Business Context and Reporting Period
Company: The York Water Company
Filing Type: Form 10-K (Annual Report)
Period Ended: December 31, 1996
Industry: Regulated water utility (impounding, purification, and distribution)
Service Area: York County, Pennsylvania (exclusive franchise; no competitors)
Regulator: Pennsylvania Public Utility Commission (PPUC)
The Company serves an estimated population of 143,000 across the City of York and surrounding boroughs and townships. Revenue sources are diversified: 59% residential, 31% commercial/industrial, and 10% other. The business is not dependent on any single customer.
Key Financial Metrics and Operational Data
Note: Specific revenue, profit, cash flow, and debt figures are incorporated by reference from the 1996 Annual Report to Shareholders and are not explicitly detailed in the provided text.
- Market Value: Aggregate market value of non-affiliate common stock was $50,215,114 (as of March 3, 1997).
- Shares Outstanding: 725,128 shares of Common Stock ($10 par value) as of March 3, 1997.
- Operational Volume: Average daily consumption was 18,593,000 gallons in 1996.
- Capacity: Safe daily yield is 29,900,000 gallons; pumping capacity is 75,000,000 gallons per day.
- Infrastructure: 641 miles of distribution mains; 92 employees.
- Reserves: Reserve for uncollectible accounts was $90,000 at year-end 1996.
Material Changes vs. Prior Period
- Customer Growth: Number of customers increased to 45,800 in 1996, up from 44,879 in 1995.
- Infrastructure Expansion: Miles of mains increased to 641 in 1996 from 622 in 1995. Approximately 78,619 feet of distribution mains were installed in 1996.
- Consumption Trends: Average daily consumption decreased slightly to 18,593,000 gallons in 1996 compared to 19,657,000 gallons in 1995. Per capita volume did not significantly change.
- Population Served: Increased to 143,000 from 140,000 in 1995.
Outlook, Risks, and Contingencies
Management Outlook: The Company does not anticipate any change in water usage levels that would materially impact future results. Current pumping and filtering facilities are deemed adequate to meet present demands.
Legal Proceedings: No material legal proceedings are pending.
Contingencies and Agreements:
- Joint Use Agreement: A 1976 agreement with York County licenses reservoir lands for park use. In return, the County agreed not to build an upstream dam and waived flood damages, securing a future reservoir site for the Company around 2020.
- Debt Instruments: The filing references various Senior Notes and Revenue Refunding Bonds (Series A through D) issued between 1989 and 1995, though specific outstanding balances are not listed in the text.
Investor Verification Checklist
- Financial Statements: Verify specific revenue, net income, and cash flow figures in the 1996 Annual Report to Shareholders (incorporated by reference).
- Debt Obligations: Review the specific terms and outstanding balances of Senior Notes (Series A-D) and Revenue Refunding Bonds referenced in the exhibits.
- Rate Regulation: Confirm current rate structures and any pending rate cases with the Pennsylvania Public Utility Commission (PPUC).
- Capital Expenditures: Assess the capital requirements for the planned third dam construction around 2020.
- Dividend History: Review the "Security Market and Dividends" section of the 1996 Annual Report for dividend payout consistency.