Company: MSEX
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001174947-25-001119
Chunk: 111

Company: MIDDLESEX WATER CO
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 2
Chunk 111
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 1,825  
     25,469  
     23,315  
     1,865  
     25,180 

    Other Income, net 
     3,603  
     93  
     3,696  
     7,912  
     109  
     8,021 
  
    Interest Charges 
     6,336  
     —  
     6,336  
     7,310  
     —  
     7,310 
  
    Income Taxes Expense (Benefit) 
     1,960  
     611  
     2,571  
     4,040  
     623  
     4,663 
  
    Net Income 
    $18,951  
    $1,307  
    $20,258  
    $19,877  
    $1,351  
    $21,228 

Operating Revenues

Operating revenues for the six months ended June 30,
2025 increased $4.0 million from the same period in 2024 due to the following factors:

●Middlesex System revenues increased $3.1 million due to the base rate increase effective March 1, 2024
and increased DSIC and LSL Recovery rate increases (see Note 2, Rate and Regulatory Matters) partially offset by less customer
consumption driven by unfavorable weather;

●Tidewater System revenues increased $1.2 million due to customer growth and an interim rate increase effective
November 1, 2024 partially offset by lower customer consumption driven by unfavorable weather; and

●Non-regulated revenues decreased $0.4 million, primarily due to lower supplemental contract services;
and

●All other revenue categories increased $0.1 million.

Operations and Maintenance Expense

Operations and Maintenance Expense for the six months
ended June 30, 2025 increased $1.9 million from the same period in 2024 due to increased production costs from weather-driven lower water
quality, increased weather-driven main break repair costs, higher labor cost due to wage and employee headcount increases and the one-time
recovery in 2024 of previous water treatment operating costs at Middlesex’s Park Avenue Plant in connection with Middlesex’s
2023 rate case order, partially offset by higher capitalizable costs.

Depreciation

Depreciation expense for the six months