SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2016

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]

Schedule of Utility Plant

Utility plant comprises:
In thousands
			December 31,
	Estimated Useful Life (In Years)		2016		2015
Utility plant at original cost
Utility plant in service-Water
Intangible plant		—	$	140	$	140
Source of supply plant		45-85		19,627		19,313
Pumping and water treatment plant		8-62		78,542		77,221
Transmission and distribution plant
Mains		81		236,261		224,104
Services		39		38,803		36,060
Storage tanks		76		24,108		23,992
Meters		26		24,710		24,150
Hydrants		60		12,870		12,037
General plant		3-31		53,417		52,434
Utility plant in service-Wastewater
Treatment and disposal plant		35-62		15,613		14,012
Collection mains & lift stations		81		8,675		7,833
General plant		3-31		931		906
Property held for future use		—		14,815		14,345
Construction work in progress		—		6,674		3,809
				535,186		510,356
Less – accumulated depreciation				109,684		104,750
			$	425,502	$	405,606

Amortization Period of Other Regulatory Expense

Other regulatory expenses are amortized on a straight-line basis as noted below:

Expense	Years Amortized
Depreciation and salary studies	5
Delaware rate proceedings	2.5
Maryland rate proceedings	5
Debt issuance costs (as of December 31, 2016)	10 to 30 (based on term of related debt)
Debt issuance costs (after First Mortgage Bond Purchase in January 2017)	15 to 25 (based on term of related debt)
Goodwill (resulting from acquisition of Mountain Hill Water Company in 2008)	50
Deferred acquisition costs (resulting from purchase of water assets in Cecil County, Maryland in 2011 and Port Deposit, Maryland in 2010)	20
Franchise Costs (resulting from purchase of water assets in Cecil County, Maryland in 2011)	80

Regulatory Assets, Net of Amortization

Regulatory assets, net of amortization, comprise:

(in thousands)	December 31, 2016		December 31, 2015
Postretirement benefit obligation	$	186	$	329
Deferred income taxes		431		446
Expense of rate and regulatory proceedings		116		616
Debt issuance costs		1,648		1,747
Goodwill		310		318
Deferred acquisition and franchise costs		683		720
	$	3,374	$	4,176

Other Deferred Assets, Net of Amortization

Other deferred assets at December 31, net of amortization, comprise:

In thousands	2016			2015
Investment in CoBank		$	3,198		$	3,023
Other			386			421
		$	3,584		$	3,444

Weighted-average Assumptions Used for Grants Issued

	2014
Expected Dividend Yield		3.88%
Expected Stock Price Volatility		26.50%
Weighted Average Risk Free Interest Rate		2.24%
Weighted Average Expected Life of Options (in years)		7.52

Changes in Accounts Receivable

	December 31,
In thousands	2016			2015			2014
Customer accounts receivable – water		$	5,437		$	5,017		$	4,020
Contractual amounts due from developers and other			2,622			1,610			1,295
			8,059			6,627			5,315
Less allowance for doubtful accounts			263			277			250
Net accounts receivable		$	7,796		$	6,350		$	5,065

Allowance for Doubtful Accounts

The activities in the allowance for doubtful accounts are as follows:

	December 31,
In thousands	2016				2015				2014
Beginning balance		$	277			$	250			$	221
Allowance adjustments			195				205				194
Recoveries			64				53				64
Write off of uncollectible accounts			(273	)			(231	)			(229	)
Ending balance		$	263			$	277			$	250