Document and Entity Information

3 Months Ended

Mar. 31, 2015

Apr. 30, 2015

Entities [Table]

Entity Registrant Name

CONNECTICUT WATER SERVICE INC / CT

Entity Central Index Key

0000276209

Current Fiscal Year End Date

--12-31

Entity Filer Category

Accelerated Filer

Document Type

10-Q

Document Period End Date

Mar. 31, 2015

Document Fiscal Year Focus

2015

Document Fiscal Period Focus

Q1

Amendment Flag

false

Entity Common Stock, Shares Outstanding

11,152,145

CONSOLIDATED BALANCE SHEETS (USD $)

In Thousands, unless otherwise specified

Mar. 31, 2015

Dec. 31, 2014

ASSETS

Utility Plant

$ 688,444

$ 685,654

Construction Work in Progress

10,740

9,304

Gross Utility Plant

699,184

694,958

Accumulated Provision for Depreciation

(191,282)

(188,019)

Net Utility Plant

507,902

506,939

Other Property and Investments

8,639

8,271

Cash and Cash Equivalents

2,344

2,475

Accounts Receivable (Less Allowance, 2015 - $1,172; 2014 - $1,202)

11,424

11,971

Accrued Unbilled Revenues

7,362

8,283

Materials and Supplies

1,496

1,486

Prepayments and Other Current Assets

13,526

11,953

Total Current Assets

36,152

36,168

Restricted Cash

1,864

0

Unamortized Debt Issuance Expense

6,162

6,292

Unrecovered Income Taxes - Regulatory Asset

58,863

57,331

Pension Benefits - Regulatory Asset

13,061

13,713

Post-Retirement Benefits Other Than Pension - Regulatory Asset

2,598

2,626

Goodwill

31,685

Deferred Charges and Other Costs

6,956

8,164

Total Regulatory and Other Long-Term Assets

121,189

119,811

Total Assets

673,882

671,189

CAPITALIZATION AND LIABILITIES

Common Stock Without Par Value: Authorized - 25,000,000 Shares - Issued and Outstanding: 2015 - 11,151,193; 2014 - 11,124,630

142,163

141,684

Retained Earnings (Accumulated Deficit)

69,595

69,370

Accumulated Other Comprehensive Loss

(1,492)

(1,603)

Common Stockholders' Equity

210,266

209,451

Preferred Stock

772

Long-Term Debt

177,689

176,601

Total Capitalization

388,727

386,824

Debt, Current

2,464

2,457

Interim Bank Loans Payable

5,422

1,991

Accounts Payable and Accrued Expenses

7,222

10,019

Accrued Interest

1,474

693

Customer Refund Liability, Current

6,179

6,079

Other Current Liabilities

2,321

2,383

Total Current Liabilities

25,082

23,622

Advances for Construction

25,854

26,718

Deferred Federal and State Income Taxes

52,003

53,322

Unfunded Future Income Taxes

58,451

56,919

Long-Term Compensation Arrangements

36,451

35,748

Unamortized Investment Tax Credits

1,320

1,339

Refund to Customers - Regulatory Liability

0

1,550

Other Long-Term Liabilities

769

776

Total Long-Term Liabilities

174,848

176,372

Contributions in Aid of Construction

85,225

84,371

Commitments and Contingencies

0

Total Capitalization and Liabilities

$ 673,882

$ 671,189

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)

In Thousands, except Share data, unless otherwise specified

Mar. 31, 2015

Dec. 31, 2014

Issued

11,151,193

11,124,630

Outstanding

11,151,193

11,124,630

ASSETS

Allowance

$ 1,172

$ 1,202

Capitalization, Long-term Debt and Equity [Abstract]

Common Stock, No Par Value

$ 0

Common Stock, Shares Authorized

25,000,000

CONSOLIDATED STATEMENTS OF INCOME (USD $)

In Thousands, except Share data, unless otherwise specified

3 Months Ended

Mar. 31, 2015

Mar. 31, 2014

Income Statement [Abstract]

Operating Revenues

$ 20,030

$ 20,260

Operating Expenses

Operation and Maintenance

11,324

10,667

Depreciation

3,136

2,808

Income Taxes

(941)

494

Taxes Other Than Income Taxes

2,346

2,387

Total Operating Expenses

15,865

16,356

Net Operating Revenues

4,165

3,904

Other Utility Income, Net of Taxes

155

185

Total Utility Operating Income

4,320

4,089

Other Income (Deductions), Net of Taxes

Non-Water Sales Earnings

369

433

Allowance for Funds Used During Construction

90

98

Other

(7)

18

Total Other Income, Net of Taxes

452

549

Interest and Debt Expense

Interest on Long-Term Debt

1,774

1,751

Interest Income (Expense), Net

(132)

(158)

Amortization of Debt Expense

27

59

Total Interest and Debt Expense

1,669

1,652

Net Income

3,103

2,986

Preferred Stock Dividend Requirement

9

Net Income Applicable to Common Stock

$ 3,094

$ 2,977

Weighted Average Common Shares Outstanding:

Basic (in shares)

10,924,330

10,868,784

Diluted (in shares)

11,144,297

11,061,324

Earnings Per Common Share:

Basic (in dollars per share)

$ 0.28

$ 0.27

Diluted (in dollars per share)

$ 0.28

$ 0.27

Dividends Per Common Share (in dollars per share)

$ 0.2575

$ 0.2475

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $)

In Thousands, unless otherwise specified

3 Months Ended

Mar. 31, 2015

Mar. 31, 2014

Statement of Comprehensive Income [Abstract]

Net Income

$ 3,103

$ 2,986

Other Comprehensive Income, net of tax

Reclassification to Pension and Post-Retirement Benefits Other Than Pension, net of tax of $37 and $13 for the three months ended March 31, 2015 and 2014, respectively

97

61

Unrealized gain (loss) on investments, net of tax (expense) benefit of $(9) and $2 for the three months ended March 31, 2015 and 2014, respectively

14

(3)

Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent

111

58

Comprehensive Income

$ 3,214

$ 3,044

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $)

In Thousands, unless otherwise specified

3 Months Ended

Mar. 31, 2015

Mar. 31, 2014

Other Comprehensive Income, net of tax

Reclassification to Pension and Post-Retirement Benefits Plans, net of tax (expense) benefit of

$ 37

$ 13

Unrealized Investment loss, net of tax expense of

$ 14

$ (2)

CONSOLIDATED STATEMENTS OF RETAINED EARNINGS (USD $)

In Thousands, unless otherwise specified

3 Months Ended

Mar. 31, 2015

Mar. 31, 2014

Balance at Beginning of Period

$ 69,370

$ 59,277

Net Income

3,103

2,986

Retained Earnings before Dividends

72,473

62,263

Dividends Declared:

Cumulative Preferred, Class A, $0.20 per share for the three months ended March 31, 2015 and 2014 respectively

9

Common Stock - $0.2575 per share and $0.2425 per share for the three months ended March 31, 2015 and 2014, respectively

2,869

2,735

Total Dividends Declared

2,878

2,744

Balance at End of Period

69,595

59,519

Series A Voting

Dividends Declared:

Cumulative Preferred, Class A, $0.20 per share for the three months ended March 31, 2015 and 2014 respectively

3

Cumulative Preferred Stock

Dividends Declared:

Cumulative Preferred, Class A, $0.20 per share for the three months ended March 31, 2015 and 2014 respectively

$ 6

CONSOLIDATED STATEMENTS OF RETAINED EARNINGS (Parenthetical)

3 Months Ended

Mar. 31, 2015

Mar. 31, 2014

Dividends Declared:

Common Stock (in dollars per share)

$ 0.2575

$ 0.2475

Cumulative Preferred Stock

Dividends Declared:

Preferred Stock (in dollars per share)

$ 0.225

Series A Voting

Dividends Declared:

Preferred Stock (in dollars per share)

$ 0.20

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)

In Thousands, unless otherwise specified

3 Months Ended

Mar. 31, 2015

Mar. 31, 2014

Net Additions to Utility Plant Used in Continuing Operations

$ 6,523

$ 6,402

Operating Activities:

Net Income

3,103

2,986

Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:

Deferred Revenues

249

(47)

Provision for Deferred Income Taxes and Investment Tax Credits, Net

(1,366)

226

Allowance for Funds Used During Construction

(90)

(98)

Depreciation (including $220 and $291 in 2015 and 2014, respectively, charged to other accounts)

3,356

3,099

Change in Assets and Liabilities:

Increase in Accounts Receivable and Accrued Unbilled Revenues

1,468

1,506

Increase in Prepayments and Other Current Assets

(1,557)

(1,498)

(Increase) Decrease in Other Non-Current Items

632

715

Increase in Accounts Payable, Accrued Expenses and Other Current Liabilities

292

(1,933)

Total Adjustments

2,984

1,970

Net Cash and Cash Equivalents Provided by Operating Activities

6,087

4,956

Investing Activities:

Release of restricted cash

0

1,165

Net Cash and Cash Equivalents Used in Investing Activities

(6,523)

(5,237)

Financing Activities:

Proceeds from Interim Bank Loans

5,422

0

Repayment of Interim Bank Loans

(1,991)

0

Proceeds from Issuance of Common Stock

366

419

Costs to Issue Long-Term Debt and Common Stock

(5)

0

Repayment of Long-Term Debt Including Current Portion

(661)

(554)

Advances from Others for Construction

52

64

Cash Dividends Paid

(2,878)

(2,744)

Net Cash and Cash Equivalents (Used in) Provided by Financing Activities

305

(2,815)

Net (Decrease) Increase in Cash and Cash Equivalents

(131)

(3,096)

Cash and Cash Equivalents at Beginning of Period

2,475

18,371

Cash and Cash Equivalents at End of Year

2,344

15,275

Non-Cash Investing and Financing Activities:

Non-Cash Contributed Utility Plant

8

247

Short-term Investment of Bond Proceeds Held in Restricted Cash

1,864

Cash Paid for:

Interest

931

969

State and Federal Income Taxes

$ 130

$ 75

CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) (USD $)

In Thousands, unless otherwise specified

3 Months Ended

Mar. 31, 2015

Mar. 31, 2014

Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:

Depreciation charged to other accounts

$ 220

$ 291

Basis of Preparation of Financials

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]


1.	Basis of Preparation of Financials

The condensed consolidated financial statements included herein have been prepared by Connecticut Water Service, Inc. (the “Company”) and its wholly-owned subsidiaries, pursuant to the rules and regulations of the Securities and Exchange Commission and reflect all adjustments that are of a normal recurring nature which are, in the opinion of management, necessary to a fair statement of the results for interim periods. Certain information and footnote disclosures have been omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. The Company’s primary operating subsidiaries are: The Connecticut Water Company (“Connecticut Water”) and The Maine Water Company (“Maine Water”). The Biddeford & Saco Water Company (“BSWC”) was merged with and into Maine Water, with Maine Water remaining as the surviving entity, effective January 1, 2014. The Condensed Consolidated Balance Sheet at December 31, 2014 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. It is suggested that these condensed consolidated financial statements be read in conjunction with the financial statements and the notes thereto included in the Company’s latest Annual Report on Form 10-K for the year ended December 31, 2014 (the “10-K”).

The results for interim periods are not necessarily indicative of results to be expected for the year since the consolidated earnings are subject to seasonal factors.

Regulatory Matters

The rates we charge our water customers in Connecticut and Maine are established under the jurisdiction of and are approved by the Connecticut Public Utilities Regulatory Authority (“PURA”) and the Maine Public Utility Commission (“MPUC”), respectively. It is our policy to seek rate relief as necessary to enable us to achieve an adequate rate of return. Connecticut Water’s allowed return on equity and return on rate base, effective March 31, 2015 were 9.75% and 7.32%, respectively. Maine Water’s average allowed return on equity and return on rate base, effective March 31, 2015 were 9.50% and 7.96%, respectively. The PURA establishes rates in Connecticut on a company-wide basis while the MPUC approves rates on a division-by-division basis.

Connecticut Rates

Effective April 1, 2014, in accordance with a settlement agreement with the Office of the Consumer Counsel of the State of Connecticut (the “OCC”) and the Office of the Attorney General for the State of Connecticut, Connecticut Water’s cumulative Water Infrastructure Conservation Adjustment (“WICA”) surcharge of 7.89% was rolled into base rates charged to customers.

On July 29, 2014, Connecticut Water filed a WICA application with the PURA requesting a 1.59% surcharge to customers’ bills, representing approximately $12.7 million in WICA related projects. On September 26, 2014, the PURA approved the 1.59% surcharge with the new rates becoming effective on October 1, 2014.

On January 28, 2015, Connecticut Water filed a WICA application with the PURA requesting a 1.35% surcharge to customers' bills, representing approximately $11.2 million in WICA related projects. On February 23, 2015, Connecticut Water filed for a 0.10% reconciliation adjustment for the 2014 shortfall in WICA. On March 25 and 27, 2015, the PURA approved the reconciliation adjustment and the WICA application, respectively. Effective April 1, 2015, the cumulative WICA surcharge is now 3.04%.

On June 5, 2013, the Connecticut’s General Assembly passed Public Act 13-78, “An Act Concerning Water Infrastructure and Conservation, Municipal Reporting Requirements and Unpaid Utility Accounts at Multi-Family Dwellings” (“PA 13-78”), which authorized a Water Revenue Adjustment (“WRA”) to reconcile actual water demands with the demands projected in the last general rate case and allows companies to adjust rates as necessary to recover the revenues approved by PURA in the last general rate case. The WRA removes the financial disincentive for water utilities to develop and implement effective water conservation programs. The WRA allows water companies to defer on the balance sheet, as a regulatory asset or liability, for later collection from or crediting to customers the amount by which actual revenues deviate from the revenues allowed in the most recent general rate proceedings, including WICA proceedings. Additionally, PA 13-78 raised the cap for WICA charges to 10%, from 7.5%, between general rate cases and expands the eligible projects to include energy conservation projects, improvements required to comply with streamflow regulations, and improvements to acquired systems.

Connecticut Water’s allowed revenues for the three months ended March 31, 2015, as approved by PURA during our 2010 general rate case and including subsequently approved WICA surcharges, are approximately $16.9 million. Through normal billing for the three months ended March 31, 2015, revenue for Connecticut Water would have been approximately $17.1 million had the WRA not been implemented. As a result of the implementation of the WRA, Connecticut Water recorded $0.2 million in reduction to revenue for the three months ended March 31, 2015.

Maine Rates

On March 25, 2014, the MPUC approved a rate increase resulting in an annual increase of $340,000 in revenues for one of Maine Water’s divisions requested in April 2013, which became effective on that date. Additionally, Maine Water filed for a general rate increase for its Biddeford and Saco division, its largest division, on November 5, 2014 requesting $1.7 million in additional revenues, offset by $700,000 in the first year due to the adoption of Internal Revenue Service (“IRS”) Revenue Procedure 2012-19 (“Repair Regulations”). Maine Water entered into a stipulation agreement (“Biddeford Stipulation Agreement”) with Maine’s Office of Public Advocate which allowed for flow-through treatment of the Repair Regulations retroactive to January 1, 2014. As part of the Biddeford Stipulation Agreement, customers in the Biddeford and Saco division would receive the benefit of the Repair Regulations, approximately $880,000, over a three year period. Excluding the impact of the refund to customers, the Biddeford Stipulation Agreement calls for an annual increase in rates of approximately $1.3 million. MPUC issued a final decision related to the Biddeford Stipulation Agreement on March 13, 2015, with the new rates, and the first year of the refund, effective on March 10, 2015.

Effective June 2013, a Water Infrastructure Charge (“WISC”) became available in Maine that allows for expedited recovery of investment in water system infrastructure replacement, both treatment and distribution. Because the MPUC sets rates for Maine Water on a division-by-division basis, the WISC must be implemented in the same manner. To date, Maine Water has implemented a WISC in all of its ten divisions with expected annual revenue totaling $442,000.

On October 30, 2014, Maine Water petitioned the MPUC for approval of an accounting order that would allow it to refund to its customers a federal income tax refund stemming from the adoption of Repair Regulations to eight of its ten divisions, and to allow flow-through treatment of the repair deduction as of January 1, 2014. On February 26, 2015, the MPUC approved a stipulation between Maine Water and the Office of the Public Advocate (“Maine Water Stipulation Agreement”) that refunds $2.9 million to the customers of the eight divisions over a two year period starting no later than July 1, 2015, and allowing the requesting accounting treatment. In addition, Maine Water agreed not to file a general rate case during the two year refund period in any of the eight divisions that were allowed the refund. As part of the Biddeford Stipulation Agreement and the Maine Water Stipulation Agreement, Maine Water is required to determine the remaining deferred tax liabilities associated with the fixed assets which the Company will be deducting as part of the adoption of the Repair Regulations. All parties to the Biddeford Stipulation Agreement, the Maine Water Stipulation Agreement, and the MPUC, agree that any benefit resulting from the elimination of deferred tax liabilities previously recorded on qualifying fixed assets subject to the Repair Regulation deduction, be deferred and considered in a separate docket initiated after the Company has analyzed this additional deferred tax liability in more detail. On April 8, 2015, Maine Water filed a petition with the MPUC that asks for a ten year amortization of the deferred taxes in each of its ten divisions, and this petition is still pending before the MPUC. Maine Water believes that this analysis is an integral component to the overall accounting for the adoption of the Repair Regulations and the adoption of the flow-through method of accounting for regulatory accounting related to the adoption of the Repair Regulations. As such, though Maine Water believes the Biddeford Stipulation Agreement, the Maine Water Stipulation Agreement and MPUC orders are probable of being approved, Maine Water believes it is not possible to estimate the accounting impact of the Biddeford Stipulation Agreement and the Maine Water Stipulation Agreement including the separate analysis of the deferred tax liabilities as of March 31, 2015 and as a result has not recorded the impact of flow through accounting related to these deductions.

Pension and Other Post-Retirement Benefits


2.	Pension and Other Post-Retirement Benefits

The following tables set forth the components of pension and other post-retirement benefit costs for the three months ended March 31, 2015 and 2014.

Pension Benefits

Components of Net Periodic Cost (in thousands):



	Three Months
Period ended March 31,	2015			2014
Service Cost	$	570		$	488
Interest Cost	771			763
Expected Return on Plan Assets	(966		)	(889		)
Amortization of:
Prior Service Cost	4			18
Net Recognized Loss	691			273
Net Periodic Benefit Cost	$	1,070		$	653

The Company does not plan to make a contribution to its defined benefit pension plan in 2015 for the 2014 plan year, as allowed by the plan’s current funding status.

Post-Retirement Benefits Other Than Pension (PBOP)

Components of Net Periodic Cost (in thousands):



	Three Months
Period ended March 31,	2015			2014
Service Cost	$	152		$	154
Interest Cost	147			160
Expected Return on Plan Assets	(81		)	(77		)
Other	56			56
Amortization of:
Prior Service Credit	(142		)	(201		)
Recognized Net Loss	110			68
Net Periodic Benefit Cost	$	242		$	160

Earnings per Share


3.	Earnings per Share

Earnings per weighted average common share are calculated by dividing net income applicable to common stock by the weighted average number of shares of common stock outstanding during the respective periods as detailed below (diluted shares include the effect of stock awards):



Three months ended March 31,	2015		2014
Common Shares Outstanding End of Period:	11,151,193		11,078,336
Weighted Average Shares Outstanding (Days Outstanding Basis):
Basic	10,924,330		10,868,784
Diluted	11,144,297		11,061,324

Basic Earnings per Share	$	0.28	$	0.27
Dilutive Effect of Stock Awards	—		—
Diluted Earnings per Share	$	0.28	$	0.27

Total unrecognized compensation expense for all stock awards was approximately $1.7 million as of March 31, 2015 and will be recognized over a weighted average period of 1.4 years.

New Accounting Pronouncements

Recently Adopted and New Accounting Pronouncements


4.	Recently Adopted and New Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers,” which amends its guidance related to revenue recognition. ASU 2014-09 requires an entity to recognize revenue as performance obligations are met, in order to reflect the transfer of promised goods or services to customers in an amount that reflects the consideration the entity is entitled to receive for those goods or services. The following steps are applied in the updated guidance: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, the entity satisfies a performance obligation. ASU 2014-09 is effective for public companies for fiscal years, and interim periods within those years, beginning after December 15, 2016, and can be adopted either retrospectively to each prior reporting period presented or as a cumulative-effect adjustment as of the date of adoption, however early adoption is not permitted. On April 1, 2015, the FASB voted for a one-year deferral of the effective date of ASU 2014-09, making ASU 2014-09 effective for public companies for fiscal years, and interim periods within those years, beginning after December 15, 2017. The Company is currently determining its implementation approach and assessing the impact that this guidance may have on our consolidated financial position.

In April 2015, the FASB issued ASU 2015-03, “Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.” The update requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability instead of being presented as an asset. Debt disclosures will include the face amount of the debt liability and the effective interest rate. The update requires retrospective application and represents a change in accounting principle. The update is effective for fiscal years beginning after December 15, 2015. Early adoption is permitted for financial statements that have not been previously issued. The Company is currently assessing the impact of this standard on its consolidated financial statements and footnote disclosures, but does not expect that the adoption of this guidance will materially impact our consolidated financial position.

Accumulated Other Comprehensive Income (Loss) (Notes)

Comprehensive Income (Loss) Note [Text Block]


5.	Accumulated Other Comprehensive Income

The changes in Accumulated Other Comprehensive Income (Loss) (“AOCI”) by component, net of tax, for the three months ended March 31, 2015 and 2014 is as follows (in thousands):



Three months ended March 31, 2015	Unrealized Gains on Investments			Defined Benefit Items			Total
Beginning Balance (a)	$	298		$	(1,901	)	$	(1,603	)
Other Comprehensive Income (Loss) Before Reclassification	14			—			14
Amounts Reclassified from AOCI	—			97			97
Net current-period Other Comprehensive Income (Loss)	14			97			111
Ending Balance	$	312		$	(1,804	)	$	(1,492	)

Three months ended March 31, 2014	Unrealized Gains on Investments			Defined Benefit Items			Total
Beginning Balance (a)	$	259		$	(374	)	$	(115	)
Other Comprehensive Income (Loss) Before Reclassification	(14		)	—			(14		)
Amounts Reclassified from AOCI	11			61			72
Net current-period Other Comprehensive Income (Loss)	(3		)	61			58
Ending Balance	$	256		$	(313	)	$	(57	)

(a) All amounts shown are net of tax. Amounts in parentheses indicate loss.

The following table sets forth the amounts reclassified from AOCI by component and the affected line item on the Condensed Consolidated Statements of Income for the three months ended March 31, 2015 and 2014 (in thousands):



Details about Other AOCI Components	Amounts Reclassified from AOCI Three Months Ended March 31, 2015(a)			Amounts Reclassified from AOCI Three Months Ended March 31, 2014(a)			Affected Line Items on Income Statement
Realized Gains on Investments	$	—		$	18		Other Income
Tax expense	—			(7		)	Other Income
	—			11

Amortization of Recognized Net Gain from Defined Benefit Items	135			74			Other Income (b)
Tax expense	(38		)	(13		)	Other Income
	97			61

Total Reclassifications for the period, net of tax	$	97		$	72

(a) Amounts in parentheses indicate loss/expense.
(b) Included in computation of net periodic pension cost (see Note 2 for additional details).

Long-Term Debt


	Long-Term Debt

Long-Term Debt at March 31, 2015 and December 31, 2014 consisted of the following (in thousands):



		2015			2014
Connecticut Water Service, Inc.:
4.09%	Term Loan Note	$	15,221		$	15,466
The Connecticut Water Company:
Var.	2004 Series Variable Rate, Due 2029	12,500			12,500
Var.	2004 Series A, Due 2028	5,000			5,000
Var.	2004 Series B, Due 2028	4,550			4,550
5.10%	2009 A Series, Due 2039	19,950			19,950
5.00%	2011 A Series, Due 2021	23,439			23,483
3.16%	CoBank Note Payable, Due 2020	8,000			8,000
3.51%	CoBank Note Payable, Due 2022	14,795			14,795
4.29%	CoBank Note Payable, Due 2028	17,020			17,020
4.72%	CoBank Note Payable, Due 2032	14,795			14,795
4.75%	CoBank Note Payable, Due 2033	14,550			14,550
Total The Connecticut Water Company		134,599			134,643
The Maine Water Company:
8.95%	1994 Series G, Due 2024	9,000			9,000
2.68%	1999 Series J, Due 2019	339			424
0.00%	2001 Series K, Due 2031	656			698
2.58%	2002 Series L, Due 2022	75			83
1.53%	2003 Series M, Due 2023	361			381
1.73%	2004 Series N, Due 2024	431			431
0.00%	2004 Series O, Due 2034	127			133
1.76%	2006 Series P, Due 2026	411			431
1.57%	2009 Series R, Due 2029	227			237
0.00%	2009 Series S, Due 2029	650			672
0.00%	2009 Series T, Due 2029	1,823			1,886
0.00%	2012 Series U, Due 2042	160			165
1.00%	2013 Series V, Due 2033	1,360			1,385
2.52%	CoBank Note Payable, Due 2017	1,965			1,965
4.24%	CoBank Note Payable, Due 2024	4,500			4,500
7.72%	BSWC Series L, Due 2018	2,250			2,250
2.40%	BSWC Series N, Due 2022	1,176			1,251
1.86%	BSWC Series O, Due 2025	846			846
2.23%	BSWC Series P, Due 2028	1,324			1,354
0.01%	BSWC Series Q, Due 2035	1,864			—
Various	Various Capital Leases	32			37
Total The Maine Water Company		29,577			28,129
Add: Acquisition Fair Value Adjustment		756			820
Less: Current Portion		(2,464		)	(2,457		)
Total Long-Term Debt		$	177,689		$	176,601

There are no mandatory sinking fund payments required on Connecticut Water’s outstanding Water Facilities Revenue Bonds. However, certain fixed rate Unsecured Water Facilities Revenue Refinancing Bonds provide for an estate redemption right whereby the estate of deceased bondholders or surviving joint owners may submit bonds to the trustee for redemption at par, subject to a $25,000 per individual holder and a 3% annual aggregate limitation.

On December 22, 2014, Maine Water and CoBank, ACB (“CoBank”) entered into an amendment to Amended and Restated Master Loan Agreement by and between Maine Water and CoBank, dated as of December 1, 2012 (the “Agreement”) pursuant to which CoBank loaned Maine Water $4,500,000. Maine Water intends to use the proceeds of the above described loan from CoBank to refinance existing debt and to finance capital expenditures.

On March 17, 2015, Maine Water completed the issuance of $1,864,050 aggregate principal amount of its First Mortgage Bonds, Series Q, 0.01% due March 17, 2035 (the “Bonds”). The Bonds were issued by Maine Water to the Maine Municipal Bond Bank (the “Bank”) and the proceeds of the issuance were loaned (the “Loan”) by the Bank to Maine Water pursuant to a Loan Agreement by and between Maine Water and the Bank dated as of March 17, 2015 (the “Loan Agreement”). The proceeds of the Loan will be used by Maine Water to fund various water facilities projects, including the replacement of a booster station and to fund modifications to a treatment plant, each located in the Town of Biddeford, Maine.

During the first quarter of 2015, the Company paid approximately $245,000 related to Connecticut Water Service’s Term Note Payable issued as part of the acquisition of Maine Water and approximately $416,000 in sinking funds related to Maine Water’s outstanding bonds.

Financial Covenants – The Company and its subsidiaries are required to comply with certain covenants in connection with various long term loan agreements. The most restrictive of these covenants is to maintain a consolidated debt to capitalization ratio of not more than 60%. Additionally, Maine Water has restrictions on cash dividends paid based on restricted net assets. The Company and its subsidiaries were in compliance with all covenants at March 31, 2015.

Fair Value Disclosures


	Fair Value Disclosures

FASB Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosures (“FASB ASC 820”) provides enhanced guidance for using fair value to measure assets and liabilities and expands disclosure with respect to fair value measurements.

FASB ASC 820 establishes a fair value hierarchy that distinguishes between assumptions based on market data (observable inputs) and the Company’s assumptions (unobservable inputs). The hierarchy consists of three broad levels, as follows:

Level 1 – Quoted market prices in active markets for identical assets or liabilities.

Level 2 – Inputs other than Level 1 that are either directly or indirectly observable.

Level 3 – Unobservable inputs developed using the Company’s estimates and assumptions, which reflect those that the Company believes market participants would use.

The following table summarizes our financial instruments measured at fair value on a recurring basis within the fair value hierarchy as of March 31, 2015 (in thousands):



	Level 1		Level 2		Level 3		Total
Asset Type:
Company Owned Life Insurance	$	—	$	3,031	$	—	$	3,031
Money Market Fund	112		—		—		112
Mutual Funds:
Equity Funds (1)	1,820		—		—		1,820
Total	$	1,932	$	3,031	$	—	$	4,963

The following table summarizes our financial instruments measured at fair value on a recurring basis within the fair value hierarchy as of December 31, 2014 (in thousands):



	Level 1		Level 2		Level 3		Total
Asset Type:
Company Owned Life Insurance	$	—	$	2,977	$	—	$	2,977
Money Market Fund	166		—		—		166
Mutual Funds:
Equity Funds (1)	1,790		—		—		1,790
Total	$	1,956	$	2,977	$	—	$	4,933


(1)	Mutual funds consist primarily of equity securities and are presented on the Other Property and Investments line item of the Company’s Condensed Consolidated Balance Sheets.

The fair value of Company Owned Life Insurance is based on the cash surrender value of the contracts. These contracts are based principally on a referenced pool of investment funds that actively redeem shares and are observable and measurable and are presented on the Other Property and Investments line item of the Company’s Condensed Consolidated Balance Sheets.

The following methods and assumptions were used to estimate the fair value of each of the following financial instruments, which are not recorded at fair value on the financial statements.

Cash and cash equivalents – Cash equivalents consist of highly liquid instruments with original maturities at the time of purchase of three months or less. The carrying amount approximates fair value. Under the fair value hierarchy the fair value of cash and cash equivalents is classified as a Level 1 measurement.

Restricted Cash – As part of Maine Water’s March 2015 bond offering, the Company recorded unused proceeds from this bond issuance as restricted cash as the funds can only be used for certain capital expenditures. The Company expects to use the remainder of the proceeds during 2015, as the approved capital expenditures are completed. The carrying amount approximates fair value. Under the fair value hierarchy the fair value of restricted cash is classified as a Level 1 measurement.

Long-Term Debt – The fair value of the Company’s fixed rate long-term debt is based upon borrowing rates currently available to the Company. As of March 31, 2015 and December 31, 2014, the estimated fair value of the Company’s long-term debt was $193,877,000 and $189,942,000, respectively, as compared to the carrying amounts of $177,689,000 and $176,601,000, respectively. The estimated fair value of long term debt was calculated using a discounted cash flow model that uses comparable interest rates and yield curve data based on the A-rated MMD (Municipal Market Data) Index which is the benchmark of current municipal bond yields. Under the fair value hierarchy, the fair value of long term debt is classified as a Level 2 measurement.

Advances for Construction – Customer advances for construction have a carrying amount of $25,854,000 and $26,718,000 at March 31, 2015 and December 31, 2014, respectively. Their relative fair values cannot be accurately estimated since future refund payments depend on several variables, including new customer connections, customer consumption levels and future rate increases.

The fair values shown above have been reported to meet the disclosure requirements of FASB ASC 825, “Financial Instruments” (“FASB ASC 825”) and do not purport to represent the amounts at which those obligations would be settled.

Segment Reporting


	Segment Reporting

The Company operates principally in three business segments: Water Activities, Real Estate Transactions, and Services and Rentals. Financial data for the segments is as follows (in thousands):



Three months ended March 31, 2015
Segment	Revenues		Pre-Tax Income		Income Tax Expense			Net Income
Water Activities	$	20,340	$	1,687	$	(1,047	)	$	2,734
Real Estate Transactions	—		—		—			—
Services and Rentals	1,362		629		260			369
Total	$	21,702	$	2,316	$	(787	)	$	3,103



Three months ended March 31, 2014
Segment	Revenues		Pre-Tax Income		Income Tax Expense		Net Income
Water Activities	$	20,620	$	2,918	$	365	$	2,553
Real Estate Transactions	—		—		—		—
Services and Rentals	1,412		710		277		433
Total	$	22,032	$	3,628	$	642	$	2,986

The revenues shown in Water Activities above consisted of revenues from water customers of $20,030,000 and $20,260,000 for the three months ended March 31, 2015 and 2014, respectively. Additionally, there were revenues associated with utility plant leased to others of $310,000 and $360,000 for the three months ended March 31, 2015 and 2014, respectively. The revenues from water customers for the three months ended March 31, 2015 and 2014 include $189,000 reduction in revenues and $107,000 in additional revenues related to the implementation of the WRA, respectively.

The Company owns various small, discrete parcels of land that are no longer required for water supply purposes. From time to time, the Company may sell or donate these parcels, depending on various factors, including the current market for land, the amount of tax benefits received for donations and the Company’s ability to use any benefits received from donations.

Assets by segment (in thousands):



	March 31, 2015		December 31, 2014
Total Plant and Other Investments:
Water Activities	$	515,897	$	514,606
Non-Water	644		605
	516,541		515,211
Other Assets:
Water Activities	154,510		152,929
Non-Water	2,831		3,049
	157,341		155,978
Total Assets	$	673,882	$	671,189

Income Tax Expense

Income Taxes


	Income Taxes

FASB ASC 740 Income Taxes (“FASB ASC 740”) addresses the determination of how tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under FASB ASC 740, the Company must recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution.

On June 11, 2013, the Company was notified by the Connecticut Department of Revenue Services that its state tax filings for the years 2009 through 2011 would be reviewed beginning in the fourth quarter of 2013. On March 24, 2015, the Company was notified by the Connecticut Department of Revenue Services that the audit was expanded to include the 2012 and 2013 tax years. The State focused its review on tax credits associated with fixed capital investment. The Company and the State have come to an agreement regarding investments eligible for the credit. The closing agreement was executed on May 4, 2015. The Company had previously recorded a provision for the possible disallowance of these credits and therefore there was minimal impact in 2015.

On the 2012 Federal tax return, filed in September 2013, Connecticut Water filed a change in accounting method to adopt the IRS’ temporary tangible property regulations. This method change allowed the Company to take a current year deduction for expenses that were previously capitalized for tax purposes. Since the filing of the 2012 tax return, the IRS has issued final regulations. On February 11, 2014, the Company was notified by the IRS that its Federal tax filing for 2012 would be reviewed. This review, which began in the first quarter of 2014 and was completed in the first quarter of 2015, resulted in no change to the tax liability. Since the Company had previously recorded a provision for the possible disallowance of the repair deduction in prior periods, the completion of the audit resulted in the reversal of the reserves in the amount of $1,185,000. While the Company maintains the belief that the deduction taken on its tax return is appropriate, the methodology for determining the deduction has not been agreed to by the taxing authorities. On the 2013 Federal tax return, filed in September 2014, Maine Water filed the same change in accounting method. Through March 31, 2015, the Company has recorded, as required by FASB ASC 740, a provision of $4.4 million for a portion of the benefit that is not being returned to customers resulting from any possible future tax authority challenge.

From time to time, the Company may be assessed interest and penalties by taxing authorities. In those cases, the charges would appear on the Other line item within the Other Income (Deductions), Net of Taxes section of the Company’s Condensed Consolidated Statements of Income. There were no such charges for the three months ended March 31, 2015 and 2014. Additionally, there were no accruals relating to interest or penalties as of March 31, 2015 and December 31, 2014. The Company remains subject to examination by federal tax authorities for the 2011 and 2013 tax years; and the state tax authorities for the 2009 through 2013 tax years.

The Company is currently engaged in an analysis to determine the amount of expenditures related to tangible property that will be reflected on its 2015 Federal Tax Return to be filed in September 2016. As a result, through the first quarter of 2015, the Company has estimated the portion of its infrastructure investment that will qualify as a repair deduction for 2015 and has reflected that deduction in its effective tax rate at 75% of the expected $17 million of infrastructure improvement. Consistent with other differences between book and tax expenditures, the Company is required to use the flow-through method to account for any timing differences not required by the IRS to be normalized.

The Company’s effective income tax rate for the three months ended March 31, 2015 and 2014 was (34.0)% and 17.7%, respectively. The Company’s effective tax rate, excluding discrete items booked during the quarter, was 11.8% for the three months ended March 31, 2015. These discrete items include adjustments related to the provisions for the repair deduction and the Connecticut credits. The statutory income tax rates during each period were 41%. In determining its annual estimated effective tax rate for interim periods, the Company reflects its estimated permanent and flow-through tax differences for the taxable year, including the basis difference for the adoption of the tangible property regulations in the current year.

Lines of Credit


	Lines of Credit

The Company maintains a $15.0 million line of credit agreement with CoBank, that is currently scheduled to expire on July 1, 2016. The Company maintains an additional line of credit of $20.0 million with RBS Citizens, N.A., with an expiration date of June 30, 2017. As of March 31, 2015, the total lines of credit available to the Company were $35.0 million. As of March 31, 2015 and December 31, 2014, the Company had $5.4 million and $2.0 million, respectively, of Interim Bank Loans Payable. As of March 31, 2015, the Company had $29.6 million in unused lines of credit. Interest expense charged on lines of credit will fluctuate based on market interest rates.

Pension and Other Post-Retirement Benefits Pension and Post-Retirement Benefits (Tables)

Schedule of Net Benefit Costs [Table Text Block]

Pension Benefits

Components of Net Periodic Cost (in thousands):



	Three Months
Period ended March 31,	2015			2014
Service Cost	$	570		$	488
Interest Cost	771			763
Expected Return on Plan Assets	(966		)	(889		)
Amortization of:
Prior Service Cost	4			18
Net Recognized Loss	691			273
Net Periodic Benefit Cost	$	1,070		$	653

schedule of post retirement benefits other than pension costs [Table Text Block]

Post-Retirement Benefits Other Than Pension (PBOP)

Components of Net Periodic Cost (in thousands):



	Three Months
Period ended March 31,	2015			2014
Service Cost	$	152		$	154
Interest Cost	147			160
Expected Return on Plan Assets	(81		)	(77		)
Other	56			56
Amortization of:
Prior Service Credit	(142		)	(201		)
Recognized Net Loss	110			68
Net Periodic Benefit Cost	$	242		$	160

Earnings per Share Earnings per Share (Tables)

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

Earnings per weighted average common share are calculated by dividing net income applicable to common stock by the weighted average number of shares of common stock outstanding during the respective periods as detailed below (diluted shares include the effect of stock awards):



Three months ended March 31,	2015		2014
Common Shares Outstanding End of Period:	11,151,193		11,078,336
Weighted Average Shares Outstanding (Days Outstanding Basis):
Basic	10,924,330		10,868,784
Diluted	11,144,297		11,061,324

Basic Earnings per Share	$	0.28	$	0.27
Dilutive Effect of Stock Awards	—		—
Diluted Earnings per Share	$	0.28	$	0.27

Accumulated Other Comprehensive Income (Loss) (Tables)

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

The changes in Accumulated Other Comprehensive Income (Loss) (“AOCI”) by component, net of tax, for the three months ended March 31, 2015 and 2014 is as follows (in thousands):



Three months ended March 31, 2015	Unrealized Gains on Investments			Defined Benefit Items			Total
Beginning Balance (a)	$	298		$	(1,901	)	$	(1,603	)
Other Comprehensive Income (Loss) Before Reclassification	14			—			14
Amounts Reclassified from AOCI	—			97			97
Net current-period Other Comprehensive Income (Loss)	14			97			111
Ending Balance	$	312		$	(1,804	)	$	(1,492	)

Three months ended March 31, 2014	Unrealized Gains on Investments			Defined Benefit Items			Total
Beginning Balance (a)	$	259		$	(374	)	$	(115	)
Other Comprehensive Income (Loss) Before Reclassification	(14		)	—			(14		)
Amounts Reclassified from AOCI	11			61			72
Net current-period Other Comprehensive Income (Loss)	(3		)	61			58
Ending Balance	$	256		$	(313	)	$	(57	)

(a) All amounts shown are net of tax. Amounts in parentheses indicate loss.

The following table sets forth the amounts reclassified from AOCI by component and the affected line item on the Condensed Consolidated Statements of Income for the three months ended March 31, 2015 and 2014 (in thousands):



Details about Other AOCI Components	Amounts Reclassified from AOCI Three Months Ended March 31, 2015(a)			Amounts Reclassified from AOCI Three Months Ended March 31, 2014(a)			Affected Line Items on Income Statement
Realized Gains on Investments	$	—		$	18		Other Income
Tax expense	—			(7		)	Other Income
	—			11

Amortization of Recognized Net Gain from Defined Benefit Items	135			74			Other Income (b)
Tax expense	(38		)	(13		)	Other Income
	97			61

Total Reclassifications for the period, net of tax	$	97		$	72

(a) Amounts in parentheses indicate loss/expense.
(b) Included in computation of net periodic pension cost (see Note 2 for additional details).

Long-Term Debt Long-Term Debt (Tables)

Schedule of Long-term Debt Instruments [Table Text Block]

Long-Term Debt at March 31, 2015 and December 31, 2014 consisted of the following (in thousands):



		2015			2014
Connecticut Water Service, Inc.:
4.09%	Term Loan Note	$	15,221		$	15,466
The Connecticut Water Company:
Var.	2004 Series Variable Rate, Due 2029	12,500			12,500
Var.	2004 Series A, Due 2028	5,000			5,000
Var.	2004 Series B, Due 2028	4,550			4,550
5.10%	2009 A Series, Due 2039	19,950			19,950
5.00%	2011 A Series, Due 2021	23,439			23,483
3.16%	CoBank Note Payable, Due 2020	8,000			8,000
3.51%	CoBank Note Payable, Due 2022	14,795			14,795
4.29%	CoBank Note Payable, Due 2028	17,020			17,020
4.72%	CoBank Note Payable, Due 2032	14,795			14,795
4.75%	CoBank Note Payable, Due 2033	14,550			14,550
Total The Connecticut Water Company		134,599			134,643
The Maine Water Company:
8.95%	1994 Series G, Due 2024	9,000			9,000
2.68%	1999 Series J, Due 2019	339			424
0.00%	2001 Series K, Due 2031	656			698
2.58%	2002 Series L, Due 2022	75			83
1.53%	2003 Series M, Due 2023	361			381
1.73%	2004 Series N, Due 2024	431			431
0.00%	2004 Series O, Due 2034	127			133
1.76%	2006 Series P, Due 2026	411			431
1.57%	2009 Series R, Due 2029	227			237
0.00%	2009 Series S, Due 2029	650			672
0.00%	2009 Series T, Due 2029	1,823			1,886
0.00%	2012 Series U, Due 2042	160			165
1.00%	2013 Series V, Due 2033	1,360			1,385
2.52%	CoBank Note Payable, Due 2017	1,965			1,965
4.24%	CoBank Note Payable, Due 2024	4,500			4,500
7.72%	BSWC Series L, Due 2018	2,250			2,250
2.40%	BSWC Series N, Due 2022	1,176			1,251
1.86%	BSWC Series O, Due 2025	846			846
2.23%	BSWC Series P, Due 2028	1,324			1,354
0.01%	BSWC Series Q, Due 2035	1,864			—
Various	Various Capital Leases	32			37
Total The Maine Water Company		29,577			28,129
Add: Acquisition Fair Value Adjustment		756			820
Less: Current Portion		(2,464		)	(2,457		)
Total Long-Term Debt		$	177,689		$	176,601

Fair Value Disclosures Fair Value Disclosures (Tables)

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

The following table summarizes our financial instruments measured at fair value on a recurring basis within the fair value hierarchy as of March 31, 2015 (in thousands):



	Level 1		Level 2		Level 3		Total
Asset Type:
Company Owned Life Insurance	$	—	$	3,031	$	—	$	3,031
Money Market Fund	112		—		—		112
Mutual Funds:
Equity Funds (1)	1,820		—		—		1,820
Total	$	1,932	$	3,031	$	—	$	4,963

The following table summarizes our financial instruments measured at fair value on a recurring basis within the fair value hierarchy as of December 31, 2014 (in thousands):



	Level 1		Level 2		Level 3		Total
Asset Type:
Company Owned Life Insurance	$	—	$	2,977	$	—	$	2,977
Money Market Fund	166		—		—		166
Mutual Funds:
Equity Funds (1)	1,790		—		—		1,790
Total	$	1,956	$	2,977	$	—	$	4,933


(1)	Mutual funds consist primarily of equity securities and are presented on the Other Property and Investments line item of the Company’s Condensed Consolidated Balance Sheets.

Segment Reporting Segment Reporting (Tables)

Reconciliation of Revenue from Segments to Consolidated [Table Text Block]

Financial data for the segments is as follows (in thousands):



Three months ended March 31, 2015
Segment	Revenues		Pre-Tax Income		Income Tax Expense			Net Income
Water Activities	$	20,340	$	1,687	$	(1,047	)	$	2,734
Real Estate Transactions	—		—		—			—
Services and Rentals	1,362		629		260			369
Total	$	21,702	$	2,316	$	(787	)	$	3,103



Three months ended March 31, 2014
Segment	Revenues		Pre-Tax Income		Income Tax Expense		Net Income
Water Activities	$	20,620	$	2,918	$	365	$	2,553
Real Estate Transactions	—		—		—		—
Services and Rentals	1,412		710		277		433
Total	$	22,032	$	3,628	$	642	$	2,986

Reconciliation of Assets from Segment to Consolidated [Table Text Block]

Assets by segment (in thousands):



	March 31, 2015		December 31, 2014
Total Plant and Other Investments:
Water Activities	$	515,897	$	514,606
Non-Water	644		605
	516,541		515,211
Other Assets:
Water Activities	154,510		152,929
Non-Water	2,831		3,049
	157,341		155,978
Total Assets	$	673,882	$	671,189

Basis of Preparation of Financials In text details (Details)

Mar. 31, 2015

Rate

Maine Water Company [Member]

Allowed Rate of Return on Equity

9.50%

Allowed Return on Rate Base

7.96%

The Connecticut Water Company [Member]

Allowed Rate of Return on Equity

9.75%

Allowed Return on Rate Base

7.32%

Pension and Other Post-Retirement Benefits Pension Benefit Cost (Details) (USD $)

In Thousands, unless otherwise specified

3 Months Ended

Mar. 31, 2015

Mar. 31, 2014

Pension Plans, Defined Benefit [Member]

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

Defined Benefit Plan, Service Cost

$ 570

$ 488

Defined Benefit Plan, Interest Cost

771

763

Defined Benefit Plan, Expected Return on Plan Assets

(966)

(889)

Defined Benefit Plan, Amortization of Prior Service Cost (Credit)

4

18

Defined Benefit Plan, Amortization of Gains (Losses)

691

273

Defined Benefit Plan, Net Periodic Benefit Cost

1,070

653

Other Postretirement Benefit Plans, Defined Benefit [Member]

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

Defined Benefit Plan, Service Cost

152

154

Defined Benefit Plan, Interest Cost

147

160

Defined Benefit Plan, Expected Return on Plan Assets

(81)

(77)

Defined benefit plan amortization of regulatory assets

56

Defined Benefit Plan, Amortization of Prior Service Cost (Credit)

(142)

(201)

Defined Benefit Plan, Amortization of Gains (Losses)

110

68

Defined Benefit Plan, Net Periodic Benefit Cost

$ 242

$ 160

Earnings per Share Earnings per Share (Details) (USD $)

3 Months Ended

Mar. 31, 2015

Mar. 31, 2014

Dec. 31, 2014

Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]

Common Stock, Shares, Outstanding

11,151,193

11,078,336

11,124,630

Weighted Average Number of Shares Outstanding, Basic

10,924,330

10,868,784

Diluted (in shares)

11,144,297

11,061,324

Basic (in dollars per share)

$ 0.28

$ 0.27

Incremental Common Shares Attributal To Share Based Payements Arrangements

$ 0.00

Earnings Per Share, Diluted

$ 0.28

$ 0.27

Earnings per Share EPS in Text Tagging (Details) (USD $)

In Millions, unless otherwise specified

9 Months Ended

Sep. 30, 2014

Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]

Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition

1 year 5 months 12 days

Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized

$ 1.7

Accumulated Other Comprehensive Income (Loss) (Details) (USD $)

In Thousands, unless otherwise specified

3 Months Ended

Mar. 31, 2015

Mar. 31, 2014

Dec. 31, 2014

Dec. 31, 2013

Accumulated Other Comprehensive Income (Loss) Tables [Abstract]

Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, before Tax

$ 0

$ 18

Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Tax

0

(7)

Accumulated Other Comprehensive Loss

(1,492)

(57)

(1,603)

(115)

Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax

0

11

Other Comprehensive Income (Loss), Reclassification, Pension and Other Postretirement Benefit Plans, Net Gain (Loss) Recognized in Net Periodic Benefit Cost, before Tax

135

74

Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Tax

(38)

(13)

Accumulated Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax

312

256

298

259

Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax

(1,804)

(313)

(1,901)

(374)

Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Reclassification Adjustments, Net of Tax

14

(14)

Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, before Reclassification Adjustments, Net of Tax

0

Total Other Comprehensive Income Before Reclassification, Net of Tax

14

(14)

Other Comprehensive Income (Loss), Reclassification, Pension and Other Postretirement Benefit Plans, Net Gain (Loss) Recognized in Net Periodic Benefit Cost, Net of Tax

97

61

Total Amounts Reclassified From AOCI, Net of Tax

97

72

Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax

14

(3)

Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax

97

61

Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent

$ 111

$ 58

Long-Term Debt Long-Term Debt (Details) (USD $)

In Thousands, unless otherwise specified

Mar. 31, 2015

Dec. 31, 2014

Debt Instrument [Line Items]

Long-term Debt, Excluding Current Maturities

$ 177,689

$ 176,601

Long-term Debt, Current Maturities

(2,464)

(2,457)

Long-term Debt

177,689

176,601

Parent [Member] |
Connecticut Water Service Term Loan Note and Supplement A [Member]

Debt Instrument [Line Items]

Long-term Debt, Excluding Current Maturities

15,221

15,466

The Connecticut Water Company [Member]

Debt Instrument [Line Items]

Long-term Debt, Current Maturities

(134,599)

(134,643)

The Connecticut Water Company [Member] |
Unsecured Water Facilities Revenue Refinancing Bonds Series Issued 2004, Due 2029 [Member]

Debt Instrument [Line Items]

Long-term Debt, Excluding Current Maturities

12,500

The Connecticut Water Company [Member] |
Unsecured Water Facilities Revenue Refinancing Bonds Series A Issued 2004 Due 2028 [Member]

Debt Instrument [Line Items]

Long-term Debt, Excluding Current Maturities

5,000

The Connecticut Water Company [Member] |
Unsecured Water Facilities Revenue Refinancing Bonds Series B Issued 2004 Due 2028 [Member]

Debt Instrument [Line Items]

Long-term Debt, Excluding Current Maturities

4,550

The Connecticut Water Company [Member] |
Unsecured Water Facilities Revenue Refinancing Bonds Series A Issued 2009, Due 2039 [Member]

Debt Instrument [Line Items]

Long-term Debt, Excluding Current Maturities

19,950

The Connecticut Water Company [Member] |
CoBank Note Payable, Due 2020 [Member]

Debt Instrument [Line Items]

Long-term Debt, Excluding Current Maturities

8,000

The Connecticut Water Company [Member] |
CoBank Note Payable Due 2022 [Member]

Debt Instrument [Line Items]

Long-term Debt, Excluding Current Maturities

14,795

The Connecticut Water Company [Member] |
Unsecured Water Facilities Revenue Refinancing Bonds Series A Issued 2011 Due 2021 [Member]

Debt Instrument [Line Items]

Long-term Debt, Excluding Current Maturities

23,439

23,483

The Connecticut Water Company [Member] |
CoBank Note Payable Due 2028 [Member]

Debt Instrument [Line Items]

Long-term Debt, Excluding Current Maturities

17,020

The Connecticut Water Company [Member] |
CoBank Note Payable Due 2032 [Member]

Debt Instrument [Line Items]

Long-term Debt, Excluding Current Maturities

14,795

The Connecticut Water Company [Member] |
CoBank Note Payable, Due 2033 [Member]

Debt Instrument [Line Items]

Long-term Debt, Excluding Current Maturities

14,550

Maine Water Company [Member]

Debt Instrument [Line Items]

Long-term Debt, Current Maturities

(29,577)

(28,129)

Maine Water Company [Member] |
Maine Water Company Series G [Member]

Debt Instrument [Line Items]

Long-term Debt, Excluding Current Maturities

9,000

Maine Water Company [Member] |
Maine Water Company Series J [Member]

Debt Instrument [Line Items]

Long-term Debt, Excluding Current Maturities

339

424

Maine Water Company [Member] |
Maine Water Company Series K [Member]

Debt Instrument [Line Items]

Long-term Debt, Excluding Current Maturities

656

698

Maine Water Company [Member] |
Maine Water Company Series L [Member]

Debt Instrument [Line Items]

Long-term Debt, Excluding Current Maturities

75

83

Maine Water Company [Member] |
Maine Water Company Series M [Member]

Debt Instrument [Line Items]

Long-term Debt, Excluding Current Maturities

361

381

Maine Water Company [Member] |
Maine Water Company Series N [Member]

Debt Instrument [Line Items]

Long-term Debt, Excluding Current Maturities

431

Maine Water Company [Member] |
Maine Water Company Series O [Member]

Debt Instrument [Line Items]

Long-term Debt, Excluding Current Maturities

127

133

Maine Water Company [Member] |
Maine Water Company Series P [Member]

Debt Instrument [Line Items]

Long-term Debt, Excluding Current Maturities

411

431

Maine Water Company [Member] |
Maine Water Company Series R [Member]

Debt Instrument [Line Items]

Long-term Debt, Excluding Current Maturities

227

237

Maine Water Company [Member] |
Maine Water Company Series S [Member]

Debt Instrument [Line Items]

Long-term Debt, Excluding Current Maturities

650

672

Maine Water Company [Member] |
Maine Water Company Series T [Member]

Debt Instrument [Line Items]

Long-term Debt, Excluding Current Maturities

1,823

1,886

Maine Water Company [Member] |
Fair Value Adjustment of Long-Term Debt Assume [Member]

Debt Instrument [Line Items]

Long-term Debt, Excluding Current Maturities

756

820

Maine Water Company [Member] |
2012 Series U, Due 2042 [Member]

Debt Instrument [Line Items]

Long-term Debt, Excluding Current Maturities

160

165

Maine Water Company [Member] |
2013 Series V, Due 2033 [Member]

Debt Instrument [Line Items]

Long-term Debt, Excluding Current Maturities

1,360

1,385

Maine Water Company [Member] |
CoBank Note Payable, Due 2017 [Member]

Debt Instrument [Line Items]

Long-term Debt, Current Maturities

(1,965)

Maine Water Company [Member] |
CoBank Note Payable, Due 2024 [Member]

Debt Instrument [Line Items]

Long-term Debt, Current Maturities

(4,500)

Maine Water Company [Member] |
Series L, Due 2018 [Member]

Debt Instrument [Line Items]

Long-term Debt, Excluding Current Maturities

2,250

Maine Water Company [Member] |
Series N, Due 2022 [Member]

Debt Instrument [Line Items]

Long-term Debt, Excluding Current Maturities

1,176

1,251

Maine Water Company [Member] |
Series O, Due 2025 [Member]

Debt Instrument [Line Items]

Long-term Debt, Excluding Current Maturities

846

Maine Water Company [Member] |
Series P, Due 2028 [Member]

Debt Instrument [Line Items]

Long-term Debt, Excluding Current Maturities

1,324

1,354

Maine Water Company [Member] |
Series Q, Due 2028 [Member]

Debt Instrument [Line Items]

Long-term Debt, Current Maturities

(1,864)

0

Maine Water Company [Member] |
Long Term Capital Leases [Member]

Debt Instrument [Line Items]

Long-term Debt, Excluding Current Maturities

$ 32

$ 37

Long-Term Debt Long-Term Debt Parenthetical (Details)

Mar. 31, 2015

Dec. 31, 2014

Parent [Member] |
Connecticut Water Service Term Loan Note and Supplement A [Member]

Debt Instrument [Line Items]

Debt Instrument, Interest Rate, Stated Percentage

4.09%

The Connecticut Water Company [Member] |
Unsecured Water Facilities Revenue Refinancing Bonds Series A Issued 2009, Due 2039 [Member]

Debt Instrument [Line Items]

Debt Instrument, Interest Rate, Stated Percentage

5.10%

The Connecticut Water Company [Member] |
Unsecured Water Facilities Revenue Refinancing Bonds Series A Issued 2011 Due 2021 [Member]

Debt Instrument [Line Items]

Debt Instrument, Interest Rate, Stated Percentage

5.00%

The Connecticut Water Company [Member] |
CoBank Note Payable, Due 2020 [Member]

Debt Instrument [Line Items]

Debt Instrument, Interest Rate, Stated Percentage

3.16%

The Connecticut Water Company [Member] |
CoBank Note Payable Due 2022 [Member]

Debt Instrument [Line Items]

Debt Instrument, Interest Rate, Stated Percentage

3.51%

The Connecticut Water Company [Member] |
CoBank Note Payable Due 2028 [Member]

Debt Instrument [Line Items]

Debt Instrument, Interest Rate, Stated Percentage

4.29%

The Connecticut Water Company [Member] |
CoBank Note Payable Due 2032 [Member]

Debt Instrument [Line Items]

Debt Instrument, Interest Rate, Stated Percentage

4.72%

The Connecticut Water Company [Member] |
CoBank Note Payable, Due 2033 [Member]

Debt Instrument [Line Items]

Debt Instrument, Interest Rate, Stated Percentage

4.75%

Maine Water Company [Member] |
Maine Water Company Series G [Member]

Debt Instrument [Line Items]

Debt Instrument, Interest Rate, Stated Percentage

8.95%

Maine Water Company [Member] |
Maine Water Company Series J [Member]

Debt Instrument [Line Items]

Debt Instrument, Interest Rate, Stated Percentage

2.68%

Maine Water Company [Member] |
Maine Water Company Series K [Member]

Debt Instrument [Line Items]

Debt Instrument, Interest Rate, Stated Percentage

0.00%

Maine Water Company [Member] |
Maine Water Company Series L [Member]

Debt Instrument [Line Items]

Debt Instrument, Interest Rate, Stated Percentage

2.58%

Maine Water Company [Member] |
Maine Water Company Series M [Member]

Debt Instrument [Line Items]

Debt Instrument, Interest Rate, Stated Percentage

1.53%

Maine Water Company [Member] |
Maine Water Company Series N [Member]

Debt Instrument [Line Items]

Debt Instrument, Interest Rate, Stated Percentage

1.73%

Maine Water Company [Member] |
Maine Water Company Series O [Member]

Debt Instrument [Line Items]

Debt Instrument, Interest Rate, Stated Percentage

0.00%

Maine Water Company [Member] |
Maine Water Company Series P [Member]

Debt Instrument [Line Items]

Debt Instrument, Interest Rate, Stated Percentage

1.76%

Maine Water Company [Member] |
Maine Water Company Series R [Member]

Debt Instrument [Line Items]

Debt Instrument, Interest Rate, Stated Percentage

1.57%

Maine Water Company [Member] |
Maine Water Company Series S [Member]

Debt Instrument [Line Items]

Debt Instrument, Interest Rate, Stated Percentage

0.00%

Maine Water Company [Member] |
Maine Water Company Series T [Member]

Debt Instrument [Line Items]

Debt Instrument, Interest Rate, Stated Percentage

0.00%

Maine Water Company [Member] |
2012 Series U, Due 2042 [Member]

Debt Instrument [Line Items]

Debt Instrument, Interest Rate, Stated Percentage

0.00%

Maine Water Company [Member] |
2013 Series V, Due 2033 [Member]

Debt Instrument [Line Items]

Debt Instrument, Interest Rate, Stated Percentage

1.00%

Maine Water Company [Member] |
CoBank Note Payable, Due 2017 [Member]

Debt Instrument [Line Items]

Debt Instrument, Interest Rate, Stated Percentage

3.00%

Maine Water Company [Member] |
Series L, Due 2018 [Member]

Debt Instrument [Line Items]

Debt Instrument, Interest Rate, Stated Percentage

7.72%

Maine Water Company [Member] |
Series N, Due 2022 [Member]

Debt Instrument [Line Items]

Debt Instrument, Interest Rate, Stated Percentage

2.40%

Maine Water Company [Member] |
Series O, Due 2025 [Member]

Debt Instrument [Line Items]

Debt Instrument, Interest Rate, Stated Percentage

1.86%

Maine Water Company [Member] |
Series P, Due 2028 [Member]

Debt Instrument [Line Items]

Debt Instrument, Interest Rate, Stated Percentage

2.23%

Maine Water Company [Member] |
Series Q, Due 2028 [Member]

Debt Instrument [Line Items]

Debt Instrument, Interest Rate, Stated Percentage

0.01%

Long-Term Debt Long-Term Debt in Text (Details) (USD $)

Mar. 31, 2015

Dec. 31, 2014

Debt Instrument [Line Items]

Long-term Debt, Current Maturities

$ 2,464,000

$ 2,457,000

Monetary Limit of Deceased Bond Holders Redemption per Year

$ 25,000

Percent Limit of Deceased Bond Holders Redemption per Year

3.00%

Fair Value Disclosures Fair Value of Financial Instruments (Details) (USD $)

In Thousands, unless otherwise specified

Mar. 31, 2015

Dec. 31, 2014

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Assets, Fair Value Disclosure

$ 4,963

$ 4,933

Fair Value, Inputs, Level 1 [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Assets, Fair Value Disclosure

1,932

1,956

Fair Value, Inputs, Level 2 [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Assets, Fair Value Disclosure

3,031

2,977

Fair Value, Inputs, Level 3 [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Assets, Fair Value Disclosure

0

Cash Surrender Value [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Assets, Fair Value Disclosure

3,031

2,977

Cash Surrender Value [Member] |
Fair Value, Inputs, Level 1 [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Assets, Fair Value Disclosure

0

Cash Surrender Value [Member] |
Fair Value, Inputs, Level 2 [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Assets, Fair Value Disclosure

3,031

2,977

Cash Surrender Value [Member] |
Fair Value, Inputs, Level 3 [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Assets, Fair Value Disclosure

0

Money Market Funds [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Assets, Fair Value Disclosure

112

166

Money Market Funds [Member] |
Fair Value, Inputs, Level 1 [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Assets, Fair Value Disclosure

112

166

Money Market Funds [Member] |
Fair Value, Inputs, Level 2 [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Assets, Fair Value Disclosure

0

Money Market Funds [Member] |
Fair Value, Inputs, Level 3 [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Assets, Fair Value Disclosure

0

Equity Funds [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Assets, Fair Value Disclosure

1,820

1,790

Equity Funds [Member] |
Fair Value, Inputs, Level 1 [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Assets, Fair Value Disclosure

1,820

1,790

Equity Funds [Member] |
Fair Value, Inputs, Level 2 [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Assets, Fair Value Disclosure

0

Equity Funds [Member] |
Fair Value, Inputs, Level 3 [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Assets, Fair Value Disclosure

$ 0

Fair Value Disclosures In Text Tagging (Details) (USD $)

In Thousands, unless otherwise specified

Mar. 31, 2015

Dec. 31, 2014

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Long-term Debt, Fair Value

$ 193,877

$ 189,942

Long-term Debt

177,689

176,601

Advances for Construction

$ 25,854

$ 26,718

Segment Reporting Segment Reporting (Details) (USD $)

In Thousands, unless otherwise specified

3 Months Ended

Mar. 31, 2015

Mar. 31, 2014

Segment Reporting Information [Line Items]

Revenues

$ 21,702

$ 22,032

Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest

2,316

3,628

Income Tax Expense (Benefit), Continuing Operations

(787)

642

Net Income (Loss), Including Portion Attributable to Noncontrolling Interest

3,103

2,986

Water Activities [Member]

Segment Reporting Information [Line Items]

Revenues

20,340

20,620

Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest

1,687

2,918

Income Tax Expense (Benefit), Continuing Operations

(1,047)

365

Net Income (Loss), Including Portion Attributable to Noncontrolling Interest

2,734

2,553

Real Estate Transactions [Member]

Segment Reporting Information [Line Items]

Revenues

0

Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest

0

Income Tax Expense (Benefit), Continuing Operations

0

Net Income (Loss), Including Portion Attributable to Noncontrolling Interest

0

Services and Rentals [Member]

Segment Reporting Information [Line Items]

Revenues

1,362

1,412

Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest

629

710

Income Tax Expense (Benefit), Continuing Operations

260

277

Net Income (Loss), Including Portion Attributable to Noncontrolling Interest

$ 369

$ 433

Segment Reporting Segment Reporting Textual Information (Details) (USD $)

3 Months Ended

Mar. 31, 2015

Mar. 31, 2014

Segment Reporting Information [Line Items]

Operating Revenues

$ 20,030,000

$ 20,260,000

Regulated Operating Revenue, Other

310,000

360,000

Water Revenue Adjustment

$ (189,000)

$ 107,000

Segment Reporting Assets by Segment (Details) (USD $)

In Thousands, unless otherwise specified

Mar. 31, 2015

Dec. 31, 2014

Segment Reporting Information [Line Items]

Total Plant and Other Investments

$ 516,541

$ 515,211

Other Assets

157,341

155,978

Assets

673,882

671,189

Water Activities [Member]

Segment Reporting Information [Line Items]

Total Plant and Other Investments

515,897

514,606

Other Assets

154,510

152,929

Services and Rentals and Real Estate Combine [Member]

Segment Reporting Information [Line Items]

Total Plant and Other Investments

644

605

Other Assets

$ 2,831

$ 3,049

Income Tax Expense Income Tax Expense (Details)

3 Months Ended

Mar. 31, 2015

Rate

Mar. 31, 2014

Rate

Income Taxes [Abstract]

Effective Income Tax Rate, Continuing Operations

(34.00%)

17.70%

Effective Tax Rate Excluding Reserve Against Fixed Capital Investment Credits Claimed in Prior Years

11.80%

Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate

41.00%

Lines of Credit Lines of Credit (Details) (USD $)

Mar. 31, 2015

Dec. 31, 2014

Short-term Debt [Line Items]

Line of Credit Facility, Current Borrowing Capacity

$ 35,000,000

Interim Bank Loans Payable

5,422,000

1,991,000

Line of Credit Facility, Remaining Borrowing Capacity

29,600,000

CTWS Line of Credit A [Member]

Short-term Debt [Line Items]

Line of Credit Facility, Current Borrowing Capacity

15,000,000

CTWS Line of Credit B [Member]

Short-term Debt [Line Items]

Line of Credit Facility, Current Borrowing Capacity

$ 20,000,000