Company: MSEX
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001174947-25-001119
Chunk: 72

Company: MIDDLESEX WATER CO
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 8
Chunk 72
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    2029 
     0.9 
  
    Total Lease Payments 
    $3.9 
  
    Imputed Interest 
     (1.2)
  
    Present Value of Lease Payments 
     2.7 
  
    Less Current Portion* 
     (0.6)
  
    Non-Current Lease Liability 
    $2.1 

    *Included in Other Current Liabilities

Construction – In connection with the
Company’s planned capital expenditures, the Company has entered into several contractual construction agreements that total obligate
it to expend an estimated $18.2 million in the future. The actual amount and timing of capital expenditures is dependent on the need for
replacement of existing infrastructure, customer growth, residential new home construction and sales, project scheduling, supply chain
issues and continued refinement of project scope and costs.

Contingencies – Based on our operations
in the heavily-regulated water and wastewater industries, the Company is routinely involved in disputes, claims, lawsuits and other regulatory
and legal matters, including responsibility for fines and penalties relative to regulatory compliance. At this time, Management does not
believe the final resolution of any such matters, whether asserted or unasserted, will have a material adverse effect on the Company’s
financial position, results of operations or cash flows. In addition, the Company maintains business insurance coverage that may
mitigate the effect of any current or future loss contingencies.

Change in Control Agreements – The Company
has Change in Control Agreements with its executive officers that provide compensation and benefits in the event of termination of employment
under certain conditions in connection with a change in control of the Company.

16 

Note 8 – Employee Benefit Plans

Pension Benefits – The Company’s
Pension Plan covers all active employees hired prior to April 1, 2007. Employees hired after March 31, 2007 are not eligible to participate
in this plan, but can participate in a defined contribution profit sharing plan that provides an annual contribution at the discretion
of the Company, based upon a percentage of the participants’ annual paid compensation. For each of the three-month periods ended
June 30, 2025 and 2024, the Company did not make cash contributions to the Pension Plan. The Company expects to make cash contributions
of approximately $0.9 million over the remainder of the current year.

Other Benefits – The Company’s
Other Benefits Plan covers substantially all of its current retired employees. Employees hired