Company: MSEX
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001174947-25-000251
Chunk: 166

Company: MIDDLESEX WATER CO
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1A
Chunk 166
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4  
     39.2 

    Other income, net 
     11.8  
     0.3  
     12.1  
     6.3  
     0.2  
     6.5 
  
    Interest expense 
     14.0  
     —  
     14.0  
     13.1  
     —  
     13.1 
  
    Income taxes 
     5.7  
     1.2  
     6.9  
     (0.1) 
     1.1  
     1.0 
  
    Net income 
    $41.6  
    $2.8  
    $44.4  
    $29.1  
    $2.5  
    $31.6 

Operating Revenues

Operating revenues for the year ended December
31, 2024 increased $25.6 million from the same period in 2023 due to the following factors:

    ●
    Middlesex System revenues increased by $19.9 million due to the base rate case increase on March 1, 2024, increased weather-driven customer demand, higher commercial and industrial customer billing and the implementation of the 2024 DSIC mechanism;
  
    ●
    Tidewater System revenues increased by $4.5 million due to customer growth and higher weather-driven customer demand;
  
    ●
    Pinelands System revenues increased $0.5 million due to scheduled rate increases from Pinelands 2023 NJBPU Order and increased weather-driven customer demand; and
  
    ●
    Non-regulated revenues increased $0.7 million, primarily due to higher supplemental contract services.

Operation and Maintenance Expense

Operation and maintenance expenses for the year
ended December 31, 2024 increased $9.2 million from the same period in 2023 due to increased legal, financial and regulatory matter costs,
increased labor costs due to annual wage increases, an enhanced water treatment process at Middlesex’s Park Avenue Plant, and higher
energy costs due to increased water demand.

Depreciation

Depreciation expense for the year ended December 31, 2024 decreased
$0.8 million from the same period in 2023 due to recovery of prior year depreciation related to upgrades at the Park Avenue Plant partially
offset by a higher