Company: MSEX
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001174947-25-000251
Chunk: 1218

Company: MIDDLESEX WATER CO
Filing Date: 2025-02-28
Form: 10-K
Item: Item 7A
Chunk 1218
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 2023
  
    ROU Asset at Lease Inception 
    $7.3  
    $7.3 
  
    Accumulated Amortization 
     (4.7) 
     (4.1)
  
    Current ROU Asset 
    $2.6  
    $3.2 

The Company’s future minimum operating lease commitments as of
December 31, 2024 are as follows:

    (In Millions)

    December 31, 2024
  
    2025 
    $0.8 
  
    2026 
     0.8 
  
    2027 
     0.9 
  
    2028 
     0.9 
  
    2029 
     0.9 
  
    Total Lease Payments 
    $4.3 
  
    Imputed Interest 
     (1.3)
  
    Present Value of Lease Payments 
     3.0 
  
    Less Current Portion* 
     (0.6)
  
    Non-Current Lease Liability 
    $2.4 

    *Included in Other Current Liabilities

Construction –
In connection with the Company’s planned capital expenditures, the Company has entered into several contractual construction agreements
that in total obligate it to expend an estimated $9.6 million in the future. The actual amount and timing of capital expenditures is dependent
on the need for replacement of existing infrastructure, customer growth, residential new home construction and sales, project scheduling,
supply chain issues and continued refinement of project scope and costs.

54 

Contingencies – Based on our operations
in the heavily-regulated water and wastewater industries, the Company is routinely involved in disputes, claims, lawsuits and other regulatory
and legal matters, including responsibility for fines and penalties relative to regulatory compliance. At this time, Management does not
believe the final resolution of any such matters, whether asserted or unasserted, will have a material adverse effect on the Company’s
financial position, results of operations or cash flows. In addition, the Company maintains business insurance coverage that may
mitigate the effect of current or future loss contingencies.

Change in Control Agreements – The
Company has Change in Control Agreements with its executive officers that provide compensation and benefits in the event of termination
of employment in connection with a change in control of the Company.

Note 5 – Short-term Borrowings

Information regarding the Company’s short-term