Company: MSEX
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001174947-25-001119
Chunk: 9

Company: MIDDLESEX WATER CO
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 1
Chunk 9
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), Pinelands Water Company (Pinelands Water) and Pinelands
Wastewater Company (Pinelands Wastewater) (collectively, Pinelands), Utility Service Affiliates, Inc. (USA), and Utility Service Affiliates  (Perth
Amboy) Inc. (USA-PA). Southern Shores Water Company, LLC (Southern Shores) and White Marsh Environmental Systems, Inc. (White Marsh) are
wholly-owned subsidiaries of Tidewater. The financial statements for Middlesex and its wholly-owned subsidiaries are reported on a consolidated
basis. All significant intercompany accounts and transactions have been eliminated.

The consolidated notes within the 2024 Annual Report
on Form 10-K (the 2024 Form 10-K) are applicable to these financial statements and, in the opinion of the Company, the accompanying unaudited
condensed consolidated financial statements contain all adjustments necessary (including normal recurring accruals) to fairly state the
Company’s financial position as of June 30, 2025, the results of operations for the three and six month periods ended June 30, 2025
and 2024 and cash flows for the six month periods ended June 30, 2025 and 2024. Information included in the Condensed Consolidated Balance
Sheet as of December 31, 2024, has been derived from the Company’s December 31, 2024 audited financial statements included in the
2024 Form 10-K.

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. The pro forma effect of this acquisition
is not material to the Company’s consolidated results of operations.

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