Company: MSEX
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001174947-25-000677
Chunk: 67

Company: MIDDLESEX WATER CO
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 8
Chunk 67
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 flows
from financing activities decreased $4.6 million to $3.6 million. The decrease in cash flows provided by financing activities is due to
lower borrowings under the Company’s lines of credit.

Capital Expenditures and Commitments

To fund our capital program, we use internally generated
funds, short-term and long-term debt borrowings, proceeds from sales of common stock under the Middlesex Water Company Investment Plan
and, when market conditions are favorable, proceeds from sales to the public of our common stock. To the extent possible and fiscally
prudent, the Company finances qualifying capital projects under State Revolving Fund (SRF) loan programs in New Jersey and Delaware. These
government programs provide financing at interest rates typically below rates available in the broader financial markets.

Middlesex has received approval from the NJBPU to
borrow up to $300.0 million from the New Jersey SRF Program, the New Jersey Economic Development Authority, private placement and other
financial institutions as needed through December 31, 2025. The Company expects to issue debt securities in a series of one or more transaction
offerings over a multi-year period to help fund Middlesex’s multi-year capital construction program.

In September 2024, Tidewater closed on a $2.2 million
Delaware SRF loan with a 0.0% interest rate with maturity dates in 2044. This loan is for costs associated with Tidewater’s obligation,
as required by federal law and Delaware regulations, to identify and inventory lead service lines throughout Tidewater’s service
area. Tidewater has drawn down $1.7 million as of March 31, 2025 and expects that the requisitions will continue through the fourth quarter
of 2025.

22 

In May 2024, Tidewater closed on four Delaware SRF
loans totaling $5.6 million, all at interest rates of 2.0% with maturity dates in 2044. These loans are for the construction, relocation,
improvement, and/or interconnection of transmission mains and construction of a water treatment facility. Tidewater has drawn down less
than $0.1 million on these loans as of March 31, 2025. Each project has its own construction timetable with the last spending set to occur
in 2027.

Tidewater also has two active construction projects
funded by prior year Delaware SRF loans totaling $8.3 million with