Company: MSEX
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001174947-25-000251
Chunk: 753

Company: MIDDLESEX WATER CO
Filing Date: 2025-02-28
Form: 10-K
Item: Item 4
Chunk 753
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 - Includes further upgrade of our enterprise resource planning system and hardware and software purchases for other IT systems, including approximately $2 million in both 2026 and 2027 for upgrades of our customer information system.
  
    ●
    Other - Includes purchase of transportation equipment, tools, furniture, laboratory equipment, security systems and other general infrastructure needs including improvements to field and inventory management facilities in Iselin, New Jersey.

The actual amount and timing of capital expenditures
is dependent on the need for replacement of existing infrastructure, customer growth, residential new home construction and sales, project
scheduling and continued refinement of project scope and costs.

31 

To fund our capital program in 2025, we estimate we will utilize some
or all of the following:

    ●
    Internally generated funds;
  
    ●
    Short-term borrowings, as needed, through $140 million of available lines of credit with several financial institutions.  As of December 31, 2024, $23.0 million was outstanding under these lines of credit (see discussion under “Sources of Liquidity-Short-term Debt” below);
  
    ●
    Proceeds from the Delaware State Revolving Fund (SRF) Program. SRF programs provide lower cost financing for projects meeting certain water quality and system improvement benchmarks (see discussion under “Sources of Liquidity-Long-term Debt” below);
  
    ●
    Proceeds from other long-term borrowings (see discussion under “Sources of Liquidity-Long-term Debt” below); and
  
    ●
    Proceeds from common stock sales through the Investment Plan and proceeds from sales to the public of our common stock when market conditions are favorable (see discussion under “Sources of Liquidity-Common Stock” below).

Sources of Liquidity

Short-term
Debt - The Company has available lines of credit of $140 million. The outstanding borrowings under the credit lines at December 31,
2024 were $23.0 million, at a weighted average interest rate of 5.63%. 

The weighted average daily amounts of borrowings
outstanding under the credit lines and the weighted average interest rates on those amounts were $38.7 million and $35.7 million at 6.33%
and 6.13% for the years ended December 31, 2024 and 2023, respectively.

Long-term Debt - Subject to regulatory
approval, the Company periodically issues long-term debt to fund investments in utility plant. To the extent possible and f