Company: MSEX
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001174947-25-001119
Chunk: 113

Company: MIDDLESEX WATER CO
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 2
Chunk 113
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 approved base rate increase effective March 1, 2024 and timing of vendor payments.

Investing Cash Flows

For the six months ended June 30, 2025, cash flows
used in investing activities increased $26.5 million to $55.2 million due to increased utility plant expenditures in 2025 and Tidewater’s
acquisition of the water utility assets of Ocean View.

For further discussion on the Company’s future
capital expenditures and expected funding sources, see “Capital Expenditures and Commitments” below.

Financing Cash Flows

For the six months ended June 30, 2025, cash flows
from financing activities increased $6.7 million to $23.2 million. The increase in cash flows provided by financing activities is due
to higher borrowings under the Company’s lines of credit and higher proceeds from the issuance of common stock under Middlesex’s
new At -the-Market equity offering program (for further information on Middlesex’s At -the-Market equity offering program, see below
under Capital Expenditures and Commitments).

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.

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Middlesex has received approval from the New
Jersey Board of Public Utilities (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.

In May 2025, Middlesex filed a petition with the NJBPU
to borrow up to $260.0 million during the period January 2026 through December 2028, in one or more negotiated transactions in the form
of notes and/or first mortgage bonds through loans from the New Jersey State Revolving Fund Program, the New Jersey Economic Development
Authority, private placement and other financial institutions as needed in order to fund portions of its capital program and other funding
requirements. The NJBPU is