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DEBT | 12 Months Ended
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Dec. 31, 2023
DEBT [Abstract] |
DEBT | NOTE 8 – DEBT At December 31, 2023, 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, 2023, there was $40.0 million of available funds under this line of credit. The previous interest rate for borrowings under this line was the London Interbank Offered Rate, or LIBOR, plus 1.00%. The LIBOR rate for USD currency was discontinued as of June 30, 2023. As a result, effective May 20, 2022, this line of credit agreement was amended to replace LIBOR with the Daily Secured Overnight Financing Rate, or SOFR. The interest rate is a one month SOFR plus 10 basis points, or Term SOFR, plus an applicable margin of 0.85%, which was increased to 1.10% effective August 3, 2023. Term SOFR cannot be less than 0.00%. 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 20, 2024 or any date on which Citizens demands payment. The Company expects to renew this line of credit. At December 31, 2023, 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, 2023, there was $20.0 million of available funds under this line of credit. The previous interest rate for borrowings under this line allowed the Company to select either LIBOR plus 1.50% or a weekly variable rate established by CoBank; the Company historically used the weekly variable interest rate. In October 2022, this line of credit was amended to replace the previous interest rate options with a daily SOFR rate plus 1.45% option or a term SOFR rate plus 1.45% option that is locked in for either one or three months. The term of this line of credit expires on October 31, 2024. Artesian Water expects to renew this line of credit. CoBank may make an annual patronage refund based on the average line of credit and loan volume outstanding in the prior year. The $20 million line of credit, the First Mortgage Bonds and the promissory note are with CoBank. Patronage refunds earned by Artesian in 2023 and 2022 were $1.6 million and $1.5 million, respectively. The weighted average interest rate on the lines of credit discussed above paid by the Company was 6.27% for the year ended December 31, 2023. These lines of credit, as well as the long-term debt obligations shown below, require us to abide by certain financial covenants and ratios. As of December 31, 2023, we were in compliance with these financial covenants. Long-term debt consists of:
|  | December 31, |
In thousands |  | 2023 |  |  | 2022 |
First mortgage bonds |  |  |  |  |  |
Series R, 5.96%, due December 31, 2028 |  | $ | 25,000 |  |  | $ | 25,000 |
Series S, 4.45%, due December 31, 2033 |  |  | 6,000 |  |  |  | 6,600 |
Series T, 4.24%, due December 20, 2036 |  |  | 40,000 |  |  |  | 40,000 |
Series U, 4.71%, due January 31, 2038 |  |  | 25,000 |  |  |  | 25,000 |
Series V, 4.42%, due October 31, 2049 |  |  | 30,000 |  |  |  | 30,000 |
Series W, 4.43%, due April 30, 2047 |  |  | 30,000 |  |  |  | 30,000 |
|  |  | 156,000 |  |  |  | 156,600 |
State revolving fund loans |  |  |  |  |  |  |  |
3.57%, due September 1, 2023 |  |  | — |  |  |  | 102 |
3.64%, due May 1, 2025 |  |  | 228 |  |  |  | 373 |
3.41%, due February 1, 2031 |  |  | 1,415 |  |  |  | 1,577 |
3.40%, due July 1, 2032 |  |  | 1,445 |  |  |  | 1,590 |
1.187%, due November 1, 2041 |  |  | 588 |  |  |  | 617 |
1.187%, due November 1, 2041 |  |  | 690 |  |  |  | 724 |
1.187%, due November 1, 2041 |  |  | 1,075 |  |  |  | 1,128 |
2.00%, due February 1, 2043 |  |  | 828 |  |  |  | 846 |
2.00%, due February 1, 2043 |  |  | 1,143 |  |  |  | 974 |
2.00%, due June 1, 2043 |  |  | 1,002 |  |  |  | 1,044 |
2.00%, due June 1, 2043 |  |  | 1,022 |  |  |  | — |
2.00%, due February 1, 2044 |  |  | 2,696 |  |  |  | — |
2.00%, due January 1, 2043 |  |  | 1,000 |  |  |  | — |
|  |  | 13,132 |  |  |  | 8,975 |
Notes Payable |  |  |  |  |  |  |  |
Promissory Note, 5.12%, due December 30, 2028 |  | $ | 10,155 |  |  | $ | 10,478 |
Asset Purchase, 2.00%, due May 26, 2027 |  |  | 1,255 |  |  |  | 1,569 |
|  |  | 11,410 |  |  |  | 12,047 |
Sub-total |  |  | 180,542 |  |  |  | 177,622 |
Less: current maturities (principal amount) |  |  | 2,235 |  |  |  | 2,003 |
Total long-term debt |  | $ | 178,307 |  |  | $ | 175,619 |
Payments of principal amounts due during the next five years and thereafter:
In thousands |  | 2024 |  |  | 2025 |  |  | 2026 |  |  | 2027 |  |  | 2028 |  |  | Thereafter |
First Mortgage bonds |  | $ | 600 |  |  | $ | 600 |  |  | $ | 600 |  |  | $ | 600 |  |  | $ | 25,600 |  |  | $ | 128,000 |
State revolving fund loans |  |  | 756 |  |  |  | 852 |  |  |  | 794 |  |  |  | 813 |  |  |  | 834 |  |  |  | 9,083 |
Asset Purchase-Contractual Obligation |  |  | 314 |  |  |  | 314 |  |  |  | 314 |  |  |  | 313 |  |  |  | — |  |  |  | — |
Promissory note |  |  | 565 |  |  |  | 480 |  |  |  | 505 |  |  |  | 532 |  |  |  | 559 |  |  |  | 7,514 |
Total payments |  | $ | 2,235 |  |  | $ | 2,246 |  |  | $ | 2,213 |  |  | $ | 2,258 |  |  | $ | 26,993 |  |  | $ | 144,597 |
Substantially all of Artesian Water’s utility plant is pledged as security for our First Mortgage Bonds. As of December 31, 2023, no other water utility plant has been pledged as security for loans. Two parcels of land in Artesian Wastewater are pledged as security for the promissory note.

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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/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(c)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 470 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//470/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (i) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1E -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I + Details
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