Company: MSEX
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001174947-25-000251
Chunk: 320

Company: MIDDLESEX WATER CO
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1B
Chunk 320
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 Receiver Utility to acquire the Twin Lakes water system and for Middlesex, the parent
company of Twin Lakes, to submit $1.7 million into an escrow account within 30 days. In January 2025, the United States Court of Appeals
for the Third Circuit (Third Circuit Court) upheld the PAPUC Order. Following the Third Circuit Court’s decision, Middlesex will
not pursue further litigation in the federal courts and intends to submit the required escrow payment to complete the Receiver Utility’s
acquisition of the Twin Lakes system. The estimated loss recorded by the Company related to this matter, and the financial results, total
assets and financial obligations of Twin Lakes are not material to Middlesex. 

Regulatory Matters

We have recorded certain costs as regulatory assets
because we expect full recovery of, or are currently recovering, these costs in the rates we charge customers. These deferred costs have
been excluded from rate base and, therefore, we are not earning a return on the unamortized balances. We record regulatory liabilities
for amounts expected to be refunded to customers in the rate making process. These items are detailed as follows:

50 

    (In Thousands)

    December 31,
  
     Regulatory
Assets 
    2024 
    2023
  
    Income Taxes (a) 
    $89,825  
    $84,419 
  
    Other (b) 
     11,958  
     6,275 
  
    Total 
    $101,783  
    $90,694 

     Regulatory Liabilities 

    Income Taxes (c) 
    $27,380  
    $28,188 
  
    Cost of Removal (d) 
     20,595  
     19,727 
  
    Employee Benefit Plans (e) 
     9,435  
     1,471 
  
    Lawsuit Settlement (f) 
     5,334  
     63,635 
  
    New Jersey Revenue Taxes (g) 
     1,813  
     — 
  
    Total 
    $64,557  
    $113,021 

(a) The recovery period for income taxes is dependent
upon when the temporary differences between the tax and book treatment of various items reverse.

(b) Other primarily includes deferred costs for
rate cases and tank painting.

(c) The 2017 Tax Act reduced the statutory corporate