York Water posts solid Q2 earnings growth fueled by rate hikes, even as heavy infrastructure spending and a reset of the Distribution System Improvement Charge weigh on the bottom line.
York Water reported higher revenue and net income driven by a March 1 rate increase, but offset by DSIC reset and higher expenses, resulting in a neutral outlook.
The York Water Company reported a strong second quarter with revenue reaching $23.52 million and net income rising to $7.62 million. Growth was primarily driven by a March 1 rate increase, though gains were partially tempered by a reset of the Distribution System Improvement Charge and increased capital expenditures on infrastructure.
The primary driver was a rate increase that took effect on March 1, alongside growth in the company's customer base.
The DSIC was reset to zero, which acted as a headwind against the revenue gains achieved through the recent rate increase.