Company: MSEX
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001174947-25-000677
Chunk: 86

Company: MIDDLESEX WATER CO
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 2
Chunk 86
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 due to the following factors:

●Middlesex System revenues increased $3.4 million due to the base rate increase effective March 1, 2024,
DSIC rate increases and increased general meter service and wholesale customer demand;

●Tidewater System revenues increased $0.6 million due to customer growth, an interim rate increase effective
November 1, 2024 and increased customer demand; and

●Non-regulated revenues decreased $0.2 million, primarily due to lower supplemental contract services.

Operations and Maintenance Expense

Operations and Maintenance
Expense for the three months ended March 31, 2025 increased $0.6 million from the same period in 2024 due to increased variable production
costs from higher customer demand, increased weather-driven main break activity 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 three months ended March
31, 2025 increased $1.1 million from the same period in 2024 due to higher average utility plant in service during the quarter 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 three months ended March 31, 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.

Other Income, net

Other Income, net for the three months ended March
31, 2025 decreased $3.6 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 the Middlesex’s 2023 rate case order.

21 

Interest Charges

Interest Charges for the three months ended March
31, 2025 decreased $0.6 million from the same period in 2024 due to lower average debt outstanding and lower average interest rates.

Income Taxes

Income Taxes for the three months ended March 31,
2025 decreased by $0.1 million from the same period in 2024, primarily due to lower