Company: MSEX
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001174947-25-000251
Chunk: 1086

Company: MIDDLESEX WATER CO
Filing Date: 2025-02-28
Form: 10-K
Item: Item 7
Chunk 1086
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-driven customer demand;
  
    ●
    Pinelands System revenues increased $0.5 million due to scheduled rate increases from Pinelands 2023 NJBPU Order and increased weather-driven customer demand; and
  
    ●
    Non-regulated revenues increased $0.7 million, primarily due to higher supplemental contract services.

Operation and Maintenance Expense

Operation and maintenance expenses for the year
ended December 31, 2024 increased $9.2 million from the same period in 2023 due to increased legal, financial and regulatory matter costs,
increased labor costs due to annual wage increases, an enhanced water treatment process at Middlesex’s Park Avenue Plant, and higher
energy costs due to increased water demand.

Depreciation

Depreciation expense for the year ended December 31, 2024 decreased
$0.8 million from the same period in 2023 due to recovery of prior year depreciation related to upgrades at the Park Avenue Plant partially
offset by a higher level of utility plant in service. The conclusion of Middlesex’s base rate increase request allowed proceeds
from the 3M Settlement Agreement to reimburse Middlesex for previously incurred costs for the construction of the Park Avenue Plant PFAS
treatment upgrades (for further discussion of the 3M Settlement Agreement, see Rates, Middlesex above).

Other Taxes

Other taxes for the year ended December 31, 2024
increased $3.1 million from the same period in 2023 primarily due to higher gross receipts taxes on higher revenue in Middlesex and higher
payroll related taxes on increased labor costs.

28 

Other Income, net

Other Income, net for the year ended December
31, 2024 increased $5.6 million from the same period in 2023 primarily due to the recovery of carrying costs on the PFAS treatment upgrades
at the Park Avenue Plant and higher actuarially-determined retirement benefit plans non-service benefit offset by lower allowance for
funds used during construction on capital projects in construction.

Interest Charges

Interest charges for the year ended December 31,
2024 increased $0.9 million from the same period in 2023 due to higher average debt outstanding and higher average interest rates.

Income Taxes

Income taxes for the year ended December 31, 2024
increased by $5.9 million from the same period in 2023, primarily due to higher pre-tax income and
lower income tax benefits associated with decreased repair expenditures on tangible property in