Less water use, higher costs pull York Water 1Q profit down

YORK, Pa.—York Water Co. said Thursday its first-quarter income fell 9 percent due in part to dips in water usage and higher operating expenses.

For the period ended March 31, York Water posted net income from water operations of $1.2 million, or 11 cents per share, compared with $1.3 million, or 12 cents per share, in the year-ago period.

Operating revenue edged higher to $7.5 million from $7.4 million.

Higher depreciation, wage and health insurance claims pushed operating expenses higher, the company said.

York Water added about 905 customers during the period and spent about $3.4 million on construction projects, including the expansion of its distribution system.

To continue infrastructure improvements, and to boost earnings, York Water said it will apply for permission to boost 2008 rates. Publicly traded companies that run municipal water systems -- such as York Water -- need approval from public commissions before changing rates.

The company supplies about 20 million gallons of water per day to more than 56,000 customers in Pennsylvania's York and Adams counties.

Shares rose 5 cents to $15.16 in afternoon trading.