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DEBT | 12 Months Ended
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Dec. 31, 2017
DEBT [Abstract] |
DEBT | NOTE 6 DEBT At December 31, 2017, Artesian Resources had a $40 million line of credit with Citizens Bank, or Citizens, which is available to all subsidiaries of Artesian Resources. As of December 31, 2017, there was $35.9 million of available funds under this line of credit. The interest rate for borrowings under this line is the London Interbank Offered Rate, or LIBOR, plus 1.00%. This is a demand line of credit and therefore the financial institution may demand payment for any outstanding amounts at any time. The term of this line of credit expires on the earlier of May 25, 2018 or any date on which Citizens demands payment. The Company expects to renew this line of credit. At December 31, 2017, Artesian Water had a $20 million line of credit with CoBank, ACB, or CoBank, that allows for the financing of operations for Artesian Water, with up to $10 million of this line available for the operations of Artesian Water Maryland. As of December 31, 2017, there was $14.5 million of available funds under this line of credit. The interest rate for borrowings under this line is LIBOR plus 1.50%. CoBank may make an annual patronage refund, which has been equal to 1.00% of the average line of credit and loan volume outstanding by Artesian. The patronage refunds earned by Artesian in 2017 and 2016 were $0.6 million and $0.7 million, respectively. The term of this line of credit expires on July 20, 2018. The Company expects to renew this line of credit. On January 18, 2017, Artesian Water and CoBank entered into a Bond Purchase Agreement relating to the issue and sale by the Company to CoBank of a $40 million principal amount First Mortgage Bond, Series T, or the Series T Bond, due December 20, 2036, or the Maturity Date. The Series T Bond was issued pursuant to the Company's Indenture of Mortgage dated as of July 1, 1961, as amended and supplemented by supplemental indentures, including the Twenty-Second Supplemental Indenture, or the Supplemental Indenture, dated as of January 18, 2017 from the Company to Wilmington Trust Company, as Trustee. The Indenture is a first mortgage lien against substantially all of the Company's utility plant. The proceeds from the sale of the Series T Bond were used to prepay indebtedness of the Company under two existing First Mortgage Bonds: Series O, principal amount $20 million with interest rate of 8.17% and related prepayment costs of $4.5 million; and Series Q, principal amount $15.4 million with interest rate of 4.75%. The DEPSC approved the issuance of the Series T Bond on December 20, 2016. The DEPSC also approved deferral of the prepayment costs associated with the First Mortgage Bond, Series O and the previously deferred debt related costs associated with the First Mortgage Bonds, Series O and Series Q. The Series T Bond carries an annual interest rate of 4.24% through and including the Maturity Date. Interest is payable on June 30th and December 31st of each year, beginning June 30, 2017, until the Company's obligation with respect to the payment of principal, premium (if any) and interest shall be discharged. Overdue payments shall bear interest as provided in the Supplemental Indenture. The terms of the Series T Bond also include certain limitations on the Company's indebtedness. The weighted average interest rate on the lines of credit above paid by the Company was 2.28% for the year ended December 31, 2017. These lines of credit, as well as both the long-term debt and the state revolving fund loans shown below, require us to abide by certain financial covenants and ratios. As of December 31, 2017, we were in compliance with these covenants. Long-term debt consists of:
|  | December 31, |
In thousands |  | 2017 |  |  | 2016 |
First mortgage bonds |  |  |  |  |  |
Series O, 8.17%, due December 29, 2020 |  | $ | - |  |  | $ | 20,000 |
Series P, 6.58%, due January 31, 2018 |  |  | 25,000 |  |  |  | 25,000 |
Series Q, 4.75%, due December 1, 2043 |  |  | - |  |  |  | 15,400 |
Series R, 5.96%, due December 31, 2028 |  |  | 25,000 |  |  |  | 25,000 |
Series S, 4.45%, due December 31, 2033 |  |  | 9,600 |  |  |  | 10,200 |
Series T, 4.24%, due December 20, 2036 |  |  | 40,000 |  |  |  | - |
|  |  | 99,600 |  |  |  | 95,600 |
State revolving fund loans |  |  |  |  |  |  |  |
4.48%, due August 1, 2021 |  |  | 1,190 |  |  |  | 1,456 |
3.57%, due September 1, 2023 |  |  | 558 |  |  |  | 640 |
3.64%, due May 1, 2025 |  |  | 1,025 |  |  |  | 1,142 |
3.41%, due February 1, 2031 |  |  | 2,315 |  |  |  | 2,448 |
3.40%, due July 1, 2032 |  |  | 2,243 |  |  |  | 2,361 |
|  |  | 7,331 |  |  |  | 8,047 |
Sub-total |  |  | 106,931 |  |  |  | 103,647 |
Less: current maturities (principal amount) |  |  | 1,344 |  |  |  | 1,316 |
Total long-term debt |  | $ | 105,587 |  |  | $ | 102,331 |
Payments of principal amounts due during the next five years and thereafter:
In thousands |  | 2018 |  |  | 2019 |  |  | 2020 |  |  | 2021 |  |  | 2022 |  |  | Thereafter |
First Mortgage bonds |  | $ | 600 |  |  | $ | 600 |  |  | $ | 600 |  |  | $ | 600 |  |  | $ | 600 |  |  | $ | 96,600 |
State revolving fund loans |  |  | 744 |  |  |  | 771 |  |  |  | 801 |  |  |  | 832 |  |  |  | 533 |  |  |  | 3,651 |
Total payments |  | $ | 1,344 |  |  | $ | 1,371 |  |  | $ | 1,401 |  |  | $ | 1,432 |  |  | $ | 1,133 |  |  | $ | 100,251 |
The table above is reflective of the purchase of the $25 million principal amount First Mortgage Bond, Series U, or the Bond, due January 31, 2038, which was completed in January 2018. The proceeds from the sale of the Bond were used to pay in full at maturity indebtedness of the Company under First Mortgage Bond, Series P (see Note 18).

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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