UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 11, 2006
ARTESIAN RESOURCES CORPORATION
----------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 000-18516 51-0002090
-------------------------------- ----------- -------------------
(State or other jurisdiction of (Commission (IRS Employer
incorporation) File Number) Identification No.)
664 Churchmans Road, Newark, Delaware 19702
---------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 302-453-6900
------------
Not Applicable
--------------------------------------------------
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities Act
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act
Section 8 - Other Events
Item 8.01 Other Events.
On April 11, 2006, the Delaware Public Service Commission, or "PSC" approved a
rate increase for Artesian Water Company Inc., or "Artesian Water" in response
to Artesian Water's February 5, 2004 rate request. Artesian Water filed an
initial application in February 2004 with the PSC for a rate increase to
generate an additional revenue of 24%, or approximately $8.8 million on an
annualized basis to recognize the significant increase in utility plant and
equipment placed in service and increase in operating expense. On March 26,
2004, Artesian Water filed a supplemental application reducing the requested
increase to 23.8% or approximately $8.7 million on an annualized basis. On April
6, 2004, Artesian Water implemented a temporary rate increase designed to
generate an increase in annual operating revenue of approximately 6.98%, or $2.5
million on an annualized basis. On September 7, 2004, an additional $3.0 million
in temporary rates, for a total increase of 15%, was placed into effect as
permitted by law.
On June 21, 2005, the PSC ruled on various issues within Artesian Water's rate
application. However, on July 5, 2005, the PSC remanded two issues related to
rate base valuation to the Hearing Examiner for further consideration. These two
issues related to approximately $320,000 of the requested increase in annual
revenue. In addition, effective July 1, 2005, Chester Water Authority and the
City of Wilmington increased the rate for water purchased by Artesian Water. On
August 15, 2005, Artesian Water, in lieu of this increase, filed a petition with
the PSC to place into effect increased rates resulting from the increased costs.
The PSC elected to consolidate this petition with the already-pending remanded
issues in the rate case.
On April 11, 2006, the PSC ruled in Artesian Water's favor on all three remanded
issues. Based on the PSC decision, Artesian Water's new rates will generate
approximately $4.9 million in additional revenue on an annual basis, or an
increase of approximately 13.4%. Artesian Water will be required to refund the
portion of the temporary rate increase in excess of the 13.4% to its customers.
This amount has been held in reserve and was not reflected in income. The
refund, plus interest, for the overpayment from customers will be applied to
future customer bills. A portion of the reserve which reflects revenues that
were approved on April 11th will be reflected in income in the first quarter
ending March 31, 2006.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
ARTESIAN RESOURCES CORPORATION
Date: April 13, 2006 By: /s/ DAVID B. SPACHT
------------------------
David B. Spacht
Vice President, Chief Financial Officer
and Treasurer