Company: MSEX
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001174947-25-000251
Chunk: 19

Company: MIDDLESEX WATER CO
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1
Chunk 19
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 related to
fire protection services in New Jersey and Delaware. In New Jersey there is no state-wide fire protection regulatory agency. However,
New Jersey regulations exist as to the size of piping required regarding the provision of fire protection services. In Delaware, fire
protection is regulated statewide by the Office of State Fire Marshal.

13 

The cost of compliance with the water and wastewater
effluent quality standards depends in part on the limits set in the regulations and on the methods selected to comply with these standards.
If new or more restrictive standards are imposed, the cost of compliance could increase and therefore, have an adverse impact on our revenues
and results of operations if we cannot recover those costs through the rates we charge our customers. The cost of compliance with fire
protection requirements could also increase and make us less profitable if we cannot recover those costs through our rates charged to
our customers.

The Company  must comply with various environmental
laws and regulations promulgated by the USEPA, NJDEP and other governmental agencies, including the Toxic Catastrophe Prevention Act,
the Spill Prevention, Control, and Countermeasure Rule and the Discharge Prevention Program of the New Jersey Spill Compensation and Control
Act. If we fail to comply with environmental or other laws and regulations to which our business is subject, we could be fined or subject
to other sanctions, which could adversely impact our business or results of operations.

Financial Risks 

We depend upon our ability to raise money in the capital markets
to finance some of the costs of complying with laws and regulations, including environmental laws and regulations or to pay for some of
the costs of improvements to or the expansion of our utility system assets. Our regulated utility companies cannot issue debt or equity
securities without prior regulatory approval.

We require financing from external sources to
fund the ongoing capital program for the improvement in our utility system assets and for planned expansion of those systems. We expect
to spend approximately $387 million for capital projects through 2027. We must obtain prior approval from our economic regulators to sell
debt or equity securities to raise capital for these projects. If sufficient capital is not available, or the cost of capital is too high,
or if the regulatory authorities deny our petition to sell debt or equity securities, we may not be able to meet the costs of complying
with environmental laws and regulations or the costs of improving and expanding our utility system assets to the level we believe operationally
prudent. This may result in the imposition of fines from environmental regulators or