York Water on Wednesday announced higher revenues for the second quarter and first half of the year.
Operating revenue increased more than $1 million during the second quarter. Revenue was $11.8 million during the three months that ended June 30, compared to $10.7 million earned in the same period a year ago.
Net income also increased to $2.8 million, compared to $2.3 million during the second quarter 2013.
Earnings per share grew from 18 cents during the second quarter last year to 22 cents this year.
Those same line items increased during the first six month of the year.
From Jan. 1 to June 30, York Water reported $22.3 million in operating revenue — an increase of about $2 million from the $20.8 million reported for the first half of 2013.
Net income increased during that time from $4.5 million during the first six months of 2013 to $4.9 million in the first half of this year.
Earnings per share grew to 38 cents in the first six months this year, compared to 35 cents during the same period last year.
The company attributed higher revenues to an increase in rates that went into effect Feb. 28.
For the residential water customer, it's meant a $3 increase in the average monthly bill.
It's been a $10 monthly increase for wastewater customers living in the Asbury Pointe subdivision in East Manchester Township.
But whatever revenue growth the company has seen from those increases has been partially offset by higher expenses for wages, pension and cold-weather-related distribution system maintenance, York Water CEO Jeff Hines said in a news release.
York Water issued the rate increase to get a $5 million boost in annual revenue to pay for infrastructure upgrades, according to its filing with the Pennsylvania Public Utility Commission.
During the first half of the year, the company invested $5.1 million in construction costs for expansion of its service territory, upgrades to water treatment facilities, infrastructure replacement and other routine items, according to the earnings report.
York Water estimates it will spend an additional $5 million on infrastructure during the second half of the year, excluding acquisitions.
Earlier this year, the company spent $313,000 on the acquisition of water and wastewater facilities in York County.
The company on May 21 signed an agreement to purchase the water assets of the Paradise Homes Community in Paradise Township.
York Water is waiting on final approval from regulatory authorities for the acquisition to be complete.
Upon completion, the company expects to begin serving approximately 90 new customers during the fourth quarter of the year.
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