Company: MSEX
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001174947-25-000677
Chunk: 19

Company: MIDDLESEX WATER CO
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 1
Chunk 19
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 an implicit discount rate and as such the
Company used an estimated incremental borrowing rate (4.03%) based on the information available at the commencement date in determining
the present value of lease payments.

13 

Given the impacts of accounting for regulated operations,
and the resulting recognition of expense at the amounts recovered in customer rates, expenditures for operating leases are consistent
with lease expense and were $0.2 million for each of the three months ended March 31, 2025 and 2024, respectively.

Information related to operating lease ROU assets
and lease liabilities is as follows:

    (In Millions) 

    As of 

    March 31, 2025  
    December 31, 2024 
  
    ROU Asset at Lease Inception 
    $7.3  
    $7.3 
  
    Accumulated Amortization 
     (4.9) 
     (4.7)
  
    ROU Asset 
    $2.4  
    $2.6 

The Company’s future minimum operating lease commitments as
of March 31, 2025 are as follows:

    (In Millions) 
  
    2025 
    $0.5 
  
    2026 
     0.9 
  
    2027 
     0.9 
  
    2028 
     0.9 
  
    2029 
     0.9 
  
    Total Lease Payments 
    $4.1 
  
    Imputed Interest 
     (1.3)
  
    Present Value of Lease Payments 
     2.8 
  
    Less Current Portion* 
     (0.5)
  
    Non-Current Lease Liability 
    $2.3 

    *Included in Other Current Liabilities

Construction – In connection with the
Company’s planned capital expenditures, the Company has entered into several contractual construction agreements that total obligate
it to expend an estimated $20.0 million in the future. The actual amount and timing of capital expenditures is dependent on the need for
replacement of existing infrastructure, customer growth, residential new home construction and sales, project scheduling, supply chain
issues and continued refinement of project scope and costs.

Contingencies – Based on our operations
in the heavily-regulated water and wastewater industries, the Company is routinely involved in disputes, claims, lawsuits and other regulatory
and legal matters, including responsibility for fines