Company: MSEX
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001174947-25-000251
Chunk: 407

Company: MIDDLESEX WATER CO
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1C
Chunk 407
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iation expense for the year ended December
31, 2023 increased $2.2 million from the same period in 2022 due to a higher level of utility plant in service.

Other Taxes

Other taxes for the year ended December 31, 2023
increased $0.5 million from the same period in 2022 primarily due to higher revenue related taxes on increased revenues in our Middlesex
system.

Gain on Sale of Subsidiary 

Middlesex recognized a $5.2 million gain on the
sale of its regulated Delaware wastewater subsidiary in January 2022.

Other Income, net

Other Income, net for the year ended December
31, 2023 decreased $1.2 million from the same period in 2022 primarily due to lower actuarially-determined retirement benefit plans non-service
benefit.

Interest Charges

Interest charges for the year ended December 31,
2023 increased $3.8 million from the same period in 2022 due to higher average debt outstanding and higher average interest rates in 2023
as compared to 2022.

Income Taxes

Income taxes for the year ended December 31, 2023
decreased by $2.2 million from the same period in 2022, primarily due to greater income tax benefits associated
with increased repair expenditures on tangible property in the Middlesex System and lower pretax income due to gain on the sale of a subsidiary
in 2022. 

Liquidity and Capital Resources 

Cash Flows from Operating Activities

Cash flows from operating activities are largely
influenced by four factors: weather, adequate and timely rate increases, effective cost management and customer growth. The effect of
those factors on net income is discussed in the Results of Operations section above.

For the year ended December 31, 2024, cash flows
from operating activities increased $5.9 million to $58.7 million. The increase in cash flows from operating activities primarily resulted
from the impact of higher weather-driven customer demand and Middlesex’s approved base rate increase effective March 1, 2024.

Increases in certain operating costs impact our
liquidity and capital resources. We continually monitor the need for timely rate filing to minimize the lag between the time we experience
increased operating costs and capital expenditures and the time we receive appropriate rate relief. .

Cash Flows from Investing Activities

For the year ended December 31, 2024, cash flows
used in investing activities decreased $