ARTESIAN RESOURCES CORP | 2013 | FY | 3


Advances for Construction

Water mains, services and hydrants, or cash advances to reimburse Artesian Water for its costs to construct water mains, services and hydrants are contributed to Artesian Water by customers, real estate developers and builders in order to extend water service to their properties.  The value of these contributions is recorded as Advances for Construction.  Artesian Water makes refunds on these advances over a specific period of time based on operating revenues generated by the specific plant or as new customers are connected to the mains.  After all refunds are made within the contract period, any remaining balance is transferred to CIAC.


us-gaap:ConstructionContractorsPolicyPolicyTextBlock