation [Abstract] | ||
Utility plant | $ 65,617 | 63,530 |
Operations Structures, Reservoirs and Water Tanks [Member] | Minimum [Member] | ||
Utility Plant and Depreciation [Abstract] | ||
Remaining life | 9 years | |
Operations Structures, Reservoirs and Water Tanks [Member] | Maximum [Member] | ||
Utility Plant and Depreciation [Abstract] | ||
Remaining life | 58 years | |
Pumping and Treatment Equipment [Member] | ||
Utility Plant and Depreciation [Abstract] | ||
Utility plant | $ 34,163 | 33,124 |
Pumping and Treatment Equipment [Member] | Minimum [Member] | ||
Utility Plant and Depreciation [Abstract] | ||
Remaining life | 6 years | |
Pumping and Treatment Equipment [Member] | Maximum [Member] | ||
Utility Plant and Depreciation [Abstract] | ||
Remaining life | 30 years | |
Office, Transportation and Operating Equipment [Member] | ||
Utility Plant and Depreciation [Abstract] | ||
Utility plant | $ 15,520 | 14,464 |
Office, Transportation and Operating Equipment [Member] | Minimum [Member] | ||
Utility Plant and Depreciation [Abstract] | ||
Remaining life | 3 years | |
Office, Transportation and Operating Equipment [Member] | Maximum [Member] | ||
Utility Plant and Depreciation [Abstract] | ||
Remaining life | 22 years | |
Land and Other Non-Depreciable Assets [Member] | ||
Utility Plant and Depreciation [Abstract] | ||
Utility plant | $ 3,478 | 3,393 |
Utility Plant in Service [Member] | ||
Utility Plant and Depreciation [Abstract] | ||
Utility plant | 411,532 | 392,966 |
Construction Work in Progress [Member] | ||
Utility Plant and Depreciation [Abstract] | ||
Utility plant | $ 27,138 | $ 8,417 |
Significant Accounting Polici_5
Significant Accounting Policies, Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Significant Accounting Policies [Abstract] | ||
Restricted cash | $ 5,000 | $ 0 |
Significant Accounting Polici_6
Significant Accounting Policies, Regulatory Assets and Liabilities (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($)ServiceLine | Dec. 31, 2019USD ($) | Dec. 31, 2014USD ($) | |
Assets [Abstract] | |||
Regulatory assets | $ 39,893 | $ 34,189 | |
Liabilities [Abstract] | |||
Regulatory liabilities | 25,969 | 25,399 | |
Excess Accumulated Deferred Income Taxes on Accelerated Depreciation [Member] | |||
Liabilities [Abstract] | |||
Regulatory liabilities | 13,826 | 14,008 | |
Income Taxes [Member] | |||
Liabilities [Abstract] | |||
Regulatory liabilities | $ 8,706 | 7,494 | |
Income Taxes [Member] | Minimum [Member] | |||
Liabilities [Abstract] | |||
Remaining recovery period | 1 year | ||
Income Taxes [Member] | Maximum [Member] | |||
Liabilities [Abstract] | |||
Remaining recovery period | 50 years | ||
IRS TPR Catch-Up Deduction [Member] | |||
Liabilities [Abstract] | |||
Regulatory liabilities | $ 3,412 | 3,671 | $ 3,887 |
Remaining recovery period | 13 years | ||
Postretirement Benefits [Member] | |||
Liabilities [Abstract] | |||
Regulatory liabilities | $ 25 | 0 | |
Revenue Reduction For Tax Rate Change [Member] | |||
Liabilities [Abstract] | |||
Regulatory liabilities | $ 0 | 226 | |
Term for negative surcharge on bills to customers | 1 year | ||
Income Taxes [Member] | |||
Assets [Abstract] | |||
Regulatory assets | $ 28,200 | 24,405 | |
Postretirement Benefits [Member] | |||
Assets [Abstract] | |||
Regulatory assets | 0 | 365 | |
Unrealized Swap Losses [Member] | |||
Assets [Abstract] | |||
Regulatory assets | $ 2,700 | 2,227 | |
Unrealized Swap Losses [Member] | Minimum [Member] | |||
Assets [Abstract] | |||
Remaining recovery period | 1 year | ||
Unrealized Swap Losses [Member] | Maximum [Member] | |||
Assets [Abstract] | |||
Remaining recovery period | 9 years | ||
Utility Plant Retirement Costs [Member] | |||
Assets [Abstract] | |||
Regulatory assets | $ 5,968 | 5,012 | |
Remaining recovery period | 5 years | ||
Customer-Owned Lead Service Line Replacements [Member] | |||
Assets [Abstract] | |||
Regulatory assets | $ 1,081 | 944 | |
Remaining recovery period | 4 years | ||
Term of tariff modification to replace customer-owned lead service lines connected to company-owned lead service lines | 3 years | ||
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 | ||
Income Taxes on Customers' Advances for Construction and Contributions in Aid of Construction [Member] | |||
Assets [Abstract] | |||
Regulatory assets | $ 1,815 | 998 | |
Service Life Study Expenses [Member] | |||
Assets [Abstract] | |||
Regulatory assets | $ 8 | 13 | |
Remaining recovery period | 2 years | ||
Rate Case Filing Expenses [Member] | |||
Assets [Abstract] | |||
Regulatory assets | $ 121 | $ 225 | |
Remaining recovery period | 1 year |
Significant Accounting Polici_7
Significant Accounting Policies, Interest Rate Swap Agreement (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Interest Rate Swap Agreement [Abstract] | ||
Interest rate swap settlements reclassified from regulatory assets to interest expense | $ 342 | $ 221 |
Overall interest rate swap (gain) loss | 815 | $ 649 |
Interest rate swap settlements to be reclassified during the next 12 months | $ 370 |
Significant Accounting Polici_8
Significant Accounting Policies, Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2017 | |
Income Taxes [Abstract] | |||
Deferred investment tax credits | $ 500 | $ 539 | |
Federal corporate tax rate | 21.00% | 21.00% | 34.00% |
IRS TPR Catch-Up Deduction [Member] | |||
Income Taxes [Abstract] | |||
Approved amortization period | 15 years |
Significant Accounting Polici_9
Significant Accounting Policies, Allowance for Funds Used During Construction (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Allowance for Funds Used During Construction [Abstract] | ||
PPUC approved rate for AFUDC | 10.04% | 10.04% |
Acquisitions (Details)
Acquisitions (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 14, 2020Customer | Apr. 09, 2020Customer | Aug. 29, 2019Customer | |
Acquisitions [Abstract] | |||||
Purchase price | $ 1,176 | $ 2,112 | |||
Acquisition adjustment | (3,707) | (3,318) | |||
Wastewater Collection Assets of Jacobus Borough Sewer Authority [Member] | |||||
Acquisitions [Abstract] | |||||
Number of customers acquired | Customer | 700 | ||||
Purchase price | 2,112 | ||||
Acquisition adjustment | $ (271) | ||||
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 | 262 | ||||
Acquisition adjustment | $ (751) |
Accounts Receivable and Contr_3
Accounts Receivable and Contract Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Accounts Receivable and Contract Assets [Abstract] | ||
Accounts receivable - customers | $ 5,633 | $ 4,574 |
Other receivables | 206 | 152 |
Accounts receivable | 5,839 | 4,726 |
Less: allowance for doubtful accounts | (655) | (305) |
Accounts receivable, net | 5,184 | 4,421 |
Unbilled revenue | 2,847 | $ 2,276 |
Change in accounts receivable - customers | 1,059 | |
Change in other receivables | 54 | |
Change in accounts receivable | 1,113 | |
Change in allowance for doubtful accounts | (350) | |
Change in accounts receivable, net | 763 | |
Change in unbilled revenue | $ 571 |
Note Receivable and Customers_3
Note Receivable and Customers' Advances for Construction (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)Municipality | Dec. 31, 2019USD ($) | |
Note Receivable and Customers' Advances for Construction [Abstract] | ||
Number of municipalities with agreements to extend water service | Municipality | 1 | |
Interest income on note receivable | $ 139 | $ 121 |
Interest rate on note outstanding | 7.50% | |
Amounts Related to Water District Projects Included in Balance Sheet [Abstract] | ||
Note receivable, including interest | $ 255 | 255 |
Customers' advances for construction | 302 | 303 |
Other customers' advances for construction | $ 10,024 | $ 7,541 |
Common Stock and Earnings Per_3
Common Stock and Earnings Per Share (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Nov. 08, 2019 | Mar. 11, 2013 | |
Common Stock and Earnings Per Share [Abstract] | ||||
Net income | $ 16,598 | $ 14,402 | ||
Shares Used in Computing Basic and Diluted Earnings per Share [Abstract] | ||||
Weighted average common shares, basic (in shares) | 13,033,681 | 12,964,080 | ||
Effect of dilutive securities [Abstract] | ||||
Employee stock-based compensation (in shares) | 839 | 2,212 | ||
Weighted average common shares, diluted (in shares) | 13,034,520 | 12,966,292 | ||
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 and retired under the stock repurchase program (in shares) | 0 | 0 | ||
Number of remaining shares authorized to be repurchased under the stock repurchase program (in shares) | 618,004 | |||
Employee Stock Purchase Plan [Member] | ||||
Common Stock [Abstract] | ||||
Minimum period full-time employees must be employed to purchase shares | 90 days | |||
Maximum percentage of gross compensation allowed to purchase shares | 10.00% | |||
Purchase price as a percentage of fair market value of common stock | 95.00% | |||
Number of shares issued (in shares) | 3,718 | 3,914 | ||
Number of authorized shares remaining to be issued (in shares) | 58,007 | |||
Dividend Reinvestment and Direct Stock Purchase and Sale Plan [Member] | ||||
Common Stock [Abstract] | ||||
Number of shares authorized to be issued (in shares) | 157,000 | |||
Number of shares authorized, unissued, and rolled over under plan (in shares) | 344,379 | |||
Number of shares issued (in shares) | 37,370 | 60,485 | ||
Number of authorized shares remaining to be issued (in shares) | 438,519 | |||
Optional Dividend Reinvestment Portion of Plan [Member] | ||||
Common Stock [Abstract] | ||||
Purchase price as a percentage of fair market value of common stock | 95.00% | |||
Direct Stock Purchase Portion of Plan [Member] | ||||
Common Stock [Abstract] | ||||
Purchase price as a percentage of fair market value of common stock | 100.00% |
Long-Term Debt and Short-Term_3
Long-Term Debt and Short-Term Borrowings, Long-Term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | Oct. 08, 2019 | Oct. 01, 2019 | Jan. 31, 2019 |
Long-term Debt [Abstract] | ||||||
Long-term debt | $ 126,570 | $ 104,042 | ||||
Less discount on issuance of long-term debt | (181) | (192) | ||||
Less unamortized debt issuance costs | (2,816) | (2,815) | ||||
Less current maturities | 0 | (6,500) | ||||
Long-term portion | 123,573 | 94,535 | ||||
10.05% Senior Notes, Series C, due 2020 [Member] | ||||||
Long-term Debt [Abstract] | ||||||
Long-term debt | $ 0 | 6,500 | ||||
Interest rate | 10.05% | 10.05% | ||||
8.43% Senior Notes, Series D, due 2022 [Member] | ||||||
Long-term Debt [Abstract] | ||||||
Long-term debt | $ 7,500 | 7,500 | ||||
Interest rate | 8.43% | |||||
Variable Rate Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Refunding Bonds, Series 2008A, due 2029 [Member] | ||||||
Long-term Debt [Abstract] | ||||||
Long-term debt | $ 12,000 | 12,000 | ||||
3.00% Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Refunding Bonds, Series A of 2019, due 2036 [Member] | ||||||
Long-term Debt [Abstract] | ||||||
Long-term debt | $ 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] | ||||||
Long-term Debt [Abstract] | ||||||
Long-term debt | $ 14,870 | 14,870 | ||||
Interest rate | 3.10% | 3.10% | ||||
3.23% Senior Notes, due 2040 [Member] | ||||||
Long-term Debt [Abstract] | ||||||
Long-term debt | $ 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] | ||||||
Long-term Debt [Abstract] | ||||||
Long-term debt | $ 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] | ||||||
Long-term Debt [Abstract] | ||||||
Interest rate | 4.00% | |||||
4.00% - 4.50% York County Industrial Development Authority Exempt Facilities Revenue Bonds, Series 2015, due 2029 - 2045 [Member] | Maximum [Member] | ||||||
Long-term Debt [Abstract] | ||||||
Interest rate | 4.50% | |||||
4.54% Senior Notes, due 2049 [Member] | ||||||
Long-term Debt [Abstract] | ||||||
Long-term debt | $ 20,000 | 20,000 | ||||
Interest rate | 4.54% | 4.54% | ||||
3.24% Senior Notes, due 2050 [Member] | ||||||
Long-term Debt [Abstract] | ||||||
Long-term debt | $ 30,000 | 0 | ||||
Interest rate | 3.24% | |||||
Committed Line of Credit, due 2022 [Member] | ||||||
Long-term Debt [Abstract] | ||||||
Long-term debt | $ 6,700 | $ 7,672 |
Long-Term Debt and Short-Term_4
Long-Term Debt and Short-Term Borrowings, Payments Due by Year (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Payments Due by Year [Abstract] | |
2021 | $ 0 |
2022 | 26,200 |
2023 | 0 |
2024 | 0 |
2025 | 0 |
Variable Rate Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Refunding Bonds, Series 2008A, due 2029 [Member] | |
Payments Due by Year [Abstract] | |
2022 | $ 12,000 |
Long-Term Debt and Short-Term_5
Long-Term Debt and Short-Term Borrowings, Fixed Rate Long-Term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Oct. 08, 2019 | Oct. 01, 2019 | Jan. 31, 2019 | Dec. 31, 2020 |
3.24% Senior Notes, due 2050 [Member] | |||||
Long-Term Debt [Abstract] | |||||
Face value | $ 30,000 | ||||
Interest rate | 3.24% | ||||
Maturity date | Sep. 30, 2050 | ||||
Proceeds from debt, net of issuance costs | $ 29,838 | ||||
10.05% Senior Notes, Series C, due 2020 [Member] | |||||
Long-Term Debt [Abstract] | |||||
Face value | $ 6,500 | ||||
Interest rate | 10.05% | 10.05% | |||
Maturity date | Sep. 30, 2020 | ||||
4.54% Senior Notes, due 2049 [Member] | |||||
Long-Term Debt [Abstract] | |||||
Face value | $ 20,000 | ||||
Interest rate | 4.54% | 4.54% | |||
Maturity date | Jan. 31, 2049 | ||||
Proceeds from debt, net of issuance costs | $ 19,820 | ||||
10.17% Series A Senior Notes and 9.60% Series B Senior Notes [Member] | |||||
Long-Term Debt [Abstract] | |||||
Face value | $ 11,000 | ||||
10.17% Senior Notes, Series A, due 2019 [Member] | |||||
Long-Term Debt [Abstract] | |||||
Interest rate | 10.17% | ||||
Maturity date | Feb. 1, 2019 | ||||
9.60% Senior Notes, Series B, due 2019 [Member] | |||||
Long-Term Debt [Abstract] | |||||
Interest rate | 9.60% | ||||
Maturity date | Feb. 1, 2019 | ||||
3.23% Senior Notes, due 2040 [Member] | |||||
Long-Term Debt [Abstract] | |||||
Face value | $ 15,000 | ||||
Interest rate | 3.23% | 3.23% | |||
Maturity date | Oct. 1, 2040 | ||||
Proceeds from debt, net of issuance costs | $ 14,888 | ||||
5.00% Monthly Senior Notes, Series 2010A, due 2040 [Member] | |||||
Long-Term Debt [Abstract] | |||||
Face value | $ 15,000 | ||||
Interest rate | 5.00% | ||||
Maturity date | Oct. 1, 2040 | ||||
3.00% Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Refunding Bonds, Series A of 2019, due 2036 [Member] | |||||
Long-Term Debt [Abstract] | |||||
Face value | $ 10,500 | ||||
Interest rate | 3.00% | 3.00% | |||
Maturity date | Oct. 1, 2036 | ||||
3.10% Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Refunding Bonds, Series B of 2019, due 2038 [Member] | |||||
Long-Term Debt [Abstract] | |||||
Face value | $ 14,870 | ||||
Interest rate | 3.10% | 3.10% | |||
Maturity date | Nov. 1, 2038 | ||||
Series A and Series B Bonds [Member] | |||||
Long-Term Debt [Abstract] | |||||
Proceeds from debt, net of issuance costs | $ 25,049 | ||||
4.75% York County Industrial Development Authority Revenue Bonds, Series 2006, due 2036 [Member] | |||||
Long-Term Debt [Abstract] | |||||
Face value | $ 10,500 | ||||
Interest rate | 4.75% | ||||
Maturity date | Oct. 1, 2036 | ||||
4.50% PEDFA Exempt Facilities Revenue Refunding Bonds, Series 2014, due 2038 [Member] | |||||
Long-Term Debt [Abstract] | |||||
Face value | $ 14,870 | ||||
Interest rate | 4.50% | ||||
Maturity date | Nov. 1, 2038 |
Long-Term Debt and Short-Term_6
Long-Term Debt and Short-Term Borrowings, Variable Rate Long-Term Debt (Details) - Variable Rate Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Refunding Bonds, Series 2008A, due 2029 [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Variable Rate Long-Term Debt [Abstract] | ||
Face value | $ 12,000 | |
Maturity date | Oct. 1, 2029 | |
Annual average variable interest rate | 0.62% | 1.50% |
Variable interest rate at year end | 0.12% | 1.78% |
Period in which to reimburse bank for purchase price of tendered bonds that have not been remarketed | 14 months |
Long-Term Debt and Short-Term_7
Long-Term Debt and Short-Term Borrowings, Interest Rate Swap Agreement (Details) - Interest Rate Swap [Member] - Variable Rate Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue Refunding Bonds, Series 2008A, due 2029 [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Interest Rate Swap Agreement [Abstract] | ||
Notional amount of swap | $ 12,000 | |
Potential payment to counterparty | $ 2,830 | |
Fixed interest rate | 3.16% | |
Net payment rate on swap | 2.87% | 1.84% |
Interest rate spread | 0.03% | 0.75% |
Overall effective rate, including variable interest and swap payments | 3.19% | 3.91% |
LIBOR [Member] | ||
Interest Rate Swap Agreement [Abstract] | ||
Percentage of variable interest rate | 59.00% | |
Term of variable rate | 1 month |
Long-Term Debt and Short-Term_8
Long-Term Debt and Short-Term Borrowings, Line of Credit Borrowings (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($)Bank | |
Line of Credit Facility [Abstract] | ||
Borrowing capacity | $ 41,500 | |
Number of banks in which unsecured line of credit maintained | Bank | 4 | |
Average borrowings outstanding | $ 7,467 | $ 5,070 |
Weighted average cost of borrowings | 1.59% | 3.47% |
Weighted average interest rate at year end | 1.30% | 2.92% |
Committed Line of Credit, due 2022 [Member] | ||
Line of Credit Facility [Abstract] | ||
Borrowing capacity | $ 50,000 | |
Committed Line of Credit, due 2022 [Member] | LIBOR [Member] | ||
Line of Credit Facility [Abstract] | ||
Basis adjustment | 1.05% | |
Unsecured Line of Credit, First Note [Member] | ||
Line of Credit Facility [Abstract] | ||
Borrowing capacity | $ 13,000 | |
Maturity period | 2 years | |
Outstanding borrowings under line of credit | $ 3,672 | |
Unsecured Line of Credit, First Note [Member] | LIBOR [Member] | ||
Line of Credit Facility [Abstract] | ||
Basis adjustment | 1.20% | |
Unsecured Line of Credit, Second Note [Member] | ||
Line of Credit Facility [Abstract] | ||
Borrowing capacity | $ 11,000 | |
Unsecured Line of Credit, Second Note [Member] | LIBOR [Member] | ||
Line of Credit Facility [Abstract] | ||
Basis adjustment | 1.25% | |
Unsecured Line of Credit, Third Note [Member] | ||
Line of Credit Facility [Abstract] | ||
Borrowing capacity | $ 7,500 | |
Outstanding borrowings under line of credit | $ 4,000 | |
Unsecured Line of Credit, Third Note [Member] | LIBOR [Member] | ||
Line of Credit Facility [Abstract] | ||
Basis adjustment | 1.15% | |
Unsecured Line of Credit, Fourth Note [Member] | ||
Line of Credit Facility [Abstract] | ||
Borrowing capacity | $ 10,000 | |
Unsecured Line of Credit, Fourth Note [Member] | LIBOR [Member] | ||
Line of Credit Facility [Abstract] | ||
Basis adjustment | 1.20% |
Long-Term Debt and Short-Term_9
Long-Term Debt and Short-Term Borrowings, Debt Covenants and Restrictions (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Long-Term Debt and Short-Term Borrowings [Abstract] | |
Maximum borrowing percentage of utility plant | 60.00% |
Base amount added to annual net income to determine restriction on dividends and stock acquisition | $ 1,500 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 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 the fair value of swap liability | $ 99 | |
Fair Value Measurements [Abstract] | ||
Customers' advances for construction | 10,326 | $ 7,844 |
Note receivable | 255 | 255 |
Fair Value on a Recurring Basis [Member] | ||
Interest Rate Swap [Abstract] | ||
Interest rate swap | 2,731 | 2,248 |
Fair Value on a Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Interest Rate Swap [Abstract] | ||
Interest rate swap | 2,731 | 2,248 |
Carrying Amount [Member] | ||
Fair Value, Financial Liabilities [Abstract] | ||
Total long-term debt | 126,570 | 104,042 |
Estimated Fair Value [Member] | ||
Fair Value, Financial Liabilities [Abstract] | ||
Total long-term debt | $ 151,000 | $ 115,000 |
Commitments (Details)
Commitments (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)ServiceLine | Dec. 31, 2019USD ($) | |
Commitments [Abstract] | ||
Percentage of employees under union contract | 33.00% | |
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 | $ 2,740 | $ 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 | $ 1,204 | $ 1,000 |
Costs to be incurred to replace customer-owned lead service lines | 1,500 | |
Construction and Acquisition Expenditures [Member] | ||
Capital Commitments [Abstract] | ||
Commitment for 2021 | 36,000 | |
Commitment for 2022 | $ 40,000 |
Revenue (Details)
Revenue (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)Municipality | Dec. 31, 2019USD ($) | |
Revenue [Abstract] | ||
Revenue from contracts with customers | $ 53,296 | $ 51,059 |
Rents from regulated property | 556 | 519 |
Total operating revenue | $ 53,852 | 51,578 |
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 | $ 33,987 | 32,118 |
Water Utility Service [Member] | Commercial and Industrial [Member] | ||
Revenue [Abstract] | ||
Revenue from contracts with customers | 13,764 | 14,161 |
Water Utility Service [Member] | Fire Protection [Member] | ||
Revenue [Abstract] | ||
Revenue from contracts with customers | 3,191 | 3,074 |
Wastewater Utility Service [Member] | Residential [Member] | ||
Revenue [Abstract] | ||
Revenue from contracts with customers | 1,746 | 1,291 |
Wastewater Utility Service [Member] | Commercial and Industrial [Member] | ||
Revenue [Abstract] | ||
Revenue from contracts with customers | 304 | 280 |
Billing and Revenue Collection Services [Member] | ||
Revenue [Abstract] | ||
Revenue from contracts with customers | $ 266 | 70 |
Number of municipalities within the service territory provided service | Municipality | 3 | |
Number of days for customer to make payment after being invoiced | 30 days | |
Collection Services [Member] | ||
Revenue [Abstract] | ||
Revenue from contracts with customers | $ 15 | 52 |
Number of days for customer to make payment after being invoiced | 30 days | |
Other Revenue [Member] | ||
Revenue [Abstract] | ||
Revenue from contracts with customers | $ 23 | $ 13 |
Rate Matters (Details)
Rate Matters (Details) - PPUC [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Rate Matters [Abstract] | ||
Amount agreed to be returned to customers for effects of 2017 Tax Act | $ 2,117 | |
Revenue recorded as regulatory liability for effects of 2017 Tax Act | (1) | $ (325) |
Reclassification from excess accumulated deferred income taxes on accelerated depreciation | 0 | (27) |
Negative surcharges returned to customers for effects of 2017 Tax Act | 2,117 | |
Rate Request Filed on May 30, 2018 [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] | 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 | $ 249 |
DSIC [Member] | Maximum [Member] | ||
Rate Matters [Abstract] | ||
Distribution system improvement charge percentage over base rate | 5.00% | |
DSIC [Member] | Minimum [Member] | ||
Rate Matters [Abstract] | ||
Distribution system improvement charge percentage over base rate | 0.00% |
Employee Benefit Plans, Changes
Employee Benefit Plans, Changes in Benefit Obligation and Plan Assets (Details) - Defined Benefit Pension Plans Combined [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Employee Benefit Plans [Abstract] | ||
Maximum period of eligible service | 30 years | |
Change in Benefit Obligation [Abstract] | ||
Pension benefit obligation, beginning of year | $ 47,530 | $ 41,511 |
Service cost | 938 | 849 |
Interest cost | 1,457 | 1,645 |
Actuarial loss | 6,165 | 5,241 |
Benefit payments | (1,984) | (1,716) |
Pension benefit obligation, end of year | 54,106 | 47,530 |
Change in Plan Assets [Abstract] | ||
Fair value of plan assets, beginning of year | 49,349 | 40,624 |
Actual return on plan assets | 6,650 | 8,141 |
Employer contributions | 2,300 | 2,300 |
Benefits paid | (1,984) | (1,716) |
Fair value of plan assets, end of year | 56,315 | 49,349 |
Funded status of plans at end of year | $ 2,209 | $ 1,819 |
Change in discount rate | (0.80%) | (1.00%) |
Threshold for amortization of gains and losses | 10.00% | |
Changes in Plan Assets and Benefit Obligations Recognized in Regulatory Assets [Abstract] | ||
Net gain (loss) arising during the period | $ 2,713 | $ (167) |
Recognized net actuarial loss | (370) | (421) |
Recognized prior service credit | 13 | 13 |
Total changes in regulatory asset during the year | 2,356 | (575) |
Amounts Recognized in Regulatory Assets that Have Not Yet Been Recognized as Components of Net Periodic Benefit Cost [Abstract] | ||
Net loss | 10,497 | 8,154 |
Prior service credit | (63) | (76) |
Regulatory asset | $ 10,434 | $ 8,078 |
Employee Benefit Plans, Compone
Employee Benefit Plans, Components of Net Periodic Benefit Cost (Details) - Defined Benefit Pension Plans Combined [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Components of Net Periodic Benefit Cost [Abstract] | ||
Service cost | $ 938 | $ 849 |
Interest cost | 1,457 | 1,645 |
Expected return on plan assets | (3,198) | (2,733) |
Amortization of loss | 370 | 421 |
Amortization of prior service credit | (13) | (13) |
Rate-regulated adjustment | 2,746 | 2,131 |
Net periodic benefit cost | 2,300 | $ 2,300 |
Change in defined benefit plan regulatory asset from pension contribution greater (less) than net periodic benefit cost | 2,746 | |
Amortization of Regulatory Assets to be Reclassified into Net Periodic Benefit Cost [Abstract] | ||
Net loss | 582 | |
Net prior service credit | (13) | |
Total amortization of regulatory assets to be reclassified into net periodic benefit cost during the next fiscal year | $ 569 |
Employee Benefit Plans, Benefit
Employee Benefit Plans, Benefit Payments Expected to be Paid (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Estimated Future Employer Contributions [Abstract] | |
Estimated employer contributions in 2021 | $ 2,300 |
Defined Benefit Pension Plans Combined [Member] | |
Benefit Payments Expected to be Paid [Abstract] | |
2021 | 1,903 |
2022 | 1,984 |
2023 | 2,163 |
2024 | 2,224 |
2025 | 2,216 |
2026 - 2030 | $ 12,472 |
Employee Benefit Plans, Project
Employee Benefit Plans, Projected Benefit Obligation, Accumulated Benefit Obligation and Fair Value of Plan Assets (Details) - Defined Benefit Pension Plans Combined [Member] - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Projected Benefit Obligation and Fair Value of Plan Assets [Abstract] | |||
Projected benefit obligation | $ 54,106 | $ 47,530 | $ 41,511 |
Fair value of plan assets | 56,315 | 49,349 | 40,624 |
Accumulated Benefit Obligation and Fair Value of Plan Assets [Abstract] | |||
Accumulated benefit obligation | 50,578 | 44,587 | |
Fair value of plan assets | $ 56,315 | $ 49,349 | $ 40,624 |
Employee Benefit Plans, Weighte
Employee Benefit Plans, Weighted-Average Assumptions Used (Details) - Defined Benefit Pension Plans Combined [Member] - Stock | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Weighted-Average Assumptions Used to Determine Benefit Obligations [Abstract] | ||
Discount rate | 2.30% | 3.10% |
Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost [Abstract] | ||
Discount rate | 3.10% | 4.10% |
Expected long-term return on plan assets | 6.50% | 6.50% |
Target Asset Allocations [Abstract] | ||
Percentage by which the return on plan assets should exceed the annual rate of inflation | 3.00% | |
Maximum equity securities holdings in any one company | 5.00% | |
Minimum number of individual stocks that must be included in the domestic stock portfolio | 20 | |
Minimum number of individual stocks that must be included in the international stock portfolio | 30 | |
Maximum fixed income securities holdings in any single issuer | 5.00% | |
Minimum [Member] | ||
Weighted-Average Assumptions Used to Determine Benefit Obligations [Abstract] | ||
Rate of compensation increase | 2.50% | 2.50% |
Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost [Abstract] | ||
Rate of compensation increase | 2.50% | 2.50% |
Target Asset Allocations [Abstract] | ||
Investment performance objectives benchmark period | 3 years | |
Maximum equity securities holdings in any one industry | 20.00% | |
Maximum [Member] | ||
Weighted-Average Assumptions Used to Determine Benefit Obligations [Abstract] | ||
Rate of compensation increase | 3.00% | 3.00% |
Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost [Abstract] | ||
Rate of compensation increase | 3.00% | 3.00% |
Target Asset Allocations [Abstract] | ||
Investment performance objectives benchmark period | 5 years | |
Maximum equity securities holdings in any one industry | 25.00% | |
Equity Securities [Member] | Minimum [Member] | ||
Target Asset Allocations [Abstract] | ||
Asset allocation of plan assets | 50.00% | |
Weighted-average target asset allocations | 50.00% | |
Equity Securities [Member] | Maximum [Member] | ||
Target Asset Allocations [Abstract] | ||
Asset allocation of plan assets | 70.00% | |
Weighted-average target asset allocations | 70.00% | |
Large Cap [Member] | Minimum [Member] | ||
Target Asset Allocations [Abstract] | ||
Weighted-average target asset allocations | 60.00% | |
Large Cap [Member] | Maximum [Member] | ||
Target Asset Allocations [Abstract] | ||
Weighted-average target asset allocations | 95.00% | |
Mid Cap [Member] | Minimum [Member] | ||
Target Asset Allocations [Abstract] | ||
Weighted-average target asset allocations | 0.00% | |
Mid Cap [Member] | Maximum [Member] | ||
Target Asset Allocations [Abstract] | ||
Weighted-average target asset allocations | 25.00% | |
Small Cap [Member] | Minimum [Member] | ||
Target Asset Allocations [Abstract] | ||
Weighted-average target asset allocations | 0.00% | |
Small Cap [Member] | Maximum [Member] | ||
Target Asset Allocations [Abstract] | ||
Weighted-average target asset allocations | 10.00% | |
International Developed Nations [Member] | Minimum [Member] | ||
Target Asset Allocations [Abstract] | ||
Weighted-average target asset allocations | 0.00% | |
International Developed Nations [Member] | Maximum [Member] | ||
Target Asset Allocations [Abstract] | ||
Weighted-average target asset allocations | 25.00% | |
International Emerging Nations [Member] | Minimum [Member] | ||
Target Asset Allocations [Abstract] | ||
Weighted-average target asset allocations | 0.00% | |
International Emerging Nations [Member] | Maximum [Member] | ||
Target Asset Allocations [Abstract] | ||
Weighted-average target asset allocations | 10.00% | |
Fixed Income Securities [Member] | Minimum [Member] | ||
Target Asset Allocations [Abstract] | ||
Asset allocation of plan assets | 30.00% | |
Weighted-average target asset allocations | 30.00% | |
Fixed Income Securities [Member] | Maximum [Member] | ||
Target Asset Allocations [Abstract] | ||
Asset allocation of plan assets | 50.00% | |
Weighted-average target asset allocations | 50.00% | |
U.S. Treasuries [Member] | Minimum [Member] | ||
Target Asset Allocations [Abstract] | ||
Weighted-average target asset allocations | 15.00% | |
U.S. Treasuries [Member] | Maximum [Member] | ||
Target Asset Allocations [Abstract] | ||
Weighted-average target asset allocations | 55.00% | |
Federal Agency Securities [Member] | Minimum [Member] | ||
Target Asset Allocations [Abstract] | ||
Weighted-average target asset allocations | 0.00% | |
Federal Agency Securities [Member] | Maximum [Member] | ||
Target Asset Allocations [Abstract] | ||
Weighted-average target asset allocations | 22.00% | |
Corporate Bonds [Member] | Minimum [Member] | ||
Target Asset Allocations [Abstract] | ||
Weighted-average target asset allocations | 0.00% | |
Corporate Bonds [Member] | Maximum [Member] | ||
Target Asset Allocations [Abstract] | ||
Weighted-average target asset allocations | 40.00% | |
Mortgage-Backed Securities [Member] | Minimum [Member] | ||
Target Asset Allocations [Abstract] | ||
Weighted-average target asset allocations | 15.00% | |
Mortgage-Backed Securities [Member] | Maximum [Member] | ||
Target Asset Allocations [Abstract] | ||
Weighted-average target asset allocations | 55.00% | |
International [Member] | Minimum [Member] | ||
Target Asset Allocations [Abstract] | ||
Weighted-average target asset allocations | 0.00% | |
International [Member] | Maximum [Member] | ||
Target Asset Allocations [Abstract] | ||
Weighted-average target asset allocations | 20.00% | |
High Yield Bonds [Member] | Minimum [Member] | ||
Target Asset Allocations [Abstract] | ||
Weighted-average target asset allocations | 0.00% | |
High Yield Bonds [Member] | Maximum [Member] | ||
Target Asset Allocations [Abstract] | ||
Weighted-average target asset allocations | 20.00% | |
Cash and Cash Equivalents [Member] | Minimum [Member] | ||
Target Asset Allocations [Abstract] | ||
Weighted-average target asset allocations | 0.00% | |
Cash and Cash Equivalents [Member] | Maximum [Member] | ||
Target Asset Allocations [Abstract] | ||
Weighted-average target asset allocations | 10.00% |
Employee Benefit Plans, Fair Va
Employee Benefit Plans, Fair Values of Pension Plan Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Fair Value of Pension Plan Assets [Abstract] | ||||
Period to keep distributions in immediately available funds | 1 year | |||
Defined Benefit Pension Plans Combined [Member] | ||||
Fair Value of Pension Plan Assets [Abstract] | ||||
Fair value of plan assets | $ 56,315 | $ 49,349 | $ 40,624 | |
Defined Benefit Pension Plans Combined [Member] | Cash and Money Market Funds [Member] | ||||
Fair Value of Pension Plan Assets [Abstract] | ||||
Fair value of plan assets | [1] | 624 | 682 | |
Defined Benefit Pension Plans Combined [Member] | Common Equity Securities [Member] | ||||
Fair Value of Pension Plan Assets [Abstract] | ||||
Fair value of plan assets | [2] | 0 | 662 | |
Defined Benefit Pension Plans Combined [Member] | Equity Mutual Funds [Member] | ||||
Fair Value of Pension Plan Assets [Abstract] | ||||
Fair value of plan assets | [3] | 35,707 | 29,677 | |
Defined Benefit Pension Plans Combined [Member] | U.S. Treasury Obligations [Member] | ||||
Fair Value of Pension Plan Assets [Abstract] | ||||
Fair value of plan assets | 631 | 615 | ||
Defined Benefit Pension Plans Combined [Member] | Corporate and Foreign Bonds [Member] | ||||
Fair Value of Pension Plan Assets [Abstract] | ||||
Fair value of plan assets | [4] | 5,615 | 6,078 | |
Defined Benefit Pension Plans Combined [Member] | Fixed Income Mutual Funds [Member] | ||||
Fair Value of Pension Plan Assets [Abstract] | ||||
Fair value of plan assets | [5] | 13,738 | 11,635 | |
Defined Benefit Pension Plans Combined [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||||
Fair Value of Pension Plan Assets [Abstract] | ||||
Fair value of plan assets | 50,069 | 42,656 | ||
Defined Benefit Pension Plans Combined [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Cash and Money Market Funds [Member] | ||||
Fair Value of Pension Plan Assets [Abstract] | ||||
Fair value of plan assets | [1] | 624 | 682 | |
Defined Benefit Pension Plans Combined [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Common Equity Securities [Member] | ||||
Fair Value of Pension Plan Assets [Abstract] | ||||
Fair value of plan assets | [2] | 0 | 662 | |
Defined Benefit Pension Plans Combined [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity Mutual Funds [Member] | ||||
Fair Value of Pension Plan Assets [Abstract] | ||||
Fair value of plan assets | [3] | 35,707 | 29,677 | |
Defined Benefit Pension Plans Combined [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Treasury Obligations [Member] | ||||
Fair Value of Pension Plan Assets [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
Defined Benefit Pension Plans Combined [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Corporate and Foreign Bonds [Member] | ||||
Fair Value of Pension Plan Assets [Abstract] | ||||
Fair value of plan assets | [4] | 0 | 0 | |
Defined Benefit Pension Plans Combined [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fixed Income Mutual Funds [Member] | ||||
Fair Value of Pension Plan Assets [Abstract] | ||||
Fair value of plan assets | [5] | 13,738 | 11,635 | |
Defined Benefit Pension Plans Combined [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||||
Fair Value of Pension Plan Assets [Abstract] | ||||
Fair value of plan assets | 6,246 | 6,693 | ||
Defined Benefit Pension Plans Combined [Member] | Significant Other Observable Inputs (Level 2) [Member] | Cash and Money Market Funds [Member] | ||||
Fair Value of Pension Plan Assets [Abstract] | ||||
Fair value of plan assets | [1] | 0 | 0 | |
Defined Benefit Pension Plans Combined [Member] | Significant Other Observable Inputs (Level 2) [Member] | Common Equity Securities [Member] | ||||
Fair Value of Pension Plan Assets [Abstract] | ||||
Fair value of plan assets | [2] | 0 | 0 | |
Defined Benefit Pension Plans Combined [Member] | Significant Other Observable Inputs (Level 2) [Member] | Equity Mutual Funds [Member] | ||||
Fair Value of Pension Plan Assets [Abstract] | ||||
Fair value of plan assets | [3] | 0 | 0 | |
Defined Benefit Pension Plans Combined [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Treasury Obligations [Member] | ||||
Fair Value of Pension Plan Assets [Abstract] | ||||
Fair value of plan assets | 631 | 615 | ||
Defined Benefit Pension Plans Combined [Member] | Significant Other Observable Inputs (Level 2) [Member] | Corporate and Foreign Bonds [Member] | ||||
Fair Value of Pension Plan Assets [Abstract] | ||||
Fair value of plan assets | [4] | 5,615 | 6,078 | |
Defined Benefit Pension Plans Combined [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fixed Income Mutual Funds [Member] | ||||
Fair Value of Pension Plan Assets [Abstract] | ||||
Fair value of plan assets | [5] | $ 0 | $ 0 | |
[1] | The portfolios are designed to keep up to one year of distributions in immediately available funds. | |||
[2] | This category includes investments in U.S. common stocks and foreign stocks trading in the U.S. widely distributed among consumer discretionary, consumer staples, healthcare, information technology, financial services, telecommunications, industrials, real estate, materials, and energy. The individual stocks are primarily large cap stocks which track with the S&P 500. | |||
[3] | This category currently includes a majority of investments in closed-end mutual funds as well as domestic equity mutual funds and international mutual funds which give the portfolio exposure to mid and large cap index funds as well as international diversified index funds. | |||
[4] | This category currently includes only U.S. corporate bonds and notes widely distributed among consumer discretionary, consumer staples, healthcare, information technology, energy, transportation, and financial services. | |||
[5] | This category includes fixed income investments in mutual funds which include government, corporate and mortgage securities of both the U.S. and other countries. The mortgage-backed securities and non-U.S. corporate and sovereign investments add further diversity to the fixed income portion of the portfolio. |
Employee Benefit Plans, Defined
Employee Benefit Plans, Defined Contribution Plan, Deferred Compensation and Other (Details) | 12 Months Ended | |
Dec. 31, 2020USD ($)Employee | Dec. 31, 2019USD ($) | |
Defined Contribution Plan [Abstract] | ||
Maximum elective employee contribution percentage | 15.00% | |
Company matching contribution percentage | 100.00% | |
Maximum annual Company contribution for each employee | $ 2,800 | |
Maximum annual Company contribution as a percentage of employee's compensation | 4.00% | |
Annual Company discretionary contribution | $ 1,200 | |
Number of employees participating in enhanced feature of plan | Employee | 56 | |
Contributions to defined contribution plan | $ 313,000 | $ 300,000 |
Deferred Compensation [Abstract] | ||
Present value of future obligations | 4,757,000 | 4,416,000 |
Total cash value of insurance policies | 3,735,000 | 3,667,000 |
Net expenses under deferred compensation plans | 585,000 | 670,000 |
Other [Abstract] | ||
Amount payable upon retiree's death | 2,000 | |
Present value of future obligations | 165,000 | 137,000 |
Expenses under retiree life insurance program | $ 38,000 | $ 34,000 |
Stock Based Compensation (Detai
Stock Based Compensation (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)Officer$ / sharesshares | Dec. 31, 2018Officer$ / sharesshares | May 02, 2016shares | |
Stock-Based Compensation [Abstract] | ||||
Number of retiring officers receiving accelerated vesting period | Officer | 1 | 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 | |||
LTIP [Member] | Restricted Stock [Member] | ||||
Number of Shares [Roll Forward] | ||||
Nonvested at beginning of the year (in shares) | 7,342 | 3,080 | ||
Granted (in shares) | 4,912 | 6,963 | ||
Vested (in shares) | (5,491) | (2,701) | ||
Forfeited (in shares) | (81) | 0 | ||
Nonvested at end of the year (in shares) | 6,682 | 7,342 | 3,080 | |
Grant Date Weighted Average Fair Value [Abstract] | ||||
Nonvested at beginning of the year (in dollars per share) | $ / shares | $ 33.57 | $ 33.85 | ||
Granted (in dollars per share) | $ / shares | 44.07 | 33.61 | ||
Vested (in dollars per share) | $ / shares | 36 | 33.99 | ||
Forfeited (in dollars per share) | $ / shares | 33.61 | 0 | ||
Nonvested at end of the year (in dollars per share) | $ / shares | $ 39.30 | $ 33.57 | $ 33.85 | |
Stock-Based Compensation Expense [Abstract] | ||||
Stock-based compensation expense | $ | $ 154 | $ 166 | ||
Recognized tax benefits related to stock-based compensation expense | $ | 45 | 48 | ||
Fair value of vested shares | $ | 198 | $ 92 | ||
Stock-based compensation expense not yet recognized | $ | $ 263 | |||
Period of recognition | 3 years | |||
LTIP [Member] | Restricted Stock [Member] | Officers and Key Employees [Member] | ||||
Stock-Based Compensation [Abstract] | ||||
Vesting period | 3 years |
Taxes Other than Income Taxes_2
Taxes Other than Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Components of Taxes Other than Income Taxes [Abstract] | ||
Regulatory assessment | $ 298 | $ 285 |
Property | 353 | 348 |
Payroll, net of amounts capitalized | 551 | 564 |
Other | 3 | 3 |
Total taxes other than income taxes | $ 1,205 | $ 1,200 |
Income Taxes (Details)
Income Taxes (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($)Position | Dec. 31, 2019USD ($) | Dec. 31, 2017 | Dec. 31, 2014USD ($) | |
Provisions for Income Taxes [Abstract] | ||||
Federal current | $ 1,376 | $ 1,148 | ||
State current | 554 | 451 | ||
Federal deferred | 247 | 475 | ||
State deferred | (120) | 205 | ||
Federal investment tax credit, net of current utilization | (39) | (39) | ||
Total income taxes | 2,018 | 2,240 | ||
Reconciliation of Statutory Federal Tax Provision to Total Provision [Abstract] | ||||
Statutory Federal tax provision | 3,909 | 3,495 | ||
State income taxes, net of Federal benefit | 426 | 574 | ||
IRS TPR deduction | (1,979) | (1,642) | ||
Tax-exempt interest | (29) | (25) | ||
Amortization of investment tax credit | (39) | (39) | ||
Cash value of life insurance | (110) | 6 | ||
Amortization of excess accumulated deferred income taxes on accelerated depreciation | (182) | (149) | ||
Other, net | 22 | 20 | ||
Total income taxes | 2,018 | 2,240 | ||
Regulatory Liabilities [Abstract] | ||||
Regulatory liabilities | $ 25,969 | $ 25,399 | ||
Federal corporate tax rate | 21.00% | 21.00% | 34.00% | |
Deferred Tax Assets [Abstract] | ||||
Reserve for doubtful accounts | $ 189 | $ 88 | ||
Compensated absences | 151 | 148 | ||
Deferred compensation | 1,375 | 1,276 | ||
Excess accumulated deferred income taxes on accelerated depreciation | 3,995 | 4,047 | ||
Deferred taxes associated with the gross-up of revenues necessary to return, in rates, the effect of temporary differences | 2,456 | 2,104 | ||
Customers' advances for construction and contributions in aid of construction | 1,815 | 998 | ||
Revenue reduction for tax rate change | 0 | 7 | ||
Tax effect of pension regulatory liability | 7 | 0 | ||
Other costs deducted for book, not for tax | 64 | 69 | ||
Total deferred tax assets | 10,052 | 8,737 | ||
Deferred Tax Liabilities [Abstract] | ||||
Accelerated depreciation | 29,893 | 28,891 | ||
Basis differences from IRS TPR | 13,671 | 11,311 | ||
Investment tax credit | 356 | 384 | ||
Deferred taxes associated with the gross-up of revenues necessary to recover, in rates, the effect of temporary differences | 8,088 | 6,987 | ||
Pensions | 638 | 525 | ||
Tax effect of pension regulatory asset | 0 | 106 | ||
Unamortized debt issuance costs | 500 | 531 | ||
Other costs deducted for tax, not for book | 444 | 428 | ||
Total deferred tax liabilities | 53,590 | 49,163 | ||
Net deferred tax liability | 43,538 | 40,426 | ||
Valuation allowance | 0 | 0 | ||
Uncertain tax positions | $ 0 | |||
Open tax year | 2017 2018 2019 | |||
Number of new tax positions taken | Position | 0 | |||
Interest or penalties | $ 0 | 0 | ||
IRS TPR Catch-Up Deduction [Member] | ||||
Regulatory Liabilities [Abstract] | ||||
Regulatory liabilities | $ 3,412 | 3,671 | $ 3,887 | |
Approved amortization period | 15 years | |||
Amortization of catch-up deduction | $ (259) | (216) | ||
IRS TPR Ongoing Deductions [Member] | ||||
Regulatory Liabilities [Abstract] | ||||
Ongoing TPR deduction | $ (1,720) | $ (1,426) |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - Reserve for Uncollectible Accounts [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Movement in Reserve [Roll Forward] | ||
Balance at beginning of year | $ 305,000 | $ 305,000 |
Additions - charged to cost and expenses | 613,556 | 258,542 |
Additions - recoveries | 54,653 | 51,900 |
Deductions | 318,209 | 310,442 |
Balance at end of year | $ 655,000 | $ 305,000 |