Company: MSEX
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001174947-25-001119
Chunk: 62

Company: MIDDLESEX WATER CO
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 8
Chunk 62
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 These
government programs provide financing at interest rates typically below rates available in the broader financial markets. A portion of
the borrowings under the New Jersey SRF is interest-free.

Middlesex has received approval from the NJBPU to
borrow up to $300.0 million from the New Jersey SRF Program, the New Jersey Economic Development Authority, private placement and other
financial institutions as needed through December 31, 2025.

In May 2025, Middlesex filed a petition with the NJBPU
to borrow up to $260.0 million during the period January 2026 through December 2028, in one or more negotiated transactions in the form
of notes and/or first mortgage bonds through loans from the New Jersey State Revolving Fund Program, the New Jersey Economic Development
Authority, private placement and other financial institutions as needed in order to fund portions of its capital program and other funding
requirements. The NJBPU is expected to render its decision on this petition in the third quarter of 2025.

9 

In September 2024, Tidewater closed on a $2.2 million
Delaware SRF loan with a 0.0% interest rate with maturity dates in 2044. This loan is for costs associated with Tidewater’s obligation,
as required by federal law and Delaware regulations, to identify and inventory lead service lines throughout Tidewater’s service
area. Tidewater has drawn down $1.7 million as of June 30, 2025 and expects that the requisitions will continue through the fourth quarter
of 2025.

In May 2024, Tidewater closed on four Delaware SRF
loans totaling $5.6 million, all at interest rates of 2.0% with maturity dates in 2044. These loans are for the construction, relocation,
improvement, and/or interconnection of transmission mains and construction of a water treatment facility. Tidewater has drawn down $0.9
million on these loans as of June 30, 2025. Each project has its own construction timetable with the last spending set to occur in 2027.

Separately, Tidewater has two active construction
projects funded by prior year Delaware SRF loans totaling $8.3 million with remaining availability of funds for borrowing. These loans
are for the construction of a one million gallon elevated storage tank and construction, relocation, improvement, and interconnection
of transmission mains. Tidewater has