UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 21, 2006
ARTESIAN RESOURCES CORPORATION
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(Exact name of registrant as specified in its charter)
Delaware 000-18516 51-0002090
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(State or other jurisdiction of (Commission (IRS Employer
incorporation) File Number) Identification No.)
664 Churchmans Road, Newark, Delaware 19702
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 302-453-6900
Not Applicable
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(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities Act
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act
Section 8 - Other Events
Item 8.01 Other Events.
On November 21, 2006, the staff of the Delaware Public Service Commission (PSC),
Division of the Public Advocate and intervenors signed a settlement agreement
with Artesian Water Company, Inc. (Artesian Water) regarding Artesian Water's
May 9, 2006 rate request. The settlement agreement, which is subject to final
approval by the PSC, provides for a two-step increase in water rates totaling a
14.0% increase, or $6.0 million on an annualized basis. An initial increase of
11.1%, or $4.8 million on an annualized basis, will be placed into effect
following approval of the settlement agreement by the PSC. An additional 2.9%,
or $1.2 million on an annualized basis, may be placed into effect in the event
Artesian Resources Corporation completes an equity issuance prior to the next
rate increase filed by Artesian Water. Artesian Water's application filed in May
2006 with the PSC requested a rate increase to generate an additional 23%, or
$9.9 million, in water sales revenue on an annualized basis. This request was
primarily due to Artesian Water's significant investment in infrastructure, as
well as an approximately 92% increase in purchased power expense due to the
deregulation of the electric industry in Delaware in May 2006.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
ARTESIAN RESOURCES CORPORATION
Date: November 21, 2006 By: /s/ DAVID B. SPACHT
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David B. Spacht
Vice President, Chief Financial Officer
and Treasurer