Artesian Water Company Announces Credit to Delaware Customers With Proceeds from Settlement Agreement

Rhea-AI Summary

Artesian Resources Corporation (Nasdaq: ARTNA) announced that its subsidiary, Artesian Water Company, received approval from the Delaware Public Service Commission to return settlement proceeds to customers due to investments in water treatment systems. Customers will receive approximately $27.00 credits, starting October 31, 2022, for four years. Artesian invested $8.7 million in treatment technologies and incurred $1.3 million in related costs at its Llangollen well field, a vital supply source in New Castle County, Delaware. The settlement is part of a long-term remediation effort of a Superfund site.

Positive

• Approval to return an estimated $27.00 credit to customers improving customer satisfaction.
• Reimbursement of $8.7 million for treatment technologies enhances financial position.
• Successful resolution of a long-term environmental issue demonstrates effective management and corporate responsibility.

Negative

• None.

NEWARK, Del., Oct. 24, 2022 (GLOBE NEWSWIRE) -- Artesian Resources Corporation (Nasdaq: ARTNA), a leading provider of water and wastewater services, and related services, on the Delmarva Peninsula, today announced that its principal operating subsidiary, Artesian Water Company, Inc. (Artesian Water), received approval from the Delaware Public Service Commission (DE PSC) to return to its customers proceeds from a settlement agreement with the Delaware Sand & Gravel Trust (the Trust), which is responsible for remediation of releases from a former landfill operation designated as a Superfund site by the U.S. Environmental Protection Agency. The proceeds, to be paid in four annual installments, are reimbursement for investments made by Artesian Water in water treatment systems at its northern New Castle County, Delaware Llangollen well field to ensure its water continues to meet all state and federal drinking water standards. As a strong environmental steward and responsible water utility, Artesian proactively monitors groundwater for potential regulated and unregulated contaminants, treating the water as necessary.

Active customers as of September 30, 2022 will receive a credit of approximately $27.00 issued no later than October 31, 2022 with the credit appearing on their subsequent water bill. Active customers as of July 31, 2023, 2024 and 2025 will receive a similar level of credit.

Since 2013, Artesian invested $8.7 million in treatment technologies and incurred $1.3 million in related operating costs at its Llangollen well field, which the Trust has agreed to reimburse, all of which will be returned to customers. The Llangollen well field, which can provide 2.2 million gallons per day of supply on average and as much as 3.6 million gallons per day during summer peak periods, is a critical component of meeting water demands in New Castle County, Delaware.

“We are extremely gratified that the Trust has accepted responsibility for the needed water treatment and agreed to make Artesian customers whole by reimbursing the associated costs. The completion of this monumental task, a nearly 20 year initiative, led by Artesian’s Executive Vice President, Joseph A. DiNunzio, will now rightfully return to our customers the costs previously incurred by Artesian and now reimbursed by the Trust,” said Dian C. Taylor, CEO and President of Artesian Resources Corporation. Artesian has also worked closely with the DE PSC and Delaware Office of the Public Advocate to ensure our customers see the financial benefit of the reimbursed costs obtained by the settlement with the Trust.

“Without the need for costly litigation, the Trust accepted responsibility for not only the costs already incurred, but for any that will be incurred as a result of activities at the site, ensuring that Artesian’s customers will not bear that burden in their water bills,” said Nicholle R. Taylor, President of Artesian Water Company.

Delaware Sand & Gravel operated as a gravel quarry until 1968 and then as a landfill from 1968 to 1976 on a site north of Llangollen (and Grantham Lane), between Routes 13 and 9, in northern New Castle County, Delaware. Releases from the former landfill impacted groundwater quality in the area, resulting in its designation by the EPA as a Superfund site, as well as Artesian Water’s need to install various forms of treatment, including granular activated carbon, ultra violet advanced oxidation and filtering systems, to ensure that water it provides to customers meets all state and federal drinking water standards.

In accordance with the Consent Decree with the EPA, the Trust will continue its remediation of the Superfund site associated with the past landfill, including operation of interceptor wells intended to prevent further migration of contaminants from the landfill to Artesian’s Llangollen well field. The Trust will also reimburse Artesian for all future operational costs associated with operation of the treatment systems at the Llangollen well field and for any future capital costs associated with treatment of any contaminants originating from the Trust’s site.

About Artesian Resources
Artesian Resources Corporation operates as a holding company of wholly-owned subsidiaries offering water and wastewater services, and a number of other related core business services, on the Delmarva Peninsula. Artesian Water Company, the principal subsidiary, is the oldest and largest regulated water utility on the Delmarva Peninsula and has been providing water service since 1905. Artesian supplies 8.4 billion gallons of water per year through 1,398 miles of main to over a third of Delawareans.

Forward Looking Statements
This release contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding, among other things, the amount and timing of customer credits, compliance with water quality standards, water supply capacity, and recovery of future operational and capital costs. These statements involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such forward-looking statements including: changes in weather, changes in our contractual obligations, changes in government policies, the timing and results of our rate requests, failure to receive regulatory approval, changes in economic and market conditions generally and other matters discussed in our filings with the Securities and Exchange Commission. While the Company may elect to update forward-looking statements, we specifically disclaim any obligation to do so and you should not rely on any forward-looking statement as representation of the Company’s views as of any date subsequent to the date of this release.

Contact:
Virginia Eisenbrey
Communications
(302) 453-6900
veisenbrey@artesianwater.com

FAQ

What is the purpose of the Artesian Resources Corporation press release dated October 24, 2022?

The press release announces Artesian's approval from the Delaware Public Service Commission to return settlement proceeds from a Superfund environmental remediation to its customers.

How much will Artesian Resources' customers receive as credit?

Customers will receive a credit of approximately $27.00 no later than October 31, 2022, with similar credits for the following three years.

What investments has Artesian made related to water treatment?

Artesian invested $8.7 million in treatment technologies at its Llangollen well field to ensure compliance with water quality standards.

What is the significance of the Llangollen well field for Artesian Resources?

The Llangollen well field is critical for supplying an average of 2.2 million gallons of water per day in New Castle County, Delaware.

What environmental issue was addressed in the Artesian Resources press release?

The press release addresses the remediation of a former landfill site designated as a Superfund site by the EPA, affecting groundwater quality.