Company: MSEX
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001174947-25-000251
Chunk: 178

Company: MIDDLESEX WATER CO
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1A
Chunk 178
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 8.0% annual rate of increase in the per capita cost of covered healthcare benefits in 2025 with
the annual rate of increase declining 0.15% per year for 2026-2045, resulting in an annual rate of increase in the per capita cost of
covered healthcare benefits of 5.0% by year 2045.

35 

The following is a sensitivity analysis for certain actuarial assumptions
used in determining projected benefit obligations (PBO) and expenses for our retirement benefit plans:

Pension Plan

    Actuarial Assumptions 
    Estimated  Increase/ (Decrease)  on PBO (000s)  
    Estimated  Increase/ (Decrease)  on Expense (000s) 
  
    Discount Rate 1% Increase 
    $(8,940) 
    $(38)
  
    Discount Rate 1% Decrease 
     10,814  
     1,338 

Other Benefits Plan

    Actuarial Assumptions 
    Estimated  Increase/ (Decrease)  on PBO (000s)  
    Estimated  Increase/ (Decrease)  on Expense (000s) 
  
    Discount Rate 1% Increase 
    $(3,299) 
    $(454)
  
    Discount Rate 1% Decrease 
     4,075  
     551 
  
    Healthcare Cost Trend Rate 1% Increase 
     3,434  
     673 
  
    Healthcare Cost Trend Rate 1% Decrease 
     (2,824) 
     (549)

Recent Accounting Standards 

See Note 1(q) of the Notes to Consolidated Financial
Statements for a discussion of recent accounting pronouncements.

36 

ITEM 7A.QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK.

We are exposed to market risk associated with
changes in interest rates and commodity prices. The Company is subject to the risk of fluctuating interest rates in the normal course
of business. Our policy is to manage interest rates through the use of fixed rate long-term debt and, to a lesser extent, variable rate
short-term debt. The Company’s interest rate risk related to existing fixed rate, long-term debt is not material due to the term
of the majority of our First Mortgage Bonds, which have final maturity dates ranging from 2026 to 2059. Over the next twelve months, approximately