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Rate Matters
6 Months Ended
Jun. 30, 2024
Rate Matters [Abstract]  
Rate Matters

10.  Rate Matters


From time to time, the Company files applications for rate increases with the PPUC and is granted rate relief as a result of such requests.  The most recent rate request was filed by the Company on May 27, 2022 and sought an annual increase in water rates of $18,854 and an annual increase in wastewater rates of $1,457.  Effective March 1, 2023, the PPUC authorized an increase in water rates designed to produce approximately $11,600 in additional annual revenues and an increase in wastewater rates designed to produce approximately $1,900 in additional annual revenues.

The PPUC permits water utilities to collect a distribution system improvement charge, or DSIC.  The DSIC allows the Company to add a charge to customers’ bills for qualified replacement costs of certain infrastructure without submitting a rate filing.  This surcharge mechanism typically adjusts periodically based on additional qualified capital expenditures completed or anticipated in a future period.  The DSIC is capped at 5% of base rates and is reset to zero when new base rates that reflect the costs of those additions become effective or when a utility’s earnings exceed a regulatory benchmark.  During its most recent quarterly reporting period, the Company’s earnings were below the regulatory benchmark, and the Company began recognizing DSIC in June 2024 for bills rendered after July 1, 2024 that included June consumption.  The DSIC provided revenues of $34 and $0 for the three months ended June 30, 2024 and 2023, respectively, and $34 and $271 for the six months ended June 30, 2024 and 2023, respectively.