Company: MSEX
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001174947-25-000677
Chunk: 63

Company: MIDDLESEX WATER CO
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 8
Chunk 63
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water and must provide notification to the public of the violation.

In anticipation of these new USEPA standards, in 2023,
the Company began, and continues, implementing its strategy to meet these lower MCLs for Regulated PFAS and is currently performing preliminary
engineering studies to ensure that effective PFAS treatment approaches are implemented.

Capital
Construction Program - The Company’s
multi-year capital construction program encompasses numerous projects designed to upgrade and replace utility infrastructure as well
as enhance the integrity and reliability of assets to maintain and improve service for the current and future generations of water and
wastewater customers. The Company plans to invest approximately $93 million in 2025 in connection with this plan for projects
that include, but are not limited to:

19 

    ·
    Replacement of 19,550 linear feet of cast iron main in Woodbridge Township in our Middlesex System;
  
    ·
    Construction of new elevated water tanks in Delaware; and
  
    ·
    Various water main replacements and improvements.

The actual amount and timing of capital expenditures
is dependent on project scheduling and refinement of engineering estimates for certain capital projects.

Outlook

Our ability to increase operating income and net income
is based significantly on four factors: weather, adequate and timely rate relief, effective cost management and customer growth. Weather
patterns which can result in lower customer demand for water may occur at any time. As operating costs are anticipated to increase in
2025 in a variety of categories, we continue to implement plans to further streamline operations and further reduce and mitigate increases
in operating costs. Changes in customer water usage habits, as well as increases in capital expenditures and operating costs, are significant
factors in determining the timing and extent of rate increase requests.

Our investments in system infrastructure continue
to grow significantly and our operating costs are anticipated to increase in 2025 and 2026 in a variety of categories. These factors,
among others, may require a base rate increase request by Middlesex in mid-2025.

Overall, organic residential customer growth continues
in our Tidewater system (approximately 3.5% in 2024). However, current and evolving economic market conditions may challenge that growth.

Our strategy for selective and sustainable growth is focused on the following
key areas:

● Invest in our utility infrastructure to build system resiliency
and meet compliance requirements;

● Timely and adequate recovery of infrastructure investments and
other costs to maintain and continually improve service quality;

● Selective acquisitions of investor and municip