Company: MSEX
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001174947-25-000251
Chunk: 298

Company: MIDDLESEX WATER CO
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1B
Chunk 298
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 both our Regulated
and Non-Regulated business segments. Our Regulated operations serve residential, commercial, industrial and municipal customers while
our Non-Regulated operations engage in business activities with developers, government entities and other customers. Our primary credit
risk is exposure to customer default on contractual obligations and the associated loss that may be incurred due to the non-payment of
customer accounts receivable balances. Our credit risk is managed through established credit and collection policies which are in compliance
with applicable regulatory requirements and involve monitoring of customer exposure and the use of credit risk mitigation measures such
as letters of credit or prepayment arrangements. Our credit portfolio is diversified with no significant customer or industry concentrations.
In addition, our Regulated businesses are generally able to recover all prudently incurred costs including uncollectible customer accounts
receivable expenses and collection costs through rates.

The Company's retirement benefit plan assets are
exposed to the market price variations of debt and equity securities. Changes to the Company's retirement benefit plan assets’ value
can impact the Company's retirement benefit plan expense, funded status and future minimum funding requirements. Our exposure to market
price risk in our retirement benefit plan assets is managed through our ability to recover retirement benefit plan costs through customer
rates. There were no material changes to our primary market risk exposures or how such exposures are managed in 2024 nor are there expected
to be in the future.

37 

ITEM 8.FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING
FIRM

To the Stockholders and the Board of Directors of Middlesex Water Company:

Opinions on the Financial Statements and Internal Control over Financial
Reporting

We have audited the accompanying consolidated
balance sheets and consolidated statements of capital stock and long-term debt of Middlesex Water Company (the "Company") as
of December 31, 2024 and 2023, the related consolidated statements of income, common stockholders' equity, and cash flows for each of
the three years in the period ended December 31, 2024, and the related notes (collectively referred to as the "consolidated financial
statements"). We also have audited the Company’s internal control over financial reporting as of December 31, 2024, based on
criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations
of the Treadway Commission (COSO).

In our opinion, the consolidated financial