Company: MSEX
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001174947-25-000251
Chunk: 150

Company: MIDDLESEX WATER CO
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1A
Chunk 150
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 Company by voting its candidates onto the Board of Directors and may also deter merger proposals
and tender offers. Our Board of Directors also has the ability, subject to obtaining NJBPU approval, to issue one or more series of preferred
stock having such number of shares, designation, preferences, voting rights, limitations and other rights as the Board of Directors may
fix. This could be used by the Board of Directors to discourage, delay or prevent an acquisition the Board of Directors determines is
not in the best interest of the common shareholders.

General Risks

General economic conditions may materially and adversely affect
our financial condition and results of operations.

Adverse economic conditions could negatively impact our customers’
water usage demands, particularly the level of water usage demand by our commercial and industrial customers in our Middlesex System.
If water demand by our commercial and industrial customers in our Middlesex System decreases, our financial condition and results of operations
could be negatively impacted until completion of a subsequent base rate filing.

We rely on our information technology systems to help manage our
operations. 

Our information technology systems require periodic
modifications, upgrades and/or replacement which subject us to costs and risks including potential disruption of our internal control
structure, substantial unanticipated capital expenditures, additional operating expenses, retention of sufficiently skilled personnel
and other risks in transitioning to new systems or integrating new systems. A failure to modify, upgrade or replace our information technology
systems could have an adverse impact on our business. In addition, challenges implementing new technology systems may cause disruptions
in our business operations and have an adverse effect on our business operations.

Our information technology systems may be subject to physical and
cyber attacks.

We rely on our computer, information and communications
technology systems in connection with the operation of our business, especially with respect to customer service and billing, accounting
and, in some cases, the monitoring and operation of our operating facilities.  Our computer and communications systems and operations

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could be damaged or interrupted by natural disasters, cyber-attacks, power loss and internet, telecommunications or data network failures
or acts of war or terrorism or similar events or disruptions.  Any of these or other events could cause service interruption, delays
and loss of critical data or, impede aspects of operations and therefore, adversely affect our financial results.

Cyber-attacks could result in the loss, or compromise,
of customer, financial or operational data, disruption of billing, collections or normal field service activities, disruption of electronic
monitoring and control of operational systems and