Artesian Resources Corporation operates as the holding company of eight wholly-owned
subsidiaries offering water, wastewater and other services on the Delmarva Peninsula.
Our principal subsidiary, Artesian Water Company, Inc., is the oldest and largest
investor-owned public water utility on the Delmarva Peninsula, and has been
providing superior water service since 1905. We distribute and sell water, including
water for public and private fire protection, to residential, commercial, industrial,
municipal and utility customers throughout the states of Delaware, Maryland
and Pennsylvania. We provide wastewater services to customers in Delaware. In
addition, we provide contract water and wastewater operations, and water and
sewer Service Line Protection Plans. Our Class A Non-Voting Common Stock is
listed on NASDAQ Global Select Market and trades under the symbol "ARTNA."
Artesian Resources Corporation, or Artesian Resources, operates as the parent
holding company of Artesian Water Company, Inc., or Artesian Water, Artesian
Water Pennsylvania, Inc., or Artesian Water Pennsylvania, Artesian Water Maryland,
Inc., or Artesian Water Maryland, Artesian Wastewater Management, Inc., or Artesian
Wastewater, Artesian Wastewater Maryland, Inc., or Artesian Wastewater Maryland,
each a regulated public utility, and three non-regulated subsidiaries; Artesian
Utility Development, Inc., or Artesian Utility, Artesian Development Corporation,
or Artesian Development, and Artesian Consulting Engineers, Inc., or Artesian
Consulting Engineers. The terms "we," "our" and the "Company"
as used herein refer to Artesian Resources and its subsidiaries. The business
activity conducted by each of our subsidiaries is discussed below under separate
headings.
Artesian Water
Artesian Water, our principal subsidiary, is the oldest and largest public
water utility in the State of Delaware and has been providing water service
within the state since 1905. Artesian Water distributes and sells water to residential,
commercial, industrial, governmental, municipal and utility customers throughout
the State of Delaware. In addition, Artesian Water provides services to other
water utilities, including operations and billing functions, and also has contract
operation agreements with private and municipal water providers. We also provide
water for public and private fire protection to customers in our service territories.
Artesian Water Maryland
Artesian Water Maryland began operations in August 2007. Artesian Water Maryland
distributes and sells water to residential, commercial, industrial and municipal
customers in Cecil County, Maryland.
Artesian Water Pennsylvania
Artesian Water Pennsylvania began operations upon receiving recognition as
a regulated public water utility by the Pennsylvania Public Utility Commission,
or PAPUC, in 2002. It provides water service to a residential community in Chester
County. Artesian Water Pennsylvania filed an application with the PAPUC to increase
our service area in Pennsylvania, which was approved and a related order was
entered on February 4, 2005. This application involved specific developments,
in which we expect modest future growth.
Artesian Wastewater
Artesian Wastewater is a regulated entity that owns wastewater collection and
treatment infrastructure and provides wastewater services to customers in Delaware
as a regulated public wastewater service company. As of December 31, 2014, Artesian
Wastewater owned and operated four wastewater treatment facilities, which are
capable of treating approximately 730,000 gallons per day and can be expanded
to treat approximately 1.6 mgd.
Artesian Wastewater Maryland
Artesian Wastewater Maryland is a regulated wastewater entity in the State
of Maryland and was incorporated on June 3, 2008. Artesian Wastewater Maryland
is able to provide public wastewater services to customers in the State of Maryland.
It is currently not providing wastewater services in Maryland.
Artesian Utility
Artesian Utility was formed in 1996. It designs and builds water and wastewater
infrastructure and provides contract water and wastewater services on the Delmarva
Peninsula. Artesian Utility also evaluates land parcels, provides recommendations
to developers on the size of water or wastewater facilities and the type of
technology that should be used for treatment at such facilities, and operates
water and wastewater facilities in Delaware for municipal and governmental organizations.
Artesian Utility also contracts with developers for design and construction
of wastewater facilities within the Delmarva Peninsula, using a number of different
technologies for treatment of wastewater at each facility. In addition, as further
discussed below, effective April 2012, Artesian Utility operates the Water Service
Line Protection Plan, or WSLP Plan, and the Sewer Service Line Protection Plan,
or SSLP Plan.
We currently operate wastewater treatment facilities for the town of Middletown,
in southern New Castle County, or Middletown, under a 20-year contract that
expires in July 2022. The facilities include two wastewater treatment stations
with capacities of up to approximately 2.5 mgd and 250,000 gallons per day,
respectively. We also operate a wastewater disposal facility in Middletown in
order to support the 2.5 mgd wastewater facility. One of the wastewater treatment
facilities in Middletown now provides reclaimed wastewater for use in spray
irrigation on public and agricultural lands in the area.
Artesian Utility has operated the WSLP Plan and the SSLP Plan since 2012. Artesian
Resources initiated the WSLP Plan in March 2005. The WSLP Plan covers all parts,
material and labor required to repair or replace participating customers' leaking
water service lines up to an annual limit. The WSLP Plan was expanded in the
second quarter of 2008 to include maintenance or repair to customers' sewer
lines. The SSLP Plan covers all parts, material and labor required to repair
or replace participating customers' leaking or clogged sewer lines up to an
annual limit. Also, in the second quarter of 2010, the WSLP Plan and SSLP Plan
were extended to include non-utility customers of Artesian Resources. As of
December 31, 2014, approximately 18,800, or 27.1%, of our eligible water customers
signed up for the WSLP Plan, approximately 14,000, or 20.2%, of our eligible
customers signed up for the SSLP Plan and approximately 1,000 non-customer participants
signed up for either the WSLP Plan or SSLP Plan.
Artesian Development
Artesian Development is a real estate holding company that owns properties,
including land zoned for office buildings, a water treatment plant and wastewater
facility, as well as property for current operations, including an office facility
in Sussex County, Delaware. The facility consists of approximately 10,000 square
feet of office space along with nearly 10,000 square feet of warehouse space.
This facility allows all of our Sussex County, Delaware operations to be housed
in one central location.
Artesian Consulting Engineers
Artesian Consulting Engineers no longer offers development and architectural
services to outside third parties. Artesian will continue to provide design
and engineering contract services through our Artesian Utility subsidiary.
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