Company: MSEX
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001174947-25-000251
Chunk: 310

Company: MIDDLESEX WATER CO
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1B
Chunk 310
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ments

(a) Organization - Middlesex Water Company
(Middlesex or the Company) is the parent company and sole shareholder of Tidewater Utilities, Inc. (Tidewater), Pinelands Water Company
(Pinelands Water) and Pinelands Wastewater Company (Pinelands Wastewater) (collectively, Pinelands), Utility Service Affiliates, Inc.
(USA), Utility Service Affiliates (Perth Amboy) Inc. (USA-PA) and Twin Lakes Utilities, Inc. (Twin Lakes). Southern Shores Water Company,
LLC (Southern Shores) and White Marsh Environmental Systems, Inc. (White Marsh) are wholly-owned subsidiaries of Tidewater. The terms
“we,” “our,” and “us” collectively refer to Middlesex and its subsidiaries,

Middlesex has operated as a water utility in New
Jersey since 1897 and in Delaware, through our wholly-owned subsidiary, Tidewater, since 1992. We are in the business of providing an
essential water utility service for domestic, commercial, municipal, industrial and fire protection purposes. We also operate New Jersey
municipal water, wastewater and storm water systems under contract and provide unregulated water and wastewater services in New Jersey
and Delaware through our subsidiaries. Our rates charged to customers for water and wastewater services, the quality of services we provide
and certain other matters are regulated in New Jersey and Delaware by the New Jersey Board of Public Utilities (NJBPU) and the Delaware
Public Service Commission (DEPSC), respectively. Our USA, USA-PA and White Marsh subsidiaries are not regulated utilities.

(b) Principles of Consolidation –
The financial statements for Middlesex and its wholly-owned subsidiaries (the Company) are reported on a consolidated basis. All significant
intercompany accounts and transactions have been eliminated. Other financial investments in which the Company holds a 50% or less voting
interest and cannot exercise control over the operation and policies of the investments are accounted for under the equity method of accounting.
Under the equity method of accounting, the Company records its investment interests in Non-Utility Assets and its percentage share of
the earnings or losses of the investees in Other Income.

(c) System of Accounts – The
Company’s regulated utilities maintain their accounts in accordance with the Uniform System of Accounts prescribed by the NJBPU
and DEPSC.

(d) Regulatory Accounting - We maintain
our books and records in accordance with accounting principles generally accepted in the