Company: MSEX
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001174947-25-000251
Chunk: 193

Company: MIDDLESEX WATER CO
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1A
Chunk 193
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The Company’s costs for providing retirement
benefits are dependent upon numerous factors, including actual plan experience and assumptions of future experience. Retirement benefit
plan obligations and expense are determined based on investment performance, discount rates and various other demographic factors related
to the population participating in the Company’s retirement benefit plans, all of which can change significantly in future years.
For more information on the Company’s Retirement Benefit Plans, see Note 7 – Employee Benefit Plans.

(f) Utility Plant – Utility
Plant is stated at original cost as defined for regulatory purposes. Property accounts are charged with the cost of betterments and major
replacements of property. Cost includes direct material, labor and indirect charges for pension benefits and payroll taxes. The cost of
labor, materials, supervision and other expenses incurred in making repairs and maintenance of the properties is charged to the appropriate
expense accounts. At December 31, 2024, there was no event or change in circumstance that would indicate that the carrying amount of any
long-lived asset was not recoverable.

(g) Depreciation – Depreciation
is computed by each regulated member of the Company utilizing a rate approved by the applicable regulatory authority. The accumulated
provision for depreciation is charged with the cost of property retired, less salvage. The following table sets forth the range of depreciation
rates for the major utility plant categories used to calculate depreciation for the years ended December 31, 2024, 2023, and 2022. These
rates have been approved by the NJBPU or DEPSC:

    Source of Supply
    1.15% -   3.44%
    Transmission and Distribution (T&D):
  
    Pumping
    2.00% -   5.39%
    T&D – Mains
    1.10%  -   3.13%
  
    Water Treatment
    1.65% -   7.09%
    T&D – Services
    2.12%  -   3.16%
  
    General Plant
    2.08% - 17.84%
    T&D – Other
    1.61%  -   4.63%
  
    Wastewater Collection
    1.42% -   1.81%

Non-regulated fixed assets consist primarily of
office buildings, furniture and fixtures, and transportation equipment. These assets are recorded at original cost and depreciation is
cal