Company: MSEX
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001174947-25-000677
Chunk: 8

Company: MIDDLESEX WATER CO
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 1
Chunk 8
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 The pro forma effect of this acquisition is not material
to the Company’s results of operations.

United States Environmental Protection Agency (USEPA)
Issues Final Perfluoroalkyl Substances (PFAS) Regulations - In April 2024, the USEPA finalized drinking water regulations for PFAS,
establishing maximum contaminant levels (MCLs) for three PFAS compounds (Regulated PFAS) that are lower than the current New Jersey Department
of Environmental Protection MCLs adhered to by the Company. Under the new USEPA regulations effective April 2024, water systems must monitor
for Regulated PFAS and have three years to complete initial monitoring (by April 2027), followed by ongoing compliance monitoring. Water
systems must also provide the public with information on the levels of Regulated PFAS in their drinking water beginning in 2027. Water
systems have five years (by April 2029) to implement solutions that reduce Regulated PFAS if monitoring shows that drinking water levels
exceed these MCLs.

Beginning in April 2029, water systems that have Regulated
PFAS in drinking water which exceeds one or more of these MCLs must take action to reduce levels of these PFAS compounds in their drinking
water and must provide notification to the public of the violation.

In anticipation of these new USEPA standards, in 2023,
the Company began implementing its strategy to meet these lower MCLs for Regulated PFAS and is currently performing preliminary engineering
studies to ensure that effective PFAS treatment approaches are implemented.

6 

Recent Accounting Guidance 

The recently issued accounting standards that have not yet been adopted
by the Company as of March 31, 2025 are as follows:

  Standard   Description   Date of Adoption   Application   Effect on the 
Condensed 
Consolidated 
Financial Statements  Accounting Standards Update (“ASU”) ASU 2024-03 “Disaggregation of Income Statement Expenses”   The ASU enhances disclosures related to income statement expenses to further disaggregate expenses in the footnotes to the financial statements. The standard requires disaggregation of any relevant expense caption presented on the face of the income statement that contains the following expense categories: purchases of inventory, employee compensation, depreciation, intangible asset amortization, and depletion. Further, the standard requires disclosure of the total amount and the entity’s definition of selling expenses.    The ASU is effective for the Company beginning with its annual financial statements for the year ended December