Company: MSEX
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001174947-25-000677
Chunk: 11

Company: MIDDLESEX WATER CO
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 1
Chunk 11
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 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%.

Note 3 – Capitalization

Common Stock – During the three months
ended March 31, 2025 and 2024, there were 4,228 common shares (approximately $0.2 million) and 4,775 common shares (approximately $0.3
million) respectively, issued under the Middlesex Water Company Investment Plan.

Middlesex has received approval from the NJBPU to
issue and sell up to 1.0 million shares of its common stock, without par value, through December 31, 2025. Sales of additional shares
of common stock are part of the Company’s comprehensive financing plan to fund its multi-year utility plant infrastructure investment
program.

Long-term Debt – Subject to regulatory
approval, the Company periodically issues long-term debt to fund its investments in utility plant. To the extent possible and fiscally
prudent, the Company finances qualifying capital projects under State Revolving Fund (SRF) loan programs in New Jersey and Delaware. These
government programs provide financing at interest rates typically below rates available in the broader financial markets. A portion of
the borrowings under the New Jersey SRF is interest-free.

8 

Middlesex has received approval from the NJBPU to
borrow up to $300.0 million from the New Jersey SRF Program, the New Jersey Economic Development Authority, private placement and other
financial institutions as needed through December 31, 2025. The Company expects to issue debt securities in a series of one or more transaction
offerings over a multi-year period to help fund Middlesex’s multi-year capital construction program.

In September 2024, Tidewater closed on a $2.2 million
Delaware SRF loan with a 0.0% interest rate with maturity dates in 2044. This loan is for costs associated with Tidewater’s obligation,
as required by federal law and Delaware regulations, to identify and inventory lead service lines throughout Tidewater’s service
area. T