Good day everyone, and welcome to the York Water Fourth Quarter 2007 Financial Results Conference Call. Today’s call is being recorded. At this time, I would like to turn the call over to Mr. Jeff Hines. Please go ahead sir.

Thanks Melissa. Yes, this is Jeff Hines, I am the President and Chief Operating Officer of the York Water Company, and with me today is Kathleen Miller, our Chief Financial Officer. I would like to welcome everybody to the York Water Company’s Earnings Conference Call and the results of operations and financial position as of December 31, 2007. Before beginning our discussion, I would like to remind you of our safe harbor statement. Certain remarks today are forward-looking statements. These statements are based upon assumptions which are outside the company’s control. We caution that a number of factors could cause the actual results to differ from those expressed. Please refer to the company’s 10-Q, 10-K, and other SEC filings for more information on the factors which could contribute to actual results being different from those expressed today. Today, I will be discussing the company’s 2007 fourth quarter and calendar year results. I will also be discussing our capital expenditures, financing requirements, and other regulatory matters. Let’s talk about the fourth quarter first. During the fourth quarter of 2007, operating revenues increased $443,000 or 6.0% over the fourth quarter of 2006. Net income for the fourth quarter increased $43,000 or 2.6% compared to the fourth quarter of 2006. The primary contributing factors to the increase in net income were higher operating revenues due to an increase in our customer base, partially offset by increased operating expenses. During the same period, earnings per share remained unchanged at 15 cents per share from the fourth quarter of 2006. Earnings per share were diluted due to an increase in the weighted average shares outstanding brought about by our follow-on stock offering in December 2006. During the fourth quarter of 2007, we continued to expand our franchise by growing the number of customers served within…

Thank you. The question and answer session will be conducted electronically. If you would like to ask a question, please press *1 on your touchtone phone at this time. If you are using a speaker phone, please make sure your mute function is turned on to allow your signal to reach our equipment. Once again, that is *1 for questions, and we’ll pause for just a moment to allow everyone to adjust their signal. Once again, that is *1. We’ll take our first question from Heike Doerr with Janney Montgomery.

Good morning! How are you?

Good, Heike. How are you?

Good. A couple of quick questions. First, I think this is going to be a question for Kathy. Depreciation we saw it higher this past year than we have in recent years. I know there were some accounting shifts going on. When we look going forward into ‘08 and ‘09, do you expect a double-digit increase in depreciation? How should be we thinking about this?

‘08 and ‘09 should be a little lower probably than it was in ’07, because in ‘07, we started depreciating our new computer systems which had a relatively short life, so that caused a lot of the increase in 2007, and we’ll continue to depreciate that over the next couple of years, and besides that, we also changed our depreciation methods a little bit in that we now take some depreciation in the current year on current year additions. We used to wait until the next year to start depreciating our additions, so that added several thousand dollars this year. So that kind of thing is going to continue, but the big blip was mostly the software.

Okay, that’s helpful. Thank you. On the rate increase, perhaps I am reading too much into this, I believe the rate stay-out ends in April and we had loosely been talking that shortly after the rate stay-out and then you would be going in for a filing. I see in the K that it just says that this is an ‘08 event. Has the timing of that changed at all?

No, it will be either the end of April or could be the end of May.

Okay. Last question; Susquehanna River Basin Commission, I know we have all been sitting on her hands waiting for them to get approval. Is there any item in particular that’s holding them up and does that concern you for future growth in Adams County if the Susquehanna River Basin is going to have sign off on these things going forward?

Possibly. It is a difficult process. Quite a number of utilities have already received these out-of-basin transfers, so it’s kind of a standard procedure, but it is being tied up with some other state-wide and area-wide issues with the Chesapeake Bay Initiative; and they are just doing their due diligence and ensuring that they have got all the information they need to make their decision.

I believe they are meeting tomorrow. Are you on their docket?

We are not on the docket for tomorrow. The next time the commission meets is in June.

I’ll grumble along with you. Okay, thanks for your help.

Thanks a lot Heike.

Once again, that is *1 for questions, *1 for any questions at this time, (pause) and it appears we have no further questions.

Great, alright! Well, thank you for your time Melissa and everybody that’s listening in.

That does conclude today’s conference. We do appreciate your participation. You may disconnect at this time.