Company: MSEX
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001174947-25-000251
Chunk: 18

Company: MIDDLESEX WATER CO
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1
Chunk 18
---
 and receiving approval from the
appropriate Public Utility Commissions. If these agencies modify, delay or deny our petition, our revenues will not increase and our earnings
will decline unless we are able to reduce costs without degrading service quality.

The NJBPU regulates our public utility companies
in New Jersey with respect to rates and charges for service, classification of accounts, awards of new service territory, acquisitions,
financings and other matters. That means, for example, that we cannot raise the utility rates we charge to our customers without first
petitioning the NJBPU for approval and navigating a lengthy administrative process. Similarly, the DEPSC regulates our public utility
companies in Delaware. We cannot provide assurance as to when we will request approval for any such matter, nor can we predict whether
these Public Utility Commissions will approve, deny or reduce the amount of such requests.

Certain costs are not completely within our control.
The failure to obtain any rate increase would prevent us from increasing our revenues and, unless we are able to reduce costs without
degrading service quality, would result in reduced earnings.

We are subject to environmental laws and regulations,
including water quality and wastewater effluent quality regulations, as well as other state and local regulations. Compliance with those
laws and regulations requires us to incur costs and we are subject to fines or other sanctions for non-compliance.

Government environmental regulatory agencies regulate
our operations in New Jersey and Delaware with respect to water supply, treatment and distribution systems and the quality of water. Government
environmental regulatory agencies also regulate our operations in New Jersey and Delaware with respect to wastewater collection, treatment
and disposal.

Government environmental regulatory agencies’
regulations relating to water quality require us to perform additional testing to ensure our water meets state and federal water quality
requirements. We are subject to USEPA regulations under the Federal Safe Drinking Water Act and under the Federal Clean Water Act regarding
wastewater services. Regulations under the Safe Drinking Water Act include the Lead and Copper Rule, the maximum contaminant levels established
for various volatile organic compounds, the Federal Surface Water Treatment Rule and the Total Coliform Rule. There are also similar NJDEP
regulations for our New Jersey water systems. The NJDEP and DEDPH monitor our activities and review the results of water quality tests
we perform for adherence to applicable regulations. In addition, Government Environmental Regulatory Agencies are continually reviewing
regulations governing the limits of certain organic compounds found in the water as byproducts of treatment.

We are also subject to regulations