2025 Essential Annual Report

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (continued) (In thousands of dollars, except per share amounts)

Note 9 – Taxes Other than Income Taxes

The following table provides the components of taxes other than income taxes:

Years Ended December 31,

2025

2024

2023

Property

$

36,920 $

34,569 $

32,790 17,985 21,628

Gross receipts, excise and franchise

17,231 23,772

17,801 22,930

Payroll

Regulatory assessments

8,777 6,369 (297)

7,836 8,049 3,449

7,451 6,405 3,949

Pumping fees

Other

Total taxes other than income taxes

$

92,772 $

94,634 $

90,208

Note 10 – Commitments and Contingencies

Commitments –

The Company maintains agreements with other water purveyors for the purchase of water to supplement its water supply, particularly during periods of peak demand. The agreements stipulate purchases of minimum quantities of water to the year 2032. The estimated annual commitments related to such purchases through 2030 are expected to average $1,966, and the aggregate of the years remaining approximates $1,949. The Company has entered into purchase obligations, in the ordinary course of business, that include agreements for water treatment processes at some of its wells in a small number of its divisions. The 20 year term agreement provides for the use of treatment equipment and media used in the treatment process and are subject to adjustment based on changes in the Consumer Price Index. The future contractual cash obligations related to these agreements are as follows:

2026

2027

2028

2029

2030

Thereafter

$

1,263 $

1,272 $

952 $

981 $

1,010 $

1,042

The Company’s natural gas supply is provided by sources on the interstate pipeline system and from local western Pennsylvania gas well production. The Company has various interstate pipeline service agreements that provide for firm transportation capacity, firm storage capacity, and other services and include capacity reservation charges based upon the maximum daily and annual contract quantities set forth in the agreements. Some of these agreements have minimum volume obligations and are transacted at applicable tariff and negotiated rates to the year 2034. The estimated annual commitments related to such purchases through 2030 are expected to average $266,931, and the aggregate of the years remaining beyond 2030 approximates $862,525.

The purchased water, water treatment, and purchased gas expenses under these agreements were as follows:

Years Ended December 31,

2025

2024

2023

Purchased water under long-term agreements Water treatment expense under contractual agreement Purchased natural gas under long-term agreements

$ $ $

6,612 $ 1,210 $

7,633 $ 1,125 $

6,752 1,103

403,817$ 277,009$ 352,306

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