York Water Co
The York Water Company is the oldest investor-owned water utility in the United
States and is duly organized under the laws of the Commonwealth of Pennsylvania.
The Company has operated continuously since 1816. The primary business of the
Company is to impound, purify to meet or exceed safe drinking water standards
and distribute water. The Company also owns and operates two wastewater collection
and treatment systems. The Company operates within its franchised territory,
which covers 39 municipalities within York County, Pennsylvania and nine municipalities
within Adams County, Pennsylvania. The Company is regulated by the Pennsylvania
Public Utility Commission, or PPUC, in the areas of billing, payment procedures,
dispute processing, terminations, service territory, debt and equity financing
and rate setting. The Company must obtain PPUC approval before changing any
practices associated with the aforementioned areas.
The Companys water business is somewhat dependent on weather conditions, particularly
the amount and timing of rainfall. Revenues are particularly vulnerable to weather
conditions in the summer months. Prolonged periods of hot and dry weather generally
cause increased water usage for watering lawns, washing cars, and keeping golf
courses and sports fields irrigated. Conversely, prolonged periods of dry weather
could lead to drought restrictions from governmental authorities. Despite the
Companys adequate water supply, customers may be required to cut back water
usage under such drought restrictions which would negatively impact revenues.
The Company has addressed some of this vulnerability by instituting minimum
customer charges which are intended to cover fixed costs of operations under
all likely weather conditions.
The Companys business does not require large amounts of working capital and
is not dependent on any single customer or a very few customers for a material
portion of its business. Increases in revenues are generally dependent on the
Companys ability to obtain rate increases from the PPUC in a timely manner
and in adequate amounts and to increase volumes of water sold through increased
consumption and increases in the number of customers served. The Company continuously
looks for water and wastewater acquisition and expansion opportunities both
within and outside its current service territory as well as additional opportunities
to enter into bulk water contracts with municipalities and other entities to
supply water.
The Company has agreements with several municipalities to provide sewer billing
services. The Company also has a service line protection program on a targeted
basis in order to further diversify its business. Under this optional program,
customers pay a fixed monthly fee, and the Company will repair or replace damaged
customer service lines, as needed, subject to an annual maximum dollar amount.
Opportunities to expand both initiatives are being pursued.