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

Company: MIDDLESEX WATER CO
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 1
Chunk 25
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 subsidiaries, Tidewater and Southern
Shores Water Company, LLC, provide water services to approximately 62,000 retail customers in New Castle, Kent and Sussex Counties, Delaware.
Tidewater’s subsidiary, White Marsh, services approximately 4,300 households in Kent and Sussex Counties through various operations
and maintenance contracts.

USA-PA operates the water and wastewater systems for
the City of Perth Amboy, New Jersey (Perth Amboy) under a 10-year operations and maintenance contract expiring in 2028. In addition to
performing day-to day operations, USA-PA is also responsible for emergency response and management of capital projects funded by Perth
Amboy.

USA operates the Borough of Avalon, New Jersey’s
(Avalon) water utility, sewer utility and storm water system under a ten-year operations and maintenance contract expiring in 2032. USA
also operates the Borough of Highland Park, New Jersey’s (Highland Park) water and wastewater systems under a 10-year operations
and maintenance contract expiring in 2030. In addition to performing day-to-day service operations, USA is responsible for emergency response
and management of capital projects funded by Avalon and Highland Park.

Under a marketing agreement with HomeServe USA Corp.
(HomeServe) expiring in 2031, USA offers residential customers in New Jersey and Delaware water and wastewater related services and home
maintenance programs. HomeServe is a leading national provider of such home maintenance service programs. USA receives a service fee for
the billing, cash collection and other administrative matters associated with HomeServe’s service contracts. USA also provides unregulated
water and wastewater services under contract with several New Jersey municipalities.

18 

Recent Developments

Tidewater Acquisition of the Water Utility Assets
of the Town of Ocean View, Delaware  - In April 2025, Tidewater completed the acquisition of the water utility assets of the Town
of Ocean View, Delaware (Ocean View) for approximately $4.6 million. Ocean View serves approximately 900 customers in Sussex County, Delaware,
who have been receiving water supply from Tidewater since the system was constructed in 2008.

Middlesex Distribution System Improvement Charge
(DSIC) - In April 2025, Middlesex filed a third DSIC rate application with the New jersey Board of Public Utilities (NJBPU) that is
expected to result in $1.9 million of annual revenues starting June 2025, in addition to the existing