Company: MSEX
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001174947-25-000677
Chunk: 50

Company: MIDDLESEX WATER CO
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 8
Chunk 50
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00 Series Preferred Dividend 
     10  
     61  
     17  
     115 
  
    Adjusted Earnings Applicable to Common Stock 
    $9,467  
     17,951  
    $10,669  
     17,934 

    Diluted EPS 
    $0.53  
        
    $0.59  

Note 5 – Business Segment Data

The Company’s Chief Operating Decision Maker
(CODM) consists of the Company’s Chief Executive Officer, Chief Financial Officer, and Chief Operating Officer. The CODM evaluates
segment performance and profitability using net income. This metric provides a clear, consistent basis for analyzing the financial results
of each segment and supports decision-making regarding the allocation of resources.

Resource allocation to the Company’s regulated
and non-regulated segments begins with the annual budgeting process, which establishes initial funding and resource levels for each segment. The
budget incorporates key financial and operational inputs, including anticipated revenues, expenses, capital and financing requirements,
aligning with the Company’s strategic objectives and regulatory obligations. The CODM reviews budget-to-actual variances on
a monthly, quarterly and year to-date basis and makes interim decisions to reallocate resources among segments as needed, ensuring a timely
and effective response to changing conditions. For the regulated segment, the CODM uses this assessment to determine whether the segment
is achieving its regulatory authorized rate of return.

The segments follow the same accounting policies as
described in Note 1 – Organization, Summary of Significant Accounting Policies and Recent Developments of the 2024 Form 10-K. Segment
profit or loss is based on Net Income. Expenses used to determine operating income before taxes are charged directly to each segment or
are allocated based on the applicable cost allocation factors. Assets allocated to each segment are based upon specific identification
of such assets provided by Company records. The effects of all intra-segment and/or intercompany transactions are eliminated in the consolidated
financial statements.

The Company has identified two reportable segments.
One is the regulated business of collecting, treating and distributing water on a retail and wholesale basis to residential, commercial,
industrial and fire protection customers in parts of New Jersey and Delaware and includes Middlesex, Tidewater, Pinelands Water and Southern
Shores. This segment also includes a regulated wastewater system in New Jersey, Pinelands Wastewater. The Company is subject to regulations
as to its rates,