Company: MSEX
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001174947-25-000251
Chunk: 34

Company: MIDDLESEX WATER CO
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1
Chunk 34
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 systems have five years (by April 2029) to implement solutions that reduce Regulated PFAS if monitoring shows
that drinking water levels exceed these MCLs.

Beginning in April 2029, water systems that have
Regulated PFAS in drinking water which exceeds one or more of these MCLs must take action to reduce levels of these PFAS compounds in
their drinking water and must provide notification to the public of the violation.

In anticipation of these new USEPA standards,
in 2023, the Company began implementing its strategy to meet these lower MCLs for Regulated PFAS and is currently performing preliminary
engineering studies to ensure that effective PFAS treatment approaches are implemented.

Capital Construction Program

The Company’s multi-year
capital construction program encompasses numerous projects designed to upgrade and replace utility infrastructure as well as enhance the
integrity and reliability of assets to better serve the current and future generations of water and wastewater customers. The Company
plans to invest approximately $93 million in 2025 in connection with this plan for projects that include, but are not limited to:

    ●
    Replacement of 19,550 linear feet of cast iron main in Woodbridge Township in our Middlesex System;
  
    ●
    Construction of new elevated water tanks in Delaware; and
  
    ●
    Various water main replacements and improvements.

Strategy for Growth

Our strategy for selective and sustainable growth is focused on the
following key areas:

    ●
    Invest in our utility infrastructure to build system resiliency and meet compliance requirements;
  
    ●
    Timely and adequate recovery of infrastructure investments and other costs to maintain and continually improve service quality;
  
    ●
    Selective acquisitions of investor and municipally-owned water and wastewater utilities; and
  
    ●
    Operation of municipal and industrial water and wastewater systems on a contract basis which meet our risk profile.

25 

Rates

Middlesex - The approval by the NJBPU in
February 2024 of the negotiated settlement of the Middlesex 2023 base rate case is expected to increase annual operating revenues by $15.4
million, effective March 1, 2024. The approved tariff rates were designed to recover increased operating costs as well as a return on
invested capital of $563.1 million, based on an authorized return on common equity of 9.6%. Middlesex has made capital infrastructure
investments to ensure prudent upgrade and replacement of its utility assets to support continued regulatory compliance, resilience and
overall quality