Company: MSEX
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001174947-25-000251
Chunk: 972

Company: MIDDLESEX WATER CO
Filing Date: 2025-02-28
Form: 10-K
Item: Item 6
Chunk 972
---
 operating costs are anticipated to increase in 2025 in a variety of categories,
we continue to implement plans to further streamline operations and further reduce and mitigate increases in operating costs. Changes
in customer water usage habits, as well as increases in capital expenditures and operating costs, are significant factors in determining
the timing and extent of rate increase requests.

Our investments in system infrastructure continue
to grow significantly and our operating costs are anticipated to increase in 2025 and 2026 in a variety of categories. These factors,
among others, may require a base rate increase request by Middlesex in mid 2025.

Overall, organic residential customer growth continues
in our Tidewater system (approximately 3.5% in 2024).

The Company has projected to spend approximately
$387 million for the 2025-2027 capital investment program, including approximately $105 million for upgrading our Carl J. Olson Surface
Water Treatment Plant (CJO Plant) to integrate PFAS removal from source water, $34 million on the RENEW Program, which is our ongoing
initiative to replace water mains in the Middlesex System, $15 million for replacement of a transmission main in Metuchen in our Middlesex
System and $12 million for elevated storage tanks in our Tidewater System.

Operating Results by Segment 

The Company has two operating segments, Regulated
and Non-Regulated. Our Regulated segment contributed approximately 93% of total revenues for the years ended December 31, 2024, 2023 and
2022, respectively, and approximately 94%, 92% and 93% of net income for the years ended December 31, 2024, 2023 and 2022, respectively.
The discussion of the Company’s results of operations is on a consolidated basis and includes significant factors by subsidiary.
The segments in the tables included below are comprised of the following companies: Regulated- Middlesex, Tidewater, Pinelands and Southern
Shores; Non-Regulated- USA, USA-PA, and White Marsh.

27 

Results of Operations for 2024 as Compared to 2023

    (In Millions) 

    Years Ended December 31, 

    2024  
    2023 

    Regulated  
    Non-
Regulated  
    Total  
    Regulated  
    Non-
Regulated  
    Total 
  
    Revenues 
    $178.8