Artesian proposing increase in water service rate

Artesian Water Company is seeking approval from the Delaware Public Service Commission for a 15% increase in its water service rates.

The commission will conduct a public evidentiary hearing on the proposed increase at 1 p.m., Wednesday, June 12, at the commission hearing room in Dover.

In April 2023, Artesian first went before the commission proposing a 23% increase in water rates, representing about a 10% return on equity. That was too much for the commission, which in June 2023, suspended Artesian’s increase request pending hearings on the justness and reasonableness of such an increase. In November, the commission approved interim rates representing about a 14% total increase. Artesian then came back seeking a 22% increase. 

In May, the two sides negotiated a settlement allowing for a 15% increase, which the commission will hold an evidentiary hearing and possibly vote on at its June 12 meeting, which will be held at the Cannon Building in Dover. 

Artesian officials have said that since the company’s last request for an increase in 2014, the company has invested $158 million in new water infrastructure. The company claims that increases in the cost of treatment and distribution have doubled, necessitating the rate increases to cover those costs. 

Artesian provides water services in all three Delaware counties as well as in Chester County, Pa., and Cecil County, Md.