The York Water Company (YORW): Business Model Canvas [11-2024 Updated]
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The York Water Company (YORW) Bundle
In the ever-evolving landscape of public utilities, The York Water Company (YORW) stands out with a robust and strategic business model. This model is built on key partnerships with municipalities and regulatory bodies, while emphasizing reliable water and wastewater services for diverse customer segments. From streamlined operations to innovative service offerings, YORW's approach not only ensures compliance with safety regulations but also fosters strong community relationships. Dive deeper to explore the intricate components of YORW's business model canvas and discover what makes it a leader in the water utility sector.
The York Water Company (YORW) - Business Model: Key Partnerships
Collaborations with municipalities for billing and collection services
The York Water Company has established collaborations with various municipalities to provide billing and collection services. These partnerships enable efficient management of customer payments and enhance revenue collection processes. For instance, in the nine months ended September 30, 2024, the company reported total operating revenue of $56,093,000, which includes revenue from billing services provided to municipal partners. The average number of water customers served increased by 955, demonstrating the growth potential of these collaborations.
Agreements for water supply and distribution with local authorities
The York Water Company has entered into agreements with local authorities to secure water supply and distribution. These agreements are crucial for expanding service areas and ensuring reliable water delivery to customers. The company reported a 6.0% increase in operating revenues from $52,935,000 in the nine months ended September 30, 2023, to $56,093,000 in the corresponding period of 2024, partly attributed to these agreements. As of September 30, 2024, the company served an average of 72,278 water customers, an increase from 71,323 in 2023.
| Partnership Type | Details | Impact on Revenue |
|---|---|---|
| Municipality Collaboration | Billing and collection services | Contributed to total operating revenue of $56,093,000 in 2024 |
| Local Authority Agreements | Water supply and distribution | Supported 6.0% revenue growth to $56,093,000 in 2024 |
| Customer Base Growth | Increased from 71,323 to 72,278 | Enhanced revenue opportunities |
Partnerships with regulatory bodies like the Pennsylvania Public Utility Commission (PPUC)
The York Water Company maintains vital partnerships with regulatory bodies, particularly the Pennsylvania Public Utility Commission (PPUC). These partnerships facilitate regulatory compliance and enable the company to implement necessary rate adjustments. For example, the company successfully implemented a distribution system improvement charge (DSIC), which allowed it to add a charge for qualified replacement costs of infrastructure. This charge contributed an additional $131,000 in revenue during the third quarter of 2024. The effective tax rate for the company was reported at 5.8% for the third quarter of 2024, reflecting the impact of regulatory agreements on financial performance.
| Regulatory Partnership | Details | Financial Impact |
|---|---|---|
| PPUC | Facilitated rate adjustments and DSIC implementation | Generated $131,000 in additional revenue in Q3 2024 |
| Effective Tax Rate | 5.8% as of Q3 2024 | Influenced by regulatory agreements |
The York Water Company (YORW) - Business Model: Key Activities
Water purification and distribution across service areas
The York Water Company engages in extensive water purification processes to ensure safe drinking water for its customers. As of September 30, 2024, the company served approximately 72,583 water customers, an increase from 71,521 customers in 2023. The operating revenues from water utility services reached $31,153,000 for the nine months ended September 30, 2024, compared to $30,033,000 for the same period in 2023. The company has invested significantly in infrastructure improvements to enhance service delivery.
Wastewater management and treatment
In addition to water services, York Water Company manages wastewater treatment for approximately 6,479 customers as of September 30, 2024, up from 5,951 customers in the previous year. The revenue generated from residential and commercial wastewater utility services was $4,554,000 and $969,000 respectively for the nine months ended September 30, 2024. The company continues to expand its wastewater services through acquisitions, enhancing its operational capacity in this area.
Regular maintenance of water infrastructure and systems
Regular maintenance of the water infrastructure is critical to the York Water Company’s operations. For the nine months ended September 30, 2024, the company reported an increase in operating expenses to $34,761,000, a rise of 13.7% from $30,568,000 in the same period in 2023. This increase was attributed to higher expenses for distribution system maintenance, which amounted to approximately $748,000. The company has budgeted approximately $9,700,000 for capital expenditures for the remainder of 2024, focusing on infrastructure improvements and routine maintenance.
| Key Metrics | 2024 | 2023 |
|---|---|---|
| Water Customers | 72,583 | 71,521 |
| Wastewater Customers | 6,479 | 5,951 |
| Water Utility Revenue | $31,153,000 | $30,033,000 |
| Wastewater Utility Revenue | $4,554,000 (Residential) | $3,998,000 (Residential) |
| Operating Expenses | $34,761,000 | $30,568,000 |
| Capital Expenditures | $9,700,000 (Budgeted) | N/A |
The York Water Company (YORW) - Business Model: Key Resources
Extensive water distribution network and treatment facilities
The York Water Company operates a comprehensive water distribution network, with a utility plant valued at approximately $653.3 million as of September 30, 2024. This includes various treatment facilities that ensure compliance with health and safety standards. The net utility plant value, after accounting for accumulated depreciation, stands at $521.7 million .
| Asset Category | Value (in millions) |
|---|---|
| Utility Plant (Original Cost) | $653.3 |
| Accumulated Depreciation | $(122.2) |
| Net Utility Plant | $521.7 |
Reservoirs and groundwater sources for water supply
The company sources its water primarily from two reservoirs and several groundwater wells. As of 2024, the water supply infrastructure has been enhanced through ongoing investments, with capital expenditures for utility plant additions reaching approximately $33.0 million in 2024 . This investment supports sustainable water sourcing to meet the needs of its customer base, which increased by 1,062 water customers to 72,583 in 2024 .
Skilled workforce for operational and maintenance tasks
The York Water Company employs a skilled workforce dedicated to the operational and maintenance aspects of its water supply and wastewater treatment systems. As of September 30, 2024, the company reported an increase in operational expenses, with wages and benefits rising by approximately $303,000 . The company aims to maintain a workforce capable of efficiently managing its extensive infrastructure and ensuring regulatory compliance.
| Expense Category | Amount (in thousands) |
|---|---|
| Wages and Benefits Increase | $303 |
| Water Treatment Expense Increase | $101 |
| Wastewater Treatment Expense Increase | $203 |
The York Water Company (YORW) - Business Model: Value Propositions
Reliable water and wastewater services to residential and commercial customers
The York Water Company provides essential utility services, including water and wastewater management, to a growing customer base. As of September 30, 2024, the company served approximately 72,583 water customers, an increase of 1,062 from the previous year, and 6,585 wastewater customers, up by 567. The company's operating revenue for the third quarter of 2024 was $19,715, reflecting a 5.1% increase from $18,767 in the same period of 2023.
Commitment to safety and regulatory compliance in water quality
York Water Company emphasizes safety and regulatory compliance in its operations. The company is subject to strict regulations imposed by the Pennsylvania Public Utility Commission (PPUC) and must adhere to water quality standards. The effective management of these regulations is critical, as it impacts customer trust and the overall service offering. In 2024, the company reported an effective tax rate of 8.9%, which is influenced by its operational compliance and investment in regulatory assets.
Service line protection plans for customer peace of mind
To enhance customer satisfaction, York Water Company offers service line protection plans. These plans provide customers with peace of mind by covering the costs of repairs or replacements for damaged service lines. The program operates on a fixed monthly fee basis, allowing customers to budget for potential repairs without unexpected expenses. This initiative not only diversifies the company’s revenue streams but also strengthens customer relationships.
| Metric | 2024 | 2023 | Change (%) |
|---|---|---|---|
| Water Customers | 72,583 | 71,521 | 1.5 |
| Wastewater Customers | 6,585 | 6,018 | 9.4 |
| Operating Revenue (Q3) | $19,715 | $18,767 | 5.1 |
| Net Income (9 months) | $15,183 | $17,745 | -14.4 |
| Effective Tax Rate | 8.9% | 5.8% | 53.4 |
The York Water Company (YORW) - Business Model: Customer Relationships
Monthly billing and customer service support
The York Water Company employs a monthly billing cycle for its customers. As of September 30, 2024, the average number of water customers served increased to 72,278, up from 71,323 in the previous year. Each customer is invoiced monthly, with payments due within twenty days. The company recorded accounts receivable from customers totaling $8,677, with a net accounts receivable after allowances amounting to $7,712. The billing and revenue collection services generated $373,000 in revenue for the nine months ended September 30, 2024.
Engagement through community outreach and awareness programs
The York Water Company is actively involved in community outreach initiatives aimed at raising awareness about water conservation and quality. The company has established partnerships with local municipalities for educational programs and events. These initiatives are designed to foster customer relationships and enhance community engagement. The company’s operating revenues for the first nine months of 2024 increased by $3,158, or 6.0%, to $56,093, driven in part by growth in the customer base and community involvement.
Optional service line protection plans for added customer security
The York Water Company offers optional service line protection plans, which allow customers to pay a fixed monthly fee for repair or replacement of damaged service lines. This program enhances customer security by providing financial protection against unexpected costs. The company has seen participation in these plans grow as customers seek added assurance regarding their service lines. The financial impact of these plans is reflected in the overall increase in customer satisfaction and retention, contributing to a steady customer growth rate.
| Customer Relationship Aspect | Details | Financial Impact |
|---|---|---|
| Monthly Billing | Invoiced monthly; payments due in 20 days | Accounts Receivable: $8,677, Net: $7,712 |
| Community Engagement | Partnerships for education on water conservation | Operating Revenues: $56,093 (9M 2024) |
| Service Line Protection Plans | Fixed monthly fee for line repairs/replacements | Increased customer retention and satisfaction |
The York Water Company (YORW) - Business Model: Channels
Direct service delivery through water supply and wastewater systems
The York Water Company provides direct service delivery through its extensive water supply and wastewater systems. As of September 30, 2024, the average number of water customers served increased to 72,278, up from 71,323 in 2023, representing a growth of 955 customers. Additionally, the average number of wastewater customers rose to 6,479 from 5,951, marking an increase of 528 customers, primarily due to acquisitions.
| Service Type | 2024 Customers | 2023 Customers | Change |
|---|---|---|---|
| Water Customers | 72,278 | 71,323 | +955 |
| Wastewater Customers | 6,479 | 5,951 | +528 |
Digital platforms for customer service and billing inquiries
The York Water Company utilizes digital platforms to enhance customer service and streamline billing inquiries. In the third quarter of 2024, the Company reported operating revenues of $19,715, a 5.1% increase from $18,767 in the same quarter of 2023. This increase was partly due to improvements in billing efficiency and customer engagement through digital channels.
| Quarter | 2024 Revenue | 2023 Revenue | Increase (%) |
|---|---|---|---|
| Q3 | $19,715 | $18,767 | 5.1% |
Community events and local partnerships for customer engagement
The York Water Company actively engages with its community through various events and partnerships. In 2024, the Company completed acquisitions that added approximately 105 new customers, demonstrating its commitment to expanding its service area and enhancing community relations. The Company also seeks to establish partnerships with local municipalities for billing and collection services, further solidifying its local presence.
| Acquisition Event | Customers Added | Cost ($) |
|---|---|---|
| Longstown Mobile Estates | 90 | $8 |
| Houston Run Community Water System | 15 | $212 |
The York Water Company (YORW) - Business Model: Customer Segments
Residential households within service territory
The York Water Company (YORW) serves approximately 72,583 residential water customers as of September 30, 2024, which represents an increase of 1,062 customers compared to the previous year. For the third quarter of 2024, the residential water utility service generated $10,887,000 in revenue, up from $10,505,000 in the same quarter of 2023. The average annual water consumption per residential customer has been influenced by weather conditions, with total per capita consumption approximately 0.9% higher in the third quarter of 2024 than in the same period of the previous year.
Commercial and industrial businesses requiring water services
YORW also caters to commercial and industrial clients. The company reported $5,527,000 in revenue from commercial and industrial water utility services for the third quarter of 2024, an increase from $5,244,000 in the third quarter of 2023. The average number of commercial and industrial customers has likely grown due to ongoing economic development in the service area, contributing to the overall increase in revenue within this segment.
Municipalities seeking billing and collection support
The York Water Company provides billing and collection services to several municipalities. In the third quarter of 2024, the revenue generated from these services was $121,000, compared to $115,000 in the same quarter of 2023. This segment is crucial as it diversifies YORW's revenue streams and enhances its relationships with local governments. The company has agreements in place to ensure effective billing and collection, which bolsters its operational efficiency.
| Customer Segment | Average Customers (2024) | Revenue (Q3 2024) | Revenue (Q3 2023) |
|---|---|---|---|
| Residential Households | 72,583 | $10,887,000 | $10,505,000 |
| Commercial and Industrial | Data Not Specified | $5,527,000 | $5,244,000 |
| Municipalities (Billing Services) | Data Not Specified | $121,000 | $115,000 |
The York Water Company (YORW) - Business Model: Cost Structure
Operational costs related to water treatment and distribution
The operational costs for The York Water Company include various expenses essential for water treatment and distribution. For the third quarter of 2024, the operating expenses totaled $11,660, which reflects a 12.8% increase from $10,334 in the same quarter of 2023. Key components include:
- Water treatment expenses: $101
- Wastewater treatment expenses: $203
- Purchased power: $78
- Wages and benefits: $303
- Insurance: $153
For the nine months ended September 30, 2024, operating expenses increased to $34,761 from $30,568 in 2023, marking a 13.7% rise.
Maintenance and infrastructure upgrade expenses
The York Water Company allocates significant funds for maintenance and upgrading its infrastructure. In the first nine months of 2024, distribution system maintenance costs rose by approximately $748. The company is also committed to capital expenditures related to infrastructure improvements, with a total of $32,993 spent on utility plant additions, which includes debt portions for construction allowances.
Additionally, the company has recorded a regulatory asset of approximately $1,921 for the replacement of lead service lines as part of its commitment to infrastructure improvement.
Regulatory compliance and administrative costs
Regulatory compliance and administrative costs are critical for The York Water Company to operate within the legal frameworks set by authorities such as the Pennsylvania Public Utility Commission (PPUC). For the third quarter of 2024, administrative and general expenses accounted for $3,013, an increase from $2,605 in the previous year. This is part of the overall operating expenses which totaled $11,660 for the quarter. The effective tax rate for the company was reported at 5.8% for this quarter.
Moreover, interest on debt has increased significantly, reflecting the company's long-term debt obligations. For the nine months ended September 30, 2024, interest expenses rose to $6,549 from $5,041 in the same period of 2023, indicating a 29.9% increase.
| Cost Category | Q3 2024 ($) | Q3 2023 ($) | 9M 2024 ($) | 9M 2023 ($) |
|---|---|---|---|---|
| Operating Expenses | 11,660 | 10,334 | 34,761 | 30,568 |
| Water Treatment | 101 | N/A | N/A | N/A |
| Wastewater Treatment | 203 | N/A | N/A | N/A |
| Purchased Power | 78 | N/A | N/A | N/A |
| Wages and Benefits | 303 | N/A | 819 | N/A |
| Administrative and General Expenses | 3,013 | 2,605 | 9,244 | 8,028 |
| Interest on Debt | 2,243 | 1,850 | 6,549 | 5,041 |
The York Water Company (YORW) - Business Model: Revenue Streams
Revenue from Residential and Commercial Water Utility Services
The York Water Company generates substantial revenue from its water utility services, which includes both residential and commercial customers. For the nine months ended September 30, 2024, the revenue breakdown is as follows:
| Customer Type | Q3 2024 Revenue | Q3 2023 Revenue | 9M 2024 Revenue | 9M 2023 Revenue |
|---|---|---|---|---|
| Residential | $10,887,000 | $10,505,000 | $31,153,000 | $30,033,000 |
| Commercial and Industrial | $5,527,000 | $5,244,000 | $15,292,000 | $14,341,000 |
| Fire Protection | $1,156,000 | $1,040,000 | $3,360,000 | $3,022,000 |
The combined total revenue from water utility services for the first nine months of 2024 was approximately $49,805,000, reflecting growth driven by both rate increases and customer base expansion.
Charges for Wastewater Management Services
In addition to water services, York Water Company also provides wastewater management services, which contribute significantly to its revenue streams. The revenue from wastewater utility services for the first nine months of 2024 is as follows:
| Customer Type | Q3 2024 Revenue | Q3 2023 Revenue | 9M 2024 Revenue | 9M 2023 Revenue |
|---|---|---|---|---|
| Residential | $1,578,000 | $1,458,000 | $4,554,000 | $3,998,000 |
| Commercial and Industrial | $301,000 | $255,000 | $969,000 | $743,000 |
The total revenue from wastewater services for the nine months ended September 30, 2024, was approximately $5,523,000, marking a significant increase from the previous year.
Fees from Billing and Collection Services for Municipalities
The York Water Company also earns revenue through billing and collection services provided to several municipalities. The revenue generated from these services for the first nine months of 2024 is detailed below:
| Service Type | Q3 2024 Revenue | Q3 2023 Revenue | 9M 2024 Revenue | 9M 2023 Revenue |
|---|---|---|---|---|
| Billing and Revenue Collection Services | $121,000 | $115,000 | $373,000 | $357,000 |
| Collection Services | $25,000 | $12,000 | $28,000 | $28,000 |
The total revenue from billing and collection services for the nine months ended September 30, 2024, was approximately $401,000, reflecting steady demand for these services.
Updated on 16 Nov 2024
Resources:
- The York Water Company (YORW) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of The York Water Company (YORW)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View The York Water Company (YORW)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.