Company: MSEX
Filing Date: 2025-03-11
Form Type: 10-K/A
Source: 0001174947-25-000318
Chunk: 7

Company: MIDDLESEX WATER CO
Filing Date: 2025-03-11
Form: 10-K/A
Chunk 7
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 follows the guidance provided in Accounting Standards Codification (ASC) 980, Regulated Operations. In accordance with ASC 980, Regulated Operations, costs and obligations are deferred if it is probable that these items will be recognized for rate-making purposes in future rates. Accordingly, we have recorded costs and obligations, which will be amortized over various future periods. Any change in the assessment of the probability of rate-making treatment will require us to change the accounting treatment of the deferred item. We have no reason to believe any of the deferred items that are recorded will be treated differently by the regulators in the future. For additional information, see Note 2 – Rate and Regulatory Matters. (e) Retirement Benefit Plans- We maintain a noncontributory defined benefit pension plan (Pension Plan), which covers all active employees who were hired prior to April 1, 2007, as well as a defined contribution plan in which all employees are eligible to participate. In addition, the Company maintains an unfunded supplemental plan for certain of its executive officers. The Company has a retirement benefit plan other than pensions (Other Benefits Plan) for substantially all of its retired employees. Employees hired after March 31, 2007 are not eligible to participate in this plan. Coverage includes healthcare and life insurance. 8

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