Company: MSEX
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001174947-25-000251
Chunk: 416

Company: MIDDLESEX WATER CO
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1C
Chunk 416
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 $(38)
  
    Discount Rate 1% Decrease 
     10,814  
     1,338 

Other Benefits Plan

    Actuarial Assumptions 
    Estimated  Increase/ (Decrease)  on PBO (000s)  
    Estimated  Increase/ (Decrease)  on Expense (000s) 
  
    Discount Rate 1% Increase 
    $(3,299) 
    $(454)
  
    Discount Rate 1% Decrease 
     4,075  
     551 
  
    Healthcare Cost Trend Rate 1% Increase 
     3,434  
     673 
  
    Healthcare Cost Trend Rate 1% Decrease 
     (2,824) 
     (549)

Recent Accounting Standards 

See Note 1(q) of the Notes to Consolidated Financial
Statements for a discussion of recent accounting pronouncements.

36 

ITEM 7A.QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK.

We are exposed to market risk associated with
changes in interest rates and commodity prices. The Company is subject to the risk of fluctuating interest rates in the normal course
of business. Our policy is to manage interest rates through the use of fixed rate long-term debt and, to a lesser extent, variable rate
short-term debt. The Company’s interest rate risk related to existing fixed rate, long-term debt is not material due to the term
of the majority of our First Mortgage Bonds, which have final maturity dates ranging from 2026 to 2059. Over the next twelve months, approximately
$7.7 million of the current portion of existing long-term debt instruments will mature. The Company manages its interest rate risk related
to existing variable-rate short-term debt by limiting our variable rate exposure. Applying a hypothetical change in the rate of interest
charged by 10% on those fixed- and variable-rate borrowings would not have a material effect on our earnings. Fixed rate long-term debt
and variable rate short-term debt agreements were not entered into for trading purposes.

Our risks associated with commodity price increases
for chemicals, electricity and other commodities are reduced through contractual arrangements and the ability to recover price increases
through rates. Non-performance by these commodity suppliers could have a material adverse impact on our results of operations, financial
position and cash flows.

We are exposed to credit risk for both our Regulated
and Non-Regulated business segments. Our