Company: MSEX
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001174947-25-001119
Chunk: 106

Company: MIDDLESEX WATER CO
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 2
Chunk 106
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 responsible for emergency response
and management of capital projects 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.

20 

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.

Rates and Regulatory Activity – In
July 2025, Tidewater received a Delaware Public Service Commission (DEPSC) order approving the settlement agreement in our general
base rate application between Tidewater, DEPSC Staff and the Delaware Division of the Public Advocate. In addition, in June 2025,
Middlesex and Pinelands filed a Joint Application for general base rate increase. See Note 2, Rate and Regulatory Matters for
more details about our rates and regulatory activity in Delaware and New Jersey.

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. The USE