Company: MSEX
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001174947-25-000251
Chunk: 1031

Company: MIDDLESEX WATER CO
Filing Date: 2025-02-28
Form: 10-K
Item: Item 6
Chunk 1031
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of each segment and supports decision-making regarding the allocation of resources.

Resource allocation to the Company’s regulated
and non-regulated segments begins with the annual budgeting process, which establishes initial funding and resource levels for each segment. The
budget incorporates key financial and operational inputs, including anticipated revenues, expenses, capital and financing requirements,
aligning with the Company’s strategic objectives and regulatory obligations. The CODM reviews budget-to-actual variances on
a monthly, quarterly and year to-date basis and makes interim decisions to reallocate resources among segments as needed, ensuring a timely
and effective response to changing conditions. For the regulated segment, the CODM uses this assessment to determine whether the segment
is achieving its regulatory authorized rate of return.

The segments follow the same accounting policies
as described in Note 1 – Organization, Summary of Significant Accounting Policies and Recent Developments. Segment profit
or loss is based on Net Income. Expenses used to determine operating income before taxes are charged directly to each segment or are allocated
based on the applicable cost allocation factors. Assets allocated to each segment are based upon specific identification of such assets
provided by Company records. The effects of all intra-segment and/or intercompany transactions are eliminated in the consolidated financial
statements.

The Company has identified two reportable segments.
One is the regulated business of collecting, treating and distributing water on a retail and wholesale basis to residential, commercial,
industrial and fire protection customers in parts of New Jersey and Delaware and includes Middlesex, Tidewater, Pinelands Water and Southern
Shores. This segment also includes a regulated wastewater system in New Jersey, Pinelands Wastewater. The Company is subject to regulations
as to its rates, services and other matters by the states of New Jersey and Delaware with respect to utility service within these states.
The other segment is primarily comprised of non-regulated contract 

65 

services for the operation and maintenance of municipal and private
water and wastewater systems in New Jersey and Delaware and includes USA, USA-PA, and White Marsh.

    (In Thousands) 

    Years Ended December 31, 
  
    Operation by Segments 
    2024  
    2023  
    2022 
  
    Revenues: 

    Regulated 
    $179,359  
    $154,617  
    $151,117 
  
    Non – Regulated 
     13,552  
     12,773  
     12