Note 2 - Rate Matters	3 Months Ended
Jun. 30, 2011
Rate and Regulatory Matters
Rate Matters	Note 2 – Rate Matters In January 2011, Middlesex filed an application with the New Jersey Board of Public Utilities (NJBPU) seeking permission to establish a Purchased Water Adjustment Clause (PWAC) and implement a tariff rate sufficient to recover increased costs of $0.4 million to purchase untreated water from the New Jersey Water Supply Authority (NJWSA) and treated water from a non-affiliated regulated water utility. The parties have reached a settlement agreement accepting the $0.4 million PWAC, which has been approved by a New Jersey Administrative Law Judge. A final decision is expected from the NJBPU in late August 2011. We cannot predict whether the NJBPU will ultimately approve, deny, or reduce the amount of the request. A Distribution System Improvement Charge (DSIC) is a Delaware Public Service Commission (DEPSC) approved rate-mechanism that allows water utilities to recover investment in non-revenue producing capital improvements to the water system between base rate proceedings. Effective July 1, 2011, Tidewater’s DEPSC approved DSIC was increased from 1.34% to 1.98%. Effective June 1, 2011, the DEPSC approved a multi-year agreement for a phased-in base rate increase for Southern Shores. This increase was necessitated by capital investment in the upgrade and renovation of Southern Shores’ primary water treatment facilities, as well as by increased operating costs. Under the terms of the agreement, which expires on June 30, 2020, Southern Shores will also increase rates on January 1, 2012, and each successive January 1st through 2015, to generate approximately $0.1 million of additional revenue on an annual basis with each increase. Thereafter, rate increases, if any, cannot exceed the lesser of the regional Consumer Price Index or 3%. In June 2011, Twin Lakes filed an application with the Pennsylvania Public Utility Commission (PAPUC) seeking permission to increase its base rates by approximately $0.2 million per year. The request was made necessary by capital investments Twin Lakes has made or has committed to make as well as increased operations and maintenance costs. We cannot predict whether the PAPUC will ultimately approve, deny, or reduce the amount of the request. A decision by the PAPUC is not expected until early 2012. In July 2011, TESI filed an application with the DEPSC seeking permission to increase its base rates by approximately $0.8 million per year. The request was made necessary by capital investments TESI has made or has committed to make as well as increased operations and maintenance costs. We cannot predict whether the DEPSC will ultimately approve, deny, or reduce the amount of the request. A decision by the DEPSC is not expected until early 2012. Concurrent with the rate filing, TESI also submitted a request for a 15.0% interim rate increase subject to refund as allowed under DEPSC regulations. Those interim rates are expected to become effective September 30, 2011.

Note 2 - Rate Matters

3 Months Ended

Jun. 30, 2011

Note 2 – Rate Matters

In January 2011, Middlesex filed an application with the New Jersey Board of Public Utilities (NJBPU) seeking permission to establish a Purchased Water Adjustment Clause (PWAC) and implement a tariff rate sufficient to recover increased costs of $0.4 million to purchase untreated water from the New Jersey Water Supply Authority (NJWSA) and treated water from a non-affiliated regulated water utility. The parties have reached a settlement agreement accepting the $0.4 million PWAC, which has been approved by a New Jersey Administrative Law Judge. A final decision is expected from the NJBPU in late August 2011. We cannot predict whether the NJBPU will ultimately approve, deny, or reduce the amount of the request.

A Distribution System Improvement Charge (DSIC) is a Delaware Public Service Commission (DEPSC) approved rate-mechanism that allows water utilities to recover investment in non-revenue producing capital improvements to the water system between base rate proceedings. Effective July 1, 2011, Tidewater’s DEPSC approved DSIC was increased from 1.34% to 1.98%.

Effective June 1, 2011, the DEPSC approved a multi-year agreement for a phased-in base rate increase for Southern Shores. This increase was necessitated by capital investment in the upgrade and renovation of Southern Shores’ primary water treatment facilities, as well as by increased operating costs. Under the terms of the agreement, which expires on June 30, 2020, Southern Shores will also increase rates on January 1, 2012, and each successive January 1st through 2015, to generate approximately $0.1 million of additional revenue on an annual basis with each increase. Thereafter, rate increases, if any, cannot exceed the lesser of the regional Consumer Price Index or 3%.

In June 2011, Twin Lakes filed an application with the Pennsylvania Public Utility Commission (PAPUC) seeking permission to increase its base rates by approximately $0.2 million per year. The request was made necessary by capital investments Twin Lakes has made or has committed to make as well as increased operations and maintenance costs. We cannot predict whether the PAPUC will ultimately approve, deny, or reduce the amount of the request. A decision by the PAPUC is not expected until early 2012.

In July 2011, TESI filed an application with the DEPSC seeking permission to increase its base rates by approximately $0.8 million per year. The request was made necessary by capital investments TESI has made or has committed to make as well as increased operations and maintenance costs. We cannot predict whether the DEPSC will ultimately approve, deny, or reduce the amount of the request. A decision by the DEPSC is not expected until early 2012. Concurrent with the rate filing, TESI also submitted a request for a 15.0% interim rate increase subject to refund as allowed under DEPSC regulations. Those interim rates are expected to become effective September 30, 2011.