Company: MSEX
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001174947-25-000677
Chunk: 12

Company: MIDDLESEX WATER CO
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 1
Chunk 12
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idewater has drawn down $1.7 million as of March 31, 2025 and expects that the requisitions will continue through the fourth quarter
of 2025.

In May 2024, Tidewater closed on four Delaware SRF
loans totaling $5.6 million, all at interest rates of 2.0% with maturity dates in 2044. These loans are for the construction, relocation,
improvement, and/or interconnection of transmission mains and construction of a water treatment facility. Tidewater has drawn down less
than $0.1 million on these loans as of March 31, 2025. Each project has its own construction timetable with the last spending set to occur
in 2027.

Separately, Tidewater has two active construction
projects funded by prior year Delaware SRF loans totaling $8.3 million with remaining availability of funds for borrowing. These loans
are for the construction of a one million gallon elevated storage tank and construction, relocation, improvement, and interconnection
of transmission mains. Tidewater has drawn a total of $4.9 million through March 31, 2025 and expects that the requisitions will continue
through the fourth quarter of 2025.

Fair Value of Financial Instruments –
The following methods and assumptions were used by the Company in estimating its fair value disclosure for financial instruments for which
it is practicable to estimate that value. The carrying amounts reflected in the condensed consolidated balance sheets for cash and cash
equivalents, accounts receivable, accounts payable and notes payable approximate their respective fair values due to the short-term maturities
of these instruments. The fair value of First Mortgage Bonds (FMBs) and SRF Bonds (collectively, the Bonds) issued by Middlesex is based
on quoted market prices for similar issues. Under the fair value hierarchy, the fair value of cash and cash equivalents is classified
as a Level 1 measurement and the fair value of notes payable and the FMBs in the table below are classified as Level 2 measurements. The
carrying amount and fair value of the FMBs were as follows:

    (Thousands of Dollars)

    March 31, 2025
     
    December 31, 2024

    Carrying
     
    Fair
     
    Carrying
     
    Fair

    Amount
     
    Value
     
    Amount
     
    Value
  
    FMBs