Company: MSEX
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001174947-25-001119
Chunk: 12

Company: MIDDLESEX WATER CO
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 1
Chunk 12
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 submit semi-annual surcharge filings to the NJBPU for qualifying capital
investments completed every six-months to be recovered up to $3.8 million or 2.5% of total annual revenues included in their June 2025
base rate increase request.

In July 2025, Middlesex and Pinelands Water
filed a joint petition with the NJBPU seeking approval of a Distribution System Improvement Charge (DSIC) Foundational Filing to recover
investments in qualifying capital improvements to their water distribution system for the three-year period ending October 2028. Under
the DSIC program, Middlesex and Pinelands Water submit semi-annual surcharge filings to the NJBPU for qualifying capital investments completed
every six-months to be recovered up to $7.6 million or 5% of total annual revenues included in their June 2025 base rate increase request.

In May 2025, the NJBPU approved a Middlesex DSIC rate,
effective June 1, 2025, that is expected to result in $1.1 million of annual revenues starting June 2025, which is in addition to the
existing $1.1 million of annual revenues from previous DSIC filings.  Middlesex expects to file for an additional DISC rate increase
in October 2025. 

In February 2025, the NJBPU approved Middlesex’s
petition to reset its Purchased Water Adjustment Clause (PWAC) tariff rate to recover additional annual costs of $0.5 million, primarily
for the purchase of treated water from a non-affiliated water utility regulated by the NJBPU. A PWAC is a rate mechanism that allows for
the recovery of increased purchased water costs between base rate case filings. The PWAC is reset to zero once those increased costs are
included in base rates. The new PWAC rate became effective March 1, 2025.

The NJBPU-approved Middlesex Lead Service Line Replacement
(LSLR) Plan continues and Middlesex is currently recovering costs of $0.6 million for replacing customer-owned lead service lines incurred
between July 2024 through December 2024, which will be recovered from March 2025 through August 2025. Costs of $0.3 million incurred between
January 2025 through June 2025 are expected to be recovered between September 2025 and February 2026. The LSLR surcharge is required to
be reset