Company: MSEX
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001174947-25-000251
Chunk: 1119

Company: MIDDLESEX WATER CO
Filing Date: 2025-02-28
Form: 10-K
Item: Item 7
Chunk 1119
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 file a base rate petition before November 2026.

In May 2024, the NJBPU approved a DSIC rate, effective
May 26, 2024, that is expected to result in $0.5 million of annual revenue. In November 2024, the NJBPU approved a DSIC rate, effective
November 26, 2024, that is expected to result in an additional $0.6 million of annual revenue. Middlesex expects to file for an additional
DSIC rate increase in April 2025.

In February 2025, the NJBPU approved Middlesex’s
petition to reset its Purchased Water Adjustment Clause (PWAC) tariff rate to recover additional annual costs of $0.5 million, primarily
for the purchase of treated water from a non-affiliated water utility regulated by the NJBPU. A PWAC is a rate mechanism that allows for
the recovery of increased purchased water costs between base rate case filings. The PWAC is reset to zero once those increased costs are
included in base rates. The new PWAC rate will be effective March 1, 2025.

49 

Tidewater – In August 2024, Tidewater
filed an application with the DEPSC to increase its general rates for water service. In the application, Tidewater seeks an overall increase
in annual operating revenue of $10.3 million or 25.66% over current revenue. The request for rate increases will allow Tidewater to recover
prudently incurred investments made in the last ten years to support continued regulatory compliance, enhanced water quality, service
reliability, security and resiliency of the water utility infrastructure assets. Effective October 30, 2024, Tidewater received approval
of the DEPSC to suspend its DSIC rate and implement an interim rate increase, which is expected to result in approximately $2.5 million
of annual revenues, subject to refund pending the outcome of the rate case application.

In September 2024, the DEPSC approved Tidewater’s
petition to recover up to $2.1 million of costs associated with Tidewater’s obligation to identify and inventory lead service lines
throughout Tidewater’s service area, as required by federal law and Delaware regulations. Recovery of these costs began February
1, 2025 and is expected to continue through January 2028. Through December 31, 2024, Tid