Company: MSEX
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001174947-25-000251
Chunk: 9

Company: MIDDLESEX WATER CO
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1
Chunk 9
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 Tidewater’s obligation to identify and inventory lead service lines
throughout Tidewater’s service area, as required by federal law and Delaware regulations. Recovery of these costs began February
1, 2025 and is expected to continue through January 2028. Through December 31, 2024, Tidewater has spent $1.8 million, which is included
in Regulatory Assets.

In August 2024, Tidewater filed an application
with the DEPSC to increase its general rates for water service. In the application, Tidewater seeks an overall increase in annual operating
revenue of $10.3 million or 25.66% over current revenue. The request for rate increases will allow Tidewater to recover prudently incurred
investments made in the last ten years to support continued regulatory compliance, enhanced water quality, service reliability, security
and resiliency of the water utility infrastructure assets. Effective October 30, 2024, Tidewater received approval of the DEPSC to suspend
its DSIC rate and implement an interim rate increase, which is expected to result in approximately $2.5 million of annual revenues, subject
to refund pending the outcome of the rate case application.

In February 2025, Tidewater and the Town of Ocean
View, Delaware’s (Ocean View) joint application of Tidewater’s purchase of all of the rights, title, and interest in the water
utility assets of Ocean View for $4.6 million was approved by the DEPSC. Ocean View serves approximately 900 customers in Sussex County,
Delaware. Tidewater currently provides water service to most residents of Ocean View other that the 900 customers currently served by
Ocean View. Closing on this purchase is expected by April 2025.

Southern Shores Rate Matters

Southern Shores provides water service to a 2,200
unit condominium community in Sussex County, Delaware under a DEPSC-approved agreement expiring December 31, 2029 .  Under the agreement,
rates are increased when there are unanticipated capital expenditures or regulatory related changes in operating expenses exceed certain
thresholds. In 2024, capital expenditures did exceed the established threshold. In addition, rates are increased annually by the lesser
of the regional Consumer Price Index or 3%. Effective January 1, 2025, Southern Shores rates were increased $0.1 million or 6.51%.

Regulatory Service Matters

Twin Lakes Utilities