Artesian Water Files Request for Rate Adjustment.

Infrastructure Investments Needed to Ensure Water Quality and Service Reliability; Tap Water Still Affordable at about a Penny Per Gallon 

WILMINGTON, Del. -- Artesian Water Company, a subsidiary of Artesian Resources Corporation (NASDAQ:ARTNA), has filed an application with the Delaware Public Service Commission (PSC) requesting an increase of $11.17 a month (37 cents a day) in rates for a typical residential customer. It has been two years since Artesian's last request for an increase in rates.

The rate adjustment is needed to pay for $25.6 million in capital investments to improve and ensure water quality and service reliability, and $3.9 million in additional operating and maintenance costs.

"Artesian continues to invest in upgrades and improvements to our customers' water system to ensure that we can safely and cost-effectively meet their growing needs at increasingly higher standards for water quality, even in times of drought as we are able to do today," said Artesian President and CEO Dian C. Taylor. "Our rate request is driven by the need for significant infrastructure improvements that include two new elevated storage tanks, 12.7 miles of new water mains and system interconnections, the replacement of nearly six miles of aging water mains, four state-of-the-art water treatment facilities, six new supply wells, and a new building to house our operations and dispatch centers."

Taylor also pointed to increased electric, fuel and chemical costs, which have contributed to a 14.8% increase in operating and maintenance costs since the company's last rate increase.

"Artesian faces the same rising cost pressures that all households are experiencing today," she said. "We are all trying to do more with less, but as a water provider, we can cut costs only so far before we risk jeopardizing the quality of our product. We are seeking the rate increase that we believe is necessary to safely and effectively serve our customers."

If the PSC approves the new rates, Artesian customers will still pay about a penny a gallon for their tap water. Delivery of a full day's supply of water -- including fire protection -- will cost only $1.69 for the typical home. Artesian plays a key role in public safety by providing an assured water supply and elevated storage that ensures water pressure necessary for effective fire protection.

Customers are rewarded for their wise use of water through Artesian's conservation-based rate design, which charges the lowest price per gallon for those who use the least amount of water (rather than rewarding customers for bulk usages). The company also provides water-saving tips for customers at www.artesianwater.com/conserve/consve.htm and makes water-saving information available through a partnership with the Environmental Protection Agency's WaterSense program.

"We are committed to educating our customers about water resource protection and conservation, and want to thank them for their efforts to use water wisely," said Taylor.

About Artesian

Artesian Resources Corporation operates as the holding company of six wholly-owned subsidiaries offering water and wastewater services. Artesian Water Company, the principal subsidiary, is the oldest and largest investor-owned public water utility on the Delmarva Peninsula, and has been providing water service since 1905. Artesian Water distributes and sells water to residential, commercial, industrial, governmental, municipal and utility customers. Other subsidiaries include Artesian Water Maryland, Inc., Artesian Water Pennsylvania, Inc., Artesian Wastewater Management, Inc., Artesian Utility Development, Inc., and Artesian Development Company.