Company: MSEX
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001174947-25-000251
Chunk: 6

Company: MIDDLESEX WATER CO
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1
Chunk 6
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 contract wholesale water supply and operations and maintenance services that are not under the jurisdiction of a state public
utility commission is subject to competition from other public utilities, municipalities and other entities. Although Tidewater has been
granted exclusive franchises for its existing community water systems, the ability to expand service areas can be affected by the Delaware
Public Service Commission (DEPSC) awarding franchises to other regulated water utilities with whom we compete for such franchises and
for projects.

Regulation 

Our rates charged to customers for utility services,
the quality of the services we provide and certain other matters are regulated by the state public utility commissions in the states where
we operate, including the NJBPU and the DEPSC (collectively, the Public Utility Commissions).

Our USA, USA-PA and White Marsh subsidiaries are
not regulated public utilities as related to rates and service quality. However, they are subject to federal and state environmental regulations
with respect to water quality and wastewater effluent quality to the extent such services are provided.

We are subject to environmental and water quality
regulation by the following regulatory agencies (collectively, the Government Environmental Regulatory Agencies):

    ●
    United States Environmental Protection Agency (USEPA);
  
    ●
    New Jersey Department of Environmental Protection (NJDEP) with respect to operations in New Jersey; and 
  
    ●
    Delaware Department of Natural Resources and Environmental Control, the Delaware Department of Health and Social Services-Division of Public Health (DEDPH), and the Delaware River Basin Commission  with respect to operations in Delaware.

In addition, our issuances of equity securities
are subject to the prior approval of the NJBPU and require registration with the United States Securities and Exchange Commission. Our
issuances of long-term debt securities are subject to the prior approval of the respective state Public Utility Commissions.

Regulation of Rates and Services 

For regulated rate setting purposes, we account
separately for our regulated utility operations to facilitate independent rate setting by the applicable Public Utility Commissions.

6 

In determining our regulated utility rates, the
respective Public Utility Commissions consider the revenue, expenses and utility infrastructure used and useful in providing service to
the public. Rate determinations by the respective Public Utility Commissions do not guarantee achievement by our regulated utility companies
of specific rates of return for our regulated utility operations. Thus, we may not achieve the rates of return authorized by the Public
Utility Commissions. In addition, there can be no assurance that any