Company: MSEX
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001174947-25-000251
Chunk: 431

Company: MIDDLESEX WATER CO
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1C
Chunk 431
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expense accounts. At December 31, 2024, there was no event or change in circumstance that would indicate that the carrying amount of any
long-lived asset was not recoverable.

(g) Depreciation – Depreciation
is computed by each regulated member of the Company utilizing a rate approved by the applicable regulatory authority. The accumulated
provision for depreciation is charged with the cost of property retired, less salvage. The following table sets forth the range of depreciation
rates for the major utility plant categories used to calculate depreciation for the years ended December 31, 2024, 2023, and 2022. These
rates have been approved by the NJBPU or DEPSC:

    Source of Supply
    1.15% -   3.44%
    Transmission and Distribution (T&D):
  
    Pumping
    2.00% -   5.39%
    T&D – Mains
    1.10%  -   3.13%
  
    Water Treatment
    1.65% -   7.09%
    T&D – Services
    2.12%  -   3.16%
  
    General Plant
    2.08% - 17.84%
    T&D – Other
    1.61%  -   4.63%
  
    Wastewater Collection
    1.42% -   1.81%

Non-regulated fixed assets consist primarily of
office buildings, furniture and fixtures, and transportation equipment. These assets are recorded at original cost and depreciation is
calculated based on the estimated useful lives, ranging from 3 to 42 years.

(i) Advances for Construction–
Cash advances are provided to the Company by customers, real estate developers and builders in order to extend utility service to
their properties. These transactions are recorded as Advances for Construction. Contractual Refunds of Advances for Construction in the
form of cash are made by the Company and are based on either additional operating revenues generated from new customers or, as new customers
are connected to the respective system. After all refunds are made and/or contract terms have expired, any remaining balance is transferred
to Contributions in Aid of Construction (CIAC).

CIAC – CIAC include direct non-refundable contributions
of utility plant and/or cash and the portion of Advances for Construction that becomes non-refundable.

In accordance with regulatory requirements, Advances
for