10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON DC 20549

FORM 10-Q

(Mark One) 

S QUARTERLY REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934. 

For the quarterly period ended September 30, 2021

£ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. 

For the transition period from_______________ to _______________

Commission File Number 1-6659 

ESSENTIAL UTILITIES, INC. 

(Exact name of registrant as specified in its charter) 

Pennsylvania	23-1702594
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)
762 W. Lancaster Avenue, Bryn Mawr, Pennsylvania	19010 -3489
(Address of principal executive offices)	(Zip Code)
(610) 527-8000
(Registrant’s telephone number, including area code)

N/A

(Former Name, former address and former fiscal year, if changed since last report.)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes S  No £

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes S  No £

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12(b)-2 of the Exchange Act.:  

Large Accelerated Filer S	Accelerated Filer £
Non-Accelerated Filer £	Smaller Reporting Company £
Emerging Growth Company £

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. £

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes £  No S

Securities registered pursuant to Section 12(b) of the Act:
Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, $0.50 par value	WTRG	New York Stock Exchange
6.00% Tangible Equity Units	WTRU	New York Stock Exchange

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of October 22, 2021: 252,742,882

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES

TABLE OF CONTENTS

	Page
Part I – Financial Information
Item 1. Financial Statements:
Consolidated Balance Sheets (unaudited) – September 30, 2021 and December 31, 2020	2
Consolidated Statements of Operations and Comprehensive Income (unaudited) – ‎Three Months Ended September 30, 2021 and 2020	4
Consolidated Statements of Operations and Comprehensive Income (unaudited) – ‎Nine Months Ended September 30, 2021 and 2020	5
Consolidated Statements of Capitalization (unaudited) – ‎September 30, 2021 and December 31, 2020	6
Consolidated Statements of Equity (unaudited) – ‎Nine Months Ended September 30, 2021	7
Consolidated Statements of Equity (unaudited) – ‎Nine Months Ended September 30, 2020	7
Consolidated Statements of Cash Flow (unaudited) – ‎Nine Months Ended September 30, 2021 and 2020,	9
Notes to Consolidated Financial Statements (unaudited)	10
Item 2. Management’s Discussion and Analysis of Financial ‎Condition and Results of Operations	38
Item 3. Quantitative and Qualitative Disclosures About Market Risk	51
Item 4. Controls and Procedures	51
Part II – Other Information
Item 1. Legal Proceedings		51
Item 1A. Risk Factors		51
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		52
Item 6. Exhibits		53
Signatures		54

1

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES 

CONSOLIDATED BALANCE SHEETS 

(In thousands of dollars, except per share amounts) 

(UNAUDITED)

	September 30,		December 31,
Assets	2021		2020
Property, plant and equipment, at cost	$	12,293,056	$	11,620,019
Less: accumulated depreciation		2,336,287		2,107,142
Net property, plant and equipment		9,956,769		9,512,877
Current assets:
Cash and cash equivalents		9,736		4,827
Accounts receivable, net		108,210		154,775
Unbilled revenues		63,479		118,538
Inventory - materials and supplies		35,023		21,669
Inventory - gas stored		78,787		36,732
Prepayments and other current assets		29,871		38,594
Regulatory assets		27,398		5,085
Total current assets		352,504		380,220
Regulatory assets		1,404,837		1,362,788
Deferred charges and other assets, net		118,910		56,002
Funds restricted for construction activity		1,288		1,268
Goodwill		2,340,836		2,324,547
Operating lease right-of-use assets		55,386		60,334
Intangible assets		5,955		7,241
Total assets	$	14,236,485	$	13,705,277
The accompanying notes are an integral part of these consolidated financial statements

2

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES 

CONSOLIDATED BALANCE SHEETS (continued)

(In thousands of dollars, except per share amounts) 

(UNAUDITED)

	September 30,		December 31,
Liabilities and Equity	2021		2020
Stockholders' equity:
Common stock at $0.50 par value, authorized 600,000,000 shares, issued 255,981,932 and 248,571,355 as of September 30, 2021 and December 31, 2020	$	127,990	$	124,285
Capital in excess of par value		3,698,095		3,379,057
Retained earnings		1,385,631		1,261,862
Treasury stock, at cost, 3,240,349 and 3,180,887 shares as of September 30, 2021 and December 31, 2020		(83,854)		(81,327)
Total stockholders' equity		5,127,862		4,683,877
Long-term debt, excluding current portion		5,638,961		5,545,890
Less: debt issuance costs		40,247		38,146
Long-term debt, excluding current portion, net of debt issuance costs		5,598,714		5,507,744
Commitments and contingencies (See Note 14)
Current liabilities:
Current portion of long-term debt		63,418		84,353
Loans payable		46,582		78,198
Accounts payable		163,836		177,489
Book overdraft		20,749		44,003
Accrued interest		70,461		39,408
Accrued taxes		37,502		37,172
Regulatory liabilities		171		19,866
Other accrued liabilities		113,310		123,384
Total current liabilities		516,029		603,873
Deferred credits and other liabilities:
Deferred income taxes and investment tax credits		1,352,425		1,258,098
Customers' advances for construction		110,939		99,014
Regulatory liabilities		778,416		773,310
Asset retirement obligations		1,363		1,336
Operating lease liabilities		50,086		55,642
Pension and other postretirement benefit liabilities		61,690		91,896
Other		50,856		56,713
Total deferred credits and other liabilities		2,405,775		2,336,009
Contributions in aid of construction		588,105		573,774
Total liabilities and equity	$	14,236,485	$	13,705,277
The accompanying notes are an integral part of these consolidated financial statements

3

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES 

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(In thousands, except per share amounts)

(UNAUDITED)

	Three Months Ended
	September 30,
	2021		2020
Operating revenues	$	361,860	$	348,647
Operating expenses:
Operations and maintenance		139,355		136,174
Purchased gas		25,488		16,744
Depreciation		72,606		68,175
Amortization		1,901		1,766
Taxes other than income taxes		21,058		20,555
Total operating expenses		260,408		243,414
Operating income		101,452		105,233
Other expense (income):
Interest expense		52,132		49,861
Interest income		(565)		(114)
Allowance for funds used during construction		(6,082)		(3,543)
Gain on sale of other assets		(320)		(233)
Equity loss in joint venture		-		3,626
Other		4,019		(4,127)
Income before income taxes		52,268		59,763
Provision for income taxes		1,765		4,031
Net income	$	50,503	$	55,732
Comprehensive income	$	50,503	$	55,732
Net income per common share:
Basic	$	0.20	$	0.22
Diluted	$	0.19	$	0.22
Average common shares outstanding during the period:
Basic		258,773		254,280
Diluted		259,437		255,162
The accompanying notes are an integral part of these consolidated financial statements

‎

4

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES 

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(In thousands, except per share amounts)

(UNAUDITED)

	Nine Months Ended
	September 30,
	2021		2020
Operating revenues	$	1,342,457	$	988,700
Operating expenses:
Operations and maintenance		391,945		371,415
Purchased gas		202,538		72,934
Depreciation		217,007		181,666
Amortization		4,616		4,412
Taxes other than income taxes		63,219		56,424
Total operating expenses		879,325		686,851
Operating income		463,132		301,849
Other expense (income):
Interest expense		154,937		136,650
Interest income		(1,290)		(5,346)
Allowance for funds used during construction		(13,922)		(8,721)
Gain on sale of other assets		(623)		(358)
Equity loss in joint venture		-		3,283
Other		(1,393)		(3,170)
Income before income taxes		325,423		179,511
Provision for income taxes (benefit)		10,317		(2,631)
Net income	$	315,106	$	182,142
Comprehensive income	$	315,106	$	182,142
Net income per common share:
Basic	$	1.23	$	0.73
Diluted	$	1.23	$	0.71
Average common shares outstanding during the period:
Basic		256,051		248,212
Diluted		256,763		255,139
The accompanying notes are an integral part of these consolidated financial statements

5

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES 

CONSOLIDATED STATEMENTS OF CAPITALIZATION 

(In thousands of dollars, except per share amounts) 

(UNAUDITED)

		September 30,		December 31,
		2021		2020
Stockholders' equity:
Common stock, $0.50 par value		$	127,990	$	124,285
Capital in excess of par value			3,698,095		3,379,057
Retained earnings			1,385,631		1,261,862
Treasury stock, at cost			(83,854)		(81,327)
Total stockholders' equity			5,127,862		4,683,877
Long-term debt of subsidiaries (substantially collateralized by utility plant):
Interest Rate Range	Maturity Date Range
0.00% to 0.99%	2023 to 2033		2,341		2,805
1.00% to 1.99%	2021 to 2039		9,578		10,260
2.00% to 2.99%	2022 to 2033		313,458		265,557
3.00% to 3.99%	2021 to 2056		1,361,263		1,316,872
4.00% to 4.99%	2021 to 2059		1,310,107		1,315,812
5.00% to 5.99%	2021 to 2043		17,222		17,804
6.00% to 6.99%	2022 to 2036		33,868		33,955
7.00% to 7.99%	2022 to 2027		29,212		29,890
8.00% to 8.99%	2021 to 2025		2,940		4,425
9.00% to 9.99%	2021 to 2026		11,800		16,900
			3,091,789		3,014,280
Notes payable to bank under revolving credit agreement, variable rate, due 2023			15,000		385,000
Unsecured notes payable:
Amortizing notes at 3.00% due 2022			30,590		60,502
Notes at 2.40% due 2031			400,000
Notes at 2.704% due 2030			500,000		500,000
Notes ranging from 3.01% to 3.59% due 2029 through 2050			1,125,000		1,125,000
Notes at 4.28%, due 2049			500,000		500,000
Notes ranging from 5.64% to 5.95%, due 2021 through 2034			40,000		45,461
			5,702,379		5,630,243
Current portion of long-term debt			63,418		84,353
Long-term debt, excluding current portion			5,638,961		5,545,890
Less: debt issuance costs			40,247		38,146
Long-term debt, excluding current portion, net of debt issuance costs			5,598,714		5,507,744
Total capitalization		$	10,726,576	$	10,191,621
The accompanying notes are an integral part of these consolidated financial statements

6

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES 

CONSOLIDATED STATEMENTS OF EQUITY 

(In thousands of dollars)

(UNAUDITED)

			Capital in
	Common		Excess of		Retained		Treasury
	Stock		Par Value		Earnings		Stock		Total
Balance at December 31, 2020	$	124,285	$	3,379,057	$	1,261,862	$	(81,327)	$	4,683,877
Net income		-		-		183,689		-		183,689
Dividends declared ($0.2507 per share)		-		-		(61,520)		-		(61,520)
Issuance of common stock under dividend reinvestment plan (98,904 shares)		49		4,112		-		-		4,161
Repurchase of stock (76,105 shares)		-		-		-		(3,262)		(3,262)
Equity compensation plan (192,407 shares)		97		(97)		-		-		-
Exercise of stock options (20,201 shares)		10		704		-		-		714
Stock-based compensation		-		2,631		(174)		-		2,457
Other		-		(31)		-		256		225
Balance at March 31, 2021	$	124,441	$	3,386,376	$	1,383,857	$	(84,333)	$	4,810,341
Net income		-		-		80,914		-		80,914
Dividends declared ($0.2507 per share)		-		-		(61,584)		-		(61,584)
Issuance of common stock under dividend reinvestment plan (90,654 shares)		46		4,049		-		-		4,095
Repurchase of stock (364 shares)		-		-		-		(17)		(17)
Equity compensation plan (4,874 shares)		2		(2)		-		-		-
Exercise of stock options (22,786 shares)		11		781		-		-		792
Stock-based compensation		-		2,316		(146)		-		2,170
Other		-		(148)		-		252		104
Balance at June 30, 2021	$	124,500	$	3,393,372	$	1,403,041	$	(84,098)	$	4,836,815
Net income		-		-		50,503		-		50,503
Dividends declared ($0.2682 per share)		-		-		(67,758)		-		(67,758)
Issuance of common stock from stock purchase contracts (127,749 shares)		64		(64)		-		-		-
Issuance of common stock under dividend reinvestment plan (92,993 shares)		46		4,295		-		-		4,341
Issuance of common stock from forward equity sale agreement (6,700,000 shares)		3,350		296,389		-		-		299,739
Repurchase of stock (176 shares)		-		-		-		(8)		(8)
Equity compensation plan (5,337 shares)		2		(2)		-		-		-
Exercise of stock options (54,672 shares)		28		1,759		-		-		1,787
Stock-based compensation		-		2,328		(155)		-		2,173
Other		-		18		-		252		270
Balance at September 30, 2021	$	127,990	$	3,698,095	$	1,385,631	$	(83,854)	$	5,127,862
The accompanying notes are an integral part of these consolidated financial statements

7

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES 

CONSOLIDATED STATEMENTS OF EQUITY 

(In thousands of dollars)

(UNAUDITED)

			Capital in
	Common		Excess of		Retained		Treasury
	Stock		Par Value		Earnings		Stock			Total
Balance at December 31, 2019	$	111,935	$	2,636,555	$	1,210,072	$	(77,702)	$	3,880,860
Net income		-		-		51,781		-		51,781
Dividends declared ($0.2343 per share)		-		-		(52,205)		-		(52,205)
Issuance of common stock from private placement (21,661,095 shares)		10,831		719,304		-		-		730,135
Issuance of common stock from stock purchase contracts (2,335,654 shares)		1,168		(1,168)		-		-		-
Issuance of common stock under dividend reinvestment plan (86,969 shares)		43		4,019		-		-		4,062
Repurchase of stock (81,722 shares)		-		-		-		(4,339)		(4,339)
Equity compensation plan (223,495 shares)		112		(112)		-		-		-
Exercise of stock options (56,106 shares)		28		922		-		-		950
Stock-based compensation		-		2,072		(147)		-		1,925
Other		-		(6)		-		-		(6)
Balance at March 31, 2020	$	124,117	$	3,361,586	$	1,209,501	$	(82,041)	$	4,613,163
Net income		-		-		74,629		-		74,629
Dividends declared ($0.2343 per share)		-		-		(57,414)		-		(57,414)
Expenses incurred for private placement issuance of common stock		-		(834)		-		-		(834)
Issuance of common stock under dividend reinvestment plan (100,148 shares)		50		3,949		-		-		3,999
Repurchase of stock (100 shares)		-		-		-		(4)		(4)
Equity compensation plan (4,594 shares)		2		(2)		-		-		-
Exercise of stock options (3,411 shares)		2		115		-		-		117
Stock-based compensation		-		1,918		(94)		-		1,824
Other		-		(37)		-		91		54
Balance at June 30, 2020	$	124,171	$	3,366,695	$	1,226,622	$	(81,954)	$	4,635,534
Net income		-		-		55,732		-		55,732
Dividends declared ($0.2507 per share)		-		-		(61,460)		-		(61,460)
Issuance of common stock under dividend reinvestment plan (104,637 shares)		52		4,209		-		-		4,261
Repurchase of stock (44 shares)		-		-		-		(2)		(2)
Equity compensation plan (6,088 shares)		3		(3)		-		-		-
Exercise of stock options (4,270 shares)		2		146		-		-		148
Stock-based compensation		-		2,082		(104)		-		1,978
Other		-		(753)		-		315		(438)
Balance at September 30, 2020	$	124,228	$	3,372,376	$	1,220,790	$	(81,641)	$	4,635,753
The accompanying notes are an integral part of these consolidated financial statements

8

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES 

CONSOLIDATED STATEMENTS OF CASH FLOW 

(In thousands of dollars) 

(UNAUDITED)

	Nine Months Ended
	September 30,
	2021		2020
Cash flows from operating activities:
Net income	$	315,106	$	182,142
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization		221,623		186,078
Deferred income taxes		12,645		1,120
Provision for doubtful accounts		21,220		23,598
Stock-based compensation		7,343		5,842
Gain on sale of utility systems and other assets		(1,208)		(339)
Net change in receivables, inventory and prepayments		(20,488)		24,886
Net change in payables, accrued interest, accrued taxes and other accrued liabilities		16,181		12,431
Pension and other postretirement benefits contributions		(15,109)		(16,100)
Other		4,539		997
Net cash flows from operating activities		561,852		420,655
Cash flows from investing activities:
Property, plant and equipment additions, including the debt component of allowance for funds used during construction of $2,885 and $2,957		(675,845)		(554,141)
Acquisitions of utility systems, net		(36,325)		(3,467,032)
Net proceeds from the sale of other assets		1,420		1,063
Other		(120)		465
Net cash flows used in investing activities		(710,870)		(4,019,645)
Cash flows from financing activities:
Customers' advances and contributions in aid of construction		12,473		7,475
Repayments of customers' advances		(3,091)		(3,992)
Net repayments of short-term debt		(31,616)		(160,420)
Proceeds from long-term debt		795,153		2,957,663
Repayments of long-term debt		(717,816)		(1,647,354)
Change in cash overdraft position		(23,255)		18,166
Proceeds from issuance of common stock under dividend reinvestment plan		12,597		12,322
Proceeds from issuance of common stock from private placement		-		729,301
Proceeds from issuance of common stock from forward equity sale agreement		299,739		-
Proceeds from exercised stock options		3,293		1,215
Repurchase of common stock		(3,287)		(4,345)
Dividends paid on common stock		(190,862)		(171,079)
Other		599		(390)
Net cash flows from financing activities		153,927		1,738,562
Net change in cash and cash equivalents		4,909		(1,860,428)
Cash and cash equivalents at beginning of period		4,827		1,868,922
Cash and cash equivalents at end of period	$	9,736	$	8,494
Non-cash investing activities:
Property, plant and equipment additions purchased at the period end, but not yet paid for	$	78,727	$	96,982
Non-cash customer advances and contributions in aid of construction		30,075		28,321
The accompanying notes are an integral part of these consolidated financial statements

9

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In thousands of dollars, except per share amounts)

(UNAUDITED)

Note 1 – Basis of Presentation

The accompanying unaudited consolidated balance sheets and statements of capitalization of Essential Utilities, Inc. and subsidiaries (collectively, the “Company”, “we”, “us” or “our”) at September 30, 2021, the unaudited consolidated statements of operations and comprehensive income for the three and nine months ended September 30, 2021 and 2020, and the unaudited consolidated statements of cash flows and consolidated statements of equity for the nine months ended September 30, 2021 and 2020, have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim reporting and the rules and regulations for reporting on Quarterly Reports on Form 10-Q. Because they cover interim periods, the statements and related notes to the financial statements do not include all disclosures and notes normally provided in annual financial statements and, therefore, should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Interim results are not necessarily indicative of results for a full year. In the opinion of management, all adjustments, consisting of only recurring accruals, which are necessary to present a fair statement of its consolidated financial position, consolidated changes in equity, consolidated results of operations, and consolidated cash flow for the periods presented, have been made.

The preparation of financial statements often requires the selection of specific accounting methods and policies. Further, significant estimates and judgments may be required in selecting and applying those methods and policies in the recognition of the assets and liabilities in its consolidated balance sheets, the revenues and expenses in its consolidated statements of operations and comprehensive income, and the information that is contained in its summary of significant accounting policies and notes to consolidated financial statements. Making these estimates and judgments requires the analysis of information concerning events that may not yet be complete and of facts and circumstances that may change over time. Accordingly, actual amounts or future results can differ materially from those estimates that the Company includes currently in its consolidated financial statements, summary of significant accounting policies, and notes.

In the preparation of these financial statements and related disclosures, we have assessed the impact that the COVID-19 pandemic has had on our estimates, assumptions, forecasts, and accounting policies. Because of the essential nature of our business, we do not believe the COVID-19 pandemic had a material impact on our estimates, assumptions and forecasts used in the preparation of our financial statements, although we continue to monitor this closely. As the COVID-19 pandemic is continuing to evolve, future events and effects related to the COVID-19 pandemic cannot be determined with precision, and actual results could significantly differ from our estimates or forecasts.

There have been no changes to the summary of significant accounting policies previously identified in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.

10

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(In thousands of dollars, except per share amounts)

(UNAUDITED)

Note 2 – Revenue Recognition

The following table presents our revenues disaggregated by major source and customer class:

	Three Months Ended								Three Months Ended
	September 30, 2021								September 30, 2020
	Water Revenues		Wastewater Revenues		Natural Gas Revenues		Other Revenues		Water Revenues		Wastewater Revenues		Natural Gas Revenues		Other Revenues
Revenues from contracts with customers:
Residential	$	148,247	$	25,147	$	49,838	$	-	$	157,387	$	24,175	$	46,913	$	-
Commercial		42,318		5,839		9,534		-		41,693		4,794		7,993		-
Fire protection		8,866		-		-		-		8,535		-		-		-
Industrial		8,217		401		415		-		9,022		388		1,407		-
Gas transportation & storage		-		-		27,794		-		-		-		26,248		-
Other water		14,539		-		-		-		9,524		-		-		-
Other wastewater		-		2,495		-		-		-		1,462		-		-
Customer rate credits		-		-		-		-		(3,757)		(323)		-		-
Other utility		-		-		7,488		3,241		-		-		5,763		6,548
Revenues from contracts with customers		222,187		33,882		95,069		3,241		222,404		30,496		88,324		6,548
Alternative revenue program		527		22		-		-		(341)		(143)		-		-
Other and eliminations		-		-		-		6,932		-		-		556		803
Consolidated	$	222,714	$	33,904	$	95,069	$	10,173	$	222,063	$	30,353	$	88,880	$	7,351
	Nine Months Ended								Nine Months Ended
	September 30, 2021								September 30, 2020
	Water Revenues		Wastewater Revenues			Natural Gas Revenues	Other Revenues		Water Revenues		Wastewater Revenues		Natural Gas Revenues		Other Revenues
Revenues from contracts with customers:
Residential	$	425,519	$	73,820	$	347,790	$	-	$	431,022	$	70,421	$	156,004	$	-
Commercial		113,473		16,102		65,404		-		108,311		14,186		23,887		-
Fire protection		26,830		-		-		-		26,437		-		-		-
Industrial		22,954		1,256		1,894		-		22,597		1,230		3,721		-
Gas transportation & storage		-		-		143,387		-		-		-		75,951		-
Other water		37,696		-		-		-		23,378		-		-		-
Other wastewater		-		6,808		-		-		-		3,449		-		-
Customer rate credits		-		-		-		-		(3,757)		(323)		-		-
Other utility		-		-		22,639		10,556		-		-		12,672		16,088
Revenues from contracts with customers		626,472		97,986		581,114		10,556		607,988		88,963		272,235		16,088
Alternative revenue program		1,357		18		206		-		(281)		(248)		154		-
Other and eliminations		-		-		-		24,748		-		-		1,409		2,392
Consolidated	$	627,829	$	98,004	$	581,320	$	35,304	$	607,707	$	88,715	$	273,798	$	18,480

On March 16, 2020, the Company completed the Peoples Gas Acquisition, which expanded the Company’s regulated utility business, to include natural gas distribution. The natural gas revenues of Peoples are included for the period since the date of the acquisition.

‎

11

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(In thousands of dollars, except per share amounts)

(UNAUDITED)

Revenues from Contracts with Customers – These revenues are composed of four main categories: water, wastewater, natural gas, and other. Water revenues represent revenues earned for supplying customers with water service. Wastewater revenues represent revenues earned for treating wastewater and releasing it into the environment. Natural gas revenues represent revenues earned for the gas commodity and delivery of natural gas to customers. Other revenues are associated fees that relate to our utility businesses but are not water, wastewater, or natural gas revenues. Refer to the description below for a discussion of the performance obligation for each of these revenue streams.

Tariff Revenues – These revenues are categorized by customer class: residential, commercial, fire protection, industrial, gas transportation, other water and other wastewater. The rates that generate these revenues are approved by the respective state utility commission, and revenues are billed cyclically and accrued for when unbilled. The regulated natural gas rates are set and adjusted for increases or decreases in our purchased gas costs through purchased gas adjustment mechanisms. Purchased gas adjustment mechanisms provide us with a means to recover purchased gas costs on an ongoing basis without filing a rate case. Other water and other wastewater revenues consist primarily of fines, penalties, surcharges, and availability lot fees. Our performance obligation for tariff revenues is to provide potable water, wastewater treatment service, or delivery and sale of natural gas to customers. This performance obligation is satisfied over time as the services are rendered. The amounts that the Company has a right to invoice for tariff revenues reflect the right to consideration from the customers in an amount that corresponds directly with the value transferred to the customer for the performance completed to date.

Other Utility Revenues – Other utility revenues represent revenues earned primarily from: antenna revenues, which represent fees received from telecommunication operators that have put cellular antennas on our water towers; operation and maintenance and billing contracts, which represent fees earned from municipalities for our operation of their water or wastewater treatment services or performing billing services; fees earned from developers for accessing our water mains; miscellaneous service revenue from gas distribution operations; gas processing and handling revenue; sales of natural gas at market-based rates and contracted fixed prices; sales of gas purchased from third parties; and other gas marketing activities. The performance obligations vary for these revenues, but all are primarily recognized over time as the service is delivered.

Alternative Revenue Program:

Water / Wastewater Revenues: These revenues represent the difference between the actual billed utility volumetric water and wastewater revenues for Aqua Illinois and the revenues set in the last Aqua Illinois rate case. In accordance with the Illinois Commerce Commission, we recognize revenues based on the target amount established in the last rate case, and then record either a regulatory asset or liability based on the cumulative annual difference between the target and actual amounts billed, which results in either a payment from customers or a refund due to customers. The cumulative annual difference is either refunded to customers or collected from customers over a nine-month period.

Natural Gas Revenues: These revenues represent the weather-normalization adjustment (“WNA”) mechanism in place for our natural gas customers served in Kentucky. The WNA serves to minimize the effects of weather on the Company’s results for its residential and small commercial natural gas customers. This regulatory mechanism adjusts revenues earned for the variance between actual and normal weather and can have either positive (warmer than normal) or

12

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(In thousands of dollars, except per share amounts)

(UNAUDITED)

negative (colder than normal) effects on revenues. Customer bills are adjusted in the December through April billing months, with rates adjusted for the difference between actual revenues and revenues calculated under this mechanism billed to the customers.

These revenue programs represent a contract between the utility and its regulators, not customers, and therefore are not within the scope of the Financial Accounting Standards Board’s (“FASB”) accounting guidance for recognizing revenue from contracts with customers.

Other and Eliminations – Other and eliminations consist of our market-based revenues, which comprises: our non-regulated natural gas operations, Aqua Infrastructure and Aqua Resources (described below) and intercompany eliminations for revenue billed between our subsidiaries. Our non-regulated natural gas operations consist of utility service line protection solutions and repair services to households and the operations of gas marketing and production entities. Revenue is recognized and the performance obligation is satisfied over time as the service is delivered.

Aqua Infrastructure is the holding company for our former 49% investment in a joint venture that operated a private pipeline system to supply raw water to natural gas well drilling operations in the Marcellus Shale of north central Pennsylvania. Prior to our October 30, 2020 sale of our investment in the joint venture, the joint venture earned revenues through providing non-utility raw water supply services to natural gas drilling companies which enter into water supply contracts. The performance obligation was to deliver non-potable water to the joint venture’s customers. Aqua Infrastructure’s share of the revenues recognized by the joint venture was reflected, net, in equity earnings in joint venture on our consolidated statements of operations and comprehensive income. Aqua Resources earned revenues by providing non-regulated water and wastewater services through an operating and maintenance contract which concluded in 2020, and continues to earn revenue through third party water and sewer service line protection and repair services. For the contract operations and maintenance business, the performance obligations were performing agreed upon contract services to operate the water and wastewater system. For the line protection business, the performance obligations are allowing the use of our logo to a third-party water and sewer service line repair provider. Revenues are primarily recognized over time as service is delivered.
‎

13

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(In thousands of dollars, except per share amounts)

(UNAUDITED)

Note 3 – Acquisitions

Peoples Gas Acquisition

On March 16, 2020 (the “Closing Date”), the Company completed the acquisition of Peoples Natural Gas (the “Peoples Gas Acquisition”), which expanded the Company’s regulated utility business to include natural gas distribution, serving approximately 750,000 natural gas utility customers in western Pennsylvania, West Virginia and Kentucky. The Company paid cash consideration of $3,465,344, which was subject to adjustment based upon the terms of the purchase agreement. Purchase price adjustments included the completion of a closing balance sheet, which was provided to the seller, and an adjustment for utility capital expenditures made by the seller during the period between November 1, 2018 and the Closing Date. In November 2021, the dispute between the parties regarding the adjustment for utility capital expenditures was resolved in accordance with the provisions of the purchase agreement and an inconsequential payment will be made between the parties. The purchase price paid by the Company was determined as follows:

Base purchase price	$	4,275,000
Adjustments:
Estimated change in working capital		43,935
Certain estimated capital expenditures		247,500
Assumption of indebtedness		(1,101,091)
Cash consideration	$	3,465,344

The assumption of $1,101,091 of indebtedness as of the Closing Date, consisted of $920,091 of senior notes and $181,000 of short-term debt. The acquisition was financed through a series of financing transactions which included the issuance of common stock from a public offering and a private placement, a tangible equity unit offering, and short and long-term debt.

14

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(In thousands of dollars, except per share amounts)

(UNAUDITED)

The Company accounted for the Peoples Gas Acquisition as a business combination using the acquisition method of accounting. The purchase price was allocated to the net tangible and intangible assets based upon their estimated fair values at the date of the acquisition. The purchase price allocation was preliminary and was subject to revision through the end of the measurement period on March 15, 2021. During the first quarter of 2021, the Company recorded an adjustment to increase goodwill by $16,400 primarily reflecting an adjustment to deferred income taxes and the valuation of accounts receivable. Goodwill recorded for the Peoples Gas Acquisition is not expected to be deductible for tax purposes. The following table summarizes the purchase price allocation as of the acquisition date and measurement period adjustments as of March 15, 2021:

	Amounts				Amounts
	Previously		Measurement		Recognized as of
	Recognized as of		Period		Acquisition Date
	Acquisition Date (a)		Adjustments		(as Adjusted)
Property, plant and equipment, net	$	2,476,551	$	-	$	2,476,551
Current assets		242,531		(9,197)		233,334
Regulatory assets		286,751		(22,293)		264,458
Goodwill		2,261,047		16,400		2,277,447
Other long-term assets		75,071		-		75,071
Total assets acquired		5,341,951		(15,090)		5,326,861
Current portion of long-term debt		5,136		-		5,136
Loans payable		181,000		-		181,000
Other current liabilities		186,120		(200)		185,920
Long-term debt		999,460		-		999,460
Deferred income taxes		213,647		(20,522)		193,125
Regulatory liabilities		123,029		6,389		129,418
Other long-term liabilities		168,215		(757)		167,458
Total liabilities assumed		1,876,607		(15,090)		1,861,517
Net assets acquired	$	3,465,344	$	-	$	3,465,344

(a)As reported, the Essential Utilities, Inc. Form 10-K for the period ended December 31, 2020.

15

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(In thousands of dollars, except per share amounts)

(UNAUDITED)

The Company incurred transaction-related expenses for the Peoples Gas Acquisition, which consisted of costs recorded as operations and maintenance expenses in the first quarter of 2020 of $25,397 primarily representing expenses associated with investment banking fees, including bridge financing, employee related costs, obtaining regulatory approvals, legal expenses, and integration planning. There were no further transaction-related expenses for the Peoples Gas Acquisition after the first quarter of 2020.

The results of Peoples have been included in our consolidated financial statements as of the Closing Date. Peoples contributed revenues of $280,300 and earnings of $6,131 for the period from the Closing Date to September 30, 2020. The following pro forma summary presents consolidated unaudited information as if the Peoples Gas Acquisition had occurred on January 1, 2019:

	Three Months Ended		Nine Months Ended
	September 30, 2020		September 30,2020
Operating revenues	$	348,647		$	1,269,768
Net income	55,732				264,785

The supplemental pro forma information is not necessarily representative of the actual results that may have occurred for the period or of the results that may occur in the future. This supplemental pro forma information is based upon the historical operating results of Peoples for the period prior to the Closing Date and is adjusted to reflect the effect of non-recurring acquisition-related costs, incurred in 2020 as if they occurred on January 1, 2019. The adjustments include $20,628 ($25,197 pre-tax) of expenses incurred in 2020, primarily associated with investment banking fees, obtaining regulatory approvals, legal expenses and other direct costs of the Peoples Gas Acquisition, adjustments to reflect net acquisition financing as of January 1, 2019 of $10,700 ($14,342 pre-tax), the elimination of interest on debt that was not assumed in the acquisition of $2,448 ($3,442 pre-tax), and the elimination of a management fee charged quarterly to Peoples by its former parent company of $885 ($1,245 pre-tax). Associated with the approval of the Peoples Gas Acquisition from the Pennsylvania Public Utility Commission, the Company committed to addressing the replacement of gathering pipe over a seven year timeframe for an estimated cost of $120,000, which will be recoverable through customer rates. Additionally, the Company committed to provide $23,004 of one-time customer rate credits to its Pennsylvania natural gas utility customers and water and wastewater customers served by Aqua Pennsylvania, Inc. (“Aqua Pennsylvania”). The Company granted $4,080 of customer rate credits to its water and wastewater customers during the third quarter of 2020, and $18,924 to its natural gas utility customers in the fourth quarter of 2020 to satisfy the $23,004 commitment.

Water and Wastewater Utility Acquisitions - Completed

In August 2021, the Company acquired the water utility system assets of The Commons Water Supply, Inc., which serves 992 customers in Harris County, Texas, and the wastewater utility system assets of the Village of Bourbonnais, which serves approximately 6,500 customers in Kankakee County, Illinois. The total cash purchase prices for these utility systems were $4,000 and $32,100, respectively.

In December 2020, the Company acquired the wastewater utility system assets of New Garden Township, Pennsylvania, which serves 1,965 customers. The total cash purchase price for the utility system was $29,944.

16

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(In thousands of dollars, except per share amounts)

(UNAUDITED)

In October 2020, the Company acquired the water and wastewater utility system of Rockwell Utilities, which serves 514 customers in the Village of Lakemoor in Lake County, Illinois. The total cash purchase price for the utility system was $4,859.

In June 2020, the Company acquired the wastewater utility system assets of East Norriton Township, Pennsylvania, which serves 4,947 customers. The total cash purchase price for the utility system was $21,000.

In January 2020, the Company acquired the water utility system assets of the City of Campbell, Ohio, which serves 3,126 customers. The total cash purchase price for the utility system was $7,472.

The purchase price allocation for these acquisitions consisted primarily of acquired property, plant and equipment.

The pro forma effect of the utility systems acquired is not material either individually or collectively to the Company’s results of operations.

Water and Wastewater Utility Acquisitions – Pending Completion

In October 2021, the Company entered into a purchase agreement to acquire the wastewater utility assets of the City of Beaver Falls, Pennsylvania which consists of approximately 7,600 customers for $41,250.

In July 2021, the Company entered into a purchase agreement to acquire the water utility assets of Shenandoah Borough, Pennsylvania which consists of approximately 2,930 customers for $12,000.  In April 2021, the Company entered into a purchase agreement to acquire certain water or wastewater utility assets of Oak Brook, Illinois which consists of approximately 2,121 customers for $12,500. In January 2021, the Company entered into purchase agreements to acquire, in separate transactions, the wastewater utility system assets of East Whiteland Township, Pennsylvania and Willistown Township, Pennsylvania which consist of approximately 10,500 customers for $72,400. In September 2020, the Company entered into a purchase agreement to acquire the wastewater utility system assets of Lower Makefield Township, Pennsylvania, which consists of approximately 11,000 customers for $53,000.

The purchase price for these pending acquisitions are subject to certain adjustments at closing, and are subject to regulatory approval, including the final determination of the fair value of the rate base acquired. We plan to finance the purchase price of these acquisitions by utilizing our revolving credit facility until permanent debt and common equity are secured. The closing for the wastewater assets of Lower Makefield Township is expected to occur in the first quarter of 2022, and the closings of our acquisitions of East Whiteland Township and Willistown Township are expected to occur in the second quarter of 2022. The closings of our Shenandoah and Beaver Falls acquisitions are expected to occur in the second half of 2022.  The closing of our Oak Brook acquisition is expected to occur in the fourth quarter of 2022. Closing for our utility acquisitions are subject to the timing of the respective regulatory approval processes.

17

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(In thousands of dollars, except per share amounts)

(UNAUDITED)

In September 2019, the Company entered into a purchase agreement to acquire the wastewater utility system assets of the Delaware County Regional Water Quality Control Authority (“DELCORA”), which consists of approximately 16,000 customers, or the equivalent of 198,000 retail customers, in 42 municipalities in Southeast Pennsylvania for $276,500. In May 2020, Delaware County, Pennsylvania filed a lawsuit alleging that DELCORA does not have the legal authority to establish and fund a customer trust with the net proceeds of the transaction. In December 2020, the judge in the Delaware County Court lawsuit issued an order that (1) the County cannot interfere with the purchase agreement between DELCORA and the Company; (2) the County cannot terminate DELCORA prior to the closing of the transaction; and (3) that the establishment of the customer trust was valid. Delaware County appealed this decision to Commonwealth Court of Pennsylvania, where this case is continuing. A three-judge panel heard oral arguments on October 18, 2021; a decision is expected in the next several months. The administrative law judges in the regulatory approval process recommended that the Company’s application be denied, and subsequently, the Company provided exceptions to the recommended decision. On March 25, 2021, the Pennsylvania Public Utility Commission ruled that the case be remanded back to the Office of Administrative Law Judge and vacated the original administrative law judges’ decision. On April 16, 2021, the administrative law judge issued an order staying the proceeding until the Delaware County Court lawsuit is final and unappealable. The purchase price for this pending acquisition is subject to certain adjustments at closing, and is subject to regulatory approval, including the final determination of the fair value of the rate base acquired. We plan to finance the purchase price of this acquisition by the issuance of common stock and by utilizing our revolving credit facility until permanent debt is secured. Closing of our acquisition of DELCORA is expected to occur in 2022, subject to the timing of the regulatory approval process and DELCORA’s above-referenced litigation with Delaware County.

Note 4 – Goodwill 

The following table summarizes the changes in the Company’s goodwill, by business segment:

	Regulated Water		Regulated Natural Gas		Other		Consolidated
Balance at December 31, 2020	$	58,659	$	2,261,047	$	4,841	$	2,324,547
Goodwill acquired		-		-		-		-
Measurement period purchase price allocation adjustments		-		16,400		-		16,400
Reclassification to utility plant acquisition adjustment		(111)		-		-		(111)
Balance at September 30, 2021	$	58,548	$	2,277,447	$	4,841	$	2,340,836

The measurement period purchase price allocation adjustments resulted from the completion of the Peoples Gas Acquisition on March 16, 2020, which resulted in goodwill of $2,277,447 which was subject to adjustment over the one year measurement period that ended on March 15, 2021. Refer to Note 3 – Acquisitions for information about the goodwill attributed to our Regulated Natural Gas segment.

‎

18

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(In thousands of dollars, except per share amounts)

(UNAUDITED)

The reclassification of goodwill to utility plant acquisition adjustment results from a mechanism approved by the applicable utility commission. The mechanism provides for the transfer over time, and the recovery through customer rates, of goodwill associated with some acquisitions upon achieving specific objectives.

Goodwill is not amortized but is tested for impairment annually, or more often, if circumstances indicate it is more likely than not that the fair value of a reporting unit is less than its carrying amount. When testing goodwill for impairment, the Company may assess qualitative factors, including macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, and entity specific events, for some or all of our reporting units to determine whether it’s more likely than not that the fair value of a reporting unit is less than its carrying amount. Alternatively, based on our assessment of the qualitative factors previously noted, we may perform a quantitative goodwill impairment test by determining the fair value of a reporting unit. If we perform a quantitative test and determine that the fair value of a reporting unit is less than its carrying amount, we would record an impairment loss for the amount by which a reporting unit’s carrying amount exceeds its fair value, not to exceed the carrying amount of goodwill.

The Company performed a quantitative assessment for its annual test of the goodwill attributable to its Regulated Natural Gas reporting unit as of July 31, 2021. We estimated the fair value of the reporting unit by weighting results from the market approach and the income approach. Key assumptions in the valuation methodologies for goodwill included growth rates, terminal value, discount rates, and comparable multiples from publicly traded companies in our industry.  Based on our analysis, we determined that the fair values of our Regulated Natural Gas reporting unit exceeded their carrying values, indicating none of its goodwill was impaired.

The Company performed a qualitative assessment for its Regulated Water and Aqua Resources reporting units as of July 31, 2021, and concluded that it is more likely than not that the fair value of each reporting unit, which has goodwill recorded, exceeded its carrying amount, indicating that none of their goodwill was impaired.

Note 5 –Disposition

In October 2020, the Company sold its investment in a joint venture. Its investment represented its 49% investment in a joint venture that operates a private pipeline system to supply raw water to natural gas well drilling operations in the Marcellus Shale of north central Pennsylvania. This investment was an unconsolidated affiliate and was accounted for under the equity method of accounting within our Aqua Infrastructure subsidiary. In the third quarter of 2020, we recorded a charge of $3,700 for the write-down of the Company’s investment associated with the sale, which was reported in equity loss in joint venture.

19

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(In thousands of dollars, except per share amounts)

(UNAUDITED)

Note 6 – Capitalization

In April 2021, the Company filed a universal shelf registration through a filing with the Securities and Exchange Commission (“SEC”) to allow for the potential future offer and sale by the Company, from time to time, in one or more public offerings, of an indeterminate amount of our common stock, preferred stock, debt securities and other securities specified therein at indeterminate prices.

Stockholders’ Equity

In August 2020, the Company entered into a forward equity sale agreement for 6,700,000 shares of common stock with a third party (the “forward purchaser”). In connection with the forward equity sale agreement, the forward purchaser borrowed an equal number of shares of the Company’s common stock from stock lenders and sold the borrowed shares to the public. The Company did not receive any proceeds from the sale of its common stock by the forward purchaser until settlement of the shares underlying the forward equity sale agreement. The actual proceeds to be received by the Company would have varied depending upon the settlement date, the number of shares designated for settlement on that settlement date and the method of settlement. The forward equity sale agreement was accounted for as an equity instrument and was recorded at a fair value of $0 at inception. The fair value was not adjusted as the Company continued to meet the accounting requirements for equity instruments.

On August 9, 2021, the Company settled the forward equity sale agreement in full by physical share settlement. The Company issued 6,700,000 shares and received cash proceeds of $299,739 at a forward price of $44.74 per share. Pursuant to the agreement, the forward price was computed based upon the initial forward price of $46.00 per share, adjusted for a floating interest rate factor equal to a specified daily rate less a spread and scheduled dividends during the term of the agreement. The Company used the proceeds received upon settlement of the forward equity sale agreement to fund general corporate purposes, including for water and wastewater acquisitions, working capital and capital expenditures. The forward equity sale agreement has now been completely settled, and there are no additional shares subject to the forward equity sale agreement.

Private Placement

On March 29, 2019, the Company entered into a Stock Purchase Agreement (the “Stock Purchase Agreement”) with Canada Pension Plan Investment Board (the “Investor”), pursuant to which the Company agreed to issue and sell to the Investor in a private placement (the “Private Placement”) 21,661,095 newly issued shares of common stock, par value $0.50 per share (the “Common Stock”). On March 16, 2020, in connection with the closing of the Peoples Gas Acquisition, the Company closed on the Private Placement and received gross proceeds of $749,907, less expenses of $20,606. In June 2021, the Company filed a registration statement on Form S-3 ASR registering the Private Placement shares for resale.

The shares issued and sold to the Investor pursuant to the Private Placement were to be priced at the lower of (1) $34.62, which represents a 4.5% discount to the trailing 20 consecutive trading day volume weighted average price of the Common Stock ending on, and including, March 28, 2019, and (2) the volume weighted average price per share in the Company’s subsequent public offering of Common Stock to fund a portion of the Peoples Gas Acquisition.

20

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(In thousands of dollars, except per share amounts)

(UNAUDITED)

The Stock Purchase Agreement contains customary representations, warranties and covenants of the Company and the Investor, and the parties have agreed to indemnify each other for losses related to breaches of their respective representations and warranties. At the closing of the Private Placement, the Company reimbursed the Investor for reasonable out-of-pocket diligence expenses of $4,000.

Tangible Equity Unit Issuances

On April 23, 2019, the Company issued $690,000, less expenses of $16,358, of its tangible equity units (the “Units”), with a stated amount of $50 per unit. This issuance was part of the permanent financing to close the Peoples Gas Acquisition.

Each Unit consists of a prepaid stock purchase contract and an amortizing note due April 30, 2022, each issued by the Company. Unless earlier settled or redeemed, each stock purchase contract will automatically settle on April 30, 2022 (subject to postponement in limited circumstances) for between 1.1790 and 1.4442 shares of the Company’s common stock, subject to adjustment, based upon the applicable market value of the common stock, as described in the final prospectus supplement relating to the Units. During the nine months ended September 30, 2021, 107,904 stock purchase contracts were early settled by the holders of the contracts, resulting in the issuance of 127,749 shares of the Company’s common stock. As of September 30, 2021, the balance of stock purchase contracts is 7,603,234. The amortizing notes have an initial principal amount of $8.62909, or $119,081 in aggregate, and bear interest at a rate of 3.00% per year, and pay equal quarterly cash installments of $0.75000 per amortizing note (except for the July 30, 2019 installment payment, which was $0.80833 per amortizing note), that will constitute a payment of interest and a partial repayment of principal, and which cash payment in the aggregate will be equivalent to 6.00% per year with respect to each $50 stated amount of the Units. The amortizing notes represent unsecured senior obligations of the Company.

Long-term Debt and Loans Payable

On April 15, 2021, the Company’s operating subsidiary, Aqua Ohio, Inc., issued $100,000 of first mortgage bonds, of which $50,000 is due in 2031 and $50,000 is due in 2051, with interest rates of 2.37% and 3.35%, respectively. The proceeds from these bonds were used for general corporate purposes and to repay existing indebtedness. Further, on April 19, 2021, the Company issued $400,000 of long-term debt, less expenses of $4,010, which is due in 2031 with an interest rate of 2.40%. The Company used the proceeds from this issuance to repay $50,000 of borrowings under the Aqua Pennsylvania revolving credit facility, and the balance was used to repay in full the borrowings under its existing five year unsecured revolving credit agreement.

The Company completed the Peoples Gas Acquisition on March 16, 2020, which resulted in the assumption of $1,101,091 of indebtedness, which includes $920,091 of senior notes and $181,000 of short-term debt. The senior notes have maturities ranging from 2020 to 2032 and interest rates that range from 2.90% to 6.42%. The short-term debt assumed at closing was repaid with the proceeds from the Company’s subsequent April 2020 long-term debt issuance.

‎

21

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(In thousands of dollars, except per share amounts)

(UNAUDITED)

Note 7 – Financial Instruments 

The Company follows the FASB’s accounting guidance for fair value measurements and disclosures, which defines fair value and establishes a framework for using fair value to measure assets and liabilities. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows:

l	Level 1: unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access;
l	Level 2: inputs other than Level 1 that are observable, either directly or indirectly, such as quoted market prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in non-active markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; or
l	Level 3: inputs that are unobservable and significant to the fair value measurement.

The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. There have been no changes in the valuation techniques used to measure fair value, or asset or liability transfers between the levels of the fair value hierarchy for the quarter ended September 30, 2021. 

Financial instruments are recorded at carrying value in the financial statements and approximate fair value as of the dates presented.  The fair value of these instruments is disclosed below in accordance with current accounting guidance related to financial instruments. 

The fair value of loans payable is determined based on its carrying amount and utilizing Level 1 methods and assumptions. As of September 30, 2021 and December 31, 2020, the carrying amount of the Company’s loans payable was $46,582 and $78,198, respectively, which equates to their estimated fair value. The fair value of cash and cash equivalents, is determined based on Level 1 methods and assumptions. As of September 30, 2021 and December 31, 2020, the carrying amounts of the Company's cash and cash equivalents was $9,736 and $4,827, respectively, which equates to their fair value. The Company’s assets underlying the deferred compensation and non-qualified pension plans are determined by the fair value of mutual funds, which are based on quoted market prices from active markets utilizing Level 1 methods and assumptions. As of September 30, 2021 and December 31, 2020, the carrying amount of these securities was $28,895 and $25,780, respectively, which equates to their fair value, and is reported in the consolidated balance sheet in deferred charges and other assets.

22

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(In thousands of dollars, except per share amounts)

(UNAUDITED)

Unrealized gain and losses on equity securities held in conjunction with our non-qualified pension plan is as follows:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
Net gain recognized during the period on equity securities	$	196	$	305	$	695	$	244
Less: net gain / loss recognized during the period on equity securities sold during the period		-		-		-		-
Unrealized gain recognized during the reporting period on equity securities still held at the reporting date	$	196	$	305	$	695	$	244

The net gain (loss) recognized on equity securities is presented on the consolidated statements of operations and comprehensive income on the line item “Other.”

The carrying amounts and estimated fair values of the Company’s long-term debt is as follows:

	September 30,		December 31,
	2021		2020
Carrying amount	$	5,702,379	$	5,630,243
Estimated fair value		6,299,160		6,366,030

The fair value of long-term debt has been determined by discounting the future cash flows using current market interest rates for similar financial instruments of the same duration utilizing Level 2 methods and assumptions.

The Company’s customers’ advances for construction have a carrying value of $110,939 as of September 30, 2021, and $99,014 as of December 31, 2020. Their relative fair values cannot be accurately estimated because future refund payments depend on several variables, including new customer connections, customer consumption levels, and future rates. Portions of these non-interest-bearing instruments are payable annually through 2031, and amounts not paid by the respective contract expiration dates become non-refundable. The fair value of these amounts would, however, be less than their carrying value due to the non-interest-bearing feature.

23

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(In thousands of dollars, except per share amounts)

(UNAUDITED)

Note 8 – Net Income per Common Share

Basic net income per common share is based on the weighted average number of common shares outstanding and the minimum number of shares to be issued upon settlement of the stock purchase contracts issued under the tangible equity units. Diluted net income per common share is based on the weighted average number of common shares outstanding, potentially dilutive shares, and the expected number of shares to be issued upon settlement of the stock purchase contracts issued under the tangible equity units, based on the applicable market value of our common stock. The dilutive effect of employee stock-based compensation and shares issuable under the forward equity sale agreement (from the date the Company entered into the forward equity sale agreement to the settlement date) are included in the computation of diluted net income per common share. The dilutive effect of stock-based compensation and shares issuable under the forward equity sale agreement are calculated using the treasury stock method and expected proceeds upon exercise or issuance of the stock-based compensation and settlement of the forward equity sale agreement. The treasury stock method assumes that the proceeds from stock-based compensation and settlement of the forward equity sale agreement are used to purchase the Company’s common stock at the average market price during the period. The following table summarizes the shares, in thousands, used in computing basic and diluted net income per common share: 

	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2021	2020	2021	2020
Average common shares outstanding during the period for basic computation	258,773	254,280	256,051	248,212
Effect of dilutive securities:
Forward equity sale agreement	223	-	216	-
Issuance of common stock from private placement	-	-	-	5,929
Tangible equity units	-	591	-	615
Employee stock-based compensation	441	291	496	383
Average common shares outstanding during the period for diluted computation	259,437	255,162	256,763	255,139

For the three and nine months ended September 30, 2020, the average common shares outstanding during the period for diluted computation reflects the impact of the issuance of common stock from the March 16, 2020 private placement as if the shares were issued on January 1, 2020.

The average common shares outstanding during the period for basic computation includes the weighted-average impact of 9,022,040 and 9,067,879 shares for the three and nine months ended September 30, 2021, respectively, and 9,091,179 and 9,464,482 shares for the three and nine months ended September 30, 2020, respectively, based on the minimum number of shares of 8,964,213 to be issued in April 2022 upon settlement of the stock purchase contracts issued in April 2019 under the tangible equity units. Further, for the three and nine months ended September 30, 2020, average common shares outstanding during the period for diluted computation includes the impact of the additional shares to be issued in April 2022 upon settlement of the stock purchase contracts based on the threshold appreciation price of $42.41.

24

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(In thousands of dollars, except per share amounts)

(UNAUDITED)

For the three and nine months ended September 30, 2021 and 2020, all of the Company’s outstanding employee stock options were included in the calculations of diluted net income per share as the calculated cost to exercise employee stock options was less than the average market price of the Company’s common stock during these periods. Additionally, the dilutive effect of performance share units and restricted share units granted are included in the Company’s calculation of diluted net income per share.

Note 9 – Stock-based Compensation 

Under the Company’s Amended and Restated Equity Compensation Plan (the “Plan”) approved by the Company’s shareholders on May 2, 2019, to replace the 2004 Equity Compensation Plan, stock options, stock units, stock awards, stock appreciation rights, dividend equivalents, and other stock-based awards may be granted to employees, non-employee directors, and consultants and advisors. The Plan authorizes 6,250,000 shares for issuance under the Plan. A maximum of 3,125,000 shares under the Plan may be issued pursuant to stock awards, stock units and other stock-based awards, subject to adjustment as provided in the Plan. During any calendar year, no individual may be granted (i) stock options and stock appreciation rights under the Plan for more than 500,000 shares of Company stock in the aggregate or (ii) stock awards, stock units or other stock-based awards under the Plan for more than 500,000 shares of Company stock in the aggregate, subject to adjustment as provided in the Plan. Awards to employees and consultants under the Plan are made by a committee of the Board of Directors of the Company, except that with respect to awards to the Chief Executive Officer, the committee recommends those awards for approval by the non-employee directors of the Board of Directors. In the case of awards to non-employee directors, the Board of Directors makes such awards. At September 30, 2021, 1,955,579 shares were still available for issuance under the Plan. No further grants may be made under the Company’s 2004 Equity Compensation Plan.  

Performance Share Units – A performance share unit (“PSU”) represents the right to receive a share of the Company’s common stock if specified performance goals are met over the three year performance period specified in the grant, subject to exceptions through the respective vesting period, which is generally three years. Each grantee is granted a target award of PSUs and may earn between 0% and 200% of the target amount depending on the Company’s performance against the performance goals. The following table provides compensation costs for stock-based compensation related to PSUs:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
Stock-based compensation within operations and maintenance expenses	$	1,285	$	918	$	4,216	$	2,364
Income tax benefit		365		252		1,191		660

25

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(In thousands of dollars, except per share amounts)

(UNAUDITED)

The following table summarizes the PSU transactions for the nine months ended September 30, 2021:  

	Number	Weighted
	of	Average
	Share Units	Fair Value
Nonvested share units at beginning of period	283,007	$	34.57
Granted	152,068		43.18
Performance criteria adjustment	27,643		53.62
Forfeited	(5,588)		45.84
Share units issued	(141,328)		31.36
Nonvested share units at end of period	315,802		41.51

A portion of the fair value of PSUs was estimated at the grant date based on the probability of satisfying the market-based conditions using the Monte Carlo valuation method, which assesses probabilities of various outcomes of market conditions. The other portion of the fair value of the PSUs is based on the fair market value of the Company’s stock at the grant date, regardless of whether the market-based condition is satisfied. The per unit weighted-average fair value at the date of grant for PSUs granted during the nine months ended September 30, 2021 and 2020 was $43.18 and $55.43, respectively. The fair value of each PSU grant is amortized monthly into compensation expense on a straight-line basis over their respective vesting periods, generally 36 months. The accrual of compensation costs is based on the Company’s estimate of the final expected value of the award and is adjusted as required for the portion based on the performance-based condition. The Company assumes that forfeitures will be minimal, and recognizes forfeitures as they occur, which results in a reduction in compensation expense. As the payout of the PSUs includes dividend equivalents, no separate dividend yield assumption is required in calculating the fair value of the PSUs. The recording of compensation expense for PSUs has no impact on net cash flows.  

Restricted Stock Units – A restricted stock unit (“RSU”) represents the right to receive a share of the Company’s common stock. RSUs are eligible to be earned at the end of a specified restricted period, which is generally three years, beginning on the date of grant. The Company assumes that forfeitures will be minimal and recognizes forfeitures as they occur, which results in a reduction in compensation expense. As the payout of the RSUs includes dividend equivalents, no separate dividend yield assumption is required in calculating the fair value of the RSUs. The following table provides the compensation cost and income tax benefit for stock-based compensation related to RSUs:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
Stock-based compensation within operations and maintenance expenses	$	724	$	550	$	2,089	$	1,582
Income tax benefit		205		148		586		438

26

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(In thousands of dollars, except per share amounts)

(UNAUDITED)

The following table summarizes the RSU transactions for the nine months ended September 30, 2021: 

	Number	Weighted
	of	Average
	Stock Units	Fair Value
Nonvested stock units at beginning of period	163,906	$	40.80
Granted	85,829		44.44
Stock units vested and issued	(49,692)		35.33
Forfeited	(3,325)		43.30
Nonvested stock units at end of period	196,718		43.72

The per unit weighted-average fair value at the date of grant for RSUs granted during the nine months ended September 30, 2021 and 2020 was $44.44 and $49.40, respectively.  

Stock Options – A stock option represents the option to purchase a number of shares of common stock of the Company as specified in the stock option grant agreement at the exercise price per share as determined by the closing market price of our common stock on the grant date. Stock options are exercisable in installments of 33% annually, starting one year from the grant date and expire 10 years from the grant date, subject to satisfaction of designated performance goals. The fair value of each stock option is amortized into compensation expense using the graded-vesting method, which results in the recognition of compensation costs over the requisite service period for each separately vesting tranche of the stock options as though the stock options were, in substance, multiple stock option grants. The following table provides the compensation cost and income tax benefit for stock-based compensation related to stock options:

	Three Months Ended				Nine Months Ended
	September 30,					September 30,
	2021		2020		2021		2020
Stock-based compensation within operations and maintenance expenses	$	94	$	279	$	395	$	1,046
Income tax benefit		27		79		113		296

The Company did not grant stock options for the nine months ended September 30, 2021 and 2020.

27

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(In thousands of dollars, except per share amounts)

(UNAUDITED)

The following table summarizes stock option transactions for the nine months ended September 30, 2021:

		Weighted		Weighted
		Average		Average	Aggregate
		Exercise		Remaining	Intrinsic
	Shares	Price		Life (years)	Value
Outstanding at beginning of period	948,270	$	35.22
Granted	-		-
Forfeited	(7,219)		35.91
Expired	(984)		33.93
Exercised	(97,659)		33.72
Outstanding at end of period	842,408	$	35.22	7.1		9,009,081
Exercisable at end of period	609,410	$	35.17	7.0		6,650,661

Restricted Stock – Restricted stock awards provide the grantee with the rights of a shareholder, including the right to receive dividends and to vote such shares, but not the right to sell or otherwise transfer the shares during the restriction period. Restricted stock awards result in compensation expense that is equal to the fair market value of the stock on the date of the grant and is amortized ratably over the restriction period. The Company expects forfeitures of restricted stock to be de minimis. The following table provides the compensation cost and income tax benefit for stock-based compensation related to restricted stock:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
Stock-based compensation within operations and maintenance expenses	$	11	$	103	$	117	$	220
Income tax benefit		3		30		34		64

The following table summarizes restricted stock transactions for the nine months ended September 30, 2021:

	Number	Weighted
	of	Average
	Shares	Fair Value
Nonvested restricted stock at beginning of period	13,228	$	34.02
Granted	1,068		46.83
Vested	(13,228)		34.02
Nonvested restricted stock at end of period	1,068	$	46.83

The weighted-average fair value at the date of the grant for restricted stock awards granted during the nine months ended September 30, 2021 and 2020 was $46.83 and $34.02, respectively.

28

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(In thousands of dollars, except per share amounts)

(UNAUDITED)

Stock Awards – Stock awards represent the issuance of the Company’s common stock, without restriction. The issuance of stock awards results in compensation expense that is equal to the fair market value of the stock on the grant date and is expensed immediately upon grant. The following table provides the compensation cost and income tax benefit for stock-based compensation related to stock awards:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
Stock-based compensation within operations and maintenance expenses	$	175	$	175	$	525	$	520
Income tax benefit		51		50		152		150

The following table summarizes stock award transactions for the nine months ended September 30, 2021:

	Number	Weighted
	of	Average
	Stock Awards	Fair Value
Nonvested stock awards at beginning of period	-	$	-
Granted	11,487		45.71
Vested	(11,487)		(45.71)
Nonvested stock awards at end of period	-		-

The weighted-average fair value at the date of grant for stock awards granted during the nine months ended September 30, 2021 and 2020 was $45.71 and $40.54, respectively.

29

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(In thousands of dollars, except per share amounts)

(UNAUDITED)

Note 10 – Pension Plans and Other Postretirement Benefits  

The Company maintains a qualified defined benefit pension plan (the “Pension Plan”), a nonqualified pension plan, and other postretirement benefit plans for certain of its employees. On March 16, 2020, we completed the Peoples Gas Acquisition and assumed the pension and other postretirement benefit plans for its employees. The operating results of Peoples has been included in our consolidated financial statements since the date of acquisition. On April 1, 2020, the Company merged the pension plans acquired in the Peoples Gas Acquisition into the Company’s legacy Pension Plan.

The following tables provide the components of net periodic benefit cost for the Company’s pension and other postretirement benefit plans:

	Pension Benefits
	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
Service cost	$	775	$	992	$	2,728	$	2,783
Interest cost		3,351		3,642		9,667		10,003
Expected return on plan assets		(5,733)		(5,676)		(17,432)		(15,573)
Amortization of prior service cost		140		148		419		444
Amortization of actuarial loss		555		1,992		2,352		5,976
Net periodic benefit cost	$	(912)	$	1,098	$	(2,266)	$	3,633
	Other
	Postretirement Benefits
		Three Months Ended				Nine Months Ended
		September 30,				September 30,
	2021		2020		2021		2020
Service cost	$	698	$	662	$	2,094	$	1,614
Interest cost		840		989		2,520		2,707
Expected return on plan assets		(1,039)		(1,111)		(3,117)		(2,969)
Amortization of prior service credit		(108)		(116)		(324)		(348)
Amortization of actuarial loss		55		156		165		468
Net periodic benefit cost	$	446	$	580	$	1,338	$	1,472

The net periodic benefit cost is based on estimated values and an extensive use of assumptions about the discount rate, expected return on plan assets, the rate of future compensation increases received by the Company’s employees, mortality, turnover, and medical costs. The Company presents the components of net periodic benefit cost other than service cost in the consolidated statements of operations and comprehensive income on the line item “Other”.

30

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(In thousands of dollars, except per share amounts)

(UNAUDITED)

The Company made cash contributions of $14,775 to its Pension Plan during the first nine months of 2021, which completed the Company’s expected cash contributions for the year.

During the second quarter of 2021, the Company remeasured its Pension Plan’s obligations and assets due to a plan amendment, effective May 1, 2021, that ended benefit accrual for a certain group of participants in the Pension Plan.  The remeasurement resulted in a decrease in pension benefit obligation and regulatory assets totaling $20,732, of which $17,520 is attributable to the increase in the discount rate assumption from 2.57% at December 31, 2020 to 3.08% at May 1, 2021, and $3,212 is due to the curtailment of benefits. All other assumptions used for the remeasurement were consistent with the valuation as of December 31, 2020.  

Note 11 – Rate Activity 

On August 20, 2021, the Company’s regulated water and wastewater operating subsidiary in Pennsylvania, Aqua Pennsylvania, filed an application with the Pennsylvania Public Utility Commission designed to increase rates by $97,685 or 17.9% on an annual basis. The Company anticipates a final order to be issued by May 2022.

Base rate cases are also underway for our water and wastewater utility operating division in Ohio and our natural gas utility operating division in Kentucky.

During the first nine months of 2021, the Company’s water and wastewater utility operating divisions in New Jersey, Ohio, Virginia and Indiana were granted base rate increases designed to increase total operating revenues on an annual basis by $2,643 and one of its gas utility operating divisions in Kentucky was granted a rate increase designed to increase annual revenues by $747. Further, during the first nine months of 2021, the Company received approval to bill infrastructure rehabilitation surcharges designed to increase total operating revenues on an annual basis by $27,025 in its water and wastewater utility operating divisions in Pennsylvania and North Carolina, and by $586 annually in its Kentucky gas division.

‎

31

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(In thousands of dollars, except per share amounts)

(UNAUDITED)

Note 12 – Taxes Other than Income Taxes 

The following table provides the components of taxes other than income taxes:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
Property	$	8,623	$	8,437	$	25,907	$	23,746
Gross receipts, excise and franchise		4,223		4,023		11,857		10,724
Payroll		5,082		4,788		16,556		13,760
Regulatory assessments		951		867		2,637		2,266
Pumping fees		1,752		1,941		4,343		4,509
Other		427		499		1,919		1,419
Total taxes other than income	$	21,058	$	20,555	$	63,219	$	56,424

Note 13 – Segment Information 

On March 16, 2020, the Company completed the Peoples Gas Acquisition, marking the Company’s entrance into the regulated natural gas business. The operating results of Peoples are included in the consolidated financial statements for the period since the acquisition date. As a result, the Company now has twelve operating segments and two reportable segments. The Regulated Water segment is comprised of eight operating segments representing its water and wastewater regulated utility companies, which are organized by the states where the Company provides water and wastewater services. The eight water and wastewater utility operating segments are aggregated into one reportable segment, because each of these operating segments has the following similarities: economic characteristics, nature of services, production processes, customers, water distribution or wastewater collection methods, and the nature of the regulatory environment. The Regulated Natural Gas segment is comprised of one operating segment representing natural gas utility companies, acquired in the Peoples Gas Acquisition, for which the Company provides natural gas distribution services.

In addition to the Company’s two reportable segments, we include three of our operating segments within the Other category below. These segments are not quantitatively significant and are comprised of our non-regulated natural gas operations, Aqua Infrastructure, and Aqua Resources. Our non-regulated natural gas operations consist of utility service line protection solutions and repair services to households and the operation of gas marketing and production entities. Prior to our October 30, 2020 sale of investment in joint venture, Aqua Infrastructure provided non-utility raw water supply services for firms in the natural gas drilling industry. Aqua Resources offers, through a third party, water and sewer service line protection solutions and repair services to households. In addition to these segments, Other is comprised of business activities not included in the reportable segments, including corporate costs that have not been allocated to the Regulated Water and Regulated Natural Gas segments and intersegment eliminations. Corporate costs include general and administrative expenses, and interest expense. The Company reports these corporate costs within Other as they relate to corporate-focused responsibilities and decisions and are not included in internal measures of segment operating performance used by the Company to measure the underlying performance of the operating segments. The regulated water and

32

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(In thousands of dollars, except per share amounts)

(UNAUDITED)

regulated natural gas segments report interest expense that includes long-term debt that was pushed-down to the regulated operating subsidiaries from Essential Utilities, Inc.

The following table presents information about the Company’s reportable segments, including the operating results and capital expenditures of the Regulated Natural Gas segment for the period since the completion of the Peoples Gas Acquisition on March 16, 2020:

	Three Months Ended								Three Months Ended
	September 30, 2021								September 30, 2020
	Regulated Water		Regulated Natural Gas		Other		Consolidated		Regulated Water		Regulated Natural Gas		Other		Consolidated
Operating revenues	$	259,859	$	94,752	$	7,249	$	361,860	$	255,725	$	88,880	$	4,042	$	348,647
Operations and maintenance expense		86,923		53,954		(1,522)		139,355		79,313		59,560		(2,699)		136,174
Purchased gas		-		20,386		5,102		25,488		-		14,841		1,903		16,744
Depreciation and amortization		45,506		28,194		807		74,507		42,955		25,793		1,193		69,941
Taxes other than income taxes		16,291		4,271		496		21,058		15,906		4,145		504		20,555
Operating income (loss)		111,139		(12,053)		2,366		101,452		117,551		(15,459)		3,141		105,233
Interest expense, net		27,389		18,406		5,772		51,567		27,063		9,333		13,351		49,747
Allowance for funds used during construction		(5,407)		(675)		-		(6,082)		(3,082)		(461)		-		(3,543)
Equity loss in joint venture		-		-		-		-		-		-		3,626		3,626
Other		(1,896)		5,329		266		3,699		110		(761)		(3,709)		(4,360)
Income before income taxes		91,053		(35,113)		(3,672)		52,268		93,460		(23,570)		(10,127)		59,763
Provision for income taxes (benefit)		9,230		(6,821)		(644)		1,765		8,081		(1,219)		(2,831)		4,031
Net income (loss)	$	81,823	$	(28,292)	$	(3,028)	$	50,503	$	85,379	$	(22,351)	$	(7,296)	$	55,732

	Nine Months Ended								Nine Months Ended
	September 30, 2021								September 30, 2020
	Regulated Water		Regulated Natural Gas		Other		Consolidated		Regulated Water		Regulated Natural Gas		Other		Consolidated
Operating revenues	$	736,389	$	579,429	$	26,639	$	1,342,457	$	706,008	$	273,798	$	8,894	$	988,700
Operations and maintenance expense		243,071		157,614		(8,740)		391,945		229,652		120,192		21,571		371,415
Purchased gas		-		183,062		19,476		202,538		-		68,807		4,127		72,934
Depreciation and amortization		136,189		83,905		1,529		221,623		127,214		56,026		2,838		186,078
Taxes other than income taxes		47,756		13,356		2,107		63,219		45,292		8,799		2,333		56,424
Operating income (loss)		309,373		141,492		12,267		463,132		303,850		19,974		(21,975)		301,849
Interest expense, net		80,971		56,125		16,551		153,647		78,500		21,260		31,544		131,304
Allowance for funds used during construction		(13,091)		(831)		-		(13,922)		(7,905)		(816)		-		(8,721)
Equity loss in joint venture		-		-		-		-		-		-		3,283		3,283
Other		(5,265)		4,462		(1,213)		(2,016)		477		(1,516)		(2,489)		(3,528)
Income before income taxes		246,758		81,736		(3,071)		325,423		232,778		1,046		(54,313)		179,511
Provision for income taxes (benefit)		22,056		(11,128)		(611)		10,317		18,402		(8,131)		(12,902)		(2,631)
Net income (loss)	$	224,702	$	92,864	$	(2,460)	$	315,106	$	214,376	$	9,177	$	(41,411)	$	182,142
Capital expenditures	$	404,894	$	269,958	$	993	$	675,845	$	376,064	$	134,632	$	43,445	$	554,141

	September 30,		December 31,
	2021		2020
Total assets:
Regulated water	$	8,301,201	$	7,838,034
Regulated natural gas		5,748,774		5,303,507
Other		186,510		563,736
Consolidated	$	14,236,485	$	13,705,277

33

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(In thousands of dollars, except per share amounts)

(UNAUDITED)

Note 14 – Commitments and Contingencies 

The Company is routinely involved in various disputes, claims, lawsuits and other regulatory and legal matters, including both asserted and unasserted legal claims, in the ordinary course of business. The status of each such matter, referred to herein as a loss contingency, is reviewed and assessed in accordance with applicable accounting rules regarding the nature of the matter, the likelihood that a loss will be incurred, and the amounts involved. As of September 30, 2021, the aggregate amount of $18,102 is accrued for loss contingencies and is reported in the Company’s consolidated balance sheet as other accrued liabilities and other liabilities. These accruals represent management’s best estimate of probable loss (as defined in the accounting guidance) for loss contingencies or the low end of a range of losses if no single probable loss can be estimated. For some loss contingencies, the Company is unable to estimate the amount of the probable loss or range of probable losses. Further, the Company has insurance coverage for certain of these loss contingencies, and as of September 30, 2021, estimates that approximately $3,015 of the amount accrued for these matters are probable of recovery through insurance, which amount is also reported in the Company’s consolidated balance sheet as deferred charges and other assets, net.

During a portion of 2019, the Company initiated a do not consume advisory for some of its water customers in one division served by the Company’s Illinois subsidiary. During the second quarter of 2021, an immaterial amount was accrued for the portion of the fine or penalty that we determined to be probable and estimable of being incurred.  In addition, on September 3, 2019, two individuals, on behalf of themselves and those similarly situated, commenced an action against the Company’s Illinois subsidiary in the State court in Will County, Illinois related to this do not consume advisory. The complaint seeks class action certification, attorney's fees, and "damages, including, but not limited to, out of pocket damages, and discomfort, aggravation, and annoyance” based upon the water provided by the Company’s subsidiary to a discrete service area in University Park, Illinois. The complaint contains allegations of damages as a result of supplied water that exceeded the standards established by the federal Lead and Copper Rule. The complaint is in the discovery phase and class certification has not been granted. The Company is vigorously defending against this claim. A claim for the expenses incurred has been submitted to the Company’s insurance carrier for potential recovery of a portion of these costs, and on August 3, 2020, the Company received $2,874 in insurance proceeds. The Company continues to assess the potential loss contingency on this matter. While the final outcome of this claim cannot be predicted with certainty, and unfavorable outcomes could negatively impact the Company, at this time in the opinion of management, the final resolution of this matter is not expected to have a material adverse effect on the Company’s financial position, results of operations or cash flows.

Although the results of legal proceedings cannot be predicted with certainty, other than disclosed above, there are no other pending legal proceedings to which the Company or any of its subsidiaries is a party or to which any of its properties is the subject that are material or are expected to have a material effect on the Company’s financial position, results of operations, or cash flows.

In addition to the aforementioned loss contingencies, the Company self-insures its employee medical benefit program, and maintains stop-loss coverage to limit the exposure arising from these claims. The Company’s reserve for these claims totaled $2,470 at September 30, 2021 and represents a reserve for unpaid claim costs, including an estimate for the cost of incurred but not reported claims.

34

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(In thousands of dollars, except per share amounts)

(UNAUDITED)

Associated with the approval of the Peoples Gas Acquisition from the Pennsylvania Public Utility Commission, the Company has committed to addressing the replacement of gathering pipe over a seven year timeframe for an estimated cost of $120,000, which will be recoverable through customer rates. Additionally, the Company committed to provide $23,004 of one-time customer rate credits to its Pennsylvania natural gas utility customers and water and wastewater customers served by Aqua Pennsylvania, Inc. In the third quarter of 2020, the Company granted $4,080 of customer rate credits to its water and wastewater customers served by Aqua Pennsylvania and $18,924 was granted to its Pennsylvania natural gas utility customers in the fourth quarter of 2020.

Note 15 – Income Taxes

On March 16, 2020, the Company completed the Peoples Gas Acquisition. On March 31, 2020, the Company changed the method of tax accounting for certain qualifying infrastructure investments at its Peoples Natural Gas subsidiary, its largest natural gas subsidiary in Pennsylvania. This change allows a tax deduction for qualifying utility asset improvement costs that were formerly capitalized for tax purposes. The Company is performing an analysis to determine the ultimate amount of qualifying utility asset improvement costs eligible to be deducted under the IRS’s final tangible property regulations that will be reflected on its 2021 and 2020 Federal Tax Return.  As a result, the Company has estimated a portion of its infrastructure investment at Peoples Natural Gas since the acquisition date that will qualify as a utility system repairs deduction for 2021 and 2020.  Consistent with the Company’s accounting for differences between book and tax expenditures in Pennsylvania, the Company is utilizing the flow-through method to account for this timing difference. The Company completed its analysis of the income tax benefits for qualifying capital expenditures made prior to March 16, 2020 (“catch-up adjustment”) and recorded a regulatory liability of $160,655 for these tax benefits. In August 2020, the Company filed a petition with the Pennsylvania Public Utility Commission proposing treatment of the catch-up adjustment. On March 11, 2021, the Company and the statutory advocates filed a Joint Petition of Settlement (“Settlement”) representing a settlement of the parties, and, on May 6, 2021, it was approved by the Pennsylvania Public Utility Commission. The Settlement stipulates, among other points, that the catch-up adjustment be provided to utility customers over a five-year period, and the Company can continue to use flow-through accounting for the current tax repair benefit until its next base rate case. The five-year customer surcredit for the catch-up adjustment was initiated in August 2021. In addition, the Company contributed $500 to a customer-bill payment assistance program in July 2021 and in December 2021, will provide $5,000 in relief to past-due accounts for natural gas customers impacted by the COVID-19 pandemic.

The Company’s effective tax rate was 3.4% and 3.2% for the three and nine months ended September 30, 2021, respectively.  The Company’s effective tax rate was 6.7% and (1.5)% for the three and nine months ended September 30, 2020, respectively.  The decrease in the effective tax rate for the third quarter is primarily attributed to an increase in our income tax benefit associated with the tax deduction for qualifying infrastructure.  The increase in the effective tax rate for the nine months ended September 30, 2021 over the first nine months of 2020 is due to an increase in income taxed at the statutory Federal and State tax rates partially offset by an increase in the income tax benefit associated with the tax deduction for qualifying infrastructure. The statutory Federal tax rate is 21% for the three and nine months ended September 30, 2021 and 2020. For states with a corporate net income tax, the state corporate net income tax rates range from 2.5% to 9.9% for all periods presented. In determining its interim tax provision, the Company reflects its estimated permanent and flow-through tax differences for the taxable year,

35

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(In thousands of dollars, except per share amounts)

(UNAUDITED)

including the basis difference for the adoption of the tangible property regulations. Qualifying utility asset improvement costs and the amortization of excess deferred income taxes caused the year-to-date effective tax rate to be significantly different from the statutory rate.

In connection with the completion of the Peoples Gas Acquisition, the Company identified changes to acquired deferred tax asset valuation allowances or liabilities related to uncertain tax positions during the one year measurement period, which related to new information obtained about facts and circumstances that existed as of the acquisition date. Those changes are considered a measurement-period adjustment, and an offset was recorded as an adjustment to goodwill. The Company records all other changes to deferred tax asset valuation allowances and liabilities related to uncertain tax positions in current-period income tax expense. 

36

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(In thousands of dollars, except per share amounts)

(UNAUDITED)

Note 16 – Recent Accounting Pronouncements  

Pronouncements to be adopted upon the effective date:

In August 2020, the FASB issued updated accounting guidance on accounting for convertible instruments and contracts in an entity’s own equity. The updated guidance reduces the number of accounting models for convertible debt and convertible preferred stock instruments and makes certain disclosure amendments intended to improve the information provided to users. Additionally, the guidance also amends the derivative guidance for the “own stock” scope exception, which exempts qualifying instruments from being accounted for as derivatives if certain criteria are met. Further, the standard changes the way certain convertible instruments are treated when calculating earnings per share. The updated accounting guidance is effective for fiscal years beginning after December 15, 2021 with early adoption permitted beginning in 2021. The Company is evaluating the requirements of the updated guidance to determine the impact of adoption.

In March 2020, the FASB issued accounting guidance that provides companies with optional guidance, including expedients and exceptions for applying generally accepted accounting principles to contracts and other transactions affected by reference rate reform, such as the London Interbank Offered Rate (LIBOR). In January 2021, the FASB clarified the scope of that accounting standards update with additional guidance for reference rate reform on financial reporting. The accounting guidance was effective upon issuance and generally can be applied to applicable contract modifications through December 31, 2022. The Company is evaluating the impact of this accounting guidance.

Pronouncement adopted during the year:

In December 2019, the FASB issued updated accounting guidance that simplifies the accounting for income taxes. The updated guidance removes certain exceptions to the general principles of accounting for income taxes to reduce the cost and complexity of its application, including the accounting for intraperiod tax allocation when there is a loss from continuing operations and income or a gain from other items, deferred tax liabilities for equity method investments when a foreign subsidiary becomes an equity method investment or when a foreign equity method investment becomes a subsidiary, and calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. Additionally, the updated guidance clarifies and amends the existing guidance over accounting for franchise taxes and other taxes partially based on income, an entity’s tax basis of goodwill, separate entity financial statements, interim recognition of enactment of tax laws or rate changes, and improvements to the Codification for income taxes related to employee stock ownership plans and investments in qualified affordable housing projects accounted for using the equity method. As permitted, we adopted this updated guidance on January 1, 2021, which did not have a material impact on our consolidated financial statements.

37

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES 

 MANAGEMENT’S DISCUSSION AND ANALYSIS OF 

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(In thousands of dollars, except per share amounts)

Item 2 – Management’s Discussion and Analysis of Financial Condition and Results of Operations 

Forward-looking Statements

This Management’s Discussion and Analysis of Financial Condition and Results of Operations and other sections of this Quarterly Report contain, in addition to historical information, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements address, among other things: the expected timing of closing of our acquisitions; the projected impact of various legal proceedings; the projected effects of recent accounting pronouncements; prospects, plans, objectives, expectations and beliefs of management, as well as information contained in this report where statements are preceded by, followed by or include the words “believes,” “expects,” “estimates,” “anticipates,” “plans,” “future,” “potential,” “probably,” “predictions,” “intends,” “will,” “continue,” “in the event” or the negative of such terms or similar expressions. Forward-looking statements are based on a number of assumptions concerning future events, and are subject to a number of risks, uncertainties and other factors, many of which are outside our control, which could cause actual results to differ materially from those expressed or implied by such statements. These risks and uncertainties include, among others, the effects of the COVID-19 pandemic, the effects of regulation, abnormal weather, changes in capital requirements and funding, our ability to close acquisitions, changes to the capital markets, and our ability to assimilate acquired operations, as well as those risks, uncertainties and other factors discussed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020 under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in such report and those included under the captions “Risk Factors” and this Quarterly Report. As a result, readers are cautioned not to place undue reliance on any forward-looking statements. We undertake no obligation to update or revise forward-looking statements, whether as a result of new information, future events or otherwise.  

General Information

Essential Utilities, Inc. (“we”, “us”, “our” or the “Company”), a Pennsylvania corporation, is the holding company for regulated utilities providing water, wastewater, or natural gas services to an estimated five million people in Pennsylvania, Ohio, Texas, Illinois, North Carolina, New Jersey, Indiana, Virginia, West Virginia, and Kentucky under the Aqua and Peoples brands. One of our largest operating subsidiaries, Aqua Pennsylvania, Inc. (“Aqua Pennsylvania”), provides water or wastewater services to approximately one-half of the total number of water or wastewater customers we serve, who are located in the suburban areas in counties north and west of the City of Philadelphia and in 27 other counties in Pennsylvania. Our other regulated water or wastewater utility subsidiaries provide similar services in seven additional states. Additionally, pursuant to the Company’s growth strategy, commencing on March 16, 2020, with the completion of the Peoples Gas Acquisition, the Company began to provide natural gas distribution services to customers in western Pennsylvania, Kentucky, and West Virginia. Approximately 93% of the total number of natural gas utility customers we serve are in western Pennsylvania. Lastly, the Company’s market-based activities are conducted through Aqua Infrastructure, LLC and Aqua Resources, Inc. and certain other non-regulated subsidiaries of Peoples. Prior to our October 30, 2020 sale of our investment in a joint venture, Aqua Infrastructure provided non-utility raw water supply services for firms in the natural gas drilling industry. Following the October 30, 2020

38

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES 

 MANAGEMENT’S DISCUSSION AND ANALYSIS OF 

FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)

(In thousands of dollars, except per share amounts)

closing, Aqua Infrastructure does not provide any services to the natural gas drilling industry. Aqua Resources offers, through a third party, water and sewer service line protection solutions and repair

services to households.

The non-regulated subsidiaries of Peoples provide utility service line protection solutions and repair services to households and operates gas marketing and production entities.

Essential Utilities, Inc., which prior to its name change in February 2020 was known as Aqua America, Inc., was formed in 1968 as a holding company for its primary subsidiary, Aqua Pennsylvania, formerly known as Philadelphia Suburban Water Company. In the early 1990s, we embarked on a growth-through-acquisition strategy. Our most significant transactions to date have been the merger with Consumers Water Company in 1999, the acquisition of the regulated water and wastewater operations of AquaSource, Inc. in 2003, the acquisition of Heater Utilities, Inc. in 2004, the acquisition of American Water Works Company, Inc.’s regulated operations in Ohio in 2012, and the March 16, 2020 acquisition of Peoples, a Pittsburgh, Pennsylvania based natural gas distribution company. For many years, starting in the early 1990s, our business strategy has been primarily directed toward the regulated water and wastewater utility industry, where we have more than quadrupled the number of regulated customers we serve, and have extended our regulated operations from southeastern Pennsylvania to include our current regulated utility operations in seven other states.   On March 16, 2020, the Company completed the Peoples Gas Acquisition, a natural gas distribution utility, marking its entrance into the regulated natural gas business. The Company seeks to acquire businesses in the U.S. regulated sector, which includes water and wastewater utilities, natural gas utilities, and other regulated utilities, and to opportunistically pursue growth ventures in select market-based activities, such as infrastructure opportunities that are supplementary and complementary to our regulated utility businesses.

The following discussion and analysis of our financial condition and results of operations should be read together with our consolidated financial statements and related notes.

COVID-19 Pandemic

We provide a critical service to our customers, which means that it is paramount that we keep our employees who operate the business safe and informed while supporting our customers and assuring the continuity of our operations. We continue to monitor the COVID-19 pandemic and continue to take steps to mitigate the potential risks to our employees. We continue to implement strong physical and cyber-security measures in an effort to ensure that our systems remain functional in order to both serve our operational needs with a hybrid workforce and maintain uninterrupted service to our customers.

39

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES 

 MANAGEMENT’S DISCUSSION AND ANALYSIS OF 

FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)

(In thousands of dollars, except per share amounts)

We continue to monitor developments affecting our business, workforce, and suppliers and take additional precautions as we believe are warranted. We are continuing with our capital investment program and continue to work with our suppliers to monitor and address the risks present in our supply chain. While we have experienced some delays in certain materials, we have been able to adjust our purchasing procedures to secure and stock the necessary materials without materially impacting our operations or capital investment program. We are actively monitoring our utility billings for changes in residential, commercial and industrial usage. In response to concerns about customer economic hardship and affordability during the COVID-19 pandemic, our state regulators mandated the temporary curtailment of certain collection practices, such as disconnections from utility service. In addition, we are monitoring collections of customer utility accounts as to potential impacts on cash flows, and increased expenses for costs associated with workforce-related expenses, security and cleaning of company offices and operating facilities, as well as other one-time expenses above the expense amounts included in general rates. In most of the states where we operate, regulators have allowed utilities to resume disconnections from utility service for certain customers who have unpaid balances. In eight of the ten states in which we operate regulated utilities, public utility commissions issued guidance for utilities to defer COVID-19 expenses in anticipation of seeking recovery in a future rate proceeding, and we continue to evaluate the impact of this guidance.

While the pandemic presents risks to the Company's business, as further described in the Company’s 2020 Form 10-K in Part II, Item 1A — Risk Factors, as of the date of this report, the Company has not experienced any material financial or operational impacts related to COVID-19. Despite our efforts, the potential for a material negative impact on the Company exists as the COVID-19 pandemic also depends on factors beyond our knowledge, control, or ability to predict, including the duration and severity of this pandemic, the emergence of new variants of the virus, the development and availability of effective treatments and vaccines, as well as third party actions taken to contain its spread and mitigate its public health effects.

Hurricane Ida

On September 1, 2021, Hurricane Ida made landfall in Pennsylvania and the Company had to temporarily shut down two of its water treatment plants, Pickering East and Pickering West, which had been damaged due to heavy rainfall, flooding and loss of power. These plants serve a significant portion of Aqua Pennsylvania’s service territory in southeastern Pennsylvania. The Company was able to maintain supply to most of its customers by ramping up production at other treatment plants located throughout its system. However, water pressure fell in some locations, and the Company asked customers to adopt voluntary water conservation measures during a two-week period. As of September 30, 2021, total costs incurred to date to restore operations at the Pickering water treatment plants amounted to approximately $3,845, of which $2,160 were expenses. The Company is still in the process of determining the total cost to repair or replace the equipment damaged by Hurricane Ida. Management is considering all avenues to recover storm-related costs from Hurricane Ida in a manner that will minimize its effects on customers.

40

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES 

 MANAGEMENT’S DISCUSSION AND ANALYSIS OF 

FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)

(In thousands of dollars, except per share amounts)

Financial Condition

The Company’s consolidated balance sheet historically has had a negative working capital position whereby our current liabilities routinely exceed our current assets. Management believes that internally generated funds along with existing credit facilities, and the proceeds from the issuance of long-term debt and equity will be adequate to provide sufficient working capital to maintain normal operations and to meet our financing requirements for at least the next twelve months.

During the first nine months of 2021, we incurred $675,845 of capital expenditures, issued $795,153 of long-term debt, and repaid debt and made sinking fund contributions and other loan repayments of $749,432. The capital expenditures were related to new and replacement water, wastewater, and natural gas mains, improvements to treatment plants, tanks, hydrants, and service lines, construction of natural gas fueled energy plants, well and booster improvements, information technology improvements, and other enhancements and improvements. The issuance of long-term debt was for funds borrowed under our revolving credit facility and used for capital expenditures.

In August 2020, we entered into a forward equity sale agreement for 6,700,000 shares of common stock with affiliates of a certain underwriter (“forward purchaser”). In connection with the forward equity sale agreement, the forward purchaser borrowed an equal number of shares of our common stock from stock lenders and sold the borrowed shares to the public. On August 9, 2021, the Company settled the forward equity sale agreement in full by physical share settlement. The Company issued 6,700,000 shares and received cash proceeds of $299,739 at a forward price of $44.74 per share. The net proceeds were used for general corporate purposes, including for water and wastewater utility acquisitions, working capital and capital expenditures.

On March 16, 2020 (the “Closing Date”), the Company completed the Peoples Gas Acquisition and paid cash consideration of $3,465,344, which was subject to adjustment based upon the terms of the purchase agreement. Purchase price adjustments include the completion of a closing balance sheet, which was provided to the seller, and an adjustment for utility capital expenditures made by the seller during the period between November 1, 2018 and the Closing Date. In November 2021, the dispute between the parties regarding the adjustment for utility capital expenditures was resolved in accordance with the provisions of the purchase agreement and an inconsequential payment will be made between the parties. Peoples is headquartered in Pittsburgh, Pennsylvania and serves approximately 750,000 natural gas utility customers in western Pennsylvania, West Virginia, and Kentucky. The acquisition was financed through a series of financing transactions that included the issuance of common stock from a public offering and a private placement, a tangible equity unit offering, and short and long-term debt.

Associated with the approval of the Peoples Gas Acquisition from the Pennsylvania Public Utility Commission, the Company has committed to addressing the replacement of gathering pipe over a seven year timeframe for an estimated cost of $120,000, which will be recoverable through customer rates. Additionally, the Company committed to provide $23,004 of one-time customer rate credits to its Pennsylvania natural gas utility customers and water and wastewater customers served by Aqua Pennsylvania. The Company granted $4,080 of customer rate credits to its water and wastewater

41

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES 

 MANAGEMENT’S DISCUSSION AND ANALYSIS OF 

FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)

(In thousands of dollars, except per share amounts)

customers during the third quarter of 2020, and $18,924 was granted to its natural gas utility customers in the fourth quarter of 2020 to satisfy the $23,004 commitment.

On March 31, 2020, we changed the method of tax accounting for the certain qualifying infrastructure investments at Peoples Natural Gas, our largest gas subsidiary in Pennsylvania.  This change allows a tax deduction for qualifying capital expenditures, including those made prior to March 16, 2020 (“catch-up adjustment”) that have been deferred and recorded as a regulatory liability on the consolidated balance sheet.  As a result of a settlement agreement approved by the Pennsylvania Public Utility Commission, the income tax benefits associated with the catch-up adjustment of $160,655 are being refunded to utility customers over a five-year period starting in August 2021.  In addition, the Company contributed $500 to a customer-bill payment assistance program in July 2021 and in December 2021, will provide $5,000 in relief to past-due accounts for natural gas customers impacted by the COVID-19 pandemic.

On April 15, 2021, the Company’s operating subsidiary Aqua Ohio, Inc. issued $100,000 of first mortgage bonds, of which $50,000 is due in 2031 and $50,000 is due in 2051, with interest rates of 2.37% and 3.35%, respectively. The proceeds from these bonds were used for general corporate purposes and to repay existing indebtedness. Further on April 19, 2021, the Company issued $400,000 of long-term debt, less expenses of $4,010, which is due in 2031 with an interest rate of 2.40%. The Company used the proceeds from this issuance to repay $50,000 of borrowings under our Aqua Pennsylvania five- year revolving credit facility, and the balance was used to repay in full the borrowings under its existing five-year unsecured revolving credit agreement.

At September 30, 2021 we had $9,736 of cash and cash equivalents compared to $4,827 at December 31, 2020. During the first nine months of 2021, we used the proceeds from long-term debt, issuance of common stock and internally generated funds to fund the cash requirements discussed above and to pay dividends.

At September 30, 2021 our $1,000,000 unsecured revolving credit facility, which expires in December 2023, had $966,684 available for borrowing. Additionally, at September 30, we had short-term lines of credit of $235,500, of which $188,918 was available for borrowing. One of our short-term lines of credit is an Aqua Pennsylvania $100,000 364-day unsecured revolving credit facility with four banks, which is used to provide working capital, and as of September 30, 2021, $83,418 was available for borrowing. Another one of our short-term lines of credit is a Peoples Natural Gas Companies $100,000 364-day unsecured revolving credit facility with two banks, which is used to provide working capital, and as of September 30, 2021, $70,000 was available for borrowing. Our short-term lines of credit of $235,500 are subject to renewal on an annual basis. Although we believe we will be able to renew these facilities, there is no assurance that they will be renewed, or what the terms of any such renewal will be.

42

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES 

 MANAGEMENT’S DISCUSSION AND ANALYSIS OF 

FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)

(In thousands of dollars, except per share amounts)

Results of Operations

Analysis of Third Quarter of 2021 Compared to Third Quarter of 2020

Consolidated results

Operating revenues increased by $13,213 or 3.8% for the three months ended September 30, 2021, as compared to the same period in 2020. Revenues from our Regulated Water segment, Regulated Natural Gas segment and Other business segment increased by $4,134, $5,872 and $3,207, respectively. Refer below for further details on the changes on Regulated Water and Regulated Natural Gas segment revenues. The increase in our Other business segment revenue is largely due to higher purchased gas revenues of $3,199, which has a corresponding offset in expense, and went up due to an increase in gas prices.

Operations and maintenance increased by $3,181 or 2.3%, primarily due to:

costs related to the restoration and repair of facilities damaged by Hurricane Ida of $2,160;

increase in employee related costs of $6,825 related to pension and post-retirement benefits, medical and labor;

increase in insurance expense of $2,407 due to higher insurance claims;

increase in outside services of $1,656 and production costs for water and wastewater operations of $747;

additional operating costs associated with acquired and pending acquisitions of water and wastewater utility systems of $1,185; and

expenses of $401 associated with remediating an advisory for some of our water utility customers served by our Illinois subsidiary, plus the prior year effect of net insurance proceeds of $2,145 for expenses incurred related to such advisory. We expect the expenses associated with remediating the advisory to continue in the fourth quarter of 2021;

offset by decreased COVID-19 pandemic related expenses of $9,387 and contributions to charitable trust of $5,720.

Purchased gas increased by $8,744 or 52.2%. Purchased gas represents the cost of gas sold by Peoples for the regulated and non-regulated gas business and has a corresponding offset in revenue. This expense increased for the regulated natural gas business and non-regulated business by $5,545 and $3,199, respectively, as a result of the increase in natural gas prices.

Depreciation and amortization expense increased by $4,431 or 6.5% and $135 or 7.6%, respectively, principally due to continued capital expenditures to expand and improve our utility facilities, our acquisitions of new utility systems, and additional rate case filings. Expenses associated with filing rate cases are deferred and amortized over periods that generally range from one to three years.

Taxes other than income taxes increased by $503 or 2.4%.

43

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES 

 MANAGEMENT’S DISCUSSION AND ANALYSIS OF 

FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)

(In thousands of dollars, except per share amounts)

Interest expense increased by $2,271 or 4.6% for the quarter primarily due to the increase in average borrowings.

Interest income increased by $451 due to higher investment rates.

Allowance for funds used during construction (“AFUDC”) increased by $2,539 due to an increase in the average balance of utility plant construction work in progress, to which AFUDC is applied.

Equity loss from the joint venture was $3,626 in 2020, and our investment in the joint venture was sold in October 2020.

Other expense, which largely consist of the non-service cost component of our net benefit cost for pension benefits, increased by $8,146 during the quarter compared to the same period in the prior year. The net benefit in 2020 is primarily due to a recovery of a previously incurred cost that resulted in the recognition of a regulatory asset based on the Company’s recovery in a rate case.

Our effective income tax rate was 3.4% in the third quarter of 2021 and 6.7% in the third quarter of 2020. The decrease in the effective tax rate for the third quarter is primarily attributed to an increase in the income tax benefit associated with the tax deduction for qualifying infrastructure.

Net income decreased by $5,229 or 9.4% primarily as a result of the factors described above.

Regulated Water Segment

Our Regulated Water segment is comprised of eight operating segments representing its water and wastewater regulated utility companies which are organized by the states where the Company provides water and wastewater services. The Regulated Water segment is aggregated into one reportable segment.

Revenues increased by $4,134 or 1.6% for the third quarter of 2021 as compared to the same period in 2020, mainly due to the following:

an increase in water and wastewater rates, including infrastructure rehabilitation surcharges, of $6,770;

additional water and wastewater revenues of $2,624 associated with a larger customer base due to utility acquisitions and organic growth;

prior year effect of customer rate credits of $4,080 granted to our water and wastewater customers served by Aqua Pennsylvania in the third quarter of 2020; and

offset by a decrease in customer water and wastewater volumes amounting to $9,590 and foregone water revenue of $292 as a result of an advisory for some of our water utility customers

44

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES 

 MANAGEMENT’S DISCUSSION AND ANALYSIS OF 

FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)

(In thousands of dollars, except per share amounts)

served by our Illinois subsidiary. We expect this impact on revenues resulting from the advisory to continue in the fourth quarter of 2021.

Operations and maintenance expense for the three months ended September 30, 2021 was $86,923 (33.5% of revenues) compared to $79,313 (31.0% of revenues) in the prior period. The increase of $7,610 or 9.6% was primarily due to the following:

costs related to the restoration and repair of facilities damaged by Hurricane Ida of $2,160;

additional operating costs resulting from acquired water and wastewater utility systems and higher customer base of $1,185;

increase in pension and post-retirement benefits expense of $5,083;

expenses of $401 associated with remediating an advisory for some of our water utility customers served by our Illinois subsidiary, plus the prior year effect of net insurance proceeds of $2,145 for expenses incurred related such advisory. We expect the expenses associated with remediating the advisory to continue in the fourth quarter of 2021; offset by,

the decrease in COVID-19 pandemic related expenses of $3,329.

Depreciation and amortization increased by $2,551 or 5.9% primarily due to continued capital spend.

Taxes other than income taxes increased by $385 or 2.4%.

Interest expense, net, increased by $325 or 1.2% for the quarter primarily due to the increase in average borrowings.

AFUDC increased by $2,324 or 75.4% due to the increase in the average balance of utility plant construction work in progress, to which AFUDC is applied.

Other expense decreased by $2,006, resulting in a net benefit of $1,896 for the quarter, primarily due to the decrease in the non-service cost component of our net benefit cost for pension benefits. This is driven by improved investment returns as a result of favorable market experience from the prior period.

Regulated Natural Gas Segment

Our Regulated Natural Gas segment recognizes revenues by selling gas directly to customers at approved rates or by transporting gas through our pipelines at approved rates to customers that have purchased gas directly from other producers, brokers, or marketers. Natural gas sales to residential, commercial and industrial customers are seasonal, which results in higher demand for natural gas for heating purposes during the colder months.

Our Regulated Natural Gas segment is affected by the cost of natural gas, which is passed through to customers using a purchased gas adjustment clause and includes commodity price, transportation and storage costs. These costs are reflected in the consolidated statement of operations and comprehensive income as purchased gas expenses. Therefore, fluctuations in the cost of purchased gas impact operating revenues on a dollar-for-dollar basis, but do not impact gross margin. Management uses gross margin, a

45

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES 

 MANAGEMENT’S DISCUSSION AND ANALYSIS OF 

FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)

(In thousands of dollars, except per share amounts)

non-GAAP financial measure, defined as operating revenues less purchased gas expense, to analyze the financial performance of our Regulated Natural Gas segment, as management believes gross margin provides a meaningful basis for evaluating our natural gas utility operations since purchased gas expenses are included in operating revenues and passed through to customers. The following table includes the operating results for our Regulated Natural Gas segment for the period since the acquisition date of March 16, 2020, including the reconciliation of gross margin (non-GAAP) to operating revenues (GAAP):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
Operating revenues (GAAP)	$	94,752	$	88,880	$	579,429	$	273,798
Purchased gas		20,386		14,841		183,062		68,807
Gross margin (non-GAAP)		74,366		74,039		396,367		204,991

The term gross margin is not intended to represent operating revenues, the most comparable GAAP financial measure, as an indicator of operating performance. In addition, our measurement of gross margin is not necessarily comparable to similarly titled measures reported by other companies.

Operating revenues from the Regulated Natural Gas segment increased by $5,872 or 6.6% due to:

impact of higher gas cost of $6,534 during the quarter as compared to the prior quarter;

higher average delivery and rider rates of $2,183; and

increased revenues from strategic projects of $1,234;

offset by lower usage of $1,620 due to warmer weather during the third quarter of 2021 as compared to the same period in 2020; credit to customers for tax repair catch-up of $2,439; and increased refund of the tax benefit associated with the Tax Cuts and Jobs Act of $46.

Operations and maintenance expense for the three months ended September 30, 2021 decreased by $5,606 or 9.4% primarily due to the following:

decrease in COVID-19 pandemic related expenses of $6,058 and contributions to charitable trust of $5,720;

offset by increase in employee related costs of $1,959 and outside services expense of $1,087.

Purchased gas increased by $5,545 or 37.4% which has a corresponding offset in revenues. The increase is due to an increase in the price of natural gas in the third quarter of 2021 as compared to the prior year.

Depreciation and amortization increased by $2,401 or 9.3% primarily due to continued capital spend.

Taxes other than income taxes increased by $126 or 3.0% mainly due to higher property tax expense.

Interest expense, net, increased by $9,073 or 97.2% for the quarter due to additional borrowings.

46

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES 

 MANAGEMENT’S DISCUSSION AND ANALYSIS OF 

FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)

(In thousands of dollars, except per share amounts)

AFUDC increased by $215 or 46.5% due to the increase in the average balance of utility plant construction work in progress, to which AFUDC is applied.

Other expense increased by $6,090 due to the non-service cost component of our net benefit cost for pension benefits.

Net income for the Regulated Natural Gas segment decreased by $5,941or 26.6% during the third quarter of 2021 as compared to the same period in 2020 as a result of the factors described above.

Analysis of First Nine Months of 2021 Compared to First Nine Months of 2020

Consolidated results

Operating revenues increased by $353,757 or 35.8% for the nine months ended September 30, 2021, as compared to the same period in 2020. Revenues from our regulated water segment increased by $30,381, regulated natural gas segment by $305,631 and other business segment by $17,745. Upon closing on the Peoples Gas Acquisition on March 16, 2020, the first quarter of 2020 only represented 16 days of Peoples Gas’ operating results, compared to the full period in the first quarter of 2021. Total operating revenues from Peoples Gas during for the first nine months of 2020 and 2021 were $280,300 and $602,989, respectively.

Consolidated operations and maintenance expenses increased by $20,530 or 5.5%, primarily due to:

the timing of the People’s Natural Gas acquisition that resulted in an increase in operations and maintenance expense of $42,864 for the first quarter of 2021 as compared to the same period in 2020;

costs related to the restoration and repair of facilities damaged by Hurricane Ida of $2,160;

an increase in employee related costs of $5,475;

additional operating costs associated with acquired and pending acquisitions of water and wastewater utility systems of $2,951;

an increase in outside services and maintenance expenses of $2,672;

an increase in insurance expense of $7,926 for increased insurance claims; offset by

a decrease in contributions to charitable trust of $8,820;

a decrease in COVID-19 pandemic related costs of $14,199; and,

the prior year effect of transaction expenses of $25,397 in the first quarter of 2020 for the Peoples Gas Acquisition, primarily representing expenses associated with investment banking fees, employee related expenses, obtaining regulatory approvals, legal expenses, and integration planning.

Purchased gas increased by $129,604. Purchased gas represents the cost of gas sold by Peoples for regulated and non-regulated gas business. This expense increased by $114,255 and $15,349 for the

47

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES 

 MANAGEMENT’S DISCUSSION AND ANALYSIS OF 

FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)

(In thousands of dollars, except per share amounts)

regulated natural gas and non-regulated gas business, respectively, mainly due to the timing of the Peoples Gas acquisition.

Depreciation expense increased by $35,341or 19.5%, primarily due to depreciation expense associated with our completion of the Peoples Gas Acquisition on March 16, 2020 and the utility plant placed in service, significant capital expenditures made to expand and improve our utility facilities, and our acquisitions of new utility systems.

Amortization slightly increased by $204 or 4.6% during the period as compared to the prior period.

Taxes other than income taxes increased by $6,795 or 12.0% principally due to an increase in payroll taxes of $2,796 and property taxes of $2,162 associated with acquired operations, primarily the Peoples Gas Acquisition.

Interest expense increased by $18,287 or 13.4% primarily due to the following items:

an increase in average borrowings; and

interest on debt assumed in the Peoples Gas Acquisition; offset by

a decrease in our effective interest rate.

Interest income decreased by $4,056 or 75.9%, primarily due to the utilization of the proceeds held from our 2019 equity and debt offerings to close the Peoples Gas Acquisition on March 16, 2020.

AFUDC increased by $5,201 or 59.6% due to the increase in the average balance of utility plant construction work in progress, to which AFUDC is applied. 

Equity loss in joint venture was $3,283 in 2020, and our investment in the joint venture was sold in October 2020.

Other expense increased by $1,777 or 56.1%. The net benefit in 2020 is primarily due to a recovery of a previously incurred cost that resulted in the recognition of a regulatory asset based on the Company’s recovery in a rate case.

Our effective income tax rate was 3.2% for the nine months ended September 30, 2021 and (1.5%) for the same period in the prior year. The increase in the effective tax rate for the nine months ended September 30, 2021 over the first nine months of 2020 is due to an increase in income taxed at the statutory Federal and State tax rates partially offset by an increase in the income tax benefit associated with the tax deduction for qualifying infrastructure.

Net income increased by $132,964 or 73.0% primarily because of the factors described above.

48

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES 

 MANAGEMENT’S DISCUSSION AND ANALYSIS OF 

FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)

(In thousands of dollars, except per share amounts)

Regulated Water Segment

Revenues from our Regulated Water segment for the first nine months of 2021 increased by $30,381 or by 4.3%, as a result of the following:

an increase in water and wastewater rates, including infrastructure rehabilitation surcharges, of $21,019 (net of $364 refund of the tax benefit associated with the Tax Cuts and Jobs Act);

additional water and wastewater revenues of $8,559 associated with a larger customer base due to utility acquisitions and organic growth;

prior year effect of customer rate credits of $4,080 granted to our water and wastewater customers served by Aqua Pennsylvania in the third quarter of 2020; and,

offset by the decrease in customer water and wastewater volumes of $4,238 and by foregone water revenue of $842 as a result of an advisory for some of our water utility customers served by our Illinois subsidiary. We expect this impact on revenues resulting from the advisory to continue in the fourth quarter of 2021.

Operations and maintenance expense was $243,071 (33.0% of revenues) compared to $229,652 (32.5% of revenues) in the prior period. The increase of $13,419 or 5.8% was principally due to the following:

costs related to the restoration and repair of facilities damaged by Hurricane Ida of $2,160;

additional operating costs resulting from acquired water and wastewater utility systems and higher customer base of $2,951;

increase in labor and benefits expense of $3,751;

increase in insurance expense of $4,811 due to higher claims;

increase in outside services of $908; and,

expenses of $1,471 associated with remediating an advisory for some of our water utility customers served by our Illinois subsidiary, plus the prior year effect of net insurance proceeds of $1,088 for expenses incurred related to such advisory. We expect the expenses associated with remediating the advisory to continue in the fourth quarter of 2021; offset by

the decrease in COVID-19 pandemic related expenses of $7,304.

Depreciation and amortization increased by $8,975 or 7.1% primarily due to continued capital spend.

Taxes other than income taxes increased by $2,464 or 5.4% largely due to higher public utility realty taxes of $933 in 2021 as compared with 2020.

Interest expense, net, increased by $2,471 or 3.1% for the quarter primarily due to the increase in average borrowings.

AFUDC increased by $5,186 or 65.6% due to the increase in the average balance of utility plant construction work in progress, to which AFUDC is applied.

49

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES 

 MANAGEMENT’S DISCUSSION AND ANALYSIS OF 

FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)

(In thousands of dollars, except per share amounts)

Other expense decreased by $5,742, resulting in a net benefit of $5,265, primarily due to the decrease in the non-service cost component of our net benefit cost for pension benefits. This is driven by improved investment returns as a result of favorable market experience from the prior period.

Regulated Natural Gas Segment

The operating results of Peoples is reported for the period after acquisition, such that the first quarter of 2020 only represented 16 days of operating results, compared to the full period in the first quarter of 2021. The variance of the operating results in the Regulated Natural Gas segment for the nine months period ending September 30, 2021 is comprised of the first quarter difference which is largely attributable to the timing of the acquisition closing on March 16, 2020 plus the changes during the second quarter of 2021. Refer above for the analysis of the changes in the Regulated Natural Gas segment for the third quarter of 2021 compared to the third quarter of 2020. The variance of the operating results in the first quarter of 2021 as compared to 2020 in the regulated natural gas segment for the timing of the acquisition closing, resulted in an increase in the following income statement amounts: $304,571 of operating revenues, $42,503 of operations and maintenance expense, $110,118 of purchased gas expense, $23,021 of depreciation and amortization, $125,149 of operating income, and $105,853 of net income.

Impact of Recent Accounting Pronouncements

We describe the impact of recent accounting pronouncements in Note 16, Recent Accounting Pronouncements, to the consolidated financial statements in this report.

50

Item 3 – Quantitative and Qualitative Disclosures About Market Risk 

We are subject to market risks in the normal course of business, including changes in interest rates and equity prices. Refer to Item 7A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, filed March 1, 2021, for additional information on market risks.

Item 4 – Controls and Procedures 

(a)Evaluation of Disclosure Controls and Procedures 

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures as of the end of the period covered by this report are effective such that the information required to be disclosed by us in reports filed under the Securities Exchange Act of 1934 is (i) recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms and (ii) accumulated and communicated to our management, including the Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding disclosure.  

(b)Changes in Internal Control over Financial Reporting 

On March 16, 2020, we completed the Peoples Gas Acquisition. For additional information refer to Note 3 – Acquisitions to the consolidated financial statements included in this report. We consider this acquisition material to our business, financial condition, and results of operations, and believe the changes in our internal controls and procedures as a result of the Peoples Gas Acquisition have a material effect on our internal control over financial reporting. During the time since acquisition, we have assessed the control environment and made certain changes in our internal control over financial reporting, including design changes, and we have performed testing of operating effectiveness over many of Peoples’ internal controls. We now consider the Peoples’ business to be included in the scope of our assessment over internal controls.

Part II. Other Information

Item 1 – Legal Proceedings 

We are party to various legal proceedings in the ordinary course of business. Although the results of these legal proceedings cannot be predicted with certainty, there are no pending legal proceedings to which we or any of our subsidiaries is a party or to which any of our properties is the subject that we believe are material or are expected to have a material adverse effect on our financial position, results of operations or cash flows.

Item 1A – Risk Factors 

Please review the risks disclosed in our Annual Report on Form 10-K for the year ended December 31, 2020, under “Part 1, Item 1A – Risk Factors.”

51

Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds

The following table summarizes the Company’s purchases of its common stock for the quarter ended September 30, 2021:

	Issuer Purchases of Equity Securities
				Total	Maximum
				Number of	Number of
				Shares	Shares
				Purchased	that May
				as Part of	Yet be
	Total			Publicly	Purchased
	Number	Average		Announced	Under the
	of Shares	Price Paid		Plans or	Plan or
Period	Purchased (1)	per Share		Programs	Programs
July 1-31, 2021	136	$	46.50	-	-
August 1-31, 2021	40	$	47.48	-	-
September 1-30, 2021	-	$	-	-	-
Total	176	$	46.72	-	-

(1)These amounts consist of 176 shares we acquired from employees associated with the withholding of shares to pay certain withholding taxes upon the vesting of stock-based compensation. This feature of our equity compensation plan is available to all employees who receive stock-based compensation under the plan. We purchased these shares at their fair market value, as determined by reference to the closing price of our common stock on the day prior to the award vesting.

‎

52

Item 6 – Exhibits  

Exhibit No.	Description
31.1*	Certification of Chief Executive Officer, filed pursuant to Rule 13a-14(a) under the Securities and Exchange Act of 1934
31.2*	Certification of Chief Financial Officer, filed pursuant to Rule 13a-14(a) under the Securities and Exchange Act of 1934
32.1*	Certification of Chief Executive Officer, furnished pursuant to 18 U.S.C. Section 1350
32.2*	Certification of Chief Financial Officer, furnished pursuant to 18 U.S.C. Section 1350
101.INS	Inline XBRL Instance Document – The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH	Inline XBRL Taxonomy Extension Schema Document
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRES	Inline XBRL Taxonomy Extension Presentation Linkbase Document
104	The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2021, formatted in Inline XBRL (included in Exhibit 101)

*Filed herewith

‎

53

SIGNATURES 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be executed on its behalf by the undersigned thereunto duly authorized. 

November 5, 2021

Essential Utilities, Inc.                  

Registrant

/s/ Christopher H. Franklin

Christopher H. Franklin

Chairman, President and

Chief Executive Officer

/s/ Daniel J. Schuller

Daniel J. Schuller

Executive Vice President and

Chief Financial Officer

‎

54

55

EX-31.1

Exhibit 31.1 

CERTIFICATION OF CHIEF EXECUTIVE OFFICER, PURSUANT TO RULE 13A-14(A) UNDER THE SECURITIES AND EXCHANGE ACT OF 1934 

I, Christopher H. Franklin, certify that: 

1. I have reviewed this quarterly report on Form 10-Q of Essential Utilities, Inc.; 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; 

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: 

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; 

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; 

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and 

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting, and 

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): 

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and 

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. 

Christopher H. Franklin 

President and Chief Executive Officer 

November5, 2021

EX-31.2

Exhibit 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER, PURSUANT TO RULE 13A-14(A) UNDER THE SECURITIES AND EXCHANGE ACT OF 1934  

I, Daniel J. Schuller, certify that: 

1. I have reviewed this quarterly report on Form 10-Q of Essential Utilities, Inc.; 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; 

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: 

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;  

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; 

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and 

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting, and 

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): 

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and 

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. 

Daniel J. Schuller

Executive Vice President and Chief Financial Officer 

November5, 2021

EX-32.1

Exhibit 32.1 

CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO 

18 U.S.C. SECTION 1350 

In connection with the Quarterly Report on Form 10-Q for the period ended September 30, 2021 of Essential Utilities, Inc. (the “Company”) as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Christopher H. Franklin,  President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge: 

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. Section 78m or Section 78o(d)); and 

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. 

Christopher H. Franklin

President and Chief Executive Officer 

November5, 2021

EX-32.2

Exhibit 32.2 

CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO 

18 U.S.C. SECTION 1350 

In connection with the Quarterly Report on Form 10-Q for the period ended September 30, 2021 of Essential Utilities, Inc. (the “Company”) as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Daniel J. Schuller, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge: 

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. Section 78m or Section 78o(d)); and 

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. 

Daniel J. Schuller

Executive Vice President and Chief Financial Officer 

November  5, 2021

XML

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2021	Oct. 22, 2021
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2021
Document Fiscal Year Focus	2021
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	1-6659
Entity Registrant Name	ESSENTIAL UTILITIES, INC.
Entity Incorporation, State or Country Code	PA
Entity Tax Identification Number	23-1702594
Entity Address, Address Line One	762 W. Lancaster Avenue
Entity Address, City or Town	Bryn Mawr
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	19010 -3489
City Area Code	610
Local Phone Number	527-8000
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		252,742,882
Amendment Flag	false
Document Fiscal Period Focus	Q3
Entity Central Index Key	0000078128
Common Stock [Member]
Title of 12(b) Security	Common stock, $0.50 par value
Trading Symbol	WTRG
Security Exchange Name	NYSE
Tangible Equity Units [Member]
Title of 12(b) Security	6.00% Tangible Equity Units
Trading Symbol	WTRU
Security Exchange Name	NYSE

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Assets
Property, plant and equipment, at cost	$ 12,293,056	$ 11,620,019
Less: accumulated depreciation	2,336,287	2,107,142
Net property, plant and equipment	9,956,769	9,512,877
Current assets:
Cash and cash equivalents	9,736	4,827
Accounts receivable, net	108,210	154,775
Unbilled revenues	63,479	118,538
Inventory - materials and supplies	35,023	21,669
Inventory - gas stored	78,787	36,732
Prepayments and other current assets	29,871	38,594
Regulatory assets	27,398	5,085
Total current assets	352,504	380,220
Regulatory assets	1,404,837	1,362,788
Deferred charges and other assets, net	118,910	56,002
Funds restricted for construction activity	1,288	1,268
Goodwill	2,340,836	2,324,547
Operating lease right-of-use assets	55,386	60,334
Intangible assets	5,955	7,241
Total assets	14,236,485	13,705,277
Stockholders' equity:
Common stock at $0.50 par value, authorized 600,000,000 shares, issued 255,981,932 and 248,571,355 as of September 30, 2021 and December 31, 2020	127,990	124,285
Capital in excess of par value	3,698,095	3,379,057
Retained earnings	1,385,631	1,261,862
Treasury stock, at cost, 3,240,349 and 3,180,887 shares as of September 30, 2021 and December 31, 2020	(83,854)	(81,327)
Total stockholders' equity	5,127,862	4,683,877
Long-term debt, excluding current portion	5,638,961	5,545,890
Less: debt issuance costs	40,247	38,146
Long-term debt, excluding current portion, net of debt issuance costs	5,598,714	5,507,744
Commitments and contingencies (See Note 14)
Current liabilities:
Current portion of long-term debt	63,418	84,353
Loans payable	46,582	78,198
Accounts payable	163,836	177,489
Book overdraft	20,749	44,003
Accrued interest	70,461	39,408
Accrued taxes	37,502	37,172
Regulatory liabilities	171	19,866
Other accrued liabilities	113,310	123,384
Total current liabilities	516,029	603,873
Deferred credits and other liabilities:
Deferred income taxes and investment tax credits	1,352,425	1,258,098
Customers' advances for construction	110,939	99,014
Regulatory liabilities	778,416	773,310
Asset retirement obligations	1,363	1,336
Operating lease liabilities	50,086	55,642
Pension and other postretirement benefit liabilities	61,690	91,896
Other	50,856	56,713
Total deferred credits and other liabilities	2,405,775	2,336,009
Contributions in aid of construction	588,105	573,774
Total liabilities and equity	$ 14,236,485	$ 13,705,277

XML

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2021	Dec. 31, 2020
Consolidated Balance Sheets [Abstract]
Common stock, par value	$ 0.50	$ 0.50
Common stock, shares authorized	600,000,000	600,000,000
Common stock, shares issued	255,981,932	248,571,355
Treasury stock, shares	3,240,349	3,180,887

XML

Consolidated Statements Of Operations And Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Consolidated Statements Of Operations And Comprehensive Income [Abstract]
Operating revenues	$ 361,860	$ 348,647	$ 1,342,457	$ 988,700
Operating expenses:
Operations and maintenance	139,355	136,174	391,945	371,415
Purchased gas	25,488	16,744	202,538	72,934
Depreciation	72,606	68,175	217,007	181,666
Amortization	1,901	1,766	4,616	4,412
Taxes other than income taxes	21,058	20,555	63,219	56,424
Total operating expenses	260,408	243,414	879,325	686,851
Operating income	101,452	105,233	463,132	301,849
Other expense (income):
Interest expense	52,132	49,861	154,937	136,650
Interest income	(565)	(114)	(1,290)	(5,346)
Allowance for funds used during construction	(6,082)	(3,543)	(13,922)	(8,721)
Gain on sale of other assets	(320)	(233)	(623)	(358)
Equity loss in joint venture		3,626		3,283
Other	4,019	(4,127)	(1,393)	(3,170)
Income before income taxes	52,268	59,763	325,423	179,511
Provision for income taxes	1,765	4,031	10,317	(2,631)
Net income	50,503	55,732	315,106	182,142
Comprehensive income	$ 50,503	$ 55,732	$ 315,106	$ 182,142
Net income per common share:
Basic	$ 0.20	$ 0.22	$ 1.23	$ 0.73
Diluted	$ 0.19	$ 0.22	$ 1.23	$ 0.71
Average common shares outstanding during the period:
Basic	258,773	254,280	256,051	248,212
Diluted	259,437	255,162	256,763	255,139

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Consolidated Statements Of Capitalization - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Stockholders' equity:
Common stock, $0.50 par value	$ 127,990	$ 124,285
Capital in excess of par value	3,698,095	3,379,057
Retained earnings	1,385,631	1,261,862
Treasury stock, at cost	(83,854)	(81,327)
Total stockholders' equity	5,127,862	4,683,877
Long-term debt of subsidiaries (substantially collateralized by utility plant):
Long-term debt of subsidiaries	3,091,789	3,014,280
Total long-term debt	5,702,379	5,630,243
Current portion of long-term debt	63,418	84,353
Long-term debt, excluding current portion	5,638,961	5,545,890
Less: debt issuance costs	40,247	38,146
Long-term debt, excluding current portion, net of debt issuance costs	5,598,714	5,507,744
Total capitalization	10,726,576	10,191,621
Long-Term Debt Of Subsidiaries 0.00% To 0.99% [Member]
Long-term debt of subsidiaries (substantially collateralized by utility plant):
Long-term debt of subsidiaries	2,341	2,805
Long-Term Debt Of Subsidiaries 1.00% To 1.99% [Member]
Long-term debt of subsidiaries (substantially collateralized by utility plant):
Long-term debt of subsidiaries	9,578	10,260
Long-Term Debt Of Subsidiaries 2.00% To 2.99% [Member]
Long-term debt of subsidiaries (substantially collateralized by utility plant):
Long-term debt of subsidiaries	313,458	265,557
Long-Term Debt Of Subsidiaries 3.00% To 3.99% [Member]
Long-term debt of subsidiaries (substantially collateralized by utility plant):
Long-term debt of subsidiaries	1,361,263	1,316,872
Long-Term Debt Of Subsidiaries 4.00% To 4.99% [Member]
Long-term debt of subsidiaries (substantially collateralized by utility plant):
Long-term debt of subsidiaries	1,310,107	1,315,812
Long-Term Debt Of Subsidiaries 5.00% To 5.99% [Member]
Long-term debt of subsidiaries (substantially collateralized by utility plant):
Long-term debt of subsidiaries	17,222	17,804
Long-Term Debt Of Subsidiaries 6.00% To 6.99% [Member]
Long-term debt of subsidiaries (substantially collateralized by utility plant):
Long-term debt of subsidiaries	33,868	33,955
Long-Term Debt Of Subsidiaries 7.00% To 7.99% [Member]
Long-term debt of subsidiaries (substantially collateralized by utility plant):
Long-term debt of subsidiaries	29,212	29,890
Long-Term Debt Of Subsidiaries 8.00% To 8.99% [Member]
Long-term debt of subsidiaries (substantially collateralized by utility plant):
Long-term debt of subsidiaries	2,940	4,425
Long-Term Debt Of Subsidiaries 9.00% To 9.99% [Member]
Long-term debt of subsidiaries (substantially collateralized by utility plant):
Long-term debt of subsidiaries	11,800	16,900
Revolving Credit Agreement, Due 2023 [Member]
Long-term debt of subsidiaries (substantially collateralized by utility plant):
Notes payable to bank under revolving credit agreement, variable rate, due 2023	15,000	385,000
Amortizing notes at 3.00% due 2022 [Member]
Long-term debt of subsidiaries (substantially collateralized by utility plant):
Unsecured notes payable	30,590	60,502
Notes at 2.40% due 2031 [Member]
Long-term debt of subsidiaries (substantially collateralized by utility plant):
Unsecured notes payable	400,000
Notes at 2.704% due 2030 [Member]
Long-term debt of subsidiaries (substantially collateralized by utility plant):
Unsecured notes payable	500,000	500,000
Notes ranging from 3.01% to 3.59% due 2029 through 2050 [Member]
Long-term debt of subsidiaries (substantially collateralized by utility plant):
Unsecured notes payable	1,125,000	1,125,000
Notes at 4.28%, due 2049 [Member]
Long-term debt of subsidiaries (substantially collateralized by utility plant):
Unsecured notes payable	500,000	500,000
Notes ranging from 5.64% to 5.95%, due 2021 through 2034 [Member]
Long-term debt of subsidiaries (substantially collateralized by utility plant):
Unsecured notes payable	$ 40,000	$ 45,461

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Consolidated Statements Of Capitalization (Parenthetical) - $ / shares	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Common stock, par value	$ 0.50	$ 0.50
Revolving Credit Agreement, Due 2023 [Member]
Maturity date	2023	2023
Amortizing notes at 3.00% due 2022 [Member]
Interest rate	3.00%	3.00%
Maturity date	2022	2022
Notes at 2.40% due 2031 [Member]
Interest rate	2.40%	2.40%
Maturity date	2031	2031
Notes at 2.704% due 2030 [Member]
Interest rate	2.704%	2.704%
Maturity date	2030	2030
Notes at 3.01% due 2029 [Member]
Interest rate	3.01%	3.01%
Maturity date	2029	2029
Notes at 3.59% due 2050 [Member]
Interest rate	3.59%	3.59%
Maturity date	2050	2050
Notes at 4.28%, due 2049 [Member]
Interest rate	4.28%	4.28%
Maturity date	2049	2049
Notes at 5.64% due 2021 [Member]
Interest rate	5.64%	5.64%
Maturity date	2021	2021
Notes at 5.95% due 2034 [Member]
Interest rate	5.95%	5.95%
Maturity date	2034	2034
Minimum [Member] | Long-Term Debt Of Subsidiaries 0.00% To 0.99% [Member]
Interest rate	0.00%	0.00%
Maturity date	2023	2023
Minimum [Member] | Long-Term Debt Of Subsidiaries 1.00% To 1.99% [Member]
Interest rate	1.00%	1.00%
Maturity date	2021	2021
Minimum [Member] | Long-Term Debt Of Subsidiaries 2.00% To 2.99% [Member]
Interest rate	2.00%	2.00%
Maturity date	2022	2022
Minimum [Member] | Long-Term Debt Of Subsidiaries 3.00% To 3.99% [Member]
Interest rate	3.00%	3.00%
Maturity date	2021	2021
Minimum [Member] | Long-Term Debt Of Subsidiaries 4.00% To 4.99% [Member]
Interest rate	4.00%	4.00%
Maturity date	2021	2021
Minimum [Member] | Long-Term Debt Of Subsidiaries 5.00% To 5.99% [Member]
Interest rate	5.00%	5.00%
Maturity date	2021	2021
Minimum [Member] | Long-Term Debt Of Subsidiaries 6.00% To 6.99% [Member]
Interest rate	6.00%	6.00%
Maturity date	2022	2022
Minimum [Member] | Long-Term Debt Of Subsidiaries 7.00% To 7.99% [Member]
Interest rate	7.00%	7.00%
Maturity date	2022	2022
Minimum [Member] | Long-Term Debt Of Subsidiaries 8.00% To 8.99% [Member]
Interest rate	8.00%	8.00%
Maturity date	2021	2021
Minimum [Member] | Long-Term Debt Of Subsidiaries 9.00% To 9.99% [Member]
Interest rate	9.00%	9.00%
Maturity date	2021	2021
Maximum [Member] | Long-Term Debt Of Subsidiaries 0.00% To 0.99% [Member]
Interest rate	0.99%	0.99%
Maturity date	2033	2033
Maximum [Member] | Long-Term Debt Of Subsidiaries 1.00% To 1.99% [Member]
Interest rate	1.99%	1.99%
Maturity date	2039	2039
Maximum [Member] | Long-Term Debt Of Subsidiaries 2.00% To 2.99% [Member]
Interest rate	2.99%	2.99%
Maturity date	2033	2033
Maximum [Member] | Long-Term Debt Of Subsidiaries 3.00% To 3.99% [Member]
Interest rate	3.99%	3.99%
Maturity date	2056	2056
Maximum [Member] | Long-Term Debt Of Subsidiaries 4.00% To 4.99% [Member]
Interest rate	4.99%	4.99%
Maturity date	2059	2059
Maximum [Member] | Long-Term Debt Of Subsidiaries 5.00% To 5.99% [Member]
Interest rate	5.99%	5.99%
Maturity date	2043	2043
Maximum [Member] | Long-Term Debt Of Subsidiaries 6.00% To 6.99% [Member]
Interest rate	6.99%	6.99%
Maturity date	2036	2036
Maximum [Member] | Long-Term Debt Of Subsidiaries 7.00% To 7.99% [Member]
Interest rate	7.99%	7.99%
Maturity date	2027	2027
Maximum [Member] | Long-Term Debt Of Subsidiaries 8.00% To 8.99% [Member]
Interest rate	8.99%	8.99%
Maturity date	2025	2025
Maximum [Member] | Long-Term Debt Of Subsidiaries 9.00% To 9.99% [Member]
Interest rate	9.99%	9.99%
Maturity date	2026	2026

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Consolidated Statements Of Equity - USD ($) $ in Thousands	Common Stock [Member]	Capital In Excess Of Par Value [Member]	Retained Earnings [Member]	Treasury Stock [Member]	Total
Balance at Dec. 31, 2019	$ 111,935	$ 2,636,555	$ 1,210,072	$ (77,702)	$ 3,880,860
Net income			51,781		51,781
Dividends declared			(52,205)		(52,205)
Issuance of common stock from private placement	10,831	719,304			730,135
Issuance of common stock from stock purchase contracts	1,168	(1,168)
Issuance of common stock under dividend reinvestment plan	43	4,019			4,062
Repurchase of stock				(4,339)	(4,339)
Equity compensation plan	112	(112)
Exercise of stock options	28	922			950
Stock-based compensation		2,072	(147)		1,925
Other		(6)			(6)
Balance at Mar. 31, 2020	124,117	3,361,586	1,209,501	(82,041)	4,613,163
Balance at Dec. 31, 2019	111,935	2,636,555	1,210,072	(77,702)	3,880,860
Net income					182,142
Balance at Sep. 30, 2020	124,228	3,372,376	1,220,790	(81,641)	4,635,753
Balance at Mar. 31, 2020	124,117	3,361,586	1,209,501	(82,041)	4,613,163
Net income			74,629		74,629
Dividends declared			(57,414)		(57,414)
Expenses incurred for private placement issuance of common stock		(834)			(834)
Issuance of common stock under dividend reinvestment plan	50	3,949			3,999
Repurchase of stock				(4)	(4)
Equity compensation plan	2	(2)
Exercise of stock options	2	115			117
Stock-based compensation		1,918	(94)		1,824
Other		(37)		91	54
Balance at Jun. 30, 2020	124,171	3,366,695	1,226,622	(81,954)	4,635,534
Net income			55,732		55,732
Dividends declared			(61,460)		(61,460)
Issuance of common stock under dividend reinvestment plan	52	4,209			4,261
Repurchase of stock				(2)	(2)
Equity compensation plan	3	(3)
Exercise of stock options	2	146			148
Stock-based compensation		2,082	(104)		1,978
Other		(753)		315	(438)
Balance at Sep. 30, 2020	124,228	3,372,376	1,220,790	(81,641)	4,635,753
Retained earnings					1,261,862
Balance at Dec. 31, 2020	124,285	3,379,057	1,261,862	(81,327)	4,683,877
Net income			183,689		183,689
Dividends declared			(61,520)		(61,520)
Issuance of common stock under dividend reinvestment plan	49	4,112			4,161
Repurchase of stock				(3,262)	(3,262)
Equity compensation plan	97	(97)
Exercise of stock options	10	704			714
Stock-based compensation		2,631	(174)		2,457
Other		(31)		256	225
Balance at Mar. 31, 2021	124,441	3,386,376	1,383,857	(84,333)	4,810,341
Balance at Dec. 31, 2020	124,285	3,379,057	1,261,862	(81,327)	4,683,877
Net income					315,106
Balance at Sep. 30, 2021	127,990	3,698,095	1,385,631	(83,854)	5,127,862
Balance at Mar. 31, 2021	124,441	3,386,376	1,383,857	(84,333)	4,810,341
Net income			80,914		80,914
Dividends declared			(61,584)		(61,584)
Issuance of common stock under dividend reinvestment plan	46	4,049			4,095
Repurchase of stock				(17)	(17)
Equity compensation plan	2	(2)
Exercise of stock options	11	781			792
Stock-based compensation		2,316	(146)		2,170
Other		(148)		252	104
Balance at Jun. 30, 2021	124,500	3,393,372	1,403,041	(84,098)	4,836,815
Net income			50,503		50,503
Dividends declared			(67,758)		(67,758)
Issuance of common stock from stock purchase contracts	3,350	296,389			299,739
Issuance of common stock under dividend reinvestment plan	64	(64)
Issuance of common stock from forward equity sale agreement	46	4,295			4,341
Repurchase of stock				(8)	(8)
Equity compensation plan	2	(2)
Exercise of stock options	28	1,759			1,787
Stock-based compensation		2,328	(155)		2,173
Other		18		252	270
Balance at Sep. 30, 2021	$ 127,990	$ 3,698,095	$ 1,385,631	$ (83,854)	5,127,862
Retained earnings					$ 1,385,631

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Consolidated Statements Of Equity (Parenthetical) - $ / shares	3 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020
Consolidated Statements Of Equity (Parenthetical) [Abstract]
Dividend declared per common share	$ 0.2682	$ 0.2507	$ 0.2507	$ 0.2507	$ 0.2343	$ 0.2343
Issuance of common stock from private placement, shares						21,661,095
Issuance of common stock from stock purchase contracts , shares	6,700,000					2,335,654
Issuance of common stock under dividend reinvestment plan, shares	127,749	90,654	98,904	104,637	100,148	86,969
Issuance of common stock from forward equity sale agreement , shares	92,993
Repurchase of stock, shares	176	364	76,105	44	100	81,722
Equity compensation plan, shares	5,337	4,874	192,407	6,088	4,594	223,495
Exercise of stock options, shares	54,672	22,786	20,201	4,270	3,411	56,106

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Consolidated Statements Of Cash Flow - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Cash flows from operating activities:
Net income	$ 315,106	$ 182,142
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization	221,623	186,078
Deferred income taxes	12,645	1,120
Provision for doubtful accounts	21,220	23,598
Stock-based compensation	7,343	5,842
Gain on sale of utility systems and other assets	(1,208)	(339)
Net change in receivables, inventory and prepayments	(20,488)	24,886
Net change in payables, accrued interest, accrued taxes and other accrued liabilities	16,181	12,431
Pension and other postretirement benefits contributions	(15,109)	(16,100)
Other	4,539	997
Net cash flows from operating activities	561,852	420,655
Cash flows from investing activities:
Property, plant and equipment additions, including the debt component of allowance for funds used during construction of $2,885 and $2,957	(675,845)	(554,141)
Acquisitions of utility systems, net	(36,325)	(3,467,032)
Net proceeds from the sale of other assets	1,420	1,063
Other	(120)	465
Net cash flows used in investing activities	(710,870)	(4,019,645)
Cash flows from financing activities:
Customers' advances and contributions in aid of construction	12,473	7,475
Repayments of customers' advances	(3,091)	(3,992)
Net repayments of short-term debt	(31,616)	(160,420)
Proceeds from long-term debt	795,153	2,957,663
Repayments of long-term debt	(717,816)	(1,647,354)
Change in cash overdraft position	(23,255)	18,166
Proceeds from issuance of common stock under dividend reinvestment plan	12,597	12,322
Proceeds from issuance of common stock from private placement		729,301
Proceeds from issuance of common stock from forward equity sale agreement	299,739
Proceeds from exercised stock options	3,293	1,215
Repurchase of common stock	(3,287)	(4,345)
Dividends paid on common stock	(190,862)	(171,079)
Other	599	(390)
Net cash flows from financing activities	153,927	1,738,562
Net change in cash and cash equivalents	4,909	(1,860,428)
Cash and cash equivalents at beginning of period	4,827	1,868,922
Cash and cash equivalents at end of period	9,736	8,494
Non-cash investing activities:
Property, plant and equipment additions purchased at the period end, but not yet paid for	78,727	96,982
Non-cash customer advances and contributions in aid of construction	$ 30,075	$ 28,321

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Consolidated Statements Of Cash Flow (Parenthetical) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Consolidated Statements Of Cash Flow [Abstract]
Debt component of allowance for funds used during construction	$ 2,885	$ 2,957

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Basis Of Presentation	9 Months Ended
	Sep. 30, 2021
Basis Of Presentation [Abstract]
Basis Of Presentation	Note 1 – Basis of Presentation The accompanying unaudited consolidated balance sheets and statements of capitalization of Essential Utilities, Inc. and subsidiaries (collectively, the “Company”, “we”, “us” or “our”) at September 30, 2021, the unaudited consolidated statements of operations and comprehensive income for the three and nine months ended September 30, 2021 and 2020, and the unaudited consolidated statements of cash flows and consolidated statements of equity for the nine months ended September 30, 2021 and 2020, have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim reporting and the rules and regulations for reporting on Quarterly Reports on Form 10-Q. Because they cover interim periods, the statements and related notes to the financial statements do not include all disclosures and notes normally provided in annual financial statements and, therefore, should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Interim results are not necessarily indicative of results for a full year. In the opinion of management, all adjustments, consisting of only recurring accruals, which are necessary to present a fair statement of its consolidated financial position, consolidated changes in equity, consolidated results of operations, and consolidated cash flow for the periods presented, have been made. The preparation of financial statements often requires the selection of specific accounting methods and policies. Further, significant estimates and judgments may be required in selecting and applying those methods and policies in the recognition of the assets and liabilities in its consolidated balance sheets, the revenues and expenses in its consolidated statements of operations and comprehensive income, and the information that is contained in its summary of significant accounting policies and notes to consolidated financial statements. Making these estimates and judgments requires the analysis of information concerning events that may not yet be complete and of facts and circumstances that may change over time. Accordingly, actual amounts or future results can differ materially from those estimates that the Company includes currently in its consolidated financial statements, summary of significant accounting policies, and notes. In the preparation of these financial statements and related disclosures, we have assessed the impact that the COVID-19 pandemic has had on our estimates, assumptions, forecasts, and accounting policies. Because of the essential nature of our business, we do not believe the COVID-19 pandemic had a material impact on our estimates, assumptions and forecasts used in the preparation of our financial statements, although we continue to monitor this closely. As the COVID-19 pandemic is continuing to evolve, future events and effects related to the COVID-19 pandemic cannot be determined with precision, and actual results could significantly differ from our estimates or forecasts. There have been no changes to the summary of significant accounting policies previously identified in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.

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Revenue Recognition	9 Months Ended
	Sep. 30, 2021
Revenue Recognition [Abstract]
Revenue Recognition	Note 2 – Revenue Recognition The following table presents our revenues disaggregated by major source and customer class: Three Months Ended Three Months Ended September 30, 2021 September 30, 2020 Water Revenues Wastewater Revenues Natural Gas Revenues Other Revenues Water Revenues Wastewater Revenues Natural Gas Revenues Other RevenuesRevenues from contracts with customers: Residential $ 148,247  $ 25,147  $ 49,838  $ - $ 157,387  $ 24,175  $ 46,913  $ -Commercial 42,318  5,839  9,534  - 41,693  4,794  7,993  -Fire protection 8,866  - - - 8,535  - - -Industrial 8,217  401  415  - 9,022  388  1,407  -Gas transportation & storage - - 27,794  - - - 26,248  -Other water 14,539  - - - 9,524  - - -Other wastewater - 2,495  - - - 1,462  - -Customer rate credits - - - - (3,757) (323) - -Other utility - - 7,488  3,241  - - 5,763  6,548 Revenues from contracts with customers 222,187  33,882  95,069  3,241  222,404  30,496  88,324  6,548 Alternative revenue program 527  22  - - (341) (143) - -Other and eliminations - - - 6,932  - - 556  803 Consolidated$ 222,714  $ 33,904  $ 95,069  $ 10,173  $ 222,063  $ 30,353  $ 88,880  $ 7,351  Nine Months Ended Nine Months Ended September 30, 2021 September 30, 2020 Water Revenues Wastewater Revenues Natural Gas RevenuesOther Revenues Water Revenues Wastewater Revenues Natural Gas Revenues Other RevenuesRevenues from contracts with customers: Residential $ 425,519  $ 73,820  $ 347,790  $ - $ 431,022  $ 70,421  $ 156,004  $ -Commercial 113,473  16,102  65,404  - 108,311  14,186  23,887  -Fire protection 26,830  - - - 26,437  - - -Industrial 22,954  1,256  1,894  - 22,597  1,230  3,721  -Gas transportation & storage - - 143,387  - - - 75,951  -Other water 37,696  - - - 23,378  - - -Other wastewater - 6,808  - - - 3,449  - -Customer rate credits - - - - (3,757) (323) - -Other utility - - 22,639  10,556  - - 12,672  16,088 Revenues from contracts with customers 626,472  97,986  581,114  10,556  607,988  88,963  272,235  16,088 Alternative revenue program 1,357  18  206  - (281) (248) 154  -Other and eliminations - - - 24,748  - - 1,409  2,392 Consolidated$ 627,829  $ 98,004  $ 581,320  $ 35,304  $ 607,707  $ 88,715  $ 273,798  $ 18,480  On March 16, 2020, the Company completed the Peoples Gas Acquisition, which expanded the Company’s regulated utility business, to include natural gas distribution. The natural gas revenues of Peoples are included for the period since the date of the acquisition.‎ Revenues from Contracts with Customers – These revenues are composed of four main categories: water, wastewater, natural gas, and other. Water revenues represent revenues earned for supplying customers with water service. Wastewater revenues represent revenues earned for treating wastewater and releasing it into the environment. Natural gas revenues represent revenues earned for the gas commodity and delivery of natural gas to customers. Other revenues are associated fees that relate to our utility businesses but are not water, wastewater, or natural gas revenues. Refer to the description below for a discussion of the performance obligation for each of these revenue streams. Tariff Revenues – These revenues are categorized by customer class: residential, commercial, fire protection, industrial, gas transportation, other water and other wastewater. The rates that generate these revenues are approved by the respective state utility commission, and revenues are billed cyclically and accrued for when unbilled. The regulated natural gas rates are set and adjusted for increases or decreases in our purchased gas costs through purchased gas adjustment mechanisms. Purchased gas adjustment mechanisms provide us with a means to recover purchased gas costs on an ongoing basis without filing a rate case. Other water and other wastewater revenues consist primarily of fines, penalties, surcharges, and availability lot fees. Our performance obligation for tariff revenues is to provide potable water, wastewater treatment service, or delivery and sale of natural gas to customers. This performance obligation is satisfied over time as the services are rendered. The amounts that the Company has a right to invoice for tariff revenues reflect the right to consideration from the customers in an amount that corresponds directly with the value transferred to the customer for the performance completed to date. Other Utility Revenues – Other utility revenues represent revenues earned primarily from: antenna revenues, which represent fees received from telecommunication operators that have put cellular antennas on our water towers; operation and maintenance and billing contracts, which represent fees earned from municipalities for our operation of their water or wastewater treatment services or performing billing services; fees earned from developers for accessing our water mains; miscellaneous service revenue from gas distribution operations; gas processing and handling revenue; sales of natural gas at market-based rates and contracted fixed prices; sales of gas purchased from third parties; and other gas marketing activities. The performance obligations vary for these revenues, but all are primarily recognized over time as the service is delivered. Alternative Revenue Program: Water / Wastewater Revenues: These revenues represent the difference between the actual billed utility volumetric water and wastewater revenues for Aqua Illinois and the revenues set in the last Aqua Illinois rate case. In accordance with the Illinois Commerce Commission, we recognize revenues based on the target amount established in the last rate case, and then record either a regulatory asset or liability based on the cumulative annual difference between the target and actual amounts billed, which results in either a payment from customers or a refund due to customers. The cumulative annual difference is either refunded to customers or collected from customers over a nine-month period. Natural Gas Revenues: These revenues represent the weather-normalization adjustment (“WNA”) mechanism in place for our natural gas customers served in Kentucky. The WNA serves to minimize the effects of weather on the Company’s results for its residential and small commercial natural gas customers. This regulatory mechanism adjusts revenues earned for the variance between actual and normal weather and can have either positive (warmer than normal) or negative (colder than normal) effects on revenues. Customer bills are adjusted in the December through April billing months, with rates adjusted for the difference between actual revenues and revenues calculated under this mechanism billed to the customers. These revenue programs represent a contract between the utility and its regulators, not customers, and therefore are not within the scope of the Financial Accounting Standards Board’s (“FASB”) accounting guidance for recognizing revenue from contracts with customers. Other and Eliminations – Other and eliminations consist of our market-based revenues, which comprises: our non-regulated natural gas operations, Aqua Infrastructure and Aqua Resources (described below) and intercompany eliminations for revenue billed between our subsidiaries. Our non-regulated natural gas operations consist of utility service line protection solutions and repair services to households and the operations of gas marketing and production entities. Revenue is recognized and the performance obligation is satisfied over time as the service is delivered. Aqua Infrastructure is the holding company for our former 49% investment in a joint venture that operated a private pipeline system to supply raw water to natural gas well drilling operations in the Marcellus Shale of north central Pennsylvania. Prior to our October 30, 2020 sale of our investment in the joint venture, the joint venture earned revenues through providing non-utility raw water supply services to natural gas drilling companies which enter into water supply contracts. The performance obligation was to deliver non-potable water to the joint venture’s customers. Aqua Infrastructure’s share of the revenues recognized by the joint venture was reflected, net, in equity earnings in joint venture on our consolidated statements of operations and comprehensive income. Aqua Resources earned revenues by providing non-regulated water and wastewater services through an operating and maintenance contract which concluded in 2020, and continues to earn revenue through third party water and sewer service line protection and repair services. For the contract operations and maintenance business, the performance obligations were performing agreed upon contract services to operate the water and wastewater system. For the line protection business, the performance obligations are allowing the use of our logo to a third-party water and sewer service line repair provider. Revenues are primarily recognized over time as service is delivered.‎

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Acquisitions	9 Months Ended
	Sep. 30, 2021
Acquisitions [Abstract]
Acquisitions	Note 3 – Acquisitions Peoples Gas Acquisition On March 16, 2020 (the “Closing Date”), the Company completed the acquisition of Peoples Natural Gas (the “Peoples Gas Acquisition”), which expanded the Company’s regulated utility business to include natural gas distribution, serving approximately 750,000 natural gas utility customers in western Pennsylvania, West Virginia and Kentucky. The Company paid cash consideration of $3,465,344, which was subject to adjustment based upon the terms of the purchase agreement. Purchase price adjustments included the completion of a closing balance sheet, which was provided to the seller, and an adjustment for utility capital expenditures made by the seller during the period between November 1, 2018 and the Closing Date. In November 2021, the dispute between the parties regarding the adjustment for utility capital expenditures was resolved in accordance with the provisions of the purchase agreement and an inconsequential payment will be made between the parties. The purchase price paid by the Company was determined as follows: Base purchase price$ 4,275,000 Adjustments: Estimated change in working capital 43,935 Certain estimated capital expenditures 247,500 Assumption of indebtedness (1,101,091)Cash consideration$ 3,465,344  The assumption of $1,101,091 of indebtedness as of the Closing Date, consisted of $920,091 of senior notes and $181,000 of short-term debt. The acquisition was financed through a series of financing transactions which included the issuance of common stock from a public offering and a private placement, a tangible equity unit offering, and short and long-term debt. The Company accounted for the Peoples Gas Acquisition as a business combination using the acquisition method of accounting. The purchase price was allocated to the net tangible and intangible assets based upon their estimated fair values at the date of the acquisition. The purchase price allocation was preliminary and was subject to revision through the end of the measurement period on March 15, 2021. During the first quarter of 2021, the Company recorded an adjustment to increase goodwill by $16,400 primarily reflecting an adjustment to deferred income taxes and the valuation of accounts receivable. Goodwill recorded for the Peoples Gas Acquisition is not expected to be deductible for tax purposes. The following table summarizes the purchase price allocation as of the acquisition date and measurement period adjustments as of March 15, 2021: Amounts Amounts Previously Measurement Recognized as of Recognized as of Period Acquisition Date Acquisition Date (a) Adjustments (as Adjusted)Property, plant and equipment, net$ 2,476,551  $ - $ 2,476,551 Current assets 242,531  (9,197) 233,334 Regulatory assets 286,751  (22,293) 264,458 Goodwill 2,261,047  16,400  2,277,447 Other long-term assets 75,071  - 75,071 Total assets acquired 5,341,951  (15,090) 5,326,861  Current portion of long-term debt 5,136  - 5,136 Loans payable 181,000  - 181,000 Other current liabilities 186,120  (200) 185,920 Long-term debt 999,460  - 999,460 Deferred income taxes 213,647  (20,522) 193,125 Regulatory liabilities 123,029  6,389  129,418 Other long-term liabilities 168,215  (757) 167,458 Total liabilities assumed 1,876,607  (15,090) 1,861,517 Net assets acquired$ 3,465,344  $ - $ 3,465,344  (a)As reported, the Essential Utilities, Inc. Form 10-K for the period ended December 31, 2020. The Company incurred transaction-related expenses for the Peoples Gas Acquisition, which consisted of costs recorded as operations and maintenance expenses in the first quarter of 2020 of $25,397 primarily representing expenses associated with investment banking fees, including bridge financing, employee related costs, obtaining regulatory approvals, legal expenses, and integration planning. There were no further transaction-related expenses for the Peoples Gas Acquisition after the first quarter of 2020. The results of Peoples have been included in our consolidated financial statements as of the Closing Date. Peoples contributed revenues of $280,300 and earnings of $6,131 for the period from the Closing Date to September 30, 2020. The following pro forma summary presents consolidated unaudited information as if the Peoples Gas Acquisition had occurred on January 1, 2019: Three Months Ended Nine Months Ended September 30, 2020 September 30,2020Operating revenues$ 348,647 $ 1,269,768Net income 55,732  264,785 The supplemental pro forma information is not necessarily representative of the actual results that may have occurred for the period or of the results that may occur in the future. This supplemental pro forma information is based upon the historical operating results of Peoples for the period prior to the Closing Date and is adjusted to reflect the effect of non-recurring acquisition-related costs, incurred in 2020 as if they occurred on January 1, 2019. The adjustments include $20,628 ($25,197 pre-tax) of expenses incurred in 2020, primarily associated with investment banking fees, obtaining regulatory approvals, legal expenses and other direct costs of the Peoples Gas Acquisition, adjustments to reflect net acquisition financing as of January 1, 2019 of $10,700 ($14,342 pre-tax), the elimination of interest on debt that was not assumed in the acquisition of $2,448 ($3,442 pre-tax), and the elimination of a management fee charged quarterly to Peoples by its former parent company of $885 ($1,245 pre-tax). Associated with the approval of the Peoples Gas Acquisition from the Pennsylvania Public Utility Commission, the Company committed to addressing the replacement of gathering pipe over a seven year timeframe for an estimated cost of $120,000, which will be recoverable through customer rates. Additionally, the Company committed to provide $23,004 of one-time customer rate credits to its Pennsylvania natural gas utility customers and water and wastewater customers served by Aqua Pennsylvania, Inc. (“Aqua Pennsylvania”). The Company granted $4,080 of customer rate credits to its water and wastewater customers during the third quarter of 2020, and $18,924 to its natural gas utility customers in the fourth quarter of 2020 to satisfy the $23,004 commitment. Water and Wastewater Utility Acquisitions - Completed In August 2021, the Company acquired the water utility system assets of The Commons Water Supply, Inc., which serves 992 customers in Harris County, Texas, and the wastewater utility system assets of the Village of Bourbonnais, which serves approximately 6,500 customers in Kankakee County, Illinois. The total cash purchase prices for these utility systems were $4,000 and $32,100, respectively. In December 2020, the Company acquired the wastewater utility system assets of New Garden Township, Pennsylvania, which serves 1,965 customers. The total cash purchase price for the utility system was $29,944. In October 2020, the Company acquired the water and wastewater utility system of Rockwell Utilities, which serves 514 customers in the Village of Lakemoor in Lake County, Illinois. The total cash purchase price for the utility system was $4,859. In June 2020, the Company acquired the wastewater utility system assets of East Norriton Township, Pennsylvania, which serves 4,947 customers. The total cash purchase price for the utility system was $21,000. In January 2020, the Company acquired the water utility system assets of the City of Campbell, Ohio, which serves 3,126 customers. The total cash purchase price for the utility system was $7,472. The purchase price allocation for these acquisitions consisted primarily of acquired property, plant and equipment. The pro forma effect of the utility systems acquired is not material either individually or collectively to the Company’s results of operations. Water and Wastewater Utility Acquisitions – Pending Completion In October 2021, the Company entered into a purchase agreement to acquire the wastewater utility assets of the City of Beaver Falls, Pennsylvania which consists of approximately 7,600 customers for $41,250.In July 2021, the Company entered into a purchase agreement to acquire the water utility assets of Shenandoah Borough, Pennsylvania which consists of approximately 2,930 customers for $12,000.  In April 2021, the Company entered into a purchase agreement to acquire certain water or wastewater utility assets of Oak Brook, Illinois which consists of approximately 2,121 customers for $12,500. In January 2021, the Company entered into purchase agreements to acquire, in separate transactions, the wastewater utility system assets of East Whiteland Township, Pennsylvania and Willistown Township, Pennsylvania which consist of approximately 10,500 customers for $72,400. In September 2020, the Company entered into a purchase agreement to acquire the wastewater utility system assets of Lower Makefield Township, Pennsylvania, which consists of approximately 11,000 customers for $53,000. The purchase price for these pending acquisitions are subject to certain adjustments at closing, and are subject to regulatory approval, including the final determination of the fair value of the rate base acquired. We plan to finance the purchase price of these acquisitions by utilizing our revolving credit facility until permanent debt and common equity are secured. The closing for the wastewater assets of Lower Makefield Township is expected to occur in the first quarter of 2022, and the closings of our acquisitions of East Whiteland Township and Willistown Township are expected to occur in the second quarter of 2022. The closings of our Shenandoah and Beaver Falls acquisitions are expected to occur in the second half of 2022.  The closing of our Oak Brook acquisition is expected to occur in the fourth quarter of 2022. Closing for our utility acquisitions are subject to the timing of the respective regulatory approval processes. In September 2019, the Company entered into a purchase agreement to acquire the wastewater utility system assets of the Delaware County Regional Water Quality Control Authority (“DELCORA”), which consists of approximately 16,000 customers, or the equivalent of 198,000 retail customers, in 42 municipalities in Southeast Pennsylvania for $276,500. In May 2020, Delaware County, Pennsylvania filed a lawsuit alleging that DELCORA does not have the legal authority to establish and fund a customer trust with the net proceeds of the transaction. In December 2020, the judge in the Delaware County Court lawsuit issued an order that (1) the County cannot interfere with the purchase agreement between DELCORA and the Company; (2) the County cannot terminate DELCORA prior to the closing of the transaction; and (3) that the establishment of the customer trust was valid. Delaware County appealed this decision to Commonwealth Court of Pennsylvania, where this case is continuing. A three-judge panel heard oral arguments on October 18, 2021; a decision is expected in the next several months. The administrative law judges in the regulatory approval process recommended that the Company’s application be denied, and subsequently, the Company provided exceptions to the recommended decision. On March 25, 2021, the Pennsylvania Public Utility Commission ruled that the case be remanded back to the Office of Administrative Law Judge and vacated the original administrative law judges’ decision. On April 16, 2021, the administrative law judge issued an order staying the proceeding until the Delaware County Court lawsuit is final and unappealable. The purchase price for this pending acquisition is subject to certain adjustments at closing, and is subject to regulatory approval, including the final determination of the fair value of the rate base acquired. We plan to finance the purchase price of this acquisition by the issuance of common stock and by utilizing our revolving credit facility until permanent debt is secured. Closing of our acquisition of DELCORA is expected to occur in 2022, subject to the timing of the regulatory approval process and DELCORA’s above-referenced litigation with Delaware County.

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Goodwill	9 Months Ended
	Sep. 30, 2021
Goodwill [Abstract]
Goodwill	Note 4 – Goodwill  The following table summarizes the changes in the Company’s goodwill, by business segment:   Regulated Water Regulated Natural Gas Other ConsolidatedBalance at December 31, 2020 $ 58,659 $ 2,261,047 $ 4,841 $ 2,324,547Goodwill acquired - - - -Measurement period purchase price allocation adjustments - 16,400 - 16,400Reclassification to utility plant acquisition adjustment (111) - - (111)Balance at September 30, 2021 $ 58,548 $ 2,277,447 $ 4,841 $ 2,340,836 The measurement period purchase price allocation adjustments resulted from the completion of the Peoples Gas Acquisition on March 16, 2020, which resulted in goodwill of $2,277,447 which was subject to adjustment over the one year measurement period that ended on March 15, 2021. Refer to Note 3 – Acquisitions for information about the goodwill attributed to our Regulated Natural Gas segment. ‎ The reclassification of goodwill to utility plant acquisition adjustment results from a mechanism approved by the applicable utility commission. The mechanism provides for the transfer over time, and the recovery through customer rates, of goodwill associated with some acquisitions upon achieving specific objectives. Goodwill is not amortized but is tested for impairment annually, or more often, if circumstances indicate it is more likely than not that the fair value of a reporting unit is less than its carrying amount. When testing goodwill for impairment, the Company may assess qualitative factors, including macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, and entity specific events, for some or all of our reporting units to determine whether it’s more likely than not that the fair value of a reporting unit is less than its carrying amount. Alternatively, based on our assessment of the qualitative factors previously noted, we may perform a quantitative goodwill impairment test by determining the fair value of a reporting unit. If we perform a quantitative test and determine that the fair value of a reporting unit is less than its carrying amount, we would record an impairment loss for the amount by which a reporting unit’s carrying amount exceeds its fair value, not to exceed the carrying amount of goodwill. The Company performed a quantitative assessment for its annual test of the goodwill attributable to its Regulated Natural Gas reporting unit as of July 31, 2021. We estimated the fair value of the reporting unit by weighting results from the market approach and the income approach. Key assumptions in the valuation methodologies for goodwill included growth rates, terminal value, discount rates, and comparable multiples from publicly traded companies in our industry.  Based on our analysis, we determined that the fair values of our Regulated Natural Gas reporting unit exceeded their carrying values, indicating none of its goodwill was impaired. The Company performed a qualitative assessment for its Regulated Water and Aqua Resources reporting units as of July 31, 2021, and concluded that it is more likely than not that the fair value of each reporting unit, which has goodwill recorded, exceeded its carrying amount, indicating that none of their goodwill was impaired.

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Disposition	9 Months Ended
	Sep. 30, 2021
Disposition [Abstract]
Disposition	Note 5 –Disposition In October 2020, the Company sold its investment in a joint venture. Its investment represented its 49% investment in a joint venture that operates a private pipeline system to supply raw water to natural gas well drilling operations in the Marcellus Shale of north central Pennsylvania. This investment was an unconsolidated affiliate and was accounted for under the equity method of accounting within our Aqua Infrastructure subsidiary. In the third quarter of 2020, we recorded a charge of $3,700 for the write-down of the Company’s investment associated with the sale, which was reported in equity loss in joint venture.

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Capitalization	9 Months Ended
	Sep. 30, 2021
Capitalization [Abstract]
Capitalization	Note 6 – Capitalization In April 2021, the Company filed a universal shelf registration through a filing with the Securities and Exchange Commission (“SEC”) to allow for the potential future offer and sale by the Company, from time to time, in one or more public offerings, of an indeterminate amount of our common stock, preferred stock, debt securities and other securities specified therein at indeterminate prices. Stockholders’ Equity In August 2020, the Company entered into a forward equity sale agreement for 6,700,000 shares of common stock with a third party (the “forward purchaser”). In connection with the forward equity sale agreement, the forward purchaser borrowed an equal number of shares of the Company’s common stock from stock lenders and sold the borrowed shares to the public. The Company did not receive any proceeds from the sale of its common stock by the forward purchaser until settlement of the shares underlying the forward equity sale agreement. The actual proceeds to be received by the Company would have varied depending upon the settlement date, the number of shares designated for settlement on that settlement date and the method of settlement. The forward equity sale agreement was accounted for as an equity instrument and was recorded at a fair value of $0 at inception. The fair value was not adjusted as the Company continued to meet the accounting requirements for equity instruments. On August 9, 2021, the Company settled the forward equity sale agreement in full by physical share settlement. The Company issued 6,700,000 shares and received cash proceeds of $299,739 at a forward price of $44.74 per share. Pursuant to the agreement, the forward price was computed based upon the initial forward price of $46.00 per share, adjusted for a floating interest rate factor equal to a specified daily rate less a spread and scheduled dividends during the term of the agreement. The Company used the proceeds received upon settlement of the forward equity sale agreement to fund general corporate purposes, including for water and wastewater acquisitions, working capital and capital expenditures. The forward equity sale agreement has now been completely settled, and there are no additional shares subject to the forward equity sale agreement. Private Placement On March 29, 2019, the Company entered into a Stock Purchase Agreement (the “Stock Purchase Agreement”) with Canada Pension Plan Investment Board (the “Investor”), pursuant to which the Company agreed to issue and sell to the Investor in a private placement (the “Private Placement”) 21,661,095 newly issued shares of common stock, par value $0.50 per share (the “Common Stock”). On March 16, 2020, in connection with the closing of the Peoples Gas Acquisition, the Company closed on the Private Placement and received gross proceeds of $749,907, less expenses of $20,606. In June 2021, the Company filed a registration statement on Form S-3 ASR registering the Private Placement shares for resale. The shares issued and sold to the Investor pursuant to the Private Placement were to be priced at the lower of (1) $34.62, which represents a 4.5% discount to the trailing 20 consecutive trading day volume weighted average price of the Common Stock ending on, and including, March 28, 2019, and (2) the volume weighted average price per share in the Company’s subsequent public offering of Common Stock to fund a portion of the Peoples Gas Acquisition. The Stock Purchase Agreement contains customary representations, warranties and covenants of the Company and the Investor, and the parties have agreed to indemnify each other for losses related to breaches of their respective representations and warranties. At the closing of the Private Placement, the Company reimbursed the Investor for reasonable out-of-pocket diligence expenses of $4,000. Tangible Equity Unit Issuances On April 23, 2019, the Company issued $690,000, less expenses of $16,358, of its tangible equity units (the “Units”), with a stated amount of $50 per unit. This issuance was part of the permanent financing to close the Peoples Gas Acquisition. Each Unit consists of a prepaid stock purchase contract and an amortizing note due April 30, 2022, each issued by the Company. Unless earlier settled or redeemed, each stock purchase contract will automatically settle on April 30, 2022 (subject to postponement in limited circumstances) for between 1.1790 and 1.4442 shares of the Company’s common stock, subject to adjustment, based upon the applicable market value of the common stock, as described in the final prospectus supplement relating to the Units. During the nine months ended September 30, 2021, 107,904 stock purchase contracts were early settled by the holders of the contracts, resulting in the issuance of 127,749 shares of the Company’s common stock. As of September 30, 2021, the balance of stock purchase contracts is 7,603,234. The amortizing notes have an initial principal amount of $8.62909, or $119,081 in aggregate, and bear interest at a rate of 3.00% per year, and pay equal quarterly cash installments of $0.75000 per amortizing note (except for the July 30, 2019 installment payment, which was $0.80833 per amortizing note), that will constitute a payment of interest and a partial repayment of principal, and which cash payment in the aggregate will be equivalent to 6.00% per year with respect to each $50 stated amount of the Units. The amortizing notes represent unsecured senior obligations of the Company. Long-term Debt and Loans Payable On April 15, 2021, the Company’s operating subsidiary, Aqua Ohio, Inc., issued $100,000 of first mortgage bonds, of which $50,000 is due in 2031 and $50,000 is due in 2051, with interest rates of 2.37% and 3.35%, respectively. The proceeds from these bonds were used for general corporate purposes and to repay existing indebtedness. Further, on April 19, 2021, the Company issued $400,000 of long-term debt, less expenses of $4,010, which is due in 2031 with an interest rate of 2.40%. The Company used the proceeds from this issuance to repay $50,000 of borrowings under the Aqua Pennsylvania revolving credit facility, and the balance was used to repay in full the borrowings under its existing five year unsecured revolving credit agreement. The Company completed the Peoples Gas Acquisition on March 16, 2020, which resulted in the assumption of $1,101,091 of indebtedness, which includes $920,091 of senior notes and $181,000 of short-term debt. The senior notes have maturities ranging from 2020 to 2032 and interest rates that range from 2.90% to 6.42%. The short-term debt assumed at closing was repaid with the proceeds from the Company’s subsequent April 2020 long-term debt issuance.

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Financial Instruments	9 Months Ended
	Sep. 30, 2021
Financial Instruments [Abstract]
Financial Instruments	Note 7 – Financial Instruments  The Company follows the FASB’s accounting guidance for fair value measurements and disclosures, which defines fair value and establishes a framework for using fair value to measure assets and liabilities. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: lLevel 1: unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access;  lLevel 2: inputs other than Level 1 that are observable, either directly or indirectly, such as quoted market prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in non-active markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; or  lLevel 3: inputs that are unobservable and significant to the fair value measurement.  The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. There have been no changes in the valuation techniques used to measure fair value, or asset or liability transfers between the levels of the fair value hierarchy for the quarter ended September 30, 2021.  Financial instruments are recorded at carrying value in the financial statements and approximate fair value as of the dates presented.  The fair value of these instruments is disclosed below in accordance with current accounting guidance related to financial instruments.  The fair value of loans payable is determined based on its carrying amount and utilizing Level 1 methods and assumptions. As of September 30, 2021 and December 31, 2020, the carrying amount of the Company’s loans payable was $46,582 and $78,198, respectively, which equates to their estimated fair value. The fair value of cash and cash equivalents, is determined based on Level 1 methods and assumptions. As of September 30, 2021 and December 31, 2020, the carrying amounts of the Company's cash and cash equivalents was $9,736 and $4,827, respectively, which equates to their fair value. The Company’s assets underlying the deferred compensation and non-qualified pension plans are determined by the fair value of mutual funds, which are based on quoted market prices from active markets utilizing Level 1 methods and assumptions. As of September 30, 2021 and December 31, 2020, the carrying amount of these securities was $28,895 and $25,780, respectively, which equates to their fair value, and is reported in the consolidated balance sheet in deferred charges and other assets. Unrealized gain and losses on equity securities held in conjunction with our non-qualified pension plan is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020Net gain recognized during the period on equity securities $ 196 $ 305 $ 695 $ 244Less: net gain / loss recognized during the period on equity securities sold during the period - - - -Unrealized gain recognized during the reporting period on equity securities still held at the reporting date $ 196 $ 305 $ 695 $ 244 The net gain (loss) recognized on equity securities is presented on the consolidated statements of operations and comprehensive income on the line item “Other.” The carrying amounts and estimated fair values of the Company’s long-term debt is as follows: September 30, December 31, 2021 2020Carrying amount $ 5,702,379 $ 5,630,243Estimated fair value 6,299,160 6,366,030  The fair value of long-term debt has been determined by discounting the future cash flows using current market interest rates for similar financial instruments of the same duration utilizing Level 2 methods and assumptions. The Company’s customers’ advances for construction have a carrying value of $110,939 as of September 30, 2021, and $99,014 as of December 31, 2020. Their relative fair values cannot be accurately estimated because future refund payments depend on several variables, including new customer connections, customer consumption levels, and future rates. Portions of these non-interest-bearing instruments are payable annually through 2031, and amounts not paid by the respective contract expiration dates become non-refundable. The fair value of these amounts would, however, be less than their carrying value due to the non-interest-bearing feature.

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Net Income Per Common Share	9 Months Ended
	Sep. 30, 2021
Net Income Per Common Share [Abstract]
Net Income Per Common Share	Note 8 – Net Income per Common Share Basic net income per common share is based on the weighted average number of common shares outstanding and the minimum number of shares to be issued upon settlement of the stock purchase contracts issued under the tangible equity units. Diluted net income per common share is based on the weighted average number of common shares outstanding, potentially dilutive shares, and the expected number of shares to be issued upon settlement of the stock purchase contracts issued under the tangible equity units, based on the applicable market value of our common stock. The dilutive effect of employee stock-based compensation and shares issuable under the forward equity sale agreement (from the date the Company entered into the forward equity sale agreement to the settlement date) are included in the computation of diluted net income per common share. The dilutive effect of stock-based compensation and shares issuable under the forward equity sale agreement are calculated using the treasury stock method and expected proceeds upon exercise or issuance of the stock-based compensation and settlement of the forward equity sale agreement. The treasury stock method assumes that the proceeds from stock-based compensation and settlement of the forward equity sale agreement are used to purchase the Company’s common stock at the average market price during the period. The following table summarizes the shares, in thousands, used in computing basic and diluted net income per common share:  Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020Average common shares outstanding during the period for basic computation 258,773 254,280 256,051 248,212Effect of dilutive securities: Forward equity sale agreement 223 - 216 -Issuance of common stock from private placement - - - 5,929Tangible equity units - 591 - 615Employee stock-based compensation 441 291 496 383Average common shares outstanding during the period for diluted computation 259,437 255,162 256,763 255,139 For the three and nine months ended September 30, 2020, the average common shares outstanding during the period for diluted computation reflects the impact of the issuance of common stock from the March 16, 2020 private placement as if the shares were issued on January 1, 2020. The average common shares outstanding during the period for basic computation includes the weighted-average impact of 9,022,040 and 9,067,879 shares for the three and nine months ended September 30, 2021, respectively, and 9,091,179 and 9,464,482 shares for the three and nine months ended September 30, 2020, respectively, based on the minimum number of shares of 8,964,213 to be issued in April 2022 upon settlement of the stock purchase contracts issued in April 2019 under the tangible equity units. Further, for the three and nine months ended September 30, 2020, average common shares outstanding during the period for diluted computation includes the impact of the additional shares to be issued in April 2022 upon settlement of the stock purchase contracts based on the threshold appreciation price of $42.41. For the three and nine months ended September 30, 2021 and 2020, all of the Company’s outstanding employee stock options were included in the calculations of diluted net income per share as the calculated cost to exercise employee stock options was less than the average market price of the Company’s common stock during these periods. Additionally, the dilutive effect of performance share units and restricted share units granted are included in the Company’s calculation of diluted net income per share.

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Stock-Based Compensation	9 Months Ended
	Sep. 30, 2021
Stock-Based Compensation [Abstract]
Stock-Based Compensation	Note 9 – Stock-based Compensation  Under the Company’s Amended and Restated Equity Compensation Plan (the “Plan”) approved by the Company’s shareholders on May 2, 2019, to replace the 2004 Equity Compensation Plan, stock options, stock units, stock awards, stock appreciation rights, dividend equivalents, and other stock-based awards may be granted to employees, non-employee directors, and consultants and advisors. The Plan authorizes 6,250,000 shares for issuance under the Plan. A maximum of 3,125,000 shares under the Plan may be issued pursuant to stock awards, stock units and other stock-based awards, subject to adjustment as provided in the Plan. During any calendar year, no individual may be granted (i) stock options and stock appreciation rights under the Plan for more than 500,000 shares of Company stock in the aggregate or (ii) stock awards, stock units or other stock-based awards under the Plan for more than 500,000 shares of Company stock in the aggregate, subject to adjustment as provided in the Plan. Awards to employees and consultants under the Plan are made by a committee of the Board of Directors of the Company, except that with respect to awards to the Chief Executive Officer, the committee recommends those awards for approval by the non-employee directors of the Board of Directors. In the case of awards to non-employee directors, the Board of Directors makes such awards. At September 30, 2021, 1,955,579 shares were still available for issuance under the Plan. No further grants may be made under the Company’s 2004 Equity Compensation Plan.   Performance Share Units – A performance share unit (“PSU”) represents the right to receive a share of the Company’s common stock if specified performance goals are met over the three year performance period specified in the grant, subject to exceptions through the respective vesting period, which is generally three years. Each grantee is granted a target award of PSUs and may earn between 0% and 200% of the target amount depending on the Company’s performance against the performance goals. The following table provides compensation costs for stock-based compensation related to PSUs: Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020Stock-based compensation within operations and maintenance expenses $ 1,285 $ 918 $ 4,216 $ 2,364Income tax benefit 365 252 1,191 660 The following table summarizes the PSU transactions for the nine months ended September 30, 2021:   Number Weighted of Average Share Units Fair ValueNonvested share units at beginning of period 283,007 $ 34.57Granted 152,068 43.18Performance criteria adjustment 27,643 53.62Forfeited (5,588) 45.84Share units issued (141,328) 31.36Nonvested share units at end of period 315,802 41.51   A portion of the fair value of PSUs was estimated at the grant date based on the probability of satisfying the market-based conditions using the Monte Carlo valuation method, which assesses probabilities of various outcomes of market conditions. The other portion of the fair value of the PSUs is based on the fair market value of the Company’s stock at the grant date, regardless of whether the market-based condition is satisfied. The per unit weighted-average fair value at the date of grant for PSUs granted during the nine months ended September 30, 2021 and 2020 was $43.18 and $55.43, respectively. The fair value of each PSU grant is amortized monthly into compensation expense on a straight-line basis over their respective vesting periods, generally 36 months. The accrual of compensation costs is based on the Company’s estimate of the final expected value of the award and is adjusted as required for the portion based on the performance-based condition. The Company assumes that forfeitures will be minimal, and recognizes forfeitures as they occur, which results in a reduction in compensation expense. As the payout of the PSUs includes dividend equivalents, no separate dividend yield assumption is required in calculating the fair value of the PSUs. The recording of compensation expense for PSUs has no impact on net cash flows.   Restricted Stock Units – A restricted stock unit (“RSU”) represents the right to receive a share of the Company’s common stock. RSUs are eligible to be earned at the end of a specified restricted period, which is generally three years, beginning on the date of grant. The Company assumes that forfeitures will be minimal and recognizes forfeitures as they occur, which results in a reduction in compensation expense. As the payout of the RSUs includes dividend equivalents, no separate dividend yield assumption is required in calculating the fair value of the RSUs. The following table provides the compensation cost and income tax benefit for stock-based compensation related to RSUs: Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020Stock-based compensation within operations and maintenance expenses $ 724 $ 550 $ 2,089 $ 1,582Income tax benefit 205 148 586 438  The following table summarizes the RSU transactions for the nine months ended September 30, 2021:  Number Weighted of Average Stock Units Fair ValueNonvested stock units at beginning of period 163,906 $ 40.80Granted 85,829 44.44Stock units vested and issued (49,692) 35.33Forfeited (3,325) 43.30Nonvested stock units at end of period 196,718 43.72  The per unit weighted-average fair value at the date of grant for RSUs granted during the nine months ended September 30, 2021 and 2020 was $44.44 and $49.40, respectively.   Stock Options – A stock option represents the option to purchase a number of shares of common stock of the Company as specified in the stock option grant agreement at the exercise price per share as determined by the closing market price of our common stock on the grant date. Stock options are exercisable in installments of 33% annually, starting one year from the grant date and expire 10 years from the grant date, subject to satisfaction of designated performance goals. The fair value of each stock option is amortized into compensation expense using the graded-vesting method, which results in the recognition of compensation costs over the requisite service period for each separately vesting tranche of the stock options as though the stock options were, in substance, multiple stock option grants. The following table provides the compensation cost and income tax benefit for stock-based compensation related to stock options: Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020Stock-based compensation within operations and maintenance expenses $ 94 $ 279 $ 395 $ 1,046Income tax benefit 27 79 113 296 The Company did not grant stock options for the nine months ended September 30, 2021 and 2020. The following table summarizes stock option transactions for the nine months ended September 30, 2021: Weighted Weighted Average Average Aggregate Exercise Remaining Intrinsic Shares Price Life (years) ValueOutstanding at beginning of period 948,270 $ 35.22 Granted - - Forfeited (7,219) 35.91 Expired (984) 33.93 Exercised (97,659) 33.72 Outstanding at end of period 842,408 $ 35.22 7.1 9,009,081 Exercisable at end of period 609,410 $ 35.17 7.0 6,650,661  Restricted Stock – Restricted stock awards provide the grantee with the rights of a shareholder, including the right to receive dividends and to vote such shares, but not the right to sell or otherwise transfer the shares during the restriction period. Restricted stock awards result in compensation expense that is equal to the fair market value of the stock on the date of the grant and is amortized ratably over the restriction period. The Company expects forfeitures of restricted stock to be de minimis. The following table provides the compensation cost and income tax benefit for stock-based compensation related to restricted stock: Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020Stock-based compensation within operations and maintenance expenses $ 11 $ 103 $ 117 $ 220Income tax benefit 3 30 34 64 The following table summarizes restricted stock transactions for the nine months ended September 30, 2021: Number Weighted of Average Shares Fair ValueNonvested restricted stock at beginning of period 13,228 $ 34.02Granted 1,068 46.83Vested (13,228) 34.02Nonvested restricted stock at end of period 1,068 $ 46.83 The weighted-average fair value at the date of the grant for restricted stock awards granted during the nine months ended September 30, 2021 and 2020 was $46.83 and $34.02, respectively. Stock Awards – Stock awards represent the issuance of the Company’s common stock, without restriction. The issuance of stock awards results in compensation expense that is equal to the fair market value of the stock on the grant date and is expensed immediately upon grant. The following table provides the compensation cost and income tax benefit for stock-based compensation related to stock awards: Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020Stock-based compensation within operations and maintenance expenses $ 175 $ 175 $ 525 $ 520Income tax benefit 51 50 152 150 The following table summarizes stock award transactions for the nine months ended September 30, 2021: Number Weighted of Average Stock Awards Fair ValueNonvested stock awards at beginning of period - $ -Granted 11,487 45.71Vested (11,487) (45.71)Nonvested stock awards at end of period - - The weighted-average fair value at the date of grant for stock awards granted during the nine months ended September 30, 2021 and 2020 was $45.71 and $40.54, respectively.

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Pension Plans And Other Postretirement Benefits	9 Months Ended
	Sep. 30, 2021
Pension Plans And Other Postretirement Benefits [Abstract]
Pension Plans And Other Postretirement Benefits	Note 10 – Pension Plans and Other Postretirement Benefits   The Company maintains a qualified defined benefit pension plan (the “Pension Plan”), a nonqualified pension plan, and other postretirement benefit plans for certain of its employees. On March 16, 2020, we completed the Peoples Gas Acquisition and assumed the pension and other postretirement benefit plans for its employees. The operating results of Peoples has been included in our consolidated financial statements since the date of acquisition. On April 1, 2020, the Company merged the pension plans acquired in the Peoples Gas Acquisition into the Company’s legacy Pension Plan. The following tables provide the components of net periodic benefit cost for the Company’s pension and other postretirement benefit plans: Pension Benefits Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020Service cost $ 775 $ 992 $ 2,728 $ 2,783Interest cost 3,351 3,642 9,667 10,003Expected return on plan assets (5,733) (5,676) (17,432) (15,573)Amortization of prior service cost 140 148 419 444Amortization of actuarial loss 555 1,992 2,352 5,976Net periodic benefit cost $ (912) $ 1,098 $ (2,266) $ 3,633 Other Postretirement Benefits Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020Service cost $ 698 $ 662 $ 2,094 $ 1,614Interest cost 840 989 2,520 2,707Expected return on plan assets (1,039) (1,111) (3,117) (2,969)Amortization of prior service credit (108) (116) (324) (348)Amortization of actuarial loss 55 156 165 468Net periodic benefit cost $ 446 $ 580 $ 1,338 $ 1,472 The net periodic benefit cost is based on estimated values and an extensive use of assumptions about the discount rate, expected return on plan assets, the rate of future compensation increases received by the Company’s employees, mortality, turnover, and medical costs. The Company presents the components of net periodic benefit cost other than service cost in the consolidated statements of operations and comprehensive income on the line item “Other”. The Company made cash contributions of $14,775 to its Pension Plan during the first nine months of 2021, which completed the Company’s expected cash contributions for the year. During the second quarter of 2021, the Company remeasured its Pension Plan’s obligations and assets due to a plan amendment, effective May 1, 2021, that ended benefit accrual for a certain group of participants in the Pension Plan.  The remeasurement resulted in a decrease in pension benefit obligation and regulatory assets totaling $20,732, of which $17,520 is attributable to the increase in the discount rate assumption from 2.57% at December 31, 2020 to 3.08% at May 1, 2021, and $3,212 is due to the curtailment of benefits. All other assumptions used for the remeasurement were consistent with the valuation as of December 31, 2020.

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Rate Activity	9 Months Ended
	Sep. 30, 2021
Rate Activity [Abstract]
Rate Activity	Note 11 – Rate Activity  On August 20, 2021, the Company’s regulated water and wastewater operating subsidiary in Pennsylvania, Aqua Pennsylvania, filed an application with the Pennsylvania Public Utility Commission designed to increase rates by $97,685 or 17.9% on an annual basis. The Company anticipates a final order to be issued by May 2022. Base rate cases are also underway for our water and wastewater utility operating division in Ohio and our natural gas utility operating division in Kentucky. During the first nine months of 2021, the Company’s water and wastewater utility operating divisions in New Jersey, Ohio, Virginia and Indiana were granted base rate increases designed to increase total operating revenues on an annual basis by $2,643 and one of its gas utility operating divisions in Kentucky was granted a rate increase designed to increase annual revenues by $747. Further, during the first nine months of 2021, the Company received approval to bill infrastructure rehabilitation surcharges designed to increase total operating revenues on an annual basis by $27,025 in its water and wastewater utility operating divisions in Pennsylvania and North Carolina, and by $586 annually in its Kentucky gas division.

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Taxes Other Than Income Taxes	9 Months Ended
	Sep. 30, 2021
Taxes Other Than Income Taxes [Abstract]
Taxes Other Than Income Taxes	‎ Note 12 – Taxes Other than Income Taxes  The following table provides the components of taxes other than income taxes: Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020Property $ 8,623 $ 8,437 $ 25,907 $ 23,746Gross receipts, excise and franchise 4,223 4,023 11,857 10,724Payroll 5,082 4,788 16,556 13,760Regulatory assessments 951 867 2,637 2,266Pumping fees 1,752 1,941 4,343 4,509Other 427 499 1,919 1,419Total taxes other than income $ 21,058 $ 20,555 $ 63,219 $ 56,424

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Segment Information	9 Months Ended
	Sep. 30, 2021
Segment Information [Abstract]
Segment Information	Note 13 – Segment Information  On March 16, 2020, the Company completed the Peoples Gas Acquisition, marking the Company’s entrance into the regulated natural gas business. The operating results of Peoples are included in the consolidated financial statements for the period since the acquisition date. As a result, the Company now has twelve operating segments and two reportable segments. The Regulated Water segment is comprised of eight operating segments representing its water and wastewater regulated utility companies, which are organized by the states where the Company provides water and wastewater services. The eight water and wastewater utility operating segments are aggregated into one reportable segment, because each of these operating segments has the following similarities: economic characteristics, nature of services, production processes, customers, water distribution or wastewater collection methods, and the nature of the regulatory environment. The Regulated Natural Gas segment is comprised of one operating segment representing natural gas utility companies, acquired in the Peoples Gas Acquisition, for which the Company provides natural gas distribution services. In addition to the Company’s two reportable segments, we include three of our operating segments within the Other category below. These segments are not quantitatively significant and are comprised of our non-regulated natural gas operations, Aqua Infrastructure, and Aqua Resources. Our non-regulated natural gas operations consist of utility service line protection solutions and repair services to households and the operation of gas marketing and production entities. Prior to our October 30, 2020 sale of investment in joint venture, Aqua Infrastructure provided non-utility raw water supply services for firms in the natural gas drilling industry. Aqua Resources offers, through a third party, water and sewer service line protection solutions and repair services to households. In addition to these segments, Other is comprised of business activities not included in the reportable segments, including corporate costs that have not been allocated to the Regulated Water and Regulated Natural Gas segments and intersegment eliminations. Corporate costs include general and administrative expenses, and interest expense. The Company reports these corporate costs within Other as they relate to corporate-focused responsibilities and decisions and are not included in internal measures of segment operating performance used by the Company to measure the underlying performance of the operating segments. The regulated water and regulated natural gas segments report interest expense that includes long-term debt that was pushed-down to the regulated operating subsidiaries from Essential Utilities, Inc. The following table presents information about the Company’s reportable segments, including the operating results and capital expenditures of the Regulated Natural Gas segment for the period since the completion of the Peoples Gas Acquisition on March 16, 2020: Three Months Ended Three Months Ended September 30, 2021 September 30, 2020 Regulated Water Regulated Natural Gas Other Consolidated Regulated Water Regulated Natural Gas Other ConsolidatedOperating revenues $ 259,859  $ 94,752  $ 7,249  $ 361,860  $ 255,725  $ 88,880  $ 4,042  $ 348,647 Operations and maintenance expense 86,923  53,954  (1,522) 139,355  79,313  59,560  (2,699) 136,174 Purchased gas - 20,386  5,102  25,488  - 14,841  1,903  16,744 Depreciation and amortization 45,506  28,194  807  74,507  42,955  25,793  1,193  69,941 Taxes other than income taxes 16,291  4,271  496  21,058  15,906  4,145  504  20,555 Operating income (loss) 111,139  (12,053) 2,366  101,452  117,551  (15,459) 3,141  105,233 Interest expense, net 27,389  18,406  5,772  51,567  27,063  9,333  13,351  49,747 Allowance for funds used during construction (5,407) (675) - (6,082) (3,082) (461) - (3,543)Equity loss in joint venture - - - - - - 3,626  3,626 Other (1,896) 5,329  266  3,699  110  (761) (3,709) (4,360)Income before income taxes 91,053  (35,113) (3,672) 52,268  93,460  (23,570) (10,127) 59,763 Provision for income taxes (benefit) 9,230  (6,821) (644) 1,765  8,081  (1,219) (2,831) 4,031 Net income (loss) $ 81,823  $ (28,292) $ (3,028) $ 50,503  $ 85,379  $ (22,351) $ (7,296) $ 55,732  Nine Months Ended Nine Months Ended September 30, 2021 September 30, 2020 Regulated Water Regulated Natural Gas Other Consolidated Regulated Water Regulated Natural Gas Other ConsolidatedOperating revenues $ 736,389  $ 579,429  $ 26,639  $ 1,342,457  $ 706,008  $ 273,798  $ 8,894  $ 988,700 Operations and maintenance expense 243,071  157,614  (8,740) 391,945  229,652  120,192  21,571  371,415 Purchased gas - 183,062  19,476  202,538  - 68,807  4,127  72,934 Depreciation and amortization 136,189  83,905  1,529  221,623  127,214  56,026  2,838  186,078 Taxes other than income taxes 47,756  13,356  2,107  63,219  45,292  8,799  2,333  56,424 Operating income (loss) 309,373  141,492  12,267  463,132  303,850  19,974  (21,975) 301,849 Interest expense, net 80,971  56,125  16,551  153,647  78,500  21,260  31,544  131,304 Allowance for funds used during construction (13,091) (831) - (13,922) (7,905) (816) - (8,721)Equity loss in joint venture - - - - - - 3,283  3,283 Other (5,265) 4,462  (1,213) (2,016) 477  (1,516) (2,489) (3,528)Income before income taxes 246,758  81,736  (3,071) 325,423  232,778  1,046  (54,313) 179,511 Provision for income taxes (benefit) 22,056  (11,128) (611) 10,317  18,402  (8,131) (12,902) (2,631)Net income (loss) $ 224,702  $ 92,864  $ (2,460) $ 315,106  $ 214,376  $ 9,177  $ (41,411) $ 182,142 Capital expenditures $ 404,894  $ 269,958  $ 993  $ 675,845  $ 376,064  $ 134,632  $ 43,445  $ 554,141  September 30, December 31, 2021 2020Total assets: Regulated water $ 8,301,201 $ 7,838,034Regulated natural gas 5,748,774 5,303,507Other 186,510 563,736Consolidated $ 14,236,485 $ 13,705,277

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Commitments And Contingencies	9 Months Ended
	Sep. 30, 2021
Commitments And Contingencies [Abstract]
Commitments And Contingencies	Note 14 – Commitments and Contingencies  The Company is routinely involved in various disputes, claims, lawsuits and other regulatory and legal matters, including both asserted and unasserted legal claims, in the ordinary course of business. The status of each such matter, referred to herein as a loss contingency, is reviewed and assessed in accordance with applicable accounting rules regarding the nature of the matter, the likelihood that a loss will be incurred, and the amounts involved. As of September 30, 2021, the aggregate amount of $18,102 is accrued for loss contingencies and is reported in the Company’s consolidated balance sheet as other accrued liabilities and other liabilities. These accruals represent management’s best estimate of probable loss (as defined in the accounting guidance) for loss contingencies or the low end of a range of losses if no single probable loss can be estimated. For some loss contingencies, the Company is unable to estimate the amount of the probable loss or range of probable losses. Further, the Company has insurance coverage for certain of these loss contingencies, and as of September 30, 2021, estimates that approximately $3,015 of the amount accrued for these matters are probable of recovery through insurance, which amount is also reported in the Company’s consolidated balance sheet as deferred charges and other assets, net. During a portion of 2019, the Company initiated a do not consume advisory for some of its water customers in one division served by the Company’s Illinois subsidiary. During the second quarter of 2021, an immaterial amount was accrued for the portion of the fine or penalty that we determined to be probable and estimable of being incurred.  In addition, on September 3, 2019, two individuals, on behalf of themselves and those similarly situated, commenced an action against the Company’s Illinois subsidiary in the State court in Will County, Illinois related to this do not consume advisory. The complaint seeks class action certification, attorney's fees, and "damages, including, but not limited to, out of pocket damages, and discomfort, aggravation, and annoyance” based upon the water provided by the Company’s subsidiary to a discrete service area in University Park, Illinois. The complaint contains allegations of damages as a result of supplied water that exceeded the standards established by the federal Lead and Copper Rule. The complaint is in the discovery phase and class certification has not been granted. The Company is vigorously defending against this claim. A claim for the expenses incurred has been submitted to the Company’s insurance carrier for potential recovery of a portion of these costs, and on August 3, 2020, the Company received $2,874 in insurance proceeds. The Company continues to assess the potential loss contingency on this matter. While the final outcome of this claim cannot be predicted with certainty, and unfavorable outcomes could negatively impact the Company, at this time in the opinion of management, the final resolution of this matter is not expected to have a material adverse effect on the Company’s financial position, results of operations or cash flows. Although the results of legal proceedings cannot be predicted with certainty, other than disclosed above, there are no other pending legal proceedings to which the Company or any of its subsidiaries is a party or to which any of its properties is the subject that are material or are expected to have a material effect on the Company’s financial position, results of operations, or cash flows. In addition to the aforementioned loss contingencies, the Company self-insures its employee medical benefit program, and maintains stop-loss coverage to limit the exposure arising from these claims. The Company’s reserve for these claims totaled $2,470 at September 30, 2021 and represents a reserve for unpaid claim costs, including an estimate for the cost of incurred but not reported claims. Associated with the approval of the Peoples Gas Acquisition from the Pennsylvania Public Utility Commission, the Company has committed to addressing the replacement of gathering pipe over a seven year timeframe for an estimated cost of $120,000, which will be recoverable through customer rates. Additionally, the Company committed to provide $23,004 of one-time customer rate credits to its Pennsylvania natural gas utility customers and water and wastewater customers served by Aqua Pennsylvania, Inc. In the third quarter of 2020, the Company granted $4,080 of customer rate credits to its water and wastewater customers served by Aqua Pennsylvania and $18,924 was granted to its Pennsylvania natural gas utility customers in the fourth quarter of 2020.

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Income Taxes	9 Months Ended
	Sep. 30, 2021
Income Taxes [Abstract]
Income Taxes	Note 15 – Income Taxes On March 16, 2020, the Company completed the Peoples Gas Acquisition. On March 31, 2020, the Company changed the method of tax accounting for certain qualifying infrastructure investments at its Peoples Natural Gas subsidiary, its largest natural gas subsidiary in Pennsylvania. This change allows a tax deduction for qualifying utility asset improvement costs that were formerly capitalized for tax purposes. The Company is performing an analysis to determine the ultimate amount of qualifying utility asset improvement costs eligible to be deducted under the IRS’s final tangible property regulations that will be reflected on its 2021 and 2020 Federal Tax Return.  As a result, the Company has estimated a portion of its infrastructure investment at Peoples Natural Gas since the acquisition date that will qualify as a utility system repairs deduction for 2021 and 2020.  Consistent with the Company’s accounting for differences between book and tax expenditures in Pennsylvania, the Company is utilizing the flow-through method to account for this timing difference. The Company completed its analysis of the income tax benefits for qualifying capital expenditures made prior to March 16, 2020 (“catch-up adjustment”) and recorded a regulatory liability of $160,655 for these tax benefits. In August 2020, the Company filed a petition with the Pennsylvania Public Utility Commission proposing treatment of the catch-up adjustment. On March 11, 2021, the Company and the statutory advocates filed a Joint Petition of Settlement (“Settlement”) representing a settlement of the parties, and, on May 6, 2021, it was approved by the Pennsylvania Public Utility Commission. The Settlement stipulates, among other points, that the catch-up adjustment be provided to utility customers over a five-year period, and the Company can continue to use flow-through accounting for the current tax repair benefit until its next base rate case. The five-year customer surcredit for the catch-up adjustment was initiated in August 2021. In addition, the Company contributed $500 to a customer-bill payment assistance program in July 2021 and in December 2021, will provide $5,000 in relief to past-due accounts for natural gas customers impacted by the COVID-19 pandemic. The Company’s effective tax rate was 3.4% and 3.2% for the three and nine months ended September 30, 2021, respectively.  The Company’s effective tax rate was 6.7% and (1.5)% for the three and nine months ended September 30, 2020, respectively.  The decrease in the effective tax rate for the third quarter is primarily attributed to an increase in our income tax benefit associated with the tax deduction for qualifying infrastructure.  The increase in the effective tax rate for the nine months ended September 30, 2021 over the first nine months of 2020 is due to an increase in income taxed at the statutory Federal and State tax rates partially offset by an increase in the income tax benefit associated with the tax deduction for qualifying infrastructure. The statutory Federal tax rate is 21% for the three and nine months ended September 30, 2021 and 2020. For states with a corporate net income tax, the state corporate net income tax rates range from 2.5% to 9.9% for all periods presented. In determining its interim tax provision, the Company reflects its estimated permanent and flow-through tax differences for the taxable year, including the basis difference for the adoption of the tangible property regulations. Qualifying utility asset improvement costs and the amortization of excess deferred income taxes caused the year-to-date effective tax rate to be significantly different from the statutory rate. In connection with the completion of the Peoples Gas Acquisition, the Company identified changes to acquired deferred tax asset valuation allowances or liabilities related to uncertain tax positions during the one year measurement period, which related to new information obtained about facts and circumstances that existed as of the acquisition date. Those changes are considered a measurement-period adjustment, and an offset was recorded as an adjustment to goodwill. The Company records all other changes to deferred tax asset valuation allowances and liabilities related to uncertain tax positions in current-period income tax expense.

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Recent Accounting Pronouncements	9 Months Ended
	Sep. 30, 2021
Recent Accounting Pronouncements [Abstract]
Recent Accounting Pronouncements	Note 16 – Recent Accounting Pronouncements   Pronouncements to be adopted upon the effective date: In August 2020, the FASB issued updated accounting guidance on accounting for convertible instruments and contracts in an entity’s own equity. The updated guidance reduces the number of accounting models for convertible debt and convertible preferred stock instruments and makes certain disclosure amendments intended to improve the information provided to users. Additionally, the guidance also amends the derivative guidance for the “own stock” scope exception, which exempts qualifying instruments from being accounted for as derivatives if certain criteria are met. Further, the standard changes the way certain convertible instruments are treated when calculating earnings per share. The updated accounting guidance is effective for fiscal years beginning after December 15, 2021 with early adoption permitted beginning in 2021. The Company is evaluating the requirements of the updated guidance to determine the impact of adoption. In March 2020, the FASB issued accounting guidance that provides companies with optional guidance, including expedients and exceptions for applying generally accepted accounting principles to contracts and other transactions affected by reference rate reform, such as the London Interbank Offered Rate (LIBOR). In January 2021, the FASB clarified the scope of that accounting standards update with additional guidance for reference rate reform on financial reporting. The accounting guidance was effective upon issuance and generally can be applied to applicable contract modifications through December 31, 2022. The Company is evaluating the impact of this accounting guidance. Pronouncement adopted during the year: In December 2019, the FASB issued updated accounting guidance that simplifies the accounting for income taxes. The updated guidance removes certain exceptions to the general principles of accounting for income taxes to reduce the cost and complexity of its application, including the accounting for intraperiod tax allocation when there is a loss from continuing operations and income or a gain from other items, deferred tax liabilities for equity method investments when a foreign subsidiary becomes an equity method investment or when a foreign equity method investment becomes a subsidiary, and calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. Additionally, the updated guidance clarifies and amends the existing guidance over accounting for franchise taxes and other taxes partially based on income, an entity’s tax basis of goodwill, separate entity financial statements, interim recognition of enactment of tax laws or rate changes, and improvements to the Codification for income taxes related to employee stock ownership plans and investments in qualified affordable housing projects accounted for using the equity method. As permitted, we adopted this updated guidance on January 1, 2021, which did not have a material impact on our consolidated financial statements.

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Revenue Recognition (Tables)	9 Months Ended
	Sep. 30, 2021
Revenue Recognition [Abstract]
Schedule Of Disaggregation Of Revenue	Three Months Ended Three Months Ended September 30, 2021 September 30, 2020 Water Revenues Wastewater Revenues Natural Gas Revenues Other Revenues Water Revenues Wastewater Revenues Natural Gas Revenues Other RevenuesRevenues from contracts with customers: Residential $ 148,247  $ 25,147  $ 49,838  $ - $ 157,387  $ 24,175  $ 46,913  $ -Commercial 42,318  5,839  9,534  - 41,693  4,794  7,993  -Fire protection 8,866  - - - 8,535  - - -Industrial 8,217  401  415  - 9,022  388  1,407  -Gas transportation & storage - - 27,794  - - - 26,248  -Other water 14,539  - - - 9,524  - - -Other wastewater - 2,495  - - - 1,462  - -Customer rate credits - - - - (3,757) (323) - -Other utility - - 7,488  3,241  - - 5,763  6,548 Revenues from contracts with customers 222,187  33,882  95,069  3,241  222,404  30,496  88,324  6,548 Alternative revenue program 527  22  - - (341) (143) - -Other and eliminations - - - 6,932  - - 556  803 Consolidated$ 222,714  $ 33,904  $ 95,069  $ 10,173  $ 222,063  $ 30,353  $ 88,880  $ 7,351  Nine Months Ended Nine Months Ended September 30, 2021 September 30, 2020 Water Revenues Wastewater Revenues Natural Gas RevenuesOther Revenues Water Revenues Wastewater Revenues Natural Gas Revenues Other RevenuesRevenues from contracts with customers: Residential $ 425,519  $ 73,820  $ 347,790  $ - $ 431,022  $ 70,421  $ 156,004  $ -Commercial 113,473  16,102  65,404  - 108,311  14,186  23,887  -Fire protection 26,830  - - - 26,437  - - -Industrial 22,954  1,256  1,894  - 22,597  1,230  3,721  -Gas transportation & storage - - 143,387  - - - 75,951  -Other water 37,696  - - - 23,378  - - -Other wastewater - 6,808  - - - 3,449  - -Customer rate credits - - - - (3,757) (323) - -Other utility - - 22,639  10,556  - - 12,672  16,088 Revenues from contracts with customers 626,472  97,986  581,114  10,556  607,988  88,963  272,235  16,088 Alternative revenue program 1,357  18  206  - (281) (248) 154  -Other and eliminations - - - 24,748  - - 1,409  2,392 Consolidated$ 627,829  $ 98,004  $ 581,320  $ 35,304  $ 607,707  $ 88,715  $ 273,798  $ 18,480

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Acquisitions (Tables)	9 Months Ended
	Sep. 30, 2021
Acquisitions [Abstract]
Schedule Of Purchase Price Allocation	Base purchase price$ 4,275,000 Adjustments: Estimated change in working capital 43,935 Certain estimated capital expenditures 247,500 Assumption of indebtedness (1,101,091)Cash consideration$ 3,465,344
Preliminary Purchase Price Allocation	Amounts Amounts Previously Measurement Recognized as of Recognized as of Period Acquisition Date Acquisition Date (a) Adjustments (as Adjusted)Property, plant and equipment, net$ 2,476,551  $ - $ 2,476,551 Current assets 242,531  (9,197) 233,334 Regulatory assets 286,751  (22,293) 264,458 Goodwill 2,261,047  16,400  2,277,447 Other long-term assets 75,071  - 75,071 Total assets acquired 5,341,951  (15,090) 5,326,861  Current portion of long-term debt 5,136  - 5,136 Loans payable 181,000  - 181,000 Other current liabilities 186,120  (200) 185,920 Long-term debt 999,460  - 999,460 Deferred income taxes 213,647  (20,522) 193,125 Regulatory liabilities 123,029  6,389  129,418 Other long-term liabilities 168,215  (757) 167,458 Total liabilities assumed 1,876,607  (15,090) 1,861,517 Net assets acquired$ 3,465,344  $ - $ 3,465,344  (a)As reported, the Essential Utilities, Inc. Form 10-K for the period ended December 31, 2020.
Pro Forma Summary	Three Months Ended Nine Months Ended September 30, 2020 September 30,2020Operating revenues$ 348,647 $ 1,269,768Net income 55,732  264,785

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Goodwill (Tables)	9 Months Ended
	Sep. 30, 2021
Goodwill [Abstract]
Schedule Of Goodwill	Regulated Water Regulated Natural Gas Other ConsolidatedBalance at December 31, 2020 $ 58,659 $ 2,261,047 $ 4,841 $ 2,324,547Goodwill acquired - - - -Measurement period purchase price allocation adjustments - 16,400 - 16,400Reclassification to utility plant acquisition adjustment (111) - - (111)Balance at September 30, 2021 $ 58,548 $ 2,277,447 $ 4,841 $ 2,340,836

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Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2021
Financial Instruments [Abstract]
Summary Of Unrealized Gain And Losses	Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020Net gain recognized during the period on equity securities $ 196 $ 305 $ 695 $ 244Less: net gain / loss recognized during the period on equity securities sold during the period - - - -Unrealized gain recognized during the reporting period on equity securities still held at the reporting date $ 196 $ 305 $ 695 $ 244
Schedule Of Carrying Amounts And Estimated Fair Values Of Long-Term Debt	September 30, December 31, 2021 2020Carrying amount $ 5,702,379 $ 5,630,243Estimated fair value 6,299,160 6,366,030

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Net Income Per Common Share (Tables)	9 Months Ended
	Sep. 30, 2021
Net Income Per Common Share [Abstract]
Schedule Of Earnings Per Share	Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020Average common shares outstanding during the period for basic computation 258,773 254,280 256,051 248,212Effect of dilutive securities: Forward equity sale agreement 223 - 216 -Issuance of common stock from private placement - - - 5,929Tangible equity units - 591 - 615Employee stock-based compensation 441 291 496 383Average common shares outstanding during the period for diluted computation 259,437 255,162 256,763 255,139

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Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Summary Of PSU Transactions	Number Weighted of Average Share Units Fair ValueNonvested share units at beginning of period 283,007 $ 34.57Granted 152,068 43.18Performance criteria adjustment 27,643 53.62Forfeited (5,588) 45.84Share units issued (141,328) 31.36Nonvested share units at end of period 315,802 41.51
Summary Of RSU Transactions	Number Weighted of Average Stock Units Fair ValueNonvested stock units at beginning of period 163,906 $ 40.80Granted 85,829 44.44Stock units vested and issued (49,692) 35.33Forfeited (3,325) 43.30Nonvested stock units at end of period 196,718 43.72
Summary Of Stock Option Transactions	Weighted Weighted Average Average Aggregate Exercise Remaining Intrinsic Shares Price Life (years) ValueOutstanding at beginning of period 948,270 $ 35.22 Granted - - Forfeited (7,219) 35.91 Expired (984) 33.93 Exercised (97,659) 33.72 Outstanding at end of period 842,408 $ 35.22 7.1 9,009,081 Exercisable at end of period 609,410 $ 35.17 7.0 6,650,661
Performance Share Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Summary Of Compensation Costs	Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020Stock-based compensation within operations and maintenance expenses $ 1,285 $ 918 $ 4,216 $ 2,364Income tax benefit 365 252 1,191 660
Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Summary Of Compensation Costs	Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020Stock-based compensation within operations and maintenance expenses $ 724 $ 550 $ 2,089 $ 1,582Income tax benefit 205 148 586 438
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Summary Of Compensation Costs	Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020Stock-based compensation within operations and maintenance expenses $ 94 $ 279 $ 395 $ 1,046Income tax benefit 27 79 113 296
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Summary Of Compensation Costs	Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020Stock-based compensation within operations and maintenance expenses $ 11 $ 103 $ 117 $ 220Income tax benefit 3 30 34 64
Summary Of Restricted Stock Transactions	Number Weighted of Average Shares Fair ValueNonvested restricted stock at beginning of period 13,228 $ 34.02Granted 1,068 46.83Vested (13,228) 34.02Nonvested restricted stock at end of period 1,068 $ 46.83
Stock Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Summary Of Compensation Costs	Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020Stock-based compensation within operations and maintenance expenses $ 175 $ 175 $ 525 $ 520Income tax benefit 51 50 152 150
Summary Of Nonvested Share Activity	Number Weighted of Average Stock Awards Fair ValueNonvested stock awards at beginning of period - $ -Granted 11,487 45.71Vested (11,487) (45.71)Nonvested stock awards at end of period - -

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Pension Plans And Other Postretirement Benefits (Tables)	9 Months Ended
	Sep. 30, 2021
Pension Plans And Other Postretirement Benefits [Abstract]
Components Of Net Periodic Benefit Costs	Pension Benefits Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020Service cost $ 775 $ 992 $ 2,728 $ 2,783Interest cost 3,351 3,642 9,667 10,003Expected return on plan assets (5,733) (5,676) (17,432) (15,573)Amortization of prior service cost 140 148 419 444Amortization of actuarial loss 555 1,992 2,352 5,976Net periodic benefit cost $ (912) $ 1,098 $ (2,266) $ 3,633 Other Postretirement Benefits Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020Service cost $ 698 $ 662 $ 2,094 $ 1,614Interest cost 840 989 2,520 2,707Expected return on plan assets (1,039) (1,111) (3,117) (2,969)Amortization of prior service credit (108) (116) (324) (348)Amortization of actuarial loss 55 156 165 468Net periodic benefit cost $ 446 $ 580 $ 1,338 $ 1,472

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Taxes Other Than Income Taxes (Tables)	9 Months Ended
	Sep. 30, 2021
Taxes Other Than Income Taxes [Abstract]
Components Of Taxes Other Than Income Taxes	Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020Property $ 8,623 $ 8,437 $ 25,907 $ 23,746Gross receipts, excise and franchise 4,223 4,023 11,857 10,724Payroll 5,082 4,788 16,556 13,760Regulatory assessments 951 867 2,637 2,266Pumping fees 1,752 1,941 4,343 4,509Other 427 499 1,919 1,419Total taxes other than income $ 21,058 $ 20,555 $ 63,219 $ 56,424

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Segment Information (Tables)	9 Months Ended
	Sep. 30, 2021
Segment Information [Abstract]
Company's Segment Information, Continuing Operations	Three Months Ended Three Months Ended September 30, 2021 September 30, 2020 Regulated Water Regulated Natural Gas Other Consolidated Regulated Water Regulated Natural Gas Other ConsolidatedOperating revenues $ 259,859  $ 94,752  $ 7,249  $ 361,860  $ 255,725  $ 88,880  $ 4,042  $ 348,647 Operations and maintenance expense 86,923  53,954  (1,522) 139,355  79,313  59,560  (2,699) 136,174 Purchased gas - 20,386  5,102  25,488  - 14,841  1,903  16,744 Depreciation and amortization 45,506  28,194  807  74,507  42,955  25,793  1,193  69,941 Taxes other than income taxes 16,291  4,271  496  21,058  15,906  4,145  504  20,555 Operating income (loss) 111,139  (12,053) 2,366  101,452  117,551  (15,459) 3,141  105,233 Interest expense, net 27,389  18,406  5,772  51,567  27,063  9,333  13,351  49,747 Allowance for funds used during construction (5,407) (675) - (6,082) (3,082) (461) - (3,543)Equity loss in joint venture - - - - - - 3,626  3,626 Other (1,896) 5,329  266  3,699  110  (761) (3,709) (4,360)Income before income taxes 91,053  (35,113) (3,672) 52,268  93,460  (23,570) (10,127) 59,763 Provision for income taxes (benefit) 9,230  (6,821) (644) 1,765  8,081  (1,219) (2,831) 4,031 Net income (loss) $ 81,823  $ (28,292) $ (3,028) $ 50,503  $ 85,379  $ (22,351) $ (7,296) $ 55,732  Nine Months Ended Nine Months Ended September 30, 2021 September 30, 2020 Regulated Water Regulated Natural Gas Other Consolidated Regulated Water Regulated Natural Gas Other ConsolidatedOperating revenues $ 736,389  $ 579,429  $ 26,639  $ 1,342,457  $ 706,008  $ 273,798  $ 8,894  $ 988,700 Operations and maintenance expense 243,071  157,614  (8,740) 391,945  229,652  120,192  21,571  371,415 Purchased gas - 183,062  19,476  202,538  - 68,807  4,127  72,934 Depreciation and amortization 136,189  83,905  1,529  221,623  127,214  56,026  2,838  186,078 Taxes other than income taxes 47,756  13,356  2,107  63,219  45,292  8,799  2,333  56,424 Operating income (loss) 309,373  141,492  12,267  463,132  303,850  19,974  (21,975) 301,849 Interest expense, net 80,971  56,125  16,551  153,647  78,500  21,260  31,544  131,304 Allowance for funds used during construction (13,091) (831) - (13,922) (7,905) (816) - (8,721)Equity loss in joint venture - - - - - - 3,283  3,283 Other (5,265) 4,462  (1,213) (2,016) 477  (1,516) (2,489) (3,528)Income before income taxes 246,758  81,736  (3,071) 325,423  232,778  1,046  (54,313) 179,511 Provision for income taxes (benefit) 22,056  (11,128) (611) 10,317  18,402  (8,131) (12,902) (2,631)Net income (loss) $ 224,702  $ 92,864  $ (2,460) $ 315,106  $ 214,376  $ 9,177  $ (41,411) $ 182,142 Capital expenditures $ 404,894  $ 269,958  $ 993  $ 675,845  $ 376,064  $ 134,632  $ 43,445  $ 554,141
Company's Segment Information, Assets	September 30, December 31, 2021 2020Total assets: Regulated water $ 8,301,201 $ 7,838,034Regulated natural gas 5,748,774 5,303,507Other 186,510 563,736Consolidated $ 14,236,485 $ 13,705,277

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Revenue Recognition (Narrative) (Details)	Sep. 30, 2021
Aqua Infrastructure [Member]
Schedule of Equity Method Investments [Line Items]
Ownership percentage	49.00%

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Revenue Recognition (Schedule Of Disaggregation Of Revenue) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Disaggregation of Revenue [Line Items]
Revenue	$ 361,860	$ 348,647	$ 1,342,457	$ 988,700
Water [Member]
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	222,187	222,404	626,472	607,988
Revenue	222,714	222,063	627,829	607,707
Water [Member] | Residential [Member]
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	148,247	157,387	425,519	431,022
Water [Member] | Commercial [Member]
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	42,318	41,693	113,473	108,311
Water [Member] | Fire Protection [Member]
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	8,866	8,535	26,830	26,437
Water [Member] | Industrial [Member]
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	8,217	9,022	22,954	22,597
Water [Member] | Other Water [Member]
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	14,539	9,524	37,696	23,378
Water [Member] | Customer Rate Credits [Member]
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers				(3,757)
Water [Member] | Alternative Revenue Program [Member]
Disaggregation of Revenue [Line Items]
Revenue	527	(341)	1,357	(281)
Wastewater [Member]
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	33,882	30,496	97,986	88,963
Revenue	33,904	30,353	98,004	88,715
Wastewater [Member] | Residential [Member]
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	25,147	24,175	73,820	70,421
Wastewater [Member] | Commercial [Member]
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	5,839	4,794	16,102	14,186
Wastewater [Member] | Industrial [Member]
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	401	388	1,256	1,230
Wastewater [Member] | Other Wastewater [Member]
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	2,495	1,462	6,808	3,449
Wastewater [Member] | Customer Rate Credits [Member]
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers				(323)
Wastewater [Member] | Alternative Revenue Program [Member]
Disaggregation of Revenue [Line Items]
Revenue	22	(143)	18	(248)
Natural Gas [Member]
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	95,069	88,324	581,114	272,235
Revenue	95,069	88,880	581,320	273,798
Natural Gas [Member] | Residential [Member]
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	49,838	46,913	347,790	156,004
Natural Gas [Member] | Commercial [Member]
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	9,534	7,993	65,404	23,887
Natural Gas [Member] | Industrial [Member]
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	415	1,407	1,894	3,721
Natural Gas [Member] | Gas Transportation [Member]
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	27,794	26,248	143,387	75,951
Natural Gas [Member] | Other Utility [Member]
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	7,488	5,763	22,639	12,672
Natural Gas [Member] | Alternative Revenue Program [Member]
Disaggregation of Revenue [Line Items]
Revenue			206	154
Natural Gas [Member] | Other And Eliminations [Member]
Disaggregation of Revenue [Line Items]
Revenue		556		1,409
Other [Member]
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	3,241	6,548	10,556	16,088
Revenue	10,173	7,351	35,304	18,480
Other [Member] | Other Utility [Member]
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	3,241	6,548	10,556	16,088
Other [Member] | Other And Eliminations [Member]
Disaggregation of Revenue [Line Items]
Revenue	$ 6,932	$ 803	$ 24,748	$ 2,392

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Acquisitions (Narrative) (Details) $ in Thousands			1 Months Ended									3 Months Ended							4 Months Ended	9 Months Ended		12 Months Ended
	Aug. 06, 2021 USD ($) customer	Mar. 16, 2020 USD ($) customer	Oct. 31, 2021 USD ($) customer	Jul. 31, 2021 USD ($) customer	Apr. 30, 2021 USD ($) customer	Jan. 31, 2021 USD ($) customer	Dec. 31, 2020 USD ($) customer	Oct. 31, 2020 USD ($) customer	Sep. 30, 2020 USD ($) customer	Jan. 31, 2020 USD ($) customer	Sep. 30, 2019 USD ($) customer item	Sep. 30, 2021 USD ($)	Jun. 30, 2021 USD ($)	Mar. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Sep. 30, 2020 USD ($)	Jun. 30, 2020 USD ($)	Mar. 31, 2020 USD ($)	Jun. 30, 2020 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2020 USD ($)	Dec. 31, 2020 USD ($)
Business Acquisition [Line Items]
Goodwill							$ 2,324,547					$ 2,340,836			$ 2,324,547					$ 2,340,836		$ 2,324,547
Operating revenues												361,860				$ 348,647				1,342,457	$ 988,700
Net income												50,503	$ 80,914	$ 183,689		55,732	$ 74,629	$ 51,781		$ 315,106	$ 182,142
Peoples Gas Acquisition [Member]
Business Acquisition [Line Items]
Number of customers | customer		750,000
Total purchase price		$ 3,465,344
Indebtedness		1,101,091
short-term debt		181,000
Outstanding debt		920,091
Acquisition-related costs							20,628								20,628							20,628
Acquisition-related costs, pre-tax							$ 25,197								25,197							25,197
Adjustments to acquisition financing																						10,700
Adjustments to acquisition financing, Pre-tax																						14,342
Adjustments to debt																						2,448
Adjustments to debt, pre-tax																						3,442
Elimination of management fee																						885
Elimination of management fee, pre-tax																						1,245
Pipeline term																				7 years
Pipeline cost												120,000								$ 120,000
Customer rate credits												$ 23,004								$ 23,004
Property, plant and equipment, net		2,476,551
Goodwill		2,277,447											$ 16,400
Transaction-related expenses																		$ 25,397
Operating revenues																			$ 280,300
Net income																			$ 6,131
Illinois [Member] | Water Utility System [Member]
Business Acquisition [Line Items]
Number of customers | customer	6,500
Total purchase price	$ 32,100
Illinois [Member] | Water And Wastewater Utility Systems [Member]
Business Acquisition [Line Items]
Number of customers | customer					2,121			514
Total purchase price					$ 12,500			$ 4,859
Pennsylvania [Member] | Water Utility System [Member]
Business Acquisition [Line Items]
Number of customers | customer				2,930
Total purchase price				$ 12,000
Pennsylvania [Member] | Water And Wastewater Utility Systems [Member]
Business Acquisition [Line Items]
Number of customers | customer									4,947
Total purchase price									$ 21,000
Pennsylvania [Member] | Wastewater Utility System [Member]
Business Acquisition [Line Items]
Number of customers | customer						10,500	1,965		11,000
Total purchase price						$ 72,400	$ 29,944		$ 53,000
Delaware [Member] | Wastewater Utility System [Member]
Business Acquisition [Line Items]
Number of customers | customer											16,000
Retail customers | customer											198,000
Municipalities | item											42
Total purchase price											$ 276,500
Ohio [Member] | Water And Wastewater Utility Systems [Member]
Business Acquisition [Line Items]
Number of customers | customer										3,126
Total purchase price										$ 7,472
Texas [Member] | Water Utility System [Member]
Business Acquisition [Line Items]
Number of customers | customer	992
Total purchase price	$ 4,000
Subsequent Event [Member] | Illinois [Member] | Wastewater Utility System [Member]
Business Acquisition [Line Items]
Number of customers | customer			7,600
Total purchase price			$ 41,250
Water And Wastewater Utility Systems [Member] | Customer Rate Credits [Member]
Business Acquisition [Line Items]
Revenues from contracts with customers															18,924	$ 4,080
Natural Gas Utility [Member]
Business Acquisition [Line Items]
Customer rate credits							18,924								18,924							18,924
Natural Gas Utility [Member] | Peoples Gas Acquisition [Member]
Business Acquisition [Line Items]
Goodwill		$ 2,277,447
Natural Gas Utility [Member] | Customer Rate Credits [Member]
Business Acquisition [Line Items]
Customer rate credits							$ 23,004								$ 23,004							$ 23,004

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Acquisitions (Schedule Of Purchase Price Allocation) (Details) - Peoples Gas Acquisition [Member] $ in Thousands	Mar. 16, 2020 USD ($)
Business Acquisition [Line Items]
Base purchase price	$ 4,275,000
Estimated change in working capital	43,935
Certain estimated capital expenditures	247,500
Assumption of indebtedness	(1,101,091)
Cash consideration	$ 3,465,344

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Acquisitions (Preliminary Purchase Price Allocation) (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Jun. 30, 2021	Mar. 15, 2021	Dec. 31, 2020	Mar. 16, 2020
Business Acquisition [Line Items]
Goodwill	$ 2,340,836			$ 2,324,547
Peoples Gas Acquisition [Member]
Business Acquisition [Line Items]
Property, plant and equipment, net					$ 2,476,551
Current assets					233,334
Regulatory assets					264,458
Goodwill		$ 16,400			2,277,447
Other long-term assets					75,071
Total assets acquired					5,326,861
Current portion of long-term debt					5,136
Loans payable					181,000
Other current liabilities					185,920
Long-term debt					999,460
Deferred income taxes					193,125
Regulatory liabilities					129,418
Other long-term liabilities					167,458
Total liabilities assumed					1,861,517
Net assets acquired					3,465,344
Peoples Gas Acquisition [Member] | Scenario, Previously Reported [Member]
Business Acquisition [Line Items]
Property, plant and equipment, net					2,476,551
Current assets					242,531
Regulatory assets					286,751
Goodwill					2,261,047
Other long-term assets					75,071
Total assets acquired					5,341,951
Current portion of long-term debt					5,136
Loans payable					181,000
Other current liabilities					186,120
Long-term debt					999,460
Deferred income taxes					213,647
Regulatory liabilities					123,029
Other long-term liabilities					168,215
Total liabilities assumed					1,876,607
Net assets acquired					$ 3,465,344
Peoples Gas Acquisition [Member] | Revision of Prior Period, Adjustment [Member]
Business Acquisition [Line Items]
Current assets			$ (9,197)
Regulatory assets			(22,293)
Goodwill			16,400
Total assets acquired			(15,090)
Other current liabilities			(200)
Deferred income taxes			(20,522)
Regulatory liabilities			6,389
Other long-term liabilities			(757)
Total liabilities assumed			$ (15,090)

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Acquisitions (Pro Forma Summary) (Details) - Peoples Gas Acquisition [Member] - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2020
Business Acquisition [Line Items]
Operating revenues	$ 348,647	$ 1,269,768
Net income	$ 55,732	$ 264,785

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Goodwill (Narrative) (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020	Mar. 16, 2020
Goodwill [Line Items]
Goodwill	$ 2,340,836		$ 2,324,547
Peoples Gas Acquisition [Member]
Goodwill [Line Items]
Goodwill		$ 16,400		$ 2,277,447
Natural Gas Utility [Member] | Peoples Gas Acquisition [Member]
Goodwill [Line Items]
Goodwill				$ 2,277,447

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Goodwill (Schedule Of Goodwill) (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2021 USD ($)
Goodwill [Line Items]
Balance	$ 2,324,547
Goodwill acquired
Measurement period purchase price allocation adjustments	16,400
Reclassification to utility plant acquisition adjustment	(111)
Balance	2,340,836
Water [Member] | Regulated [Member]
Goodwill [Line Items]
Balance	58,659
Reclassification to utility plant acquisition adjustment	(111)
Balance	58,548
Natural Gas [Member] | Regulated [Member]
Goodwill [Line Items]
Balance	2,261,047
Measurement period purchase price allocation adjustments	16,400
Balance	2,277,447
Other [Member]
Goodwill [Line Items]
Balance	4,841
Goodwill acquired
Measurement period purchase price allocation adjustments
Reclassification to utility plant acquisition adjustment
Balance	$ 4,841

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Disposition (Details) - Aqua Infrastructure Subsidiary [Member] - USD ($) $ in Thousands	Oct. 30, 2020	Sep. 30, 2020
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Reserve		$ 3,700
Ownership percentage	49.00%

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Capitalization (Details)						1 Months Ended	3 Months Ended		9 Months Ended
	Aug. 09, 2021 USD ($) $ / agreement shares	Apr. 19, 2021 USD ($)	Mar. 16, 2020 USD ($)	Apr. 23, 2019 USD ($) $ / shares	Mar. 29, 2019 USD ($) item $ / shares shares	Aug. 31, 2020 USD ($) shares	Sep. 30, 2021 USD ($) $ / shares shares	Mar. 31, 2020 shares	Sep. 30, 2021 USD ($) $ / shares shares	Sep. 30, 2020 USD ($)	Apr. 15, 2021 USD ($)	Dec. 31, 2020 $ / shares shares
Debt Instrument [Line Items]
Private Placement | shares					21,661,095
Proceeds from private placement			$ 749,907,000
Common stock, par value | $ / shares					$ 0.50		$ 0.50		$ 0.50			$ 0.50
Common stock, shares authorized | shares							600,000,000		600,000,000			600,000,000
Issuance expense			20,606,000
Private placement discount					4.50%
Issuance of common stock from forward equity sale agreement	$ 299,739,000						$ 4,341,000
Issuance of common stock from forward equity sale agreement , shares | shares	6,700,000						92,993
Trading days | item					20
Diligence expenses					$ 4,000,000
Stock purchase contracts early settled by holders of the contracts | shares									107,904
Shares settled | shares							7,603,234		7,603,234
Issuance of common stock from stock purchase contracts , shares | shares							6,700,000	2,335,654	127,749
Private placement price | $ / shares					$ 34.62
Repayments of long-term debt									$ 717,816,000	$ 1,647,354,000
Initial Forward Equity Sale Agreement [Member]
Debt Instrument [Line Items]
Forward price | $ / agreement	46.00
Forward Equity Sale Agreement [Member]
Debt Instrument [Line Items]
Proceeds from private placement						$ 0
Common stock, shares authorized | shares						6,700,000
Forward price | $ / agreement	44.74
Long-Term Debts [Member]
Debt Instrument [Line Items]
Face Amount		$ 400,000,000
Debt issuance expense		$ 4,010,000
Interest Rate		2.40%
Aqua Ohio, Inc [Member] | Mortgage Bonds [Member]
Debt Instrument [Line Items]
Face Amount											$ 100,000,000
Aqua Ohio, Inc [Member] | Mortgage Bonds Due 2031 [Member]
Debt Instrument [Line Items]
Face Amount											$ 50,000,000
Interest Rate											2.37%
Aqua Ohio, Inc [Member] | Mortgage Bonds Due 2051 [Member]
Debt Instrument [Line Items]
Face Amount											$ 50,000,000
Interest Rate											3.35%
Aqua Pennsylvania, Inc [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Debt term		5 years
Repayments of long-term debt		$ 50,000,000
LDC Funding LLC [Member]
Debt Instrument [Line Items]
Private placement, per share | $ / shares				$ 50
Proceeds from tangible equity units				$ 690,000,000
Initial principal amount				$ 119,081,000
Initial principal amount per share | $ / shares				$ 8.62909
Cash installment | $ / shares				$ 0.75000
Cash installment rate				6.00%
Debt issuance expense				$ 16,358,000
Interest Rate				3.00%
LDC Funding LLC [Member] | July 30, 2019 [Member]
Debt Instrument [Line Items]
Cash installment | $ / shares				$ 0.80833
LDC Funding LLC [Member] | Minimum [Member]
Debt Instrument [Line Items]
Conversion to shares | $ / shares				1.1790
LDC Funding LLC [Member] | Maximum [Member]
Debt Instrument [Line Items]
Conversion to shares | $ / shares				$ 1.4442
Peoples Gas Acquisition [Member]
Debt Instrument [Line Items]
Indebtedness			1,101,091,000
short-term debt			181,000,000
Outstanding debt			$ 920,091,000
Peoples Gas Acquisition [Member] | Minimum [Member]
Debt Instrument [Line Items]
Interest Rate			2.90%
Indebtedness			$ 920,091,000
Peoples Gas Acquisition [Member] | Maximum [Member]
Debt Instrument [Line Items]
Interest Rate			6.42%
Indebtedness			$ 181,000,000

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Financial Instruments (Narrative) (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	$ 9,736	$ 4,827
Customers' advances for construction	110,939	99,014
Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans payable	46,582	78,198
Mutual funds	28,895	25,780
Cash and cash equivalents	$ 9,736	$ 4,827

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Financial Instruments (Summary Of Unrealized Gain And Losses) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Financial Instruments [Abstract]
Net gain recognized during the period on equity securities	$ 196	$ 305	$ 695	$ 244
Less: net gain / loss recognized during the period on equity securities sold during the period
Unrealized gain recognized during the reporting period on equity securities still held at the reporting date	$ 196	$ 305	$ 695	$ 244

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Financial Instruments (Schedule Of Carrying Amounts And Estimated Fair Values Of Long-Term Debt) (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Carrying Amount [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	$ 5,702,379	$ 5,630,243
Estimated Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	$ 6,299,160	$ 6,366,030

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Net Income Per Common Share (Narrative) (Details) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Average common shares outstanding, included in computation	9,022,040	9,091,179	9,067,879	9,464,482
Treshold	$ 42.41		$ 42.41
Minimum [Member]
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Number Of SharesTo Be Issued Basic Stock Purchase Contracts			8,964,213

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Net Income Per Common Share (Schedule Of Earnings Per Share) (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Net Income Per Common Share [Abstract]
Average common shares outstanding during the period for basic computation	258,773	254,280	256,051	248,212
Effect of dilutive securities:
Forward equity sale agreement	223		216
Issuance of common stock from private placement				5,929
Tangible equity units		591		615
Employee stock-based compensation	441	291	496	383
Average common shares outstanding during the period for diluted computation	259,437	255,162	256,763	255,139

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Stock-Based Compensation (Narrative) (Details) - $ / shares	3 Months Ended						9 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2021	Sep. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance period specified in grant, in years							3 years
Granted	5,337	4,874	192,407	6,088	4,594	223,495
2004 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Underlying stock option and restricted stock awards available for grant	0						0
Amended and Restated Equity Compensation Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized for issuance	6,250,000						6,250,000
Maximum number of shares may be issued pursuant to stock awards, stock units and other stock-based awards							3,125,000
Maximum number of shares subject to grants to any one individual in any one year							500,000
Underlying stock option and restricted stock awards available for grant	1,955,579						1,955,579
Performance Share Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period, in years							3 years
Granted							152,068
Weighted average fair value of stock awards granted							$ 43.18	$ 55.43
Amortization period of fair value of shares, in months							36 months
Performance Share Units [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of target award amount the grantee may earn							0.00%
Performance Share Units [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of target award amount the grantee may earn							200.00%
Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted period							3 years
Granted							85,829
Weighted average fair value of stock awards granted							$ 44.44	$ 49.40
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, Shares							0	0
Vesting period, start, in years							1 year
Vesting period, in years							10 years
Stock Options [Member] | Share-based Payment Arrangement, Tranche One [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage							33.00%
Stock Options [Member] | Share-based Payment Arrangement, Tranche Two [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage							33.00%
Stock Options [Member] | Share-based Payment Arrangement, Tranche Three [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage							33.00%
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted							1,068
Weighted average fair value of stock awards granted							$ 46.83	$ 34.02
Stock Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted							11,487
Weighted average fair value of stock awards granted							$ 45.71	$ 40.54

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Stock-Based Compensation (Summary Of PSU Transactions) (Details) - $ / shares	3 Months Ended						9 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2021	Sep. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, Number of Share Units	5,337	4,874	192,407	6,088	4,594	223,495
Performance Share Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Nonvested share units at beginning of period, Number of Share Units			283,007				283,007
Granted, Number of Share Units							152,068
Performance criteria adjustment, Number of Share Units							27,643
Forfeited, Number of Share Units							(5,588)
Share units issued, Number of Share Units							(141,328)
Nonvested share units at end of period, Number of Share Units	315,802						315,802
Nonvested share units at beginning of period, Weighted Average Fair Value			$ 34.57				$ 34.57
Granted, Weighted Average Fair Value							43.18	$ 55.43
Performance criteria adjustment, Weighted Average Fair Value							53.62
Forfeited, Weighted Average Fair Value							45.84
Share units issued, Weighted Average Fair Value							31.36
Nonvested share units at end of period, Weighted Average Fair Value	$ 41.51						$ 41.51

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Stock-Based Compensation (Summary Of RSU Transactions) (Details) - $ / shares	3 Months Ended						9 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2021	Sep. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, Number of Share Units	5,337	4,874	192,407	6,088	4,594	223,495
Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Nonvested share units at beginning of period, Number of Share Units			163,906				163,906
Granted, Number of Share Units							85,829
Stock units vested and issued, Number of Share Units							(49,692)
Forfeited, Number of Share Units							(3,325)
Nonvested share units at end of period, Number of Share Units	196,718						196,718
Nonvested share units at beginning of period, Weighted Average Fair Value			$ 40.80				$ 40.80
Granted, Weighted Average Fair Value							44.44	$ 49.40
Share units vested, Weighted Average Fair Value							35.33
Forfeited, Weighted Average Fair Value							43.30
Nonvested share units at end of period, Weighted Average Fair Value	$ 43.72						$ 43.72

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Stock-Based Compensation (Summary Of Compensation Costs) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation within operations and maintenance expenses	$ 94	$ 279	$ 395	$ 1,046
Income tax benefit	27	79	113	296
Performance Share Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation within operations and maintenance expenses	1,285	918	4,216	2,364
Income tax benefit	365	252	1,191	660
Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation within operations and maintenance expenses	724	550	2,089	1,582
Income tax benefit	205	148	586	438
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation within operations and maintenance expenses	11	103	117	220
Income tax benefit	3	30	34	64
Stock Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation within operations and maintenance expenses	175	175	525	520
Income tax benefit	$ 51	$ 50	$ 152	$ 150

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Stock-Based Compensation (Summary Of Stock Option Transactions) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2021	Sep. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercised, Shares	(54,672)	(22,786)	(20,201)	(4,270)	(3,411)	(56,106)
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at beginning of period, Shares			948,270				948,270
Granted, Shares							0	0
Forfeited, Shares							(7,219)
Expired, Shares							(984)
Exercised, Shares							(97,659)
Outstanding at end of period, Shares	842,408						842,408
Exercisable at end of period, Shares	609,410						609,410
Outstanding at beginning of period, Weighted Average Exercise Price			$ 35.22				$ 35.22
Forfeited, Weighted Average Exercise Price							35.91
Expired, Weighted Average Exercise Price							33.93
Exercised, Weighted Average Exercise Price							33.72
Outstanding at end of period, Weighted Average Exercise Price	$ 35.22						35.22
Exercisable at end of period, Weighted Average Exercise Price	$ 35.17						$ 35.17
Outstanding at end of period, Weighted Average Remaining Life (years)							7 years 1 month 6 days
Exercisable at end of period, Weighted Average Remaining Life (years)							7 years
Outstanding at end of period, Aggregate Intrinsic Value	$ 9,009,081						$ 9,009,081
Exercisable at end of period, Aggregate Intrinsic Value	$ 6,650,661						$ 6,650,661

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Stock-Based Compensation (Summary Of Nonvested Share Activity) (Details) - $ / shares	3 Months Ended						9 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2021	Sep. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, Number of Share Units	5,337	4,874	192,407	6,088	4,594	223,495
Stock Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Nonvested share units at beginning of period, Number of Share Units
Granted, Number of Share Units							11,487
Stock units vested and issued, Number of Share Units							(11,487)
Nonvested share units at end of period, Number of Share Units
Nonvested share units at beginning of period, Weighted Average Fair Value
Granted, Weighted Average Fair Value							45.71	$ 40.54
Share units vested, Weighted Average Fair Value							45.71
Nonvested share units at end of period, Weighted Average Fair Value

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Stock-Based Compensation (Summary Of Restricted Stock Transactions) (Details) - $ / shares	3 Months Ended						9 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2021	Sep. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, Number of Share Units	5,337	4,874	192,407	6,088	4,594	223,495
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Nonvested share units at beginning of period, Number of Share Units			13,228				13,228
Granted, Number of Share Units							1,068
Stock units vested and issued, Number of Share Units							(13,228)
Nonvested share units at end of period, Number of Share Units	1,068						1,068
Nonvested share units at beginning of period, Weighted Average Fair Value			$ 34.02				$ 34.02
Granted, Weighted Average Fair Value							46.83	$ 34.02
Share units vested, Weighted Average Fair Value							34.02
Nonvested share units at end of period, Weighted Average Fair Value	$ 46.83						$ 46.83

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Pension Plans And Other Postretirement Benefits (Narrative) (Details) - Pension Benefits [Member] $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2021 USD ($)	Dec. 31, 2020 USD ($) item	May 01, 2021 item
Defined Benefit Plan Disclosure [Line Items]
Cash contributions made by the Company	$ 14,775
Curtailment Loss		$ 3,212
Increase (Decrease) in Obligation, Pension Benefits		20,732
Measurement Input, Discount Rate [Member]
Defined Benefit Plan Disclosure [Line Items]
Increase (Decrease) in Obligation, Pension Benefits		$ 17,520
Servicing Asset, Measurement Input | item		0.0257	0.0308

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Pension Plans And Other Postretirement Benefits (Components Of Net Periodic Benefit Costs) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 775	$ 992	$ 2,728	$ 2,783
Interest cost	3,351	3,642	9,667	10,003
Expected return on plan assets	(5,733)	(5,676)	(17,432)	(15,573)
Amortization of prior service cost (credit)	140	148	419	444
Amortization of actuarial loss	555	1,992	2,352	5,976
Net periodic benefit cost	(912)	1,098	(2,266)	3,633
Other Postretirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	698	662	2,094	1,614
Interest cost	840	989	2,520	2,707
Expected return on plan assets	(1,039)	(1,111)	(3,117)	(2,969)
Amortization of prior service cost (credit)	(108)	(116)	(324)	(348)
Amortization of actuarial loss	55	156	165	468
Net periodic benefit cost	$ 446	$ 580	$ 1,338	$ 1,472

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Rate Activity (Details) - USD ($) $ in Thousands		9 Months Ended
	Aug. 20, 2021	Sep. 30, 2021
Illinois And North Carolina [Member]
Water And Wastewater Rates [Line Items]
Base rate increase (decrease)		$ 27,025
New Jersey, Ohio And Indiana [Member]
Water And Wastewater Rates [Line Items]
Base rate increase (decrease)		2,643
Pennsylvania [Member]
Water And Wastewater Rates [Line Items]
Requested rate increase	$ 97,685
Base rate increase designed to increase total operating revenues on an annual basis	17.90%
Kentucky [Member]
Water And Wastewater Rates [Line Items]
Distribution system improvement charges		586
Base rate increase (decrease)		$ 747

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Taxes Other Than Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Taxes Other Than Income [Line Items]
Total taxes other than income	$ 21,058	$ 20,555	$ 63,219	$ 56,424
Property [Member]
Taxes Other Than Income [Line Items]
Total taxes other than income	8,623	8,437	25,907	23,746
Gross Receipts, Excise And Franchise [Member]
Taxes Other Than Income [Line Items]
Total taxes other than income	4,223	4,023	11,857	10,724
Payroll [Member]
Taxes Other Than Income [Line Items]
Total taxes other than income	5,082	4,788	16,556	13,760
Regulatory Assessments [Member]
Taxes Other Than Income [Line Items]
Total taxes other than income	951	867	2,637	2,266
Pumping Fees [Member]
Taxes Other Than Income [Line Items]
Total taxes other than income	1,752	1,941	4,343	4,509
Other [Member]
Taxes Other Than Income [Line Items]
Total taxes other than income	$ 427	$ 499	$ 1,919	$ 1,419

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Segment Information (Narrative) (Details)	9 Months Ended
	Sep. 30, 2021 segment item
Segment Reporting Information [Line Items]
Operating Segments	12
Reportable Segments	2
Other [Member]
Segment Reporting Information [Line Items]
Operating Segments | item	3
Water And Wastewater Utility Systems [Member]
Segment Reporting Information [Line Items]
Operating Segments	8
Reportable Segments	1
Natural Gas [Member]
Segment Reporting Information [Line Items]
Operating Segments	1

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Segment Information (Company's Segment Information, Continuing Operations) (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Segment Reporting Information [Line Items]
Operating revenues	$ 361,860			$ 348,647			$ 1,342,457	$ 988,700
Operations and maintenance expense	139,355			136,174			391,945	371,415
Purchased gas	25,488			16,744			202,538	72,934
Depreciation and amortization	74,507			69,941			221,623	186,078
Taxes other than income taxes	21,058			20,555			63,219	56,424
Operating income (loss)	101,452			105,233			463,132	301,849
Interest expense, net	51,567			49,747			153,647	131,304
Allowance for funds used during construction	(6,082)			(3,543)			(13,922)	(8,721)
Equity earnings in joint venture				3,626				3,283
Other	3,699			(4,360)			(2,016)	(3,528)
Income before income taxes	52,268			59,763			325,423	179,511
Provision for income taxes	1,765			4,031			10,317	(2,631)
Net income (loss)	50,503	$ 80,914	$ 183,689	55,732	$ 74,629	$ 51,781	315,106	182,142
Capital expenditures							675,845	554,141
Total assets	14,236,485						14,236,485		$ 13,705,277
Water [Member] | Regulated [Member]
Segment Reporting Information [Line Items]
Operating revenues	259,859			255,725			736,389	706,008
Operations and maintenance expense	86,923			79,313			243,071	229,652
Depreciation and amortization	45,506			42,955			136,189	127,214
Taxes other than income taxes	16,291			15,906			47,756	45,292
Operating income (loss)	111,139			117,551			309,373	303,850
Interest expense, net	27,389			27,063			80,971	78,500
Allowance for funds used during construction	(5,407)			(3,082)			(13,091)	(7,905)
Other	(1,896)			110			(5,265)	477
Income before income taxes	91,053			93,460			246,758	232,778
Provision for income taxes	9,230			8,081			22,056	18,402
Net income (loss)	81,823			85,379			224,702	214,376
Capital expenditures							404,894	376,064
Total assets	8,301,201						8,301,201		7,838,034
Natural Gas [Member] | Regulated [Member]
Segment Reporting Information [Line Items]
Operating revenues	94,752			88,880			579,429	273,798
Operations and maintenance expense	53,954			59,560			157,614	120,192
Purchased gas	20,386			14,841			183,062	68,807
Depreciation and amortization	28,194			25,793			83,905	56,026
Taxes other than income taxes	4,271			4,145			13,356	8,799
Operating income (loss)	(12,053)			(15,459)			141,492	19,974
Interest expense, net	18,406			9,333			56,125	21,260
Allowance for funds used during construction	(675)			(461)			(831)	(816)
Other	5,329			(761)			4,462	(1,516)
Income before income taxes	(35,113)			(23,570)			81,736	1,046
Provision for income taxes	(6,821)			(1,219)			(11,128)	(8,131)
Net income (loss)	(28,292)			(22,351)			92,864	9,177
Capital expenditures							269,958	134,632
Total assets	5,748,774						5,748,774		5,303,507
Other [Member]
Segment Reporting Information [Line Items]
Operating revenues	7,249			4,042			26,639	8,894
Operations and maintenance expense	(1,522)			(2,699)			(8,740)	21,571
Purchased gas	5,102			1,903			19,476	4,127
Depreciation and amortization	807			1,193			1,529	2,838
Taxes other than income taxes	496			504			2,107	2,333
Operating income (loss)	2,366			3,141			12,267	(21,975)
Interest expense, net	5,772			13,351			16,551	31,544
Equity earnings in joint venture				3,626				3,283
Other	266			(3,709)			(1,213)	(2,489)
Income before income taxes	(3,672)			(10,127)			(3,071)	(54,313)
Provision for income taxes	(644)			(2,831)			(611)	(12,902)
Net income (loss)	(3,028)			$ (7,296)			(2,460)	(41,411)
Capital expenditures							993	$ 43,445
Total assets	$ 186,510						$ 186,510		$ 563,736

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Segment Information (Company's Segment Information, Assets) (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Segment Reporting Information [Line Items]
Total assets	$ 14,236,485	$ 13,705,277
Other [Member]
Segment Reporting Information [Line Items]
Total assets	186,510	563,736
Regulated [Member] | Water [Member]
Segment Reporting Information [Line Items]
Total assets	8,301,201	7,838,034
Regulated [Member] | Natural Gas [Member]
Segment Reporting Information [Line Items]
Total assets	$ 5,748,774	$ 5,303,507

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Commitments And Contingencies (Details) - USD ($) $ in Thousands		9 Months Ended
	Aug. 03, 2020	Sep. 30, 2021	Dec. 31, 2020	Sep. 30, 2020
Commitments And Contingencies [Line Items]
Aggregate amount accrued for loss contingencies		$ 18,102
Amount probable of recovery through insurance		3,015
Insurance reserve for employee medical benefit program		$ 2,470
Insurance proceeds	$ 2,874
Peoples Gas Acquisition [Member]
Commitments And Contingencies [Line Items]
Pipeline term		7 years
Pipeline cost		$ 120,000
Customer rate credits		$ 23,004
Water And Wastewater Utility Systems [Member] | Aqua Pennsylvania, Inc [Member]
Commitments And Contingencies [Line Items]
Customer rate credits				$ 4,080
Natural Gas Utility [Member]
Commitments And Contingencies [Line Items]
Customer rate credits			$ 18,924
Customer Rate Credits [Member] | Natural Gas Utility [Member]
Commitments And Contingencies [Line Items]
Customer rate credits			$ 23,004

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Income Taxes (Details) - USD ($) $ in Thousands		1 Months Ended	3 Months Ended		9 Months Ended
	Mar. 16, 2021	Jul. 31, 2021	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Income Taxes [Line Items]
Effective income tax rate			3.40%	6.70%	3.20%	(1.50%)
Increase (Decrease) in Regulatory Assets and Liabilities	$ 160,655
Corporate federal income tax rate			21.00%	21.00%	21.00%	21.00%
Natural Gas Accounts Receivable [Member]
Income Taxes [Line Items]
Refunded payments					$ 5,000
Payment Assistance Program [Member]
Income Taxes [Line Items]
Refunded payments		$ 500