Company: MSEX
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001174947-25-000251
Chunk: 1225

Company: MIDDLESEX WATER CO
Filing Date: 2025-02-28
Form: 10-K
Item: Item 7A
Chunk 1225
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 there is no quoted market price and there is not an active trading market. For details, including
carrying value, interest rate and due date on these series of long-term debt, please refer to those series of long-term debt titled “Amortizing
Secured Notes” and “State Revolving Trust Notes” on the Consolidated Statements of Capital Stock and Long-Term Debt.
The carrying amount of these instruments was $229.8 million and $231.3 million at December 31, 2024 and 2023, respectively. Advances for
construction have carrying amounts of $22.6 million and $21.3 million at December 31, 2024 and 2023, respectively. Their relative fair
values cannot be accurately estimated since future refund payments depend on several variables, including new customer connections, customer
consumption levels and future rate increases.

58 

Note 7 - Employee Benefit Plans 

Pension Benefits

The Company’s Pension Plan covers all active
employees hired prior to April 1, 2007. Employees hired after March 31, 2007 are not eligible to participate in this plan, but can participate
in a defined contribution profit sharing plan that provides an annual contribution at the discretion of the Company, based upon a percentage
of the participants’ annual paid compensation. In order to be eligible for contribution, the eligible employee must be employed
by the Company on December 31st of the year to which the contribution relates. The Company maintains an unfunded supplemental
plan for a limited number of its executive officers. The Accumulated Benefit Obligation for the Company’s Pension Plan at December
31, 2024 and 2023 was $80.8 million and $83.7 million, respectively.

Other Benefits

The Company’s Other Benefits Plan covers
substantially all of its current retired employees. Employees hired after March 31, 2007 are not eligible to participate in this plan.
Coverage includes healthcare and life insurance.

Regulatory Treatment of Over/Underfunded Retirement Obligations

Because the Company is subject to rate regulation
in the states in which it operates, it is required to maintain its accounts in accordance with the regulatory authority’s rules
and guidelines, which may differ from other authoritative accounting pronouncements. In those instances, the Company follows the guidance
of ASC 980, Regulated Operations. Based on prior regulatory practice, and in accordance with the guidance in ASC 980, Regulated
Operations, the Company records underfunded