We had a strong quarter that demonstrated the value of our diversification plans and our commitment to operating as efficiently as possible on behalf of our customers, stated Dian C. Taylor, president and chief executive officer of Artesian Resources.
The revenues for the three months ended March 31, 2009, incorporated a 22.5% increase in non-utility revenue attributable to the addition of Artesian Engineers and the continued popularity of water and wastewater Service Line Protection Plans. Revenues from the water sales during the first quarter increased by 12.7% over the same period of 2008 due to the addition of about 500 new customers and the implementation of temporary rate relief. The rate relief was granted pending a decision from the Delaware Public Service Commission on company’s April 2008 filing for a base rate increase to recognize increased expenses and ongoing investments in infrastructure.
Operating expenses increased $714,000, or 6.9%, compared to the same period in 2008. A company-wide effort to improve efficiency resulted in a 1.9% decrease in utility operating expenses. However, that was offset by increases in state and federal income taxes, as well as a 20% rise in depreciation expense. The increase in depreciation expense was primarily due to company’s continuing investment in water system upgrades. Additionally, non-utility operating expenses increased $107,000 in the first quarter of 2009 as a result of more contract work compared to the same period last year.
Our growth on a quarter-over-quarter basis reflects regulatory lag–we are just now recouping the higher expenses that depressed our net income in the first quarter of 2008, added Taylor. However, we continue to record consistent financial growth, which will enable us to maintain system quality, improve reliability and reinforce our commitment to customer service.
Artesian Resources is a US-based provider of water, wastewater and engineering services.
