The York Water Company (YORW): Business Model Canvas [Dec-2025 Updated]

You're looking to dissect the bedrock stability of a classic American utility, and honestly, understanding The York Water Company's Business Model Canvas reveals a play built on regulated monopoly and heavy, predictable reinvestment. This isn't about chasing trends; it's about securing essential service, evidenced by their planned $47.1 million in capital expenditures for 2025 to maintain infrastructure for over 212,000 residents. We've broken down exactly how they convert their franchise, water rights, and regulatory compliance into tangible results-like the $58.0 million in operating revenues through the first nine months of 2025-so you get a precise view of their value creation engine. See the full nine-block breakdown below to grasp the core mechanics.

The York Water Company (YORW) - Canvas Business Model: Key Partnerships

The York Water Company relies on several external entities to operate, maintain its system, and serve its customer base of over 212,000 people across 57 municipalities in Pennsylvania.

Pennsylvania Public Utility Commission (PUC) for rate approval and regulation

The Pennsylvania Public Utility Commission oversees rate setting for The York Water Company's water and wastewater services. The company filed for a general rate increase on May 30, 2025, under docket number R-2025-3053442.

The request seeks an approximate overall annual revenue increase of $24.2 million. The PUC voted 5-0 on July 10, 2025, to suspend and investigate the proposals, with a final decision due by March 1, 2026. The requested effective date for the increase was August 1, 2025.

The proposed revenue changes break down as follows:

The average cost of 1,000 gallons of water at the increased rates would remain slightly more than a penny per gallon.

Engineering and construction firms for infrastructure projects

The rate increase filing is directly tied to capital investments totaling $145 million planned through February 2027. These investments cover replacing aging water mains, upgrading treatment facilities, and expanding wastewater plants.

A specific, recent major project partnership involved the rehabilitation of the Lake Williams Dam, which was recognized as a 2025 Top Project by the Central Penn Business Journal. This rehabilitation added over 60+ million gallons of additional storage capacity to the 1.14-billion-gallon reservoir.

Local government and municipal authorities for service territory expansion

The York Water Company provides service to customers across various municipalities in Adams, Franklin, Lancaster, and York counties. Growth in these communities necessitates infrastructure expansion, which is factored into the capital investment plan.

• Serves over 212,000 people.
• Operates across 57 municipalities.

The Salvation Army and Community Progress Council for customer assistance programs

The York Water Company utilizes community organizations to administer customer aid through its programs. The York Water Cares (YWC) Program specifically partners with The Salvation Army and Community Progress Council to provide funding for customers needing help with their bills.

Details on assistance programs include:

• The 2025 York Water Cares (YWC) program applications were paused effective March 13, 2025, due to customer demand.
• The YWC program previously offered an assistance grant of up to $200 per year, potentially covering up to 5 months of unpaid water bills.
• The Customer Assistance Program (CAP) may offer forgiveness of past due amounts up to $120 after receipt of monthly payments.

Financial institutions for long-term debt financing and capital funding

The $145 million in capital investments requires external funding sources, which typically involve long-term debt financing secured through financial institutions.

The need for this capital funding is driven by:

• Timely replacement of pipes, pumps, meters, and service lines.
• Upgrading water and wastewater treatment equipment and facilities.
• Improving company-owned dams to comply with regulatory standards from the Department of Environmental Protection.

The York Water Company (YORW) - Canvas Business Model: Key Activities

You're looking at the core operational engine of The York Water Company (YORW), the activities that keep the water flowing and the business compliant. Honestly, for a utility this established, the key activities revolve around massive, continuous infrastructure upkeep and navigating the regulatory gauntlet to pay for it.

Water treatment and quality assurance to meet federal/state standards is non-negotiable. This involves the physical processes to ensure the water leaving the system is safe. The primary water supply comes from the Codorus Creek, with backup from a Susquehanna River pipeline, and the company is recognized as an EPA Water Sense Partner.

Distribution system maintenance, including replacing 30 miles of aging pipe, is a major, ongoing task. This activity directly addresses asset longevity and leak reduction. The company is also proactively replacing up to 400 lead customer-owned service lines annually.

Regulatory compliance and managing rate case proceedings is how The York Water Company funds these massive upkeep efforts. The company filed for its first base rate increase since 2022 on May 30, 2025, with the Pennsylvania Public Utility Commission (PUC). This filing sought a total annual revenue increase of $24.2 million, with a decision potentially delayed until March 2026.

Here's a quick look at the numbers driving the regulatory need:

Capital project execution is where the money gets spent on the system. For the nine months ending September 30, 2025, The York Water Company invested $37.1 million in construction expenditures. They planned to spend an additional $10 million in the final quarter of 2025.

Wastewater collection and treatment services for growing communities is a key growth area, supported by infrastructure expansion. The York Water Company operates:

• Eight wastewater treatment plants.
• Three wastewater collection systems.
• Serving approximately 6,000 wastewater customers.
• Treatment capacity exceeding 860,000+ Gallons Per Day.

For reserved capacity EDUs not actually used for domestic sanitary wastewater discharge in a quarter, the fixed wastewater service charge is $50 per quarter. The wastewater rate increase requested was substantial, aiming for an overall base rate increase of approximately 44.5%, effective August 1, 2025, if approved immediately.

The company serves over 212,000 people across 57 municipalities in Pennsylvania.

The York Water Company (YORW) - Canvas Business Model: Key Resources

You're looking at the core assets The York Water Company (YORW) relies on to keep the water flowing across south-central Pennsylvania. These aren't just line items on a balance sheet; they are the physical and legal foundations of their business.

The most fundamental resource is the regulated monopoly franchise. The York Water Company operates under the oversight of the Pennsylvania Public Utility Commission (PUC), which grants it the exclusive right to serve customers within defined boundaries. This structure is key because it removes direct competition for water and wastewater services.

• Regulated service territory spans across 57 municipalities in PA.
• The service territory covers approximately 150 square miles.
• Serves over 212,000 people.

Next up are the water rights and sources. Reliability hinges on access to raw water, and The York Water Company has secured multiple sources to ensure supply, even during dry spells. They manage significant surface water assets.

Honestly, having that Susquehanna backup is a major de-risking factor for the primary service area.

The extensive physical infrastructure represents decades of investment. This is the tangible network that moves the product from source to tap and back again. As of the end of 2024, the scale of this network was substantial.

• Water distribution mains: 1,101 miles as of December 31, 2024.
• Wastewater collection mains: 131 miles as of December 31, 2024.
• Water Filtration Plant (WFP) design capacity: 38.65 mgd.
• The company owns and operates multiple water treatment plants and wastewater collection/treatment systems.

The human capital, the dedicated, long-tenured utility workforce and technical expertise, is critical for operating this complex, regulated system 24/7. While I don't have a specific tenure statistic for you right now, their ability to manage rate cases and execute major projects speaks to their deep experience.

Finally, the planned capital expenditure shows the ongoing commitment to maintaining and growing these physical assets. The company has a significant financial commitment planned for the current year.

Projected 2025 capital investment for system upgrades is set at $47.1 million.

The York Water Company is also replacing up to 400 lead customer-owned service lines annually, with costs being recovered as a regulatory asset.

The York Water Company (YORW) - Canvas Business Model: Value Propositions

The core value proposition of The York Water Company centers on providing an essential, non-discretionary service with a history of stability and proactive investment in its physical assets. This translates directly into security for the customer base.

Highly reliable, uninterrupted supply of safe drinking water

You rely on The York Water Company for a fundamental necessity, and the numbers back up their operational commitment. The company supplies over 24 million gallons of water every day to its customers. This reliability is underpinned by ongoing capital deployment, with $37.1 million invested in capital projects during the first nine months of 2025 alone, demonstrating a commitment to service reliability for its growing customer base. Furthermore, the company is actively addressing public health concerns by replacing lead service lines, including customer-owned ones when identified, as part of a program approved by the Pennsylvania Public Utility Commission (PUC) to span a nine-year span.

Over 200 years of continuous service as the oldest investor-owned utility

This isn't a new operation; The York Water Company has operated continuously since 1816. This longevity, spanning over 209 years as of 2025, provides a deep institutional knowledge base for managing water and wastewater systems across the 57 municipalities it serves in Pennsylvania. This history is a direct value proposition of stability, especially since the company has never missed a dividend.

Environmental stewardship and watershed protection programs

Stewardship is embedded in their capital planning, ensuring compliance and system longevity. Investments are specifically directed toward projects required by the Department of Environmental Protection, such as construction projects for company-owned dams to ensure they remain safe and effective for years to come. This proactive regulatory compliance is a key part of maintaining long-term operational viability.

Predictable, regulated pricing for essential water and wastewater services

While rates are subject to regulatory review, the structure offers predictability, being the first general rate increase request since 2022. The May 30, 2025, filing sought a total annual revenue increase of $24.2 million. The value here is that even with the proposed increase, the average cost of 1,000 gallons of water would remain slightly more than a penny per gallon. The regulatory process itself, though it can cause timing uncertainty (with a final PUC decision due by March 1, 2026), ensures that pricing is tied to approved costs and investments.

Here's a quick look at the proposed impact on the typical residential customer from the May 2025 filing:

The pricing structure is also supported by revenue streams like the Distribution System Improvement Charge (DSIC), which was at 2.20% effective January 1, 2025, specifically to fund infrastructure upgrades.

Infrastructure investment to ensure long-term system resiliency

The commitment to resiliency is quantified by the scale of planned capital spending. The York Water Company is anchoring its rate request on a planned investment of $145 million in water and wastewater system improvements through February 2027. This investment covers replacing aging water mains-nearly 30 miles of aging pipeline, about 3% of the total in service, was replaced as part of this strategy.

The utility's focus on capital expenditure in 2025 is clear:

• Invested $37.1 million in capital projects year-to-date as of Q3 2025.
• Planned an additional $10 million for construction projects for the remainder of 2025.
• The Q1 2025 plan included an estimated additional $36.7 million for the rest of 2025.
• The company serves over 212,000 people.

These investments are designed to reduce costs associated with main breaks and leaks while improving pipe efficiency and reducing energy demand.

The York Water Company (YORW) - Canvas Business Model: Customer Relationships

The York Water Company delivers a regulated, transactional service built on standardized processes for billing and service delivery across its extensive service territory.

The company serves water and wastewater customers in portions of 57 municipalities within four counties in south-central Pennsylvania: York, Adams, Franklin, and Lancaster. As of the third quarter of 2025, the average number of water customers was 73,684, an increase of 1,101 from the prior year, and wastewater customers stood at 7,115, an increase of 530. The company provides water to over 212,000 residents. The Pennsylvania Public Utility Commission (PAPUC) has recognized The York Water Company as an industry leader for professional performance.

Transactional interactions are managed through standardized billing, with the company focusing on minimizing costs through efforts like paperless billing and expanding online services. Customers can manage payments for both water and municipal wastewater services in one place.

Community engagement and local sponsorships are used to build goodwill within the service area.

• Sponsorship of the YMCA of the Roses Turkey Trot.
• Active as a Street 2 Creek Sponsor.
• Participation in National Drinking Water Week 2025.
• Involvement in the 'York St. Patrick's Day Parade'.

A dedicated customer service center handles high-touch issue resolution and inquiries, offering direct contact points for support.

• Customer Service phone number: 717-845-3601.
• Customer Service email: customer.service@yorkwater.com.
• Resources available include guides in the Customer Education Center and information on customer rights regarding billing, credit, dispute, and shutoff practices.
• The company also manages the Water Service Line Protection Plan for customer-owned line maintenance.

The York Water Cares (YWC) program offers financial assistance to vulnerable customers, administered in partnership with The Salvation Army and Community Progress Council.

The 2025 YWC program applications were paused effective March 13, 2025, due to customer demand. For context, in 2024, The York Water Company provided $40,000 for distribution through this program. This assistance is limited to one time per year for a qualifying customer. Historically, the grant provided up to $200 per year to qualified customers.

Customer relationships are significantly impacted by regulated rate-setting processes, which involve public hearings and formal filings with the PAPUC.

On May 30, 2025, The York Water Company filed for its first general rate increase since 2022, seeking an annual revenue increase of $24.2 million. This request is tied to $145 million in capital investments made since the last rate case. The proposed increase breaks down to approximately $20.3 million for water service and $3.8 million for wastewater service. If fully approved, the typical residential customer would see an increase of $14.16 per month for water and $35.85 per month for wastewater. The PUC voted to suspend and investigate the proposals, with a final decision due by March 1, 2026. Public input hearings were scheduled for August 26, 2025.

The potential impact on a typical residential gravity customer, based on the full request, is detailed below:

The York Water Company (YORW) - Canvas Business Model: Channels

You're looking at how The York Water Company gets its service and information out to its customers. It's a utility, so the channels are heavily weighted toward physical infrastructure and regulatory compliance, but they certainly use modern communication methods too.

Physical network of water and wastewater distribution mains and service lines

The core channel is the physical system itself, which is undergoing significant investment to maintain reliability. The York Water Company operates within a franchised territory covering portions of 57 municipalities in four counties: Adams, Franklin, York, and Lancaster in south-central Pennsylvania.

The scale of this physical channel includes:

• Water main infrastructure in service as of 2024: over 5 million feet.
• Water main replacement in the last rate case cycle: nearly 30 miles.
• Annual target for lead customer-owned service line replacement: up to 400 lines.

The capital investment channeled into this physical network is substantial, with The York Water Company requesting recovery for $145 million in capital expenditures made through February 2027 since the last rate filing. For the first nine months of 2025 alone, construction expenditures totaled $37.1 million.

Direct billing and customer service via phone, web, and physical office

Getting the bill out and handling customer inquiries is managed through several direct channels. The customer base served by The York Water Company is over 212,000 people in its territory.

Here's a look at the customer base growth through the first three quarters of 2025:

Customer service interactions are a key channel. In 2024, The York Water Company reported that calls were answered in 30 seconds or less, and they received no formal PUC customer complaints. You can reach them directly at 1-800-750-5561.

Public notices and regulatory filings with the PUC

Regulatory compliance mandates specific communication channels with the Pennsylvania Public Utility Commission (PUC). The York Water Company filed for a general rate increase on May 30, 2025, with the docket number R-2025-3053442.

The proposed revenue increases sought were:

• Water service: $20.3 million annually.
• Wastewater service: $3.9 million annually.

The PUC voted 5-0 on July 10, 2025, to suspend and investigate the proposals, with a final decision due by March 1, 2026. The company mailed a customer notice describing the proposed changes.

Company website and investor relations for financial transparency

The York Water Company uses its website and investor relations to disseminate financial performance data. For the third quarter ending September 30, 2025, the Total Operating Revenue was $20.361 million.

Key financial metrics for the nine months ending September 30, 2025, include:

The Distribution System Improvement Charge (DSIC) is a mechanism used to recover infrastructure costs, which contributes to reported revenues.

Local media and community outreach for service alerts

For immediate service alerts or general public information, The York Water Company utilizes local media and direct customer communication, such as mailing notices about rate cases. The company also provides updates on operational status, like the drought watch declared for Franklin County, which prompted calls for voluntary reductions in nonessential water use. You can find documents related to the rate case on the PUC website, or contact The York Water Company directly.

The York Water Company (YORW) - Canvas Business Model: Customer Segments

The York Water Company (YORW) serves a diverse base across southcentral Pennsylvania, providing water and wastewater services within its franchised territory across portions of 57 municipalities in Adams, Franklin, Lancaster, and York counties. As of late 2025, the company honors its commitment to provide service to over 212,000 people.

The customer base is segmented across several key groups, with growth primarily driven by acquisitions and organic expansion within the service territory. The most recent reported figures from the third quarter of 2025 reflect this growth:

• The average number of water customers reached 73,684.
• The average number of wastewater customers reached 7,115.

You can see the recent customer base evolution here:

Residential customers form the core of the water revenue stream. For the three months ended September 30, 2025, water utility service revenue from this segment totaled $11,343 (in thousands). The proposed rate increase in May 2025 indicated that the typical residential gravity customer would see an additional monthly water cost of approximately $10.48 (a 21.9% increase) if approved.

Commercial businesses and Industrial users are grouped for revenue reporting purposes, requiring reliable supply for their operations. For the three months ended September 30, 2025, the combined water utility service revenue from commercial and industrial customers was $5,592 (in thousands). These industrial users often require high-volume, reliable water supply, which The York Water Company sources primarily from the Codorus Creek, supplemented by a pipeline from the Susquehanna River.

Municipalities and bulk water purchasers are served through the general distribution system, with revenue growth also supported by the Distribution System Improvement Charge (DSIC). The company filed a rate increase request in May 2025 seeking a 28.9% increase in water rates and a 44.5% increase in wastewater rates, which would generate an approximate overall annual revenue increase of $20.3 million for water service.

Wastewater customers include a recent strategic addition. The York Water Company closed on the acquisition of the Pine Run Retirement Community water system in December 2024, adding nearly 140 residential water customers. Furthermore, an agreement was reached on September 16, 2025, to acquire the wastewater system assets for the same community, which will add 141 wastewater customers upon full community build-out, consolidating both water and wastewater utility services for that location.

Finance: draft 13-week cash view by Friday.

The York Water Company (YORW) - Canvas Business Model: Cost Structure

You're looking at the core expenses that keep The York Water Company running, which are heavily weighted toward maintaining a vast, aging utility plant. The cost structure is dominated by necessary, non-negotiable infrastructure spending and the associated operational drag.

The most significant outlay is capital expenditure (capex) for upkeep and growth. The total projected capital expenditure for 2025 is set at $47.1 million. This figure is the sum of what was already spent and what is still planned for the year.

Here's the quick math on that capex: For the nine months ended September 30, 2025, The York Water Company invested $37.1 million in construction expenditures. Management anticipated allocating an additional $10.0 million for the remainder of 2025 for mains, software upgrades, and routine infrastructure work. That brings the full-year projection to $47.1 million. This continuous investment drives up other costs, namely depreciation.

Operation and maintenance (O&M) expenses are definitely rising, putting pressure on the bottom line despite revenue growth. For the first nine months of 2025, overall operating expenses rose by 5.7% year-over-year, reaching $36.73 million. This increase was a key factor offsetting higher operating revenues for the nine-month period.

Interest expense on debt is a growing line item you need to watch closely, especially with that higher capex needing financing. For the first nine months of 2025, interest on debt hit $7.56 million. This represented a significant 15.4% surge compared to the same period last year.

Depreciation and amortization expense continues its upward trend, a direct result of the continuous utility plant investment. Increased depreciation was cited as a major offset to revenue gains for the first nine months of 2025. To give you some context, in 2024, depreciation and amortization expense was about $1.216 million higher than in 2023, and the expectation for 2025 was for this expense to continue rising.

The specialized workforce requires significant investment in compensation and future security. In 2024, wages and benefits alone increased by approximately $1.007 million. For the third quarter of 2025, increased wages and benefits were specifically named as a driver for the rise in operating expenses.

Here is a breakdown of some key cost components for the first nine months of 2025 compared to the prior year:

You should also be tracking the components that make up those rising operating expenses. The cost structure includes several key areas that management noted:

• Higher operation and maintenance expenses.
• Increased depreciation and amortization.
• Higher interest on debt.
• Rising wages and benefits costs.
• Lower Allowance for Funds Used During Construction (AFUDC).

Finance: draft 13-week cash view by Friday.

The York Water Company (YORW) - Canvas Business Model: Revenue Streams

You're looking at the core of The York Water Company (YORW)'s financial engine, which is heavily reliant on its regulated utility status. Honestly, for a utility, the revenue streams are pretty straightforward, but the numbers tell a story of steady growth, even when profitability gets squeezed by rising costs.

The regulated water service charges are definitely the primary revenue source, as you'd expect from a water utility operating in south-central Pennsylvania. This is the bread and butter, tied directly to usage and the rate base approved by the Pennsylvania Public Utility Commission.

Also critical is the revenue from regulated wastewater service charges from a growing customer base. The customer count is ticking up, which directly translates to more recurring monthly revenue. For the first nine months of 2025, the average number of water customers grew by 1,101 to reach 73,684 total customers. That growth helps offset any dips in per-customer usage.

A key, specific component of the revenue picture is the Distribution System Improvement Charge (DSIC) revenue, contributing $673,000 in Q3 2025. This charge is specifically allowed by the PUC to fund the replacement of aging infrastructure, so it's a dedicated revenue stream for capital maintenance, which is smart planning.

Overall performance shows the top line is healthy. The operating revenues for the first nine months of 2025 totaled $58,016,000. That's an increase of $1,923,000 compared to the same period in 2024. For just the third quarter of 2025, operating revenues hit $20,361,000.

Beyond the recurring service charges, The York Water Company also pulls in revenue from connection fees and contributions from developers for main extensions. This is the growth capital coming in from new construction within their service territory, which is essential for expanding the asset base without solely relying on rate base increases.

Here's a quick look at how the service revenue broke down for the first nine months of 2025, though keep in mind these figures are likely reported in thousands of dollars:

The DSIC and customer growth are clearly driving the top-line increases, as noted in their Q3 results. Still, you have to watch the expenses, because for those same nine months, net income actually decreased by $292,000 compared to 2024, despite the revenue jump. That tells you operational costs, depreciation, and interest expenses are definitely eating into the gains from those higher revenues.

You should also be aware of other potential, albeit smaller, revenue drivers:

• Pursuit of additional bulk water contracts.
• Acquisitions of smaller water and wastewater systems.
• Cost recovery for replacing lead customer-owned service lines, recorded as a regulatory asset.

Finance: draft 13-week cash view by Friday.