**MIDDLESEX
      WATER  RECEIVES BPU APPROVAL FOR**


**RATE
      INCREASE**





**ISELIN,
      NJ  (October 30, 2007)**   Middlesex Water
      Company (**NASDAQ Global Select Market: MSEX),**a provider of
      water, wastewater and related services,****has announced it
      has received approval from the New Jersey Board of Public Utilities (BPU) for
      a
      9.1%, or $5.0 million overall increase in base water rates on an interim basis.
      The rate increase, resulting from a settlement among the parties to the
      proceeding, has been categorized as “interim” until one of the intervening
      municipal utilities authorities in the matter formally acts on this settlement
      agreement at their next scheduled public meeting. The rate increase is effective
      October 26, 2007.


Middlesex
      Water filed a request for an overall increase of approximately 16.5% or $8.9
      million over current revenues in April 2007.  The request is designed
      to support its ongoing capital program and to cover costs of increases in
      operations, maintenance, labor and benefits, purchased power, taxes, corporate
      governance regulation and security.  Under the new interim rates, the
      average residential bill for a customer using 2,600 cubic feet (19,448 gallons)
      of water per quarter, would increase from $89.37 to $98.20, an increase of
      $8.83, or approximately 9.9%.


“We
      are
      pleased with this outcome, which was achieved through the cooperation of the
      various parties, well in advance of our initial estimated effective
      date.  Providing a safe, plentiful and reliable water supply to the
      nearly 400,000 people in our combined retail and wholesale customer base
      requires ongoing and prudent infrastructure investments,” said Dennis W. Doll,
      President and CEO. “Obtaining timely and adequate recovery of those costs
      enables us to continue delivering quality for our customers,” he
      added.


Middlesex
      Water Company, the largest entity in the Middlesex consolidated group of
      companies, presently serves retail customers in the Townships of Woodbridge,
      Edison, the Borough of South Plainfield, Carteret, Metuchen, the City of South
      Amboy, and the Township of Clark. The Company serves a significant population
      through wholesale contracts with the Boroughs of Highland Park and Sayreville,
      the Old Bridge Municipal Utilities Authority (MUA), the Marlboro Township MUA
      and the Township of East Brunswick.













**About
      Middlesex Water Company**


Middlesex
      Water Company, organized in 1897, is a water utility serving customers in
      central and southern New Jersey and in the State of Delaware. Headquartered
      in
      Iselin, NJ, Middlesex Water is subject to various Federal and State regulatory
      agencies concerning water quality standards.


For
      additional information regarding Middlesex Water Company, visit the Company’s
      web site at www.middlesexwater.com or call (732) 634-1500.


***This
      release contains forward looking statements within the meaning of the Private
      Securities Litigation Reform Act of 1995, including, among
      others,  our long-term strategy and expectations, the status of our
      acquisition program, the impact of our acquisitions, the impact of current
      and
      projected rate requests and the impact of our capital program on our
      environmental compliance. There are important factors that could cause actual
      results to differ materially from those expressed or implied by such
      forward-looking statements including: general economic business conditions,
      unfavorable weather conditions, the success of certain
      cost  containment initiatives, changes in regulations or regulatory
      treatment, availability and the cost of capital, the success of growth
      initiatives and other factors discussed in our filings with the Securities
      and
      Exchange Commission.***




***###***


Contact:
                Bernadette Sohler,
              Vice
                President – Corporate Affairs
              (732)
                634-1500





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