Item 8.01 Other Events

On August 19, 2009, Artesian Water Company, Inc., or Artesian Water, the Staff of the Delaware Public Service Commission, the Division of the Public Advocate and Christiana Care Health Services, Inc. (collectively, the "Parties") entered into an agreement to settle Artesian Water's April 2008 application for an increase in rates, subject to certain parameters. General Motors Corporation, a participant in the proceeding, provided correspondence declaring no opposition to the proposed settlement. The proposed settlement would make the existing 15% temporary increase in base rates permanent. Since the proposed rate is equal to the 15% temporary increase in rates charged to customers since December 17, 2008, if approved, Artesian Water would not be required to refund any amounts to customers. This proposed settlement also includes the agreement that Artesian Water will not apply for further rate increase for an 18-month period from the date of the Delaware Public Service Commission's, or DEPSC, order closing this application. The Parties also have agreed that the revenue recovered by the Company pursuant to the settlement does not include any recovery of funds attributable to state income tax expense, as it is unlikely that any state income tax will be paid by Artesian Water during the rate effective period. The proposed settlement is subject to approval of the Hearing Examiner and the DEPSC and expected before the end of September.

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