NON-UTILITY OPERATING REVENUE AND EXPENSES

12 Months Ended

Dec. 31, 2011

Non-Utility Operating Revenue and Expenses [Abstract]

NON-UTILITY OPERATING REVENUE AND EXPENSES

NOTE 7

NON-UTILITY OPERATING REVENUE AND EXPENSES

Non-utility operating revenue consisted of $1.9 million, $3.0 million, and $3.0 million recognized by Artesian Utility in 2011, 2010 and 2009, respectively.  In addition, $2.1 million, $1.7 million and $1.3 million was from Artesian Resources’ water and sewer Service Line Protection Plans in 2011, 2010 and 2009, respectively.  The Service Line Protection Plans provide coverage for all material and labor required to repair or replace participants’ leaking water and leaking or clogged sewer service lines up to an annual limit.  An additional $175,000, $539,000 and $496,000 in revenue was recognized in 2011, 2010 and 2009, respectively, from Artesian Consulting Engineers for design and engineering services to developers for residential and commercial development.  As a result of the decline in new housing and development due to the economic downturn, the need for development and architectural services has remained depressed.  Therefore, in April 2011, management decided to reduce staffing levels and reorganize the business.  Artesian Consulting Engineers will no longer provide development and architectural services to outside third parties.  Artesian Consulting Engineers will continue to work with existing clients on projects already in progress for engineering services until those projects are complete.  Artesian will continue to provide design and engineering contract services through our Artesian Utility subsidiary.

Non-utility operating expenses are as follows:

In thousands	2011		2010		2009
Artesian Utility	$	1,823	$	2,311	$	2,308
Artesian Development		39		24		---
Artesian Resources		993		847		660
Artesian Consulting Engineers		293		598		435
Total	$	3,148	$	3,780	$	3,403