Company: MSEX
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001174947-25-000677
Chunk: 62

Company: MIDDLESEX WATER CO
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 8
Chunk 62
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 its PWAC tariff rate to recover additional annual costs
of $0.5 million, primarily for the purchase of treated water from a non-affiliated water utility regulated by the NJBPU. A PWAC is a rate
mechanism that allows for the recovery of increased purchased water costs between base rate case filings. The PWAC is reset to zero once
those increased costs are included in base rates. The new PWAC rate was effective March 1, 2025.

Tidewater Base Water Rate Increase Application
- In August 2024, Tidewater filed an application with the DEPSC to increase its general rates for water service. In the application,
Tidewater seeks an overall increase in annual operating revenue of $10.3 million or 25.66% over current revenue. The request for rate
increases will allow Tidewater to recover prudently incurred investments made in the last ten years to support continued regulatory compliance,
enhance water quality, service reliability, security and resiliency of the water utility infrastructure assets. Effective October 30,
2024, Tidewater received approval of the DEPSC to suspend its DSIC rate and implement an interim rate increase, which is expected to result
in approximately $2.5 million of annual revenues, subject to refund pending the outcome of the rate case application.

United States Environmental Protection Agency (USEPA)
Issues Final Perfluoroalkyl Substances (PFAS) Regulations - In April 2024, the USEPA finalized drinking water regulations for PFAS,
establishing maximum contaminant levels (MCLs) for three PFAS compounds (Regulated PFAS) that are lower than the current New Jersey Department
of Environmental Protection MCLs adhered to by the Company. Under the new USEPA regulations, effective April 2024, water systems must
monitor for Regulated PFAS and have three years to complete initial monitoring (by April 2027), followed by ongoing compliance monitoring.
Water systems must also provide the public with information on the levels of Regulated PFAS in their drinking water beginning in 2027.
Water systems have five years (by April 2029) to implement solutions that reduce Regulated PFAS if monitoring shows that drinking water
levels exceed these MCLs.

Beginning in April 2029, water systems that have Regulated
PFAS in drinking water which exceeds one or more of these MCLs must take action to reduce levels of these PFAS compounds in their drinking