Company: MSEX
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001174947-25-000251
Chunk: 864

Company: MIDDLESEX WATER CO
Filing Date: 2025-02-28
Form: 10-K
Item: Item 5
Chunk 864
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 Middlesex System revenues increased by $4.2 million due to the implementation of the final phase of the 2021 base rate case increase on January 1, 2023 and the PWAC rate increase offset by lower weather-driven demand across all customer classes;
  
    ●
    Tidewater System revenues decreased by $0.9 million due to a DEPSC ordered rate reduction in September 2022, lower customer connection fees and lower weather-driven customer demand partially offset by an increase in customers;
  
    ●
    Pinelands System revenues increased $0.2 million due to the implementation of a base rate increase effective April 15, 2023; and
  
    ●
    Non-regulated revenues increased $0.5 million, primarily due to higher supplemental contract services.

29 

Operation and Maintenance Expense

Operation and maintenance expenses for the year
ended December 31, 2023 increased $4.0 million from the same period in 2022 due to increased variable production costs due to weather-driven
changes in water quality and higher chemical prices, higher outside service costs due to production instrumentation calibration activities,
increases in labor costs due to wage increases and higher bad debt expense due to higher anticipated customer receivable write-offs. Partially
offsetting these increases was lower weather-related main break activity in our Middlesex System during the winter months.

Depreciation

Depreciation expense for the year ended December
31, 2023 increased $2.2 million from the same period in 2022 due to a higher level of utility plant in service.

Other Taxes

Other taxes for the year ended December 31, 2023
increased $0.5 million from the same period in 2022 primarily due to higher revenue related taxes on increased revenues in our Middlesex
system.

Gain on Sale of Subsidiary 

Middlesex recognized a $5.2 million gain on the
sale of its regulated Delaware wastewater subsidiary in January 2022.

Other Income, net

Other Income, net for the year ended December
31, 2023 decreased $1.2 million from the same period in 2022 primarily due to lower actuarially-determined retirement benefit plans non-service
benefit.

Interest Charges

Interest charges for the year ended December 31,
2023 increased $3.8 million from the same period in 2022 due to higher average debt outstanding and higher average interest rates in 2023
as compared to 2022.

Income