Company: MSEX
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001174947-25-001119
Chunk: 16

Company: MIDDLESEX WATER CO
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 1
Chunk 16
---
 which
it is practicable to estimate that value. The carrying amounts reflected in the condensed consolidated balance sheets for cash and cash
equivalents, accounts receivable, accounts payable and notes payable approximate their respective fair values due to the short-term maturities
of these instruments. The fair value of First Mortgage Bonds (FMBs) and SRF Bonds (collectively, the Bonds) issued by Middlesex is based
on quoted market prices for similar issues. Under the fair value hierarchy, the fair value of cash and cash equivalents is classified
as a Level 1 measurement and the fair value of notes payable and the FMBs in the table below are classified as Level 2 measurements. The
carrying amount and fair value of the FMBs were as follows:

    (Thousands of Dollars)

    June 30, 2025 
    December 31, 2024

    Carrying 
    Fair 
    Carrying 
    Fair

    Amount 
    Value 
    Amount 
    Value
  
    FMBs 
    $128,857  
    $127,236  
    $129,602  
    $125,067 

It was not practicable to estimate the fair value
on our outstanding long-term debt for which there is no quoted market price and there is not an active trading market. For details, including
carrying value, interest rates and due dates on these series of long-term debt, please refer to those series noted as “Amortizing
Secured Notes” and “State Revolving Trust Notes” on the Condensed Consolidated Statements of Capital Stock and Long-Term
Debt. The carrying amount of these instruments was $228.7 million and $229.8 million at June 30, 2025 and December 31, 2024, respectively.
Advances for construction have carrying amounts of $23.4 million and $22.6 million at June 30, 2025 and December 31, 2024, respectively.
Their relative fair values cannot be accurately estimated since future refund payments depend on several variables, including new customer
connections, customer consumption levels and future rate increases.

Substantially all of the utility plant of the Company
is subject to the lien of its mortgage, which includes debt service and capital ratio covenants. The Company is in compliance with all
of its mortgage covenants and restrictions.

10 

Note 4 – Earnings Per Share

Basic earnings per share (