Company: MSEX
Filing Date: 2025-03-11
Form Type: 10-K/A
Source: 0001174947-25-000318
Chunk: 16

Company: MIDDLESEX WATER CO
Filing Date: 2025-03-11
Form: 10-K/A
Chunk 16
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) 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 $ 1.7million 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. Regulatory Matters We have recorded certain costs as regulatory assets because we expect full recovery of, or are currently recovering, these costs in the rates we charge customers. These deferred costs have been excluded from rate base and, therefore, we are not earning a return on the unamortized balances. We record regulatory liabilities for amounts expected to be refunded to customers in the rate making process. These items are detailed as follows: 13

|                              | Regulatory 
 Assets     | (In Thousands) 
 December 31,   |    2024 |     |   |    2023 |
|:-----------------------------|:-----------|:---------------|--------:|:----|:--|--------:|
| Income Taxes (a)             |            | $              |  89,825 |     | $ |  84,419 |
| Other (b)                    |            |                |  11,958 |     |   |   6,275 |
| Total                        |            | $              | 101,783 |     | $ |  90,694 |
| Regulatory Liabilities       |            |                |         |     |   |         |
| Income Taxes (c)             |            | $              |  27,380 |     | $ |  28,188 |
| Cost of Removal (d)          |            |                |  20,595 |     |   |  19,727 |
| Employee Benefit Plans (e)   |            |                |   9,435 |     |   |   1,471 |
| Lawsuit Settlement (f)       |            |                |   5,334 |     |   |