Company: MSEX
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001174947-25-000251
Chunk: 338

Company: MIDDLESEX WATER CO
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1B
Chunk 338
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long-term return on retirement plan assets, relative to a reasonable level of risk, maintain a diversified investment portfolio and maintain
compliance with the Employee Retirement Income Security Act of 1974. The expected long-term rate of return is based on the various asset
categories in which plan assets are invested and the current expectations and historical performance for these categories.

Fair Value Measurements

Accounting guidance provides a fair value hierarchy
that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted
quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs
(Level 3 measurements). The three levels of the fair value hierarchy are described as follows:

    ●
    Level 1 – Inputs to the valuation methodology are unadjusted quoted market prices for identical assets or liabilities in accessible active markets.
  
    ●
    Level 2 – Inputs to the valuation methodology that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.  If the asset or liability has a specified contractual term, the Level 2 input must be observable for substantially the full term of the asset or liability.
  
    ●
    Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

Certain investments in cash and cash equivalents,
equity securities, and commodities are valued based on quoted market prices in active markets and are classified as Level 1 investments.
Certain investments in cash and cash equivalents, equity securities and fixed income securities are valued using prices received from
pricing vendors that utilize observable inputs and are therefore classified as Level 2 investments.

62 

The following tables present Middlesex’s Pension Plan assets
measured and recorded at fair value within the fair value hierarchy:

    (In Thousands) 

    As of December 31, 2024 

    Level 1  
    Level 2  
    Level 3  
    Total 
  
    Mutual Funds 
    $31,187  
    $—  
    $—  
    $31,187 
  
    Money Market Funds 
     293  
     —  
     —  
     293 
  
    Common Equity Securities 
     195  
     —