**MIDDLESEX
        WATER COMPANY ANNOUNCES 23.5% INCREASE**
 **IN
        NET INCOME**
 
 *Drive
        for Efficiencies Continues in Third Quarter as Company
        Consolidates*
 *Customer
        Service Functions in New Jersey*
 
 
 ISELIN,
        NJ, (November 2,
        2007)   Middlesex Water Company (NASDAQ Global Select
        Market:MSEX), a provider of water and wastewater services in New Jersey and
        Delaware, today reported higher operating revenues and net income for the
        quarter ended September 30, 2007.
 **Third
        Quarter 2007 Results**
 Consolidated
        operating revenues for the third quarter rose to $24.1 million, up 6.6%,
        compared to $22.6 million for the same period in 2006.  This was
        largely due to extended dry weather, customer growth and rate relief in our
        Delaware territories served by Tidewater Utilities, Inc.   A base
        rate increase of an additional 12% granted to Tidewater
        in****February provided an additional $0.7 million in
        revenues.
 Earnings
        applicable to common stock rose to $4.1 million for the quarter ended September
        30, 2007, up from $3.3 million for the same period in 2006.  Net
        income increased 23.5% to $4.2 million from $3.4 million.  Due to a
        higher number of shares outstanding, basic earnings per share grew by 6.8%
        to
        $0.31 per share, from $0.29 per share, for the same period in
        2006.  Diluted earnings per share were also $0.31, compared to $0.28,
        in 2006.
 Middlesex
        Water Company CEO, Dennis W. Doll, said, “Seeking and obtaining appropriate rate
        relief while simultaneously implementing operating efficiencies is positioning
        us to better deliver value for our shareholders.  We are pleased with
        our third quarter results as well as with the most recent decision from the
        New
        Jersey Board of Public Utilities for a 9.1% or $5.0 million increase in base
        water rates, which became effective October 26, 2007.  We continue to
        seek ways to operate more efficiently, and, in the third quarter, began the
        consolidation of our customer service functions into a single location in
        New
        Jersey as a more efficient and effective approach to providing high quality
        service to our customers.”  This consolidation was completed as of
        November 1st.
 Total
        operating expenses for the three months ended September 30, 2007 increased
        to
        $16.4 million, up 5.4%, from $15.8 million in 2006.  This increase was
        attributed to a $0.3 million increase in water production costs due to increased
        sales in Delaware and higher unit costs for water and electric power costs
        in
        New Jersey.  Repair costs for water main breaks were $0.1 million
        higher than the same period in 2006.  All other expense categories
        increased by $0.2 million.
 
  
  **Nine-Month
        Results**
 For
        the
        nine-month period ended September 30, 2007, operating revenues increased
        to
        $64.9 million, up 4.8% from $61.9 million, for the same period in 2006. This
        increase was largely due to rate relief, customer growth and higher consumption,
        as well as increased revenues from our regulated and non-regulated wastewater
        operations in Delaware. Total operating expenses increased to $47.1 million,
        up
        5.0% from $44.9 million for the same period in 2006.
 Net
        income increased to $9.2 million, up 13.4% from $8.2 million, in
        2006.  Earnings applicable to common stock were $9.1 million, compared
        to $8.0 million for the same period in 2006. Basic and diluted earnings per
        share remained at $0.69 and $0.68 in 2007 for both, respectively,  the
        same as in 2006.
 “Having
        received recent approvals to operate in Maryland, combined with ongoing
        negotiations in several states, we are confident in our ability to expand
        our
        footprint and grow our regulated water and wastewater utility businesses
        as well
        as our non-regulated services,” added Doll.
 **Board
        Declares Quarterly Dividend**
 The
        Company’s Board of Directors has approved an increase in the Company's quarterly
        cash dividend to $0.1750 from $0.1725.  The new dividend rate is
        payable December 3, 2007 to shareholders of record as of November 15, 2007.
        This
        dividend increase raises the annual dividend to $0.70 from $0.69 per share
        of
        common stock.
 **About
        Middlesex Water Company**
 Middlesex
        Water Company, organized in
        1897, provides regulated and unregulated water and wastewater utility services
        in New Jersey and Delaware through various subsidiary companies. 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
 Middlesex
        Water Company
 1500
        Ronson Road
 Iselin,
        New Jersey  08830
 www.middlesexwater.com
  
  **MIDDLESEX
                  WATER COMPANY****CONDENSED
                  CONSOLIDATED STATEMENTS OF INCOME**(Unaudited)**(In
                  thousands except per share amounts)****Three
                  Months Ended September 30,**
              
              
              **Nine
                  Months Ended September 30,****2007**
              
              
              **2006**
              
              
              **2007**
              
              
              **2006**Operating
                  Revenues
              
              **$**
              **24,135**
              
              
              **$**
              **22,632**
              
              
              **$**
              **64,868**
              
              
              **$**
              **61,899**Operating
                  Expenses:Operations
              
              ****
              **10,915**
              
              
              ****
              **10,446**
              
              
              ****
              **31,250**
              
              
              ****
              **30,104**Maintenance
              
              ****
              **1,046**
              
              
              ****
              **907**
              
              
              ****
              **3,060**
              
              
              ****
              **2,440**Depreciation
              
              ****
              **1,887**
              
              
              ****
              **1,883**
              
              
              ****
              **5,607**
              
              
              ****
              **5,264**Other
                  Taxes
              
              ****
              **2,558**
              
              
              ****
              **2,537**
              
              
              ****
              **7,221**
              
              
              ****
              **7,110**Total
                  Operating Expenses
              
              ****
              **16,406**
              
              
              ****
              **15,773**
              
              
              ****
              **47,138**
              
              
              ****
              **44,918**Operating
                  Income
              
              ****
              **7,729**
              
              
              ****
              **6,859**
              
              
              ****
              **17,730**
              
              
              ****
              **16,981**Other
                  Income:Allowance
                  for Funds Used During Construction
              
              ****
              **168**
              
              
              ****
              **170**
              
              
              ****
              **421**
              
              
              ****
              **398**Other
                  Income
              
              ****
              **100**
              
              
              ****
              **41**
              
              
              ****
              **608**
              
              
              ****
              **140**Other
                  Expense
              
              ****
              **(9**
              **)**
              
              ****
              **(6**
              **)**
              
              ****
              **(21**
              **)**
              
              ****
              **(20**
              **)**Total
                  Other Income, net
              
              ****
              **259**
              
              
              ****
              **205**
              
              
              ****
              **1,008**
              
              
              ****
              **518**Interest
                  Charges
              
              ****
              **1,734**
              
              
              ****
              **1,890**
              
              
              ****
              **4,816**
              
              
              ****
              **5,213**Income
                  before Income Taxes
              
              ****
              **6,254**
              
              
              ****
              **5,174**
              
              
              ****
              **13,922**
              
              
              ****
              **12,286**Income
                  Taxes
              
              ****
              **2,096**
              
              
              ****
              **1,797**
              
              
              ****
              **4,680**
              
              
              ****
              **4,129**Net
                  Income
              
              ****
              **4,158**
              
              
              ****
              **3,377**
              
              
              ****
              **9,242**
              
              
              ****
              **8,157**Preferred
                  Stock Dividend Requirements
              
              ****
              **62**
              
              
              ****
              **62**
              
              
              ****
              **186**
              
              
              ****
              **186**Earnings
                  Applicable to Common Stock
              
              **$**
              **4,096**
              
              
              **$**
              **3,315**
              
              
              **$**
              **9,056**
              
              
              **$**
              **7,971**Earnings
                  per share of Common Stock:Basic
              
              **$**
              **0.31**
              
              
              **$**
              **0.29**
              
              
              **$**
              **0.69**
              
              
              **$**
              **0.69**Diluted
              
              **$**
              **0.31**
              
              
              **$**
              **0.28**
              
              
              **$**
              **0.68**
              
              
              **$**
              **0.68**Average
                  Number ofCommon
                  Shares Outstanding :Basic
              
              ****
              **13,206**
              
              
              ****
              **11,630**
              
              
              ****
              **13,191**
              
              
              ****
              **11,611**Diluted
              
              ****
              **13,537**
              
              
              ****
              **11,961**
              
              
              ****
              **13,522**
              
              
              ****
              **11,943**Cash
                  Dividends Paid per Common Share
              
              **$**
              **0.1725**
              
              
              **$**
              **0.1700**
              
              
              **$**
              **0.5175**
              
              
              **$**
              **0.5100**