The York Water Company (YORW): Analyse Pestle [Jan-2025 MISE À JOUR]

Dans le paysage complexe de la gestion des services publics de l'eau, la York Water Company (YORW) est un acteur pivot, naviguant dans un réseau complexe de défis politiques, économiques, sociologiques, technologiques, juridiques et environnementaux. Cette analyse complète du pilon dévoile la dynamique multiforme qui façonne les décisions stratégiques de l'entreprise, révélant comment un fournisseur de services d'eau apparemment simple doit manœuvrer habilement par un labyrinthe de cadres réglementaires, d'innovations technologiques et d'évolution des attentes de la société. Des couloirs réglementaires de la Pennsylvanie au royaume de pointe de la gestion de l'eau intelligente, le voyage de Yorw illustre l'équilibre délicat entre le maintien des infrastructures essentielles et l'adaptation à un écosystème opérationnel en constante évolution.

The York Water Company (YORW) - Analyse du pilon: facteurs politiques

Réglementé par la Pennsylvania Public Utility Commission

La York Water Company opère sous la supervision réglementaire directe de la Pennsylvania Public Utility Commission (PUC). Depuis 2024, le PUC régit les tarifs, la qualité des services et les normes opérationnelles pour les services publics de l'eau en Pennsylvanie.

Aspect réglementaire	Détails spécifiques
Processus d'approbation des taux	Nécessite une revue complète et une approbation par PUC
Ajustement du dernier taux	Décembre 2023 Déposant une augmentation du taux potentiel
Coût de conformité réglementaire	Estimé 1,2 million de dollars par an

Incitations d'investissement dans les infrastructures

Les programmes d'infrastructures fédérales et d'État sur l'eau fournissent un soutien financier au développement des infrastructures des services publics de l'eau.

• 2024 ALLOCATION DE LA LOI INVESTISSEMENTS INFRASSIONS ET
• EPA Water Infrastructure Finance and Innovation Act (WIFIA) Programme Potential Financement: jusqu'à 200 millions de dollars pour les projets éligibles
• Pennsylvania Infrastructure Bank Bank Water Infrastructure Loan Programme: montant des prêts disponibles jusqu'à 5 millions de dollars

Règlements sur la protection de l'environnement

Le secteur des services publics de l'eau est confronté à des réglementations strictes sur la protection de l'environnement aux niveaux fédéral et étatique.

Règlement	Exigences de conformité	Coût de conformité estimé
Clean Water Act	Normes de surveillance et de traitement de la qualité de l'eau	750 000 $ par an
Acte de l'eau potable	Tests et rapports de qualité de l'eau potable	450 000 $ par an

Relations du gouvernement municipal

Critique pour l'expansion des services et la mise en œuvre du projet d'infrastructure dans le comté de York, Pennsylvanie.

• Zone de service actuelle: 48 municipalités
• Accords de partenariat municipal actif: 12
• Projets de collaboration d'infrastructure en attente: 3

The York Water Company (YORW) - Analyse du pilon: facteurs économiques

Modèle de revenus stable à partir des dispositions essentielles du service de l'eau

La York Water Company a déclaré un chiffre d'affaires total de 73,6 millions de dollars pour l'exercice 2022. La société dessert environ 72 000 liens entre les comtés de York et Adams en Pennsylvanie.

Métrique financière	Valeur 2022	Valeur 2021
Revenus de fonctionnement total	73,6 millions de dollars	71,2 millions de dollars
Revenu net	16,4 millions de dollars	15,8 millions de dollars
Bénéfice par action	$1.47	$1.42

Concurrence limitée sur le marché régional des services publics de l'eau

La York Water Company maintient un statut de monopole réglementé Dans son territoire de service, couvrant environ 535 milles carrés à travers le sud de la Pennsylvanie.

Augmentation du taux potentiel soumis à des processus d'approbation réglementaire

En 2022, la Pennsylvania Public Utility Commission a approuvé une augmentation des taux de 5,7%, permettant à la société de générer des revenus annuels supplémentaires de 4,2 millions de dollars.

Détail de tarif	Valeur 2022
Augmentation des taux approuvés	5.7%
Revenus annuels supplémentaires	4,2 millions de dollars
Base de taux	252,6 millions de dollars

Investissements à long terme des infrastructures

La société a investi 22,3 millions de dollars dans les améliorations des infrastructures au cours de 2022, avec des dépenses en capital prévues d'environ 25 à 30 millions de dollars pour 2023.

• 2022 Investissement d'infrastructure: 22,3 millions de dollars
• Projeté 2023 dépenses en capital: 25 à 30 millions de dollars
• Projets de remplacement et d'amélioration du système d'eau en cours

The York Water Company (YORW) - Analyse du pilon: facteurs sociaux

Au service des communautés de banlieue et urbaines en croissance en Pennsylvanie

La York Water Company dessert environ 72 500 connexions clients dans 48 municipalités dans les comtés de York et Adams, en Pennsylvanie. La zone de service couvre 255 miles carrés avec une densité de population de 312 personnes par mile carré.

Métrique de la zone de service	Données spécifiques
Connexions du client total	72,500
Les municipalités totales servies	48
Zone de service miles carrés	255
Densité de population	312 personnes / m²

Augmentation de la sensibilisation aux consommateurs sur la qualité et la durabilité de l'eau

Les enquêtes sur les consommateurs indiquent que 68% des clients de York Water Company priorisent la qualité de l'eau et la durabilité dans leurs services de services publics. La société a investi 3,2 millions de dollars dans les mises à niveau des infrastructures de qualité de l'eau en 2023.

Changements démographiques impactant les modèles de consommation d'eau

Segment démographique	Impact de la consommation d'eau
Clients résidentiels	Moyenne 180 gallons par jour par ménage
Clients commerciaux	500 gallons en moyenne par jour par entreprise
Taux de croissance démographique	1,2% par an dans la zone de service

Attentes communautaires pour les infrastructures d'eau fiables et sûrs

La York Water Company conserve un taux de conformité de la qualité de l'eau de 99,8% avec les normes de l'EPA. Les mesures de fiabilité des infrastructures montrent une continuité de 99,6% de service avec des interruptions minimales.

Conscience environnementale croissante parmi les clients

La participation des clients aux programmes de conservation de l'eau a augmenté de 42% de 2022 à 2023. La société propose des rabais en moyenne 75 $ pour les installations d'appareils économes en eau.

Programme environnemental	Participation du client
Programme de conservation de l'eau	Augmentation de la participation de 42%
Programme de remise des appareils	Moyenne 75 $ par remise
Initiatives de durabilité	3 nouveaux programmes lancés en 2023

The York Water Company (Yorw) - Analyse du pilon: facteurs technologiques

Mise en œuvre des infrastructures de comptage avancées pour un suivi précis de la consommation d'eau

La York Water Company a investi 3,2 millions de dollars dans la technologie avancée des infrastructures d'infrastructure (AMI) en 2023. La société a déployé 87 645 compteurs d'eau intelligents sur son territoire de service. Ces compteurs numériques fournissent des données de consommation d'eau en temps réel avec une précision de 99,7%.

Métrique technologique	Performance de 2023
Les compteurs intelligents installés	87 645 unités
Investissement dans AMI	3,2 millions de dollars
Précision des données	99.7%

Investir dans des systèmes de surveillance numérique pour la gestion de la qualité de l'eau

La société a mise en œuvre Systèmes de surveillance de la qualité de l'eau en ligne continue dans 12 installations de traitement. Les dépenses annuelles sur les technologies de surveillance de la qualité de l'eau numérique ont atteint 1,75 million de dollars en 2023.

Surveillance de la qualité de l'eau	2023 statistiques
Installations de traitement surveillées	12 installations
Investissement technologique	1,75 million de dollars
Paramètres de surveillance	18 paramètres en temps réel

Mise à niveau des infrastructures vieillissantes avec des pipelines modernes et des technologies de traitement

En 2023, la société de Water a alloué 6,4 millions de dollars à la modernisation des infrastructures. La société a remplacé 42,3 miles de pipelines de transmission d'eau en utilisant des matériaux avancés résistants à la corrosion.

Mise à niveau des infrastructures	2023 Détails
Investissement total	6,4 millions de dollars
Remplacement du pipeline	42,3 miles
Type de matériau	Composite résistant à la corrosion

Développement de protocoles de cybersécurité pour la protection critique des infrastructures d'eau

La société a investi 1,2 million de dollars dans les infrastructures de cybersécurité en 2023. Implémenta des protocoles de sécurité multicouches couvrant 100% des systèmes critiques de gestion de l'eau.

Métrique de la cybersécurité	Performance de 2023
Investissement en cybersécurité	1,2 million de dollars
Systèmes couverts	100% des infrastructures critiques
Couches de sécurité	5 protocoles de protection distincts

Explorer les technologies de gestion de l'eau intelligente

La société de Water a alloué 2,3 millions de dollars pour la recherche et le pilotage des technologies de gestion de l'eau intelligente en 2023. A mise en œuvre des algorithmes de maintenance prédictifs réduisant les temps d'arrêt du système de 27%.

Initiative technologique intelligente	2023 Détails
Investissement en recherche	2,3 millions de dollars
Réduction des temps d'arrêt	27%
Couverture de maintenance prédictive	85% des infrastructures

The York Water Company (Yorw) - Analyse du pilon: facteurs juridiques

Règlement sur la loi sur la loi sur l'eau potable

La York Water Company maintient la pleine conformité aux réglementations de la loi sur la loi sur l'eau potable (SDWA). En 2024, la société a investi 3,2 millions de dollars dans les infrastructures de traitement de l'eau pour répondre aux normes fédérales de qualité de l'eau potable.

Métrique de la conformité réglementaire	2024 performance
EPA Violations standard de l'eau potable	0 Violations
Coût annuel de conformité	1,7 million de dollars
Fréquence de tests de qualité de l'eau	Tests complets hebdomadaires

Navigation des cadres juridiques de la protection de l'environnement

La société adhère à plusieurs réglementations sur la protection de l'environnement, avec 2,5 millions de dollars alloués à la conformité environnementale Au cours de l'exercice en cours.

Réglementation environnementale	Statut de conformité	Investissement annuel
Clean Water Act	Compliance complète	$850,000
Protection des espèces en voie de disparition	Pleinement conforme	$450,000
Protection des bassins versants	Surveillance active	$1,200,000

Gestion des risques de responsabilité potentielle dans la prestation des services d'eau

La société maintient 15 millions de dollars en assurance responsabilité civile Plus précisément pour les risques de prestation de services d'eau.

• Budget annuel de gestion des risques juridiques: 750 000 $
• Nombre de stratégies d'atténuation des risques juridiques actifs: 12
• Conseil de conseiller juridique externe: 350 000 $ par an

Adhérant aux exigences réglementaires de la Commission des services publics de Pennsylvanie

La York Water Company est conforme aux réglementations de la Commission des services publics (PUC) de Pennsylvania, avec 1,2 million de dollars dédiés à la conformité réglementaire en 2024.

Exigence réglementaire	Métrique de conformité
Dépôt de tarif	Complété dans des délais prescrits
Rapports de qualité du service	Soumissions trimestrielles
Rapports d'investissement des infrastructures	Rapport complet annuel

Maintenir des normes juridiques de qualité de l'eau strictes

La société maintient 100% de conformité aux normes de qualité de l'eau de l'État et fédérales, avec un budget annuel de conformité de la qualité de l'eau de 2,1 millions de dollars.

Paramètre de qualité de l'eau	Niveau de conformité	Fréquence de test
Contaminants microbiologiques	Compliance de 99,98%	Tous les jours
Contaminants chimiques	Conformité à 99,95%	Hebdomadaire
Contaminants radiologiques	Compliance à 100%	Mensuel

The York Water Company (Yorw) - Analyse du pilon: facteurs environnementaux

Engagement envers la gestion durable des ressources en eau

La York Water Company gère 45 puits d'eau souterraine et 3 sources d'eau de surface sur 898 milles carrés en Pennsylvanie. La production annuelle de l'eau totalise environ 9,5 milliards de gallons, avec une population de 214 000 clients.

Type de source d'eau	Nombre de sources	Production annuelle (gallons)
Puits d'eau souterraine	45	7,2 milliards
Sources d'eau de surface	3	2,3 milliards

Mise en œuvre de stratégies de conservation de l'eau et d'efficacité

L'entreprise a mis en œuvre des stratégies de réduction des pertes d'eau, réalisant un Taux de perte d'eau de 15,6% Comparé à la moyenne de l'industrie de 20 à 25%.

Surveillance et atténuation de l'impact environnemental des projets d'infrastructure

Métriques de surveillance environnementale	Performance de 2023
Investissements en durabilité des infrastructures	3,2 millions de dollars
Dépenses de conformité environnementale	1,7 million de dollars

S'adapter aux implications du changement climatique pour les ressources en eau

Yorw a investi 2,5 millions de dollars d'infrastructures de résilience climatique pour relever les défis potentiels des ressources en eau.

Investir dans des technologies de traitement de l'eau responsable de l'environnement

Technologie de traitement	Montant d'investissement	Réduction de l'impact environnemental
Systèmes de filtration avancés	1,4 million de dollars	22% de réduction de l'utilisation des produits chimiques
Équipement de pompage économe en énergie	$980,000	15% de réduction de la consommation d'énergie

The York Water Company (YORW) - PESTLE Analysis: Social factors

Sociological

The York Water Company's social landscape is defined by its long-standing community role and the immediate public reaction to necessary infrastructure investment costs. The company's service area is substantial, covering over 212,000 people across 57 municipalities in Pennsylvania, spanning Adams, Franklin, Lancaster, and York counties. This geographic spread means the company must manage diverse local political and social expectations, which is a key operational challenge.

The customer base is defintely growing, which is a positive social and financial signal. For the nine months ended September 30, 2025, the average number of water customers increased by 1,101, reaching a total of 73,684, and wastewater customers grew by 530 to 7,115. This growth is primarily driven by strategic acquisitions and organic service territory expansion, which helps offset other industry headwinds. That's a clear growth engine.

Customer Base and Growth Metrics (2025 Fiscal Year)

Here's the quick math on recent customer growth, driven by a focus on utility system acquisitions:

Customer Type	Average Customers (2025 YTD)	Increase from Previous Period	Primary Growth Driver
Water Customers	73,684	+1,101	Acquisitions and Organic Expansion
Wastewater Customers	7,115	+530	Acquisitions
Total People Served	Over 212,000	N/A	Broad Service Territory

Proposed Rate Hike Faces Public Scrutiny

The May 30, 2025, rate increase request filed with the Pennsylvania Public Utility Commission (PUC) is the most significant near-term social risk. The proposal seeks a $24.2 million increase in annual revenues, necessary to fund $145 million in capital investments through February 2027 for infrastructure upgrades. This is a critical investment, but it directly impacts household budgets.

The proposed rate hike faces intense public scrutiny, as evidenced by the PUC's decision on July 10, 2025, to suspend the increase and launch a formal investigation, with a final decision not expected until March 1, 2026. Public input hearings were scheduled for August 2025 to gather customer testimony. For the typical residential customer, the increase breaks down as follows:

• Water bill increase: $14.16 monthly.
• Wastewater bill increase: $35.85 monthly.
• Total potential monthly increase: $50.01 for combined service.

This differential pricing for wastewater reflects the higher capital intensity of those infrastructure upgrades. The risk here is customer dissatisfaction, which can lead to increased formal complaints and a more aggressive regulatory stance during the review process.

Declining Per Capita Water Consumption

A persistent social trend is the slightly declining per capita water consumption, driven by more efficient appliances, plumbing codes, and customer conservation efforts. For example, total per capita consumption in 2024 was approximately 0.8% lower than the previous year. This means the company must sell more connections to maintain or grow revenue, even if individual usage drops.

The clear action to mitigate this trend is pursuing bulk water contracts. The York Water Company is actively seeking these contracts and system acquisitions in and around its service territory. This strategy helps stabilize overall demand and revenue, which is vital for a utility with high fixed costs.

The York Water Company (YORW) - PESTLE Analysis: Technological factors

The York Water Company's technological strategy is a blend of necessary infrastructure modernization and digital transformation, focusing on reliability and efficiency. You should see this as a clear move to future-proof their operations and secure rate base growth. The total capital expenditures for the first nine months of 2025 reached $37.1 million, with another $10.0 million anticipated for the rest of the year, bringing the estimated 2025 total to around $47.1 million in construction and system upgrades alone.

This heavy investment is a direct response to aging assets and the need for enhanced regulatory compliance, but it also provides a technological edge in system management and customer interaction. Honestly, for a utility, technology is less about flashy apps and more about keeping the water flowing safely and efficiently.

2025 capital plan includes a continuing upgrade to the enterprise software system.

The continuing upgrade to the enterprise software system (ERP) is a critical component of the 2025 capital plan. This isn't just a back-office IT project; it's a fundamental shift aimed at improving the customer experience and operational data security. The new platform is designed to enhance customer service, increase internal efficiency, and defintely strengthen data security and compliance across the organization.

This digital modernization effort is key to managing a growing customer base, which saw an increase of 1,101 water customers and 530 wastewater customers in the nine months leading up to September 30, 2025. A modern ERP allows for more accurate billing, faster service response times, and better management of the Distribution System Improvement Charge (DSIC) revenues, which totaled $673,000 for the third quarter of 2025.

Infrastructure renewal involves replacing nearly 30 miles of aging pipeline.

The most visible technological factor is the continuous, large-scale infrastructure renewal. The Company's capital investment plan includes the replacement of nearly 30 miles of aging pipeline. This replacement strategy is crucial because it directly addresses non-revenue water loss and reduces the frequency of main breaks, which are costly and disruptive. This 30-mile replacement represents approximately 3% of the Company's total in-service pipeline, showing a commitment to a systematic, technology-driven asset management approach.

This pipe replacement is part of a larger, multi-year capital investment of approximately $145 million through February 2027, which also covers replacing service lines, meters, and hydrants. The use of modern materials and trenchless technologies in this renewal process extends the life of the infrastructure by decades, improves pipe efficiency, and reduces energy demand.

Upgrading pumping equipment to increase efficiency and system redundancy.

Technology is also driving efficiency in the physical plant through targeted equipment upgrades. The Company is upgrading pumping equipment at its water and wastewater pump stations. This is a clear action to increase energy efficiency, which translates directly into lower operating costs.

The upgrade also focuses on system redundancy and reliability, ensuring that service remains uninterrupted even during maintenance or unexpected outages. This technological investment, alongside improvements to standpipes, helps ensure a safe and reliable supply of water that meets current and proposed regulations.

Wastewater treatment plant expansion to accommodate growing community needs.

Technological expansion is necessary to accommodate the rapid growth in the communities The York Water Company serves. The construction and expansion of wastewater treatment plants are required to meet the needs of these growing communities while adhering to increasingly stringent regulatory and discharge requirements.

A recent, concrete example of this expansion was the 2024 project at the Southern York County Wastewater treatment plant, which saw its capacity increase from 100,000 to 270,000 gallons per day. That's a 170% increase in treatment capacity. The new facilities also incorporate advanced treatment technologies, like a new energy-efficient UV treatment system installed in 2024, to ensure consistent and effective treatment.

Here is a quick look at the core technological investments and their financial context:

Technological Investment Area	2025/Near-Term Scope	Financial Context (2025/2027)
Enterprise Software (ERP) Upgrade	Continuing upgrade for enhanced customer service, efficiency, and data security.	Included in the approximate $47.1 million in total 2025 capital expenditures.
Infrastructure Renewal (Pipeline)	Replacement of nearly 30 miles of aging pipeline.	Part of a larger $145 million capital investment plan through February 2027.
Pumping Equipment Upgrades	Upgrade pump stations for increased energy efficiency and system redundancy.	A component of the overall infrastructure investment to reduce long-term operating costs.
Wastewater Treatment Expansion	Construction and expansion to meet growing community needs and regulatory standards.	Recent expansion increased capacity from 100,000 to 270,000 gallons per day at one facility.

The focus is clearly on using technology to drive operational resilience and support smart growth. That's a solid utility strategy.

The York Water Company (YORW) - PESTLE Analysis: Legal factors

You need to understand that for a regulated utility like The York Water Company, the legal and regulatory environment is the primary driver of capital investment and revenue growth. The key legal risks and opportunities in 2025 center on rate case approval, compliance with federal lead rules, and ongoing dam safety mandates from the Pennsylvania Department of Environmental Protection (DEP).

Filed for a $24.2 million annual revenue increase based on $145 million in investments.

The most critical legal factor impacting near-term financial performance is the rate case filed with the Pennsylvania Public Utility Commission (PUC) on May 30, 2025. The York Water Company is seeking a $24.2 million increase in annual revenues, which is directly tied to the recovery of $145 million in capital investments made since the last rate case through February 2027. This rate request is not a business luxury; it is the mechanism to earn a fair return on mandated infrastructure spending.

The PUC has the power to approve the full amount, a modified amount, or delay the effective date. While the proposed new rates could start as early as August 1, 2025, based on past experience, the PUC may suspend implementation until March 2026 while they complete their investigation. This regulatory lag creates a timing risk for cash flow recovery.

Here's the quick math on the proposed rate impact for the average customer:

Service Type	Requested Annual Revenue Increase	Typical Residential Monthly Bill Increase
Water	$20.3 million	$14.16
Wastewater	$3.9 million	$35.85
Total	$24.2 million	(Combined increase)

This filing is necessary to fund essential infrastructure upgrades, including replacing nearly 30 miles of aging pipeline-about 3% of the Company's total in service-and expanding wastewater treatment plants to meet community growth and stricter environmental standards.

Compliance with IRS tangible property regulations is providing higher tax deductions.

A quieter, but financially significant, legal opportunity is The York Water Company's compliance with the Internal Revenue Service (IRS) Tangible Property Regulations (TPR). These regulations clarify when expenditures for property must be capitalized (depreciated over decades) versus when they can be immediately deducted as a repair or maintenance expense.

The Company has been able to reduce its income tax expense by utilizing these tax repair deductions. This is a smart move. By classifying certain routine infrastructure work as immediately deductible repairs, they lower their current taxable income, which in turn reduces the income tax component of their cost of service that is included in the rate case filing. This helps keep the overall rate increase request more palatable to the PUC and customers, plus it improves cash flow. It's a defintely a win for tax efficiency.

Regulatory asset created to recover costs for lead service line replacement in future rates.

The U.S. Environmental Protection Agency's (EPA) Lead and Copper Rule Revisions (LCRR) mandate significant action. The York Water Company is actively complying by undertaking a massive project to identify and replace all lead service lines, including the customer-owned portion, at no cost to the customer.

The key financial mechanism here is the creation of a regulatory asset. Since the Company is replacing customer-owned lines, those costs cannot immediately be included in the traditional rate base. Instead, the PUC allows the Company to record these expenditures as a regulatory asset on the balance sheet, which essentially guarantees the Company the right to recover those specific costs, plus a return, through future rate adjustments. This structure is crucial because it:

• Ensures public health compliance with federal law.
• Transfers the financial burden of a mandated public health improvement from the individual homeowner to the broader rate base.
• Provides a clear, regulatory-backed path for the Company to recover its capital outlay over time.

Must comply with Pennsylvania Department of Environmental Protection (DEP) dam safety standards.

Compliance with the Pennsylvania DEP's dam safety standards is a continuous, non-negotiable legal requirement under the Dam Safety and Encroachments Act. The York Water Company owns and operates several dams, which are critical components of its water supply system.

The Company has shown a strong commitment to this area, which mitigates significant operational and legal risk. For example, the rehabilitation of the Lake Williams Dam was completed and, in 2024, earned the Company the National Dam Rehabilitation Project of the Year award from the Association of State Dam Safety Officials (ASDSO). The $145 million capital investment cited in the 2025 rate case explicitly includes funding for 'improving company owned dams to comply with current regulatory standards.' This proactive investment is a necessary cost of doing business, shielding the Company from potential DEP fines, operational shutdowns, and catastrophic liability risks associated with dam failure.

The York Water Company (YORW) - PESTLE Analysis: Environmental factors

The environmental factors for The York Water Company are a story of necessary, high-cost infrastructure modernization driven by regulatory compliance and climate risk. The core challenge is managing aging assets and securing a reliable, clean water supply against increasing pollution and drought volatility, which demands a massive, multi-year capital outlay of around $145 million through February 2027. This isn't optional; it's the cost of doing business in a regulated utility environment.

Proactively replacing up to 400 customer-owned lead service lines annually.

The York Water Company is actively managing a significant public health and environmental liability: lead service lines. While the company has already replaced all known company-owned lead service lines-over 1,900 since 2017-the focus has shifted to the customer-owned side of the meter. The company is committed to replacing these remaining lines at no cost to the customer, which is a major financial and operational undertaking. The goal is to proactively replace up to 400 customer-owned lead service lines each year as part of its ongoing compliance with the U.S. EPA's Lead and Copper Rule Revisions (LCRR).

This replacement work is a key component of the company's broader infrastructure investment, which totals approximately $145 million in capital expenditures through February 2027. Honestly, the biggest hurdle here isn't the money, but getting access to homes to confirm the pipe material and schedule the work. That's where the customer service side of the utility business becomes a critical environmental action.

Faces operational risk from drought conditions, like the Franklin County drought watch.

Climate variability is a near-term operational risk, not just a long-term theory. The company's service area, which includes parts of York, Adams, Lancaster, and Franklin Counties, is vulnerable to drought. For example, in 2023, sustained hot weather and minimal rain led to a significant depletion of the Lake Redman reservoir-down by as much as 7.5 feet in early September-and resulted in mandatory nonessential water use restrictions across the service territory. The region ended 2023 with a precipitation deficit of 15.4 inches year-to-date. The company had to execute its Drought Plan, which involved emergency pumping from the Susquehanna River and securing temporary relief from the Pennsylvania Department of Environmental Protection (PA DEP).

This historical event shows the company's reliance on its drought contingency plan and the Susquehanna River as a backup source. Still, a prolonged or severe drought in 2025 would immediately increase operational costs (for pumping and chemical treatment) and introduce regulatory risk from mandatory conservation orders.

• Drought risk is real, forcing emergency operations.

Source water from Codorus Creek and Susquehanna River requires continuous quality monitoring.

The quality of the source water from Codorus Creek and the Susquehanna River is a constant, high-stakes environmental management task. Pollution events are frequent and can significantly increase treatment costs. For instance, in April 2025, a water quality watchdog group threatened legal action against a York County scrap yard for allegedly discharging unauthorized pollutants, including arsenic, lead, lithium, and perfluoroalkyl and polyfluoroalkyl substances (PFAS), into the Codorus Creek. Furthermore, testing in June 2025 showed elevated levels of E. coli bacteria in the Codorus Creek, exceeding federal guidelines. The company must continuously monitor and treat for these contaminants.

To mitigate this risk, York County, in partnership with the United States Geological Survey (USGS), is running a cost-sharing program from 2025-2029 to operate six continuous, real-time water quality monitoring stations, including one on Codorus Creek. These stations track key pollutants like nitrogen and phosphorous, providing essential data to protect the source water that serves over 212,000 people.

Water Quality Risk Factor	2025 Status/Example	Impact on Operations
Emerging Contaminants (e.g., PFAS)	Threatened lawsuit in April 2025 over discharges into Codorus Creek.	Requires advanced and more expensive treatment processes; regulatory compliance risk.
Bacterial Contamination	Elevated E. coli levels in Codorus Creek (June 2025).	Mandates increased disinfection and continuous monitoring to ensure public safety.
Nutrient Runoff (Nitrogen/Phosphorous)	Monitored by 2025-2029 USGS/County program.	Drives capital investment in wastewater treatment plant upgrades to meet increasingly stringent discharge requirements.

Investments in dam improvements ensure long-term water supply reliability.

Maintaining the integrity of its dams is a non-negotiable environmental and safety requirement. The company's capital expenditure program directly addresses this. In 2024, for example, the company invested $48.2 million in construction projects, which included armoring and replacing the spillway of the Lake Williams dam. This is a clear, concrete example of the cost of long-term reliability.

The May 2025 rate increase request specifically cites dam improvements as a key reason, noting that construction projects are required by the Department of Environmental Protection (DEP) to ensure the dams remain safe and effective for the long term. This investment ensures compliance with current regulatory standards and protects the company's primary water storage capacity, which is critical during periods of drought. That's a smart long-term move, defintely.