Artesian Water Company Requests Rate Increase for Improvements
Artesian Water Company Seeks Rate Adjustment
Artesian Water Company, Inc. has filed a significant application with the Delaware Public Service Commission (PSC) aimed at adjusting its customer rates. This application is essential for the company to sustain and enhance its service quality, ensuring reliable drinking water delivery for its customers. The request includes a proposed revenue increase of 12.41%, translating to roughly $10.8 million annually.
Investments in Water Infrastructure
The foundation of this increase is rooted in the investments made by Artesian in improving their water utility infrastructure. Since October 2023, significant enhancements have been made, and plans for continued improvements through September 2025 are outlined in the proposal. This includes addressing the costs tied to compliance with stricter water quality regulations that protect the health and safety of customers.
Commitment to Quality Service
Nicki Taylor, President and CEO of Artesian, emphasized the company's dedication to providing high-quality drinking water and fire protection services, a legacy upheld for 120 years. In her words, maintaining this standard requires constant infrastructure investment to ensure system resilience and effectiveness.
Focus on Contaminant Regulations
The applications detail Artesian's proactive measures against potential health threats, particularly concerning harmful contaminants such as PFAS. The company has taken steps to install necessary treatment ahead of upcoming regulations. Investments made since the last rate adjustment include incorporating advanced treatment systems at multiple facilities, underscoring the firm’s commitment to transparency and consumer health.
Impact of Rate Increase
Currently, the average residential customer consuming 4,000 gallons of water monthly pays $52.94. If the rate increase is approved by the PSC, these costs will rise to $59.76, a minimal impact of about $0.23 per day. This means the average household would end up paying less than $2 per day for their essential water service, amounting to approximately 1.5 cents per gallon.
Ongoing Upgrades and Maintenance
Artesian is engaged in continuous upgrades and maintenance of its aging infrastructure, pivotal for ensuring long-term service reliability. Many of the company’s facilities and pipes, originally constructed 50-75 years ago, require modernization. Investments focus on enhancing electrical systems, improving security protocols, and upgrading water quality monitoring equipment. These efforts are aimed at reducing maintenance issues like leaks and breaks in water mains, thus contributing to overall service reliability.
About Artesian Resources Corporation
As a holding company, Artesian Resources Corporation, which includes Artesian Water Company, is the largest regulated water utility in the area, serving the Delmarva Peninsula since 1905. Artesian provides an impressive 9.5 billion gallons of water annually to a significant portion of Delaware residents through an extensive network of 1,491 miles of pipeline.
Frequently Asked Questions
What prompted Artesian Water Company's rate increase request?
The request is primarily driven by the need to recover investments in improving infrastructure and complying with stricter water quality regulations.
How much will residential rates increase if approved?
If the application is approved, average residential water bills will increase from $52.94 to $59.76 monthly.
What specific investments is Artesian planning with the increased funds?
Funds will go toward updating treatment facilities, enhancing security, and improving overall infrastructure to maintain high-quality service.
When is the rate increase expected to take effect?
The rate increase is pending approval by the Delaware Public Service Commission, and implementation details will be disclosed following their decision.
What measures is Artesian taking regarding water quality?
Artesian has installed advanced treatment systems to address contaminants like PFAS, showcasing their proactive stance on water quality management.
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