Company: MSEX
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001174947-25-000251
Chunk: 16

Company: MIDDLESEX WATER CO
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1
Chunk 16
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PU.

11 

ITEM 1A.RISK FACTORS.

Operational Risks 

Weather conditions and overuse of underground aquifers may interfere
with our sources of water, demand for water services and our ability to supply water to customers.

Our ability to meet current and future water demands
of our customers depends on the availability of an adequate supply of water. Unexpected conditions may interfere with our water supply
sources. Drought and overuse of underground aquifers may limit the availability of ground and/or surface water. Freezing weather may also
contribute to water transmission interruptions caused by water main breakage. Any interruption in our water supply could cause a reduction
in our revenue and profitability. These factors may adversely affect our ability to supply water in sufficient quantities to our customers.
Governmental drought restrictions, heightened levels of rainfall and temperatures during the typically warmer months that are cooler than
normal may result in decreased customer demand for water services and can adversely affect our revenue and earnings.

Our water sources or water service provided
to customers may become contaminated by naturally-occurring or man-made compounds and events. This may cause disruption in services and
impose operational and regulatory enforcement costs upon us to restore the water to required levels of quality as well as may damage our
reputation and cause private litigation claims against us.

Our sources of water or water in our distribution
systems have in the past and in the future may again become contaminated by naturally-occurring or man-made compounds or other contaminants.
In the event that any portion of our water supply sources or water distribution systems is contaminated, we may need to interrupt service
to our customers until we are able to remediate the contamination or substitute the flow of water from an uncontaminated water source
through existing interconnections with other water purveyors or through our transmission and distribution systems, where possible. We
may also incur significant costs in treating any contaminated water, or remediating the effects on our treatment and distribution systems,
through the use of our current treatment facilities, or development of new treatment methods. Our inability to substitute water supply
from an uncontaminated water source, or to adequately treat the contaminated water supply in a cost-effective manner, may reduce our revenues
or increase our expenses and make us less profitable.

We may be unable to recover costs associated with
treating water supplies through rates or, recovery of these costs may not occur in a timely manner. In addition, we could be subject to
claims for damages arising from government enforcement actions or legal actions arising out