Company: MSEX
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001174947-25-000251
Chunk: 144

Company: MIDDLESEX WATER CO
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1A
Chunk 144
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 actual or perceived
human exposure to contaminants in our drinking water and water supplies. Such costs could adversely affect our financial results.

Contamination of the water supply or the water
service provided to our customers could result in substantial injury or damage to our customers, employees or others and we could be exposed
to substantial claims and litigation, which are inherently subject to uncertainties and are potentially subject to unfavorable regulatory
and/or legal actions. Previously, claims have been brought against us alleging our customers received contaminated water. Negative impacts
to our profitability and/or our reputation may occur even if we are not responsible for the contamination or the consequences arising
out of human exposure to contamination or hazardous substances in the water supplies. Pending or future claims against us could have a
material adverse impact on our financial condition, results of operations and cash flows.

The necessity for ongoing physical and technological security has
resulted, and may continue to result, in increased operating costs.

Because of physical and technological threats
to the health and security of the United States of America, we employ physical and technological security measures to guard against such
threats and have implemented procedures to review and modify security measures. We provide ongoing training and communications to our
employees about threats to our water supply, our assets and related systems and our employees’ personal safety. We have incurred,
and will continue to incur, costs for security measures in efforts to protect against such risks.

12 

Climate variability may cause weather volatility
in the future, which may impact water usage and related revenue or, may require additional expenditures to reduce risk associated with
any increasing storm, flood, drought or other weather occurrences.

Increased climate variability may cause increased
precipitation and flooding, increased frequency and severity of storms and droughts and other weather events, any of which may result
in degradation of water quality, decreases in available water supply, changes in water usage patterns and disruptions in service. Because
of the uncertainty of weather volatility related to climate variability, we cannot predict its potential impact on our financial condition,
results of operations, cash flows and liquidity.  Although some or all potential expenditures and costs with respect to our regulated
businesses could be recovered through rates we charge to our customers, there can be no assurance that the NJBPU or the DEPSC would authorize
recovery of such costs, in whole or in part.

Regulatory Risks 

Our revenue and earnings depend on the rates
we charge our customers. We cannot raise utility rates in our regulated businesses without petitioning and receiving approval from the