Company: MSEX
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001174947-25-001119
Chunk: 85

Company: MIDDLESEX WATER CO
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 8
Chunk 85
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ewater System revenues increased $1.2 million due to customer growth and an interim rate increase effective
November 1, 2024 partially offset by lower customer consumption driven by unfavorable weather; and

●Non-regulated revenues decreased $0.4 million, primarily due to lower supplemental contract services;
and

●All other revenue categories increased $0.1 million.

Operations and Maintenance Expense

Operations and Maintenance Expense for the six months
ended June 30, 2025 increased $1.9 million from the same period in 2024 due to increased production costs from weather-driven lower water
quality, increased weather-driven main break repair costs, higher labor cost due to wage and employee headcount increases and the one-time
recovery in 2024 of previous water treatment operating costs at Middlesex’s Park Avenue Plant in connection with Middlesex’s
2023 rate case order, partially offset by higher capitalizable costs.

Depreciation

Depreciation expense for the six months ended June
30, 2025 increased $1.5 million from the same period in 2024 due to higher average utility plant in service and the one-time recovery
in 2024 of previous depreciation costs related to the PFAS treatment upgrades at Middlesex’s Park Avenue Plant in connection with
Middlesex’s 2023 rate case order,

Other Taxes

Other Taxes for the six months ended June 30, 2025
increased $0.3 million from the same period in 2024 primarily due to higher gross receipts taxes on higher revenue in our Middlesex system.

24 

Other Income, net

Other Income, net for the six months ended June 30,
2025 decreased $4.3 million from the same period in 2024 due to lower actuarially-determined retirement benefit plans non-service benefit
and the one-time recovery in 2024 of carrying costs on PFAS treatment upgrades at Middlesex’s Park Avenue Plant in connection with
Middlesex’s 2023 rate case order, partially offset by higher Allowance for Funds Used During Construction from increased capital
expenditures.

Interest Charges

Interest Charges for the six months ended June 30,
2025 decreased $1.0 million from the same period in 2024 due to lower average debt outstanding and lower average interest rates.

Income Taxes

Income Taxes for the six months ended June 30, 2025
decreased by $2.1 million from the same period in 2024, primarily due to lower pret