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

Company: MIDDLESEX WATER CO
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1
Chunk 10
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, Inc. (Twin Lakes) –
Twin Lakes provides water services to approximately 115 residential customers in Shohola, Pennsylvania. In January 2021, the Pennsylvania
Public Utility Commission (PAPUC) appointed a large Pennsylvania based investor-owned utility as the receiver (the Receiver Utility) of
the Twin Lakes system. In November 2021, the PAPUC issued an Order ordering the Receiver Utility to acquire the Twin Lakes water system
and for Middlesex, the parent company of Twin Lakes, to submit $1.7 million into an escrow account within 30 days. In January 2025, the
United States Court of Appeals for the Third Circuit (Third Circuit Court) upheld the PAPUC Order. Following the Third Circuit Court’s
decision, Middlesex will not pursue further litigation in the federal courts and intends to submit the required escrow payment to complete
the Receiver Utility’s acquisition of the Twin Lakes system. The estimated loss recorded by the Company related to this matter,
and the financial results, total assets and financial obligations of Twin Lakes are not material to Middlesex. 

Water and Wastewater Quality and Environmental Regulations 

Government environmental regulatory agencies regulate
our operations in New Jersey and Delaware with respect to water supply, treatment and distribution systems and the quality of the water. 
They also regulate our operations with respect to wastewater collection, treatment and disposal.

Regulations relating to water quality require
us to perform tests to ensure our water meets state and federal quality requirements. We participate in industry-related research to identify
technologies that may reduce the level of 

8 

organic, inorganic and synthetic compounds found in water. The cost to water utilities to comply
with any proposed water quality standards depends in part on the limits set in the regulations and on the method selected to treat the
water to the required standards. We regularly test our water to determine compliance with government environmental regulatory agencies’
water quality standards.

In April 2024, the USEPA finalized drinking water
regulations for PFAS, establishing maximum contaminant levels (MCLs) for three PFAS compounds (Regulated PFAS) that are lower than the
current New Jersey Department of Environmental Protection MCLs adhered to by the Company. Under the new USEPA regulations effective April
2024, water systems must monitor for Regulated PFAS and have three years to complete initial monitoring (by April 2027), followed by ongoing
compliance monitoring. Water systems must also provide the public