Company: MSEX
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001174947-25-001119
Chunk: 58

Company: MIDDLESEX WATER CO
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 8
Chunk 58
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 is permitted.   Prospective, with retrospective application also permitted.   The Company is currently evaluating the requirements of ASU 2024-03.  ASU 2023-09 “Improvements to Income Tax Disclosures”   The ASU amends certain income tax disclosure requirements, including adding requirements to present the reconciliation of income tax expense computed at the statutory rate to actual income tax expense using both percentages and amounts and providing a disaggregation of income taxes paid. Further, certain disclosures are eliminated, including the current requirement to disclose information on changes in unrecognized tax benefits in the next 12 months.   The ASU is effective for the Company beginning with its annual financial statements for the year ending December 31, 2025. Early adoption is permitted.   Prospective, with retrospective application also permitted.   The Company is currently evaluating the requirements of ASU 2023-09. 

Note 2 – Rate and Regulatory Matters

Middlesex – In May 2025, Middlesex and
its Pinelands wholly owned subsidiaries filed a joint petition with the New Jersey Board of Public Utilities (NJBPU) seeking permission
for consolidation between the three entities  by a corporate reorganization intended to combine the joint petitioning
entities into Middlesex. The combination is expected to provide efficiency and benefits to our customers in various areas.

7 

In June 2025, Middlesex and Pinelands filed a
joint petition with the NJBPU to request an increase in annual base revenues by approximately $24.9 million or 19.3%. The request
will allow Middlesex and Pinelands recovery of prudently-incurred investments made to meet water and wastewater quality and
environmental regulations and to continue to provide safe and reliable water and wastewater service to its customers. Under New
Jersey statute, the NJPBU must render a decision within nine months of filing a base rate change petition. If a decision is not
rendered within nine months, Middlesex can implement interim rates up to the full amount of the requested increase.

In July 2025, Middlesex and Pinelands submitted
a joint petition with the NJBPU seeking approval of a Resiliency and Environmental System Improvement Charge (RESIC) Foundational Filing
for the recovery of certain costs of investments for the three-year period ending October 2028 related to compliance with requirements
to address existing and emerging chemical elements or compound, installation of new plant or equipment or replacement of existing plant
or equipment to further