Company: MSEX
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001174947-25-001119
Chunk: 23

Company: MIDDLESEX WATER CO
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 1
Chunk 23
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 30,

    2025 
    2024 
    2025 
    2024
  
    Average Daily Amounts Outstanding 
    $47,018  
    $62,934  
    $38,304  
    $56,463 
  
    Weighted Average Interest Rates 
     5.43%  
     6.43%  
     5.43%  
     6.42% 

Note 7 – Commitments and Contingent Liabilities

Water Supply – Middlesex has an agreement
with the New Jersey Water Supply Authority (NJWSA) for the purchase of untreated water through November 30, 2048. This agreement with
the NJWSA provides for an average purchase of 27 million gallons a day (mgd) with a peak up to 47.0 mgd. Pricing is set annually by the
NJWSA through a public rate making process. The agreement has provisions for additional pricing in the event Middlesex overdrafts or exceeds
certain monthly and annual thresholds.

Middlesex also has an agreement with a non-affiliated
NJBPU-regulated water utility for the purchase of treated water. This agreement, which expires February 27, 2031, provides for the minimum
purchase of 3.0 mgd of treated water with provisions for additional purchases if needed.

Tidewater contracts with the City of Dover in Delaware
to purchase treated water of up to 75.0 million gallons annually.

Purchased water costs are shown below:

    (In Thousands)

    Three Months Ended 
    Six Months Ended

    June 30, 
    June 30,

    2025 
    2024 
    2025 
    2024

    Treated 
    $1,107  
    $992  
    $2,098  
    $1,901 
  
    Untreated 
     897  
     861  
     1,784  
     1,711 
  
    Total Costs 
    $2,004  
    $1,853  
    $3,882  
    $3,612 

Leases – The Company determines if an
arrangement is a lease at inception. Generally, a lease agreement exists if the Company determines that the arrangement gives the Company
control over the use of an identified asset and obtains substantially all of the benefits from the identified asset.