BUSINESS SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2023

BUSINESS SEGMENT INFORMATION [Abstract]

BUSINESS SEGMENT INFORMATION

NOTE 18 –  BUSINESS SEGMENT INFORMATION

The Company’s operating segments are comprised of its businesses which generate revenues and incur expenses, for which separate operational financial information is available and is regularly evaluated by management for the purpose of making operating decisions, assessing performance, and allocating resources.  The Company operates its businesses primarily through one reportable segment, the Regulated Utility segment.  The Regulated Utility segment is the largest component of the Company’s business and includes an aggregation of our five regulated utility subsidiaries that are in the business of providing regulated water and wastewater services on the Delmarva Peninsula.  Our regulated water utility services include treating, distributing, and selling water to residential, commercial, industrial, governmental, municipal and utility customers throughout the State of Delaware and in Cecil County, Maryland and to a residential community in Chester County, Pennsylvania.  Our regulated wastewater utility services include the treatment and disposal of wastewater for customers in Sussex County, Delaware.  The Company is subject to regulations as to its rates, services, and other matters by the states of Delaware, Maryland and Pennsylvania with respect to utility service within these states.

The Company also operates other non-utility businesses, primarily comprised of: Service Line Protection Plan services for water, sewer and internal plumbing; design, construction and engineering services; and contract services for the operation and maintenance of water and wastewater systems in Delaware and Maryland.  These non-utility businesses do not individually or in the aggregate meet the criteria for disclosure of a reportable segment in accordance with generally accepted accounting principles and are collectively presented throughout this Annual Report on Form 10-K within “Other” or “Non-utility”, which is consistent with how management assesses the results of these businesses.

The accounting policies of the operating segments are the same as those described in Note 1-Summary of Significant Accounting Policies.  The Regulated Utility segment includes inter-segment costs related to leased office space provided by one non-utility business, calculated on the lower of cost or market method, which are eliminated to reconcile to the Consolidated Statements of Operations.  The Regulated Utility segment also allocates certain corporate costs to the non-utility businesses.  The measurement of depreciation, interest, and capital expenditures are predominately related to our Regulated Utility segment.  These amounts in our non-utility business are negligible and account for approximately less than 1% of consolidated amounts as of December 31, 2023, December 31, 2022, and December 31, 2021.

In thousands
	Years Ended December 31,
	2023			2022			2021
Revenues:
Regulated Utility	$	92,228		$	89,818		$	85,016
Other (non-utility)		6,877			9,248			5,996
Inter-segment elimination		(244	)		(169	)		(153	)
Consolidated Revenues	$	98,861		$	98,897		$	90,859
Operating Income:
Regulated Utility	$	21,246		$	22,411		$	20,950
Other (non-utility)		1,200			1,495			1,344
Consolidated Operating Income	$	22,446		$	23,906		$	22,294
Income Taxes:
Regulated Utility	$	5,216		$	5,091		$	5,146
Other (non-utility)		1,132			787			591
Consolidated Income Taxes	$	6,348		$	5,878		$	5,737
Assets:
Regulated Utility	$	760,339		$	713,113
Other (non-utility)		6,493			6,678
Consolidated Assets	$	766,832		$	719,791