York Water seeks rate hike for infrastructure upgrades

Published 30/05/2025, 15:06
York Water seeks rate hike for infrastructure upgrades

YORK, Pa. - The York Water Company (NASDAQ:YORW), a utility company with a market capitalization of $472 million, has submitted a formal application to the Pennsylvania Public Utility Commission (PUC) for an increase in water and wastewater service rates. According to InvestingPro analysis, the company appears slightly overvalued at current trading levels, though it maintains strong operational metrics with a 73.5% gross profit margin. The company’s President and CEO, JT Hand, stated that the proposed rate adjustment, the first since 2022, is essential to continue investing in the system and maintain safe, reliable services for customers.

The request includes a recap of $145 million in capital investments made by The York Water Company since the last rate increase, up to February 2027. These investments, supported by the company’s steady revenue growth of 3.45% over the last twelve months, are directed towards the replacement and maintenance of aging infrastructure, such as water mains, meters, hydrants, and service lines. Additionally, the company has expanded wastewater treatment facilities and improved dams to meet regulatory standards. Upgrades to water treatment equipment aim to ensure compliance with regulations and operational resilience. InvestingPro subscribers can access detailed financial health scores and additional insights about the company’s investment strategy.

The proposed rate increase would generate an additional $24.2 million in annual revenues for The York Water Company. If approved, residential customers would face an increase of approximately $14.16 per month for water and $35.85 per month for wastewater services. Despite the hike, the company notes that the average cost of 1,000 gallons of water would still amount to slightly more than a penny per gallon. Should the PUC grant the request promptly, the new rates would come into effect on August 1, 2025; otherwise, the effective date could be postponed until March 2026.

The PUC’s rate review process is designed to be transparent, offering public participation opportunities. Customers seeking more information can reach out to The York Water Company’s Customer Service team or visit their website.

Serving over 212,000 people across 57 municipalities in Adams, Franklin, Lancaster, and York counties, The York Water Company remains committed to its mission of providing essential water and wastewater services. The company has demonstrated its commitment to shareholders as well, maintaining dividend payments for 52 consecutive years and currently offering a 2.7% dividend yield. This rate increase proposal is based on a press release statement from The York Water Company. InvestingPro reveals several additional positive factors about YORW’s financial performance, with more than 10 additional ProTips available to subscribers.

In other recent news, York Water Co. held its annual shareholder meeting where several key proposals were approved. Shareholders elected four directors, including Paul R. Bonney, Jody L. Keller, Steven R. Rasmussen, and Robert F. Lambert, each to serve three-year terms. Additionally, the appointment of Baker Tilly US, LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, was ratified with significant support. The company’s executive compensation plan received approval through an advisory vote, with a substantial number of shares voting in favor. Furthermore, the York Water Company 2025 Long-Term Incentive Plan was ratified, aimed at aligning the interests of executives and shareholders. These recent developments indicate strong shareholder confidence in the company’s governance and strategic direction.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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