Company: MSEX
Filing Date: 2025-07-29
Form Type: 424B5
Source: 0001104659-25-071727
Chunk: 34

Company: MIDDLESEX WATER CO
Filing Date: 2025-07-29
Form: 424B5
Chunk 34
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 the U.S. participant. In addition,
if the Plan Agent acquires such Common Stock in an open market transaction or in negotiated transactions with third parties, then the
U.S. participant will be treated as also having received a distribution equal to a pro rata share of any brokerage trading fees or other
related charges paid by us on behalf of the U.S. participant. The Plan currently provides that we will pay brokerage trading fees for
the purchase of Common Stock in the open market or in negotiated transactions with third parties.

<div align='center'>S-28</div>

Any such distributions which
the U.S. participant is treated as receiving, including any discount amount, if any, would be taxable dividend income, capital gain or
reduce the basis in the U.S. participant’s Common Stock, or some combination of these treatments, under the rules described
above under “Material Tax Consequences of Dividend Reinvestment.”

The Internal Revenue Service
has issued private letter rulings that indicate that a U.S. participant who participates solely in the cash purchase portion of a plan
(whether as an initial or as an additional investment) would not be treated as having received a distribution of the discount amount
on such purchase, if any, and, therefore, would not realize any taxable income upon such purchase that would be attributable to the discount.
Private letter rulings are only binding on the Internal Revenue Service with respect to the taxpayer to which the ruling was issued.
Therefore, there can be no assurance that the Internal Revenue Service would take this position with respect to any such transactions
occurring under the Plan. Therefore, we strongly urge you to consult your tax advisors regarding the tax treatment of receiving a discount
on cash investments in Common Stock made through the Plan.

A U.S. participant’s
tax basis in the Common Stock acquired by optional cash payment will generally equal the total amount of the distribution the U.S. participant
is treated as receiving, as described above, plus the amount of such optional cash payment. A U.S. participant’s holding period
in the Common Stock purchased under the Plan generally begins on the day following the date on which the Common Stock is credited to
the U.S. participant’s Plan account.

Material Tax Consequences of Sales, Exchanges and Other Dispositions

A U.S. participant may realize
taxable gain or loss when shares of Common Stock are sold, exchanged or otherwise disposed, whether the sale, exchange or other disposition
is made at the U.S. participant’s request upon withdrawal from the Plan