What The York Water Company told the SEC could break it.

York Water's supply depends on the Codorus Creek watershed and Susquehanna River and two impounding dams (Lake Williams and Lake Redman), and its single south-central Pennsylvania service territory is exposed to drought: as of February 18, 2026, Pennsylvania declared a drought watch for 34 counties including York County, which can reduce water availability and customer usage; dam safety and watershed conditions are ongoing physical/operational risks.

“As of February 18, 2026, Pennsylvania state officials declared a drought watch for 34 counties in Pennsylvania, including York County within the Company's service territory, and a drought”

York Water is capital-intensive and depends on a combination of internally-generated funds and external financing to fund operations and a large infrastructure-construction program; internally-generated funds ($29.9M in 2025, down from $30.6M) depend on obtaining timely and adequate rate relief, regulatory changes, customer water usage, weather and controlled expenses, so constrained financing, higher interest costs or rate lag could reduce funds available for required capital spending.

“The amount of internally-generated funds available for operations and construction depends on the Company's ability to obtain timely and adequate rate relief, changes in regulations, customers' water usage, weather conditions, customer growth and controlled expenses.”

As a regulated water/wastewater utility, York Water's revenue growth depends on obtaining timely and adequate rate increases from the Pennsylvania PUC (and on DSIC infrastructure surcharges), and it must comply with the federal Safe Drinking Water Act and EPA's Lead and Copper Rule, including LCRR/LCRI requirements to submit a lead-service-line inventory and replacement plan and to replace lead service lines (estimated ~$2.1 million for customer-owned lines); regulatory lag or adverse rate/compliance outcomes could pressure returns and require capital outlays.

“Increases in revenues are generally dependent on the Company's ability to obtain rate increases from the PPUC in a timely manner and in adequate amounts and to increase volumes of water sold through increased consumption”

Approximately 28% of York Water's full-time employees are covered by a union contract (ratified June 2023) that expires on April 30, 2026; management is preparing for negotiations, and a failure to reach a timely successor agreement or unfavorable terms could raise labor costs or risk work disruption at the utility.

“As of December 31, 2025, approximately 28 % of the Company's full-time employees are under union contract. The current contract was ratified in June 2023 and expires on April 30, 2026.”