Company: MSEX
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001174947-25-000251
Chunk: 898

Company: MIDDLESEX WATER CO
Filing Date: 2025-02-28
Form: 10-K
Item: Item 5
Chunk 898
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 certain asset retirement costs through rates charged to customers
as an approved component of depreciation expense.

(e) Retirement benefits include pension and other
retirement benefits that have been recorded on the Consolidated Balance Sheet in accordance with the guidance provided in ASC 715, Compensation
– Retirement Benefits. These amounts represent obligations less than current funding.

(f) The net proceeds available to Middlesex from
the 3M Settlement Agreement were recorded as a regulatory liability and are being used for future related operating and maintenance costs.

(g) Revenue related taxes paid by the Company's
New Jersey Regulated subsidiaries, and reflected in those subsidiaries current base rates, were above enacted rates and will be refunded
back to customers in a future rate proceeding.

51 

Note 3 – Income Taxes 

Income tax expense (benefit) differs from the
amount computed by applying the statutory rate on book income subject to tax for the following reasons:

    (In Thousands)

    Years Ended December 31,

    2024 
    2023 
    2022
  
    Income Tax at Statutory Rate 
    $10,764  
    $6,839  
    $9,590 
  
    Tax Effect of: 

    Utility Plant Related 
     (659) 
     (1,495) 
     (1,106)
  
    Tangible Property Repairs 
     (4,535) 
     (5,475) 
     (6,767)
  
    State Income Taxes – Net 
     1,270  
     1,117  
     1,296 
  
    Other 
     65  
     55  
     227 
  
    Total Income Tax Expense 
    $6,905  
    $1,041  
    $3,240 

Income tax expense (benefit) is comprised of the following:

    (In Thousands)

    Years Ended December 31,

    2024 
    2023 
    2022
  
    Current: 

    Federal 
    $1,554  
    $2,952  
    $425 
  
    State 
     1,126  
     1,066  
     1,381 
  
    Deferred: 

    Federal 
     3,802  
     (3,261) 
     1,242 
  
    State 
     482  
     348