Company: MSEX
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001174947-25-000251
Chunk: 890

Company: MIDDLESEX WATER CO
Filing Date: 2025-02-28
Form: 10-K
Item: Item 5
Chunk 890
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7.92%  
     7.92% 

46 

(k) Accounts Receivable – We record
bad debt expense based on a variety of factors such as our customers’ payment history, current economic conditions and trending
reasonable and supportable forecasts on expected collectability of accounts receivable. The allowance for credit losses was $2.7 million
and $2.1 million as of December 31, 2024 and 2023, respectively. For the years ended December 31, 2024, 2023 and 2022, bad debt expense
was $1.6 million, $1.0 million and $0.5 million, respectively. For the years ended December 31, 2024, 2023 and 2022, write-offs were $1.0
million, $1.2 million and $0.7 million, respectively.

(l) Revenues - The Company’s revenues
are primarily generated from regulated tariff-based water and wastewater utility services and non-regulated operation and maintenance
contracts for services on water and wastewater systems owned by others. Revenue from contracts with customers is recognized when control
of a promised good or service is transferred to customers at an amount that reflects the consideration to which the Company expects to
be entitled in exchange for those goods and services.

The Company’s regulated revenue results
from tariff-based water and wastewater utility services to residential, industrial, commercial, fire-protection and wholesale customers.
Residential customers are billed quarterly while most industrial, commercial, fire-protection and wholesale customers are billed monthly.
Payments by customers are due between 15 to 30 days after the invoice date. Revenue is recognized as the water and wastewater services
are delivered to customers which includes an accrual of unbilled revenues estimated from the last meter reading date to the end of the
accounting period utilizing factors such as historical customer data and regional weather indicators. Unearned Revenues and Advance Service
Fees include fixed service charge billings in advance to Tidewater customers recognized as service is provided to the customer.

Non-regulated service contract revenues consist
of base service fees as well as fees for additional billable services provided to customers. Fees are billed monthly and are due within
30 days after the invoice date. The Company considers the amounts billed to represent the value of these services provided to customers.
These contracts expire at various times through 2032 and contain remaining performance obligations for which the Company expects to recognize
revenue in the future. These contracts