Company: MSEX
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001174947-25-000677
Chunk: 82

Company: MIDDLESEX WATER CO
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 2
Chunk 82
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 funded by Avalon and Highland Park.

Under a marketing agreement with HomeServe USA Corp.
(HomeServe) expiring in 2031, USA offers residential customers in New Jersey and Delaware water and wastewater related services and home
maintenance programs. HomeServe is a leading national provider of such home maintenance service programs. USA receives a service fee for
the billing, cash collection and other administrative matters associated with HomeServe’s service contracts. USA also provides unregulated
water and wastewater services under contract with several New Jersey municipalities.

18 

Recent Developments

Tidewater Acquisition of the Water Utility Assets
of the Town of Ocean View, Delaware  - In April 2025, Tidewater completed the acquisition of the water utility assets of the Town
of Ocean View, Delaware (Ocean View) for approximately $4.6 million. Ocean View serves approximately 900 customers in Sussex County, Delaware,
who have been receiving water supply from Tidewater since the system was constructed in 2008.

Middlesex Distribution System Improvement Charge
(DSIC) - In April 2025, Middlesex filed a third DSIC rate application with the New jersey Board of Public Utilities (NJBPU) that is
expected to result in $1.9 million of annual revenues starting June 2025, in addition to the existing $1.1 million of annual revenues
from the first and second DSIC filings.

Middlesex Purchase Water Adjustment Clause (PWAC)
- In February 2025, the NJBPU approved Middlesex’s petition to reset its PWAC tariff rate to recover additional annual costs
of $0.5 million, primarily for the purchase of treated water from a non-affiliated water utility regulated by the NJBPU. A PWAC is a rate
mechanism that allows for the recovery of increased purchased water costs between base rate case filings. The PWAC is reset to zero once
those increased costs are included in base rates. The new PWAC rate was effective March 1, 2025.

Tidewater Base Water Rate Increase Application
- In August 2024, Tidewater filed an application with the DEPSC to increase its general rates for water service. In the application,
Tidewater seeks an overall increase in annual operating revenue of $10.3 million or 25.66% over current revenue. The request for rate
increases will allow Tidewater to recover prudently incurred investments made in the last ten years to support continued regulatory compliance,
enh