----

----

| þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|-----------------------------------------------------------------------------------------|

|  ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|------------------------------------------------------------------------------------------|

| New Jersey(State of incorporation) | 22-1114430(IRS employer identification no.) |
|------------------------------------|---------------------------------------------|

----

D

| PART I.    | FINANCIAL INFORMATION                                                                 | PAGE   |
|------------|---------------------------------------------------------------------------------------|--------|
|       |                                                                                  |   |
| Item 1.    | Financial Statements:                                                                 |   |
|       |                                                                                  |   |
|       | Condensed Consolidated Statements of Income                                           | 1      |
|       |                                                                                  |   |
|       | Condensed Consolidated Balance Sheets                                                 | 2      |
|       |                                                                                  |   |
|       | Condensed Consolidated Statements of Cash Flows                                       | 3      |
|       |                                                                                  |   |
|       | Condensed Consolidated Statements of Capital Stock and Long-term Debt                 | 4      |
|       |                                                                                  |   |
|       | Notes to Unaudited Condensed Consolidated Financial Statements                        | 5      |
|       |                                                                                  |   |
| Item 2.    | Management's Discussion and Analysis of Financial Condition and Results of Operations | 15     |
|       |                                                                                  |   |
| Item 3.    | Quantitative and Qualitative Disclosures of Market Risk                               | 20     |
|       |                                                                                  |   |
| Item 4.    | Controls and Procedures                                                               | 22     |
|       |                                                                                  |   |
| PART II.   | OTHER INFORMATION                                                                     |   |
|       |                                                                                  |   |
| Item 1.    | Legal Proceedings                                                                     | 22     |
|       |                                                                                  |   |
| Item 1A.   | Risk Factors                                                                          | 22     |
|       |                                                                                  |   |
| Item 2.    | Unregistered Sales of Equity Securities and Use of Proceeds                           | 22     |
|       |                                                                                  |   |
| Item 3.    | Defaults upon Senior Securities                                                       | 22     |
|       |                                                                                  |   |
| Item 4.    | Submission of Matters to a Vote of Security Holders                                   | 22     |
|       |                                                                                  |   |
| Item 5.    | Other Information                                                                     | 22     |
|       |                                                                                  |   |
| Item 6.    | Exhibits                                                                              | 23     |
|       |                                                                                  |   |
| SIGNATURES | 24                                                                                    |

----

Index

I

O

U

|                                                      |   | Three Months Ended September 30, |   |   | Nine Months Ended September 30, |   |
|-----------------------------------------------------------|--------|----------------------------------|--------|--------|---------------------------------|--------|
|                                                      |   | 2009                             |   |   | 2008                            |   |   | 2009 |   |   | 2008 |   |
|                                                      |   |                             |   |   |                            |   |   |   |   |   |   |   |
| Operating Revenues                                        |   | $                                | 25,498 |   |                            | $      | 25,653 |   |   | $ | 69,164 |   |   | $ | 69,543 |   |
|                                                      |   |                             |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Operating Expenses:                                       |   |                             |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Operations                                                |   |                             | 12,195 |   |                            |   | 11,579 |   |   |   | 35,725 |   |   |   | 33,299 |   |
| Maintenance                                               |   |                             | 1,090  |   |                            |   | 995 |   |   |   | 3,497 |   |   |   | 3,102 |   |
| Depreciation                                              |   |                             | 2,174  |   |                            |   | 1,987 |   |   |   | 6,370 |   |   |   | 5,872 |   |
| Other Taxes                                               |   |                             | 2,715  |   |                            |   | 2,708 |   |   |   | 7,699 |   |   |   | 7,715 |   |
|                                                      |   |                             |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Total Operating Expenses                                  |   |                             | 18,174 |   |                            |   | 17,269 |   |   |   | 53,291 |   |   |   | 49,988 |   |
|                                                      |   |                             |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Operating Income                                          |   |                             | 7,324  |   |                            |   | 8,384 |   |   |   | 15,873 |   |   |   | 19,555 |   |
|                                                      |   |                             |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Other Income (Expense):                                   |   |                             |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Allowance for Funds Used During Construction              |   |                             | 245    |   |                            |   | 180 |   |   |   | 727 |   |   |   | 445 |   |
| Other Income                                              |   |                             | 432    |   |                            |   | 150 |   |   |   | 760 |   |   |   | 668 |   |
| Other Expense                                             |   |                             | (31    | )      |                            |   | (12 | ) |   |   | (49 | ) |   |   | (169 | ) |
|                                                      |   |                             |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Total Other Income, net                                   |   |                             | 646    |   |                            |   | 318 |   |   |   | 1,438 |   |   |   | 944 |   |
|                                                      |   |                             |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Interest Charges                                          |   |                             | 1,791  |   |                            |   | 1,838 |   |   |   | 4,949 |   |   |   | 5,161 |   |
|                                                      |   |                             |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Income before Income Taxes                                |   |                             | 6,179  |   |                            |   | 6,864 |   |   |   | 12,362 |   |   |   | 15,338 |   |
|                                                      |   |                             |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Income Taxes                                              |   |                             | 2,152  |   |                            |   | 2,149 |   |   |   | 4,128 |   |   |   | 5,054 |   |
|                                                      |   |                             |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Net Income                                                |   |                             | 4,027  |   |                            |   | 4,715 |   |   |   | 8,234 |   |   |   | 10,284 |   |
|                                                      |   |                             |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Preferred Stock Dividend Requirements                     |   |                             | 52     |   |                            |   | 52 |   |   |   | 156 |   |   |   | 166 |   |
|                                                      |   |                             |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Earnings Applicable to Common Stock                       |   | $                                | 3,975  |   |                            | $      | 4,663 |   |   | $ | 8,078 |   |   | $ | 10,118 |   |
|                                                      |   |                             |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Earnings per share of Common Stock:                       |   |                             |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                     |   | $                                | 0.30   |   |                            | $      | 0.35 |   |   | $ | 0.60 |   |   | $ | 0.76 |   |
| Diluted                                                   |   | $                                | 0.29   |   |                            | $      | 0.35 |   |   | $ | 0.60 |   |   | $ | 0.75 |   |
|                                                      |   |                             |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Average Number of                                         |   |                             |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Common Shares Outstanding :                               |   |                             |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                     |   |                             | 13,458 |   |                            |   | 13,350 |   |   |   | 13,435 |   |   |   | 13,291 |   |
| Diluted                                                   |   |                             | 13,720 |   |                            |   | 13,617 |   |   |   | 13,698 |   |   |   | 13,601 |   |
|                                                      |   |                             |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Cash Dividends Paid per Common Share                      |   | $                                | 0.1775 |   |                            | $      | 0.1750 |   |   | $ | 0.5325 |   |   | $ | 0.5250 |   |
|                                                      |   |                             |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
|                                                      |   |                             |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
|                                                      |   |                             |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| See Notes to Condensed Consolidated Financial Statements. |   |                             |   |   |                            |   |   |   |   |   |   |   |   |

----

Index

A

|                                                      |                                                 |   |     |    |   |         |   |
|-----------------------------------------------------------|------------------------------------------------------|--------|----------|---------|--------|--------------|--------|
|                                                      |                                                 |   | Sept 30, |    |   | December 31, |   |
| ASSETS                                                    |                                                 |   | 2009     |    |   | 2008         |   |
| UTILITY PLANT:                                            | Water Production                                     |   | $        | 112,384 |   |         | $      | 107,517 |   |
|                                                      | Transmission and Distribution                        |   |     | 290,572 |   |         |   | 283,759 |   |
|                                                      | General                                              |   |     | 28,727  |   |         |   | 27,142 |   |
|                                                      | Construction Work in Progress                        |   |     | 16,614  |   |         |   | 11,653 |   |
|                                                      | TOTAL                                                |   |     | 448,297 |   |         |   | 430,071 |   |
|                                                      | Less Accumulated Depreciation                        |   |     | 75,384  |   |         |   | 70,544 |   |
|                                                      | UTILITY PLANT - NET                                  |   |     | 372,913 |   |         |   | 359,527 |   |
|                                                      |                                                 |   |     |    |   |         |   |   |   |
| CURRENT ASSETS:                                           | Cash and Cash Equivalents                            |   |     | 3,053   |   |         |   | 3,288 |   |
|                                                      | Accounts Receivable, net                             |   |     | 12,793  |   |         |   | 9,510 |   |
|                                                      | Unbilled Revenues                                    |   |     | 5,446   |   |         |   | 4,822 |   |
|                                                      | Materials and Supplies (at average cost)             |   |     | 1,622   |   |         |   | 1,475 |   |
|                                                      | Prepayments                                          |   |     | 1,712   |   |         |   | 1,481 |   |
|                                                      | TOTAL CURRENT ASSETS                                 |   |     | 24,626  |   |         |   | 20,576 |   |
|                                                      |                                                 |   |     |    |   |         |   |   |   |
| DEFERRED CHARGES                                          | Unamortized Debt Expense                             |   |     | 2,897   |   |         |   | 2,903 |   |
| AND OTHER ASSETS:                                         | Preliminary Survey and Investigation Charges         |   |     | 7,229   |   |         |   | 7,187 |   |
|                                                      | Regulatory Assets                                    |   |     | 31,205  |   |         |   | 31,910 |   |
|                                                      | Operations Contracts Fees Receivable                 |   |     | 3,736   |   |         |   | 3,708 |   |
|                                                      | Restricted Cash                                      |   |     | 6,618   |   |         |   | 7,049 |   |
|                                                      | Non-utility Assets - Net                             |   |     | 7,090   |   |         |   | 6,762 |   |
|                                                      | Other                                                |   |     | 495     |   |         |   | 378 |   |
|                                                      | TOTAL DEFERRED CHARGES AND OTHER ASSETS              |   |     | 59,270  |   |         |   | 59,897 |   |
|                                                      | TOTAL ASSETS                                         |   | $        | 456,809 |   |         | $      | 440,000 |   |
|                                                      |                                                 |   |     |    |   |         |   |   |   |
| CAPITALIZATION AND LIABILITIES                            |                                                 |   |     |    |   |         |   |   |
| CAPITALIZATION:                                           | Common Stock, No Par Value                           |   | $        | 108,896 |   |         | $      | 107,726 |   |
|                                                      | Retained Earnings                                    |   |     | 31,004  |   |         |   | 30,077 |   |
|                                                      | TOTAL COMMON EQUITY                                  |   |     | 139,900 |   |         |   | 137,803 |   |
|                                                      | Preferred Stock                                      |   |     | 3,373   |   |         |   | 3,375 |   |
|                                                      | Long-term Debt                                       |   |     | 126,730 |   |         |   | 118,217 |   |
|                                                      | TOTAL CAPITALIZATION                                 |   |     | 270,003 |   |         |   | 259,395 |   |
|                                                      |                                                 |   |     |    |   |         |   |   |   |
| CURRENT                                                   | Current Portion of Long-term Debt                    |   |     | 3,643   |   |         |   | 17,985 |   |
| LIABILITIES:                                              | Notes Payable                                        |   |     | 43,750  |   |         |   | 25,877 |   |
|                                                      | Accounts Payable                                     |   |     | 4,459   |   |         |   | 5,689 |   |
|                                                      | Accrued Taxes                                        |   |     | 8,090   |   |         |   | 7,781 |   |
|                                                      | Accrued Interest                                     |   |     | 944     |   |         |   | 2,053 |   |
|                                                      | Unearned Revenues and Advanced Service Fees          |   |     | 897     |   |         |   | 842 |   |
|                                                      | Other                                                |   |     | 1,082   |   |         |   | 1,243 |   |
|                                                      | TOTAL CURRENT LIABILITIES                            |   |     | 62,865  |   |         |   | 61,470 |   |
|                                                      |                                                 |   |     |    |   |         |   |   |   |
| COMMITMENTS AND CONTINGENT LIABILITIES (Note 7)           |                                                 |   |     |    |   |         |   |   |
|                                                      |                                                 |   |     |    |   |         |   |   |   |
| DEFERRED CREDITS                                          | Customer Advances for Construction                   |   |     | 21,322  |   |         |   | 22,089 |   |
| AND OTHER LIABILITIES:                                    | Accumulated Deferred Investment Tax Credits          |   |     | 1,323   |   |         |   | 1,382 |   |
|                                                      | Accumulated Deferred Income Taxes                    |   |     | 24,427  |   |         |   | 21,733 |   |
|                                                      | Employee Benefit Plans                               |   |     | 25,639  |   |         |   | 25,540 |   |
|                                                      | Regulatory Liability - Cost of Utility Plant Removal |   |     | 6,611   |   |         |   | 6,197 |   |
|                                                      | Other                                                |   |     | 322     |   |         |   | 963 |   |
|                                                      | TOTAL DEFERRED CREDITS AND OTHER LIABILITIES         |   |     | 79,644  |   |         |   | 77,904 |   |
|                                                      |                                                 |   |     |    |   |         |   |   |   |
| CONTRIBUTIONS IN AID OF CONSTRUCTION                      |                                                 |   | 44,297   |    |   |         | 41,231 |   |
|                                                      | TOTAL CAPITALIZATION AND LIABILITIES                 |   | $        | 456,809 |   |         | $      | 440,000 |   |
|                                                      |                                                 |   |     |    |   |         |   |   |   |
| See Notes to Condensed Consolidated Financial Statements. |                                                 |   |     |    |   |         |   |   |

----

Index

T

|                                                                      |   |                            |    |   |   |   |
|---------------------------------------------------------------------------|--------|---------------------------------|---------|--------|--------|--------|
|                                                                      |   |                            |    |   |   |   |
|                                                                      |   |                            |    |   |   |   |
|                                                                      |   | Nine Months Ended Sept 30, |    |
|                                                                      |   | 2009                            |    |   | 2008   |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                     |   |                            |    |   |   |   |
| Net Income                                                                |   | $                               | 8,234   |   |   | $      | 10,284 |   |
| Adjustments to Reconcile Net Income to                                    |   |                            |    |   |   |   |   |   |
| Net Cash Provided by Operating Activities:                                |   |                            |    |   |   |   |   |   |
| Depreciation and Amortization                                             |   |                            | 6,827   |   |   |   | 6,523 |   |
| Provision for Deferred Income Taxes and ITC                               |   |                            | 2,504   |   |   |   | 860 |   |
| Equity Portion of AFUDC                                                   |   |                            | (411    | )      |   |   | (230 | ) |
| Cash Surrender Value of Life Insurance                                    |   |                            | (310    | )      |   |   | 307 |   |
| Gain on Disposal of Equity Investments                                    |   |                            | -       |   |   |   | (86 | ) |
| Changes in Assets and Liabilities:                                        |   |                            |    |   |   |   |   |   |
| Accounts Receivable                                                       |   |                            | (3,311  | )      |   |   | (1,798 | ) |
| Unbilled Revenues                                                         |   |                            | (624    | )      |   |   | (1,160 | ) |
| Materials & Supplies                                                  |   |                            | (147    | )      |   |   | (232 | ) |
| Prepayments                                                               |   |                            | (231    | )      |   |   | (330 | ) |
| Other Assets                                                              |   |                            | (633    | )      |   |   | (457 | ) |
| Accounts Payable                                                          |   |                            | (1,230  | )      |   |   | 57 |   |
| Accrued Taxes                                                             |   |                            | 309     |   |   |   | 1,163 |   |
| Accrued Interest                                                          |   |                            | (1,109  | )      |   |   | (873 | ) |
| Employee Benefit Plans                                                    |   |                            | 999     |   |   |   | (653 | ) |
| Unearned Revenue & Advanced Service Fees                              |   |                            | 55      |   |   |   | 65 |   |
| Other Liabilities                                                         |   |                            | (800    | )      |   |   | (348 | ) |
|                                                                      |   |                            |    |   |   |   |   |   |
| NET CASH PROVIDED BY OPERATING ACTIVITIES                                 |   |                            | 10,122  |   |   |   | 13,092 |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                     |   |                            |    |   |   |   |   |   |
| Utility Plant Expenditures, Including AFUDC of $316 in 2009, $215 in 2008 |   |                            | (15,889 | )      |   |   | (21,705 | ) |
| Restricted Cash                                                           |   |                            | 456     |   |   |   | 1,363 |   |
|                                                                      |   |                            |    |   |   |   |   |   |
| NET CASH USED IN INVESTING ACTIVITIES                                     |   |                            | (15,433 | )      |   |   | (20,342 | ) |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                     |   |                            |    |   |   |   |   |   |
| Redemption of Long-term Debt                                              |   |                            | (17,843 | )      |   |   | (2,480 | ) |
| Proceeds from Issuance of Long-term Debt                                  |   |                            | 12,014  |   |   |   | 1,079 |   |
| Net Short-term Bank Borrowings                                            |   |                            | 17,873  |   |   |   | 15,950 |   |
| Deferred Debt Issuance Expenses                                           |   |                            | (116    | )      |   |   | (158 | ) |
| Restricted Cash                                                           |   |                            | (25     | )      |   |   | (40 | ) |
| Proceeds from Issuance of Common Stock                                    |   |                            | 1,167   |   |   |   | 1,091 |   |
| Payment of Common Dividends                                               |   |                            | (7,151  | )      |   |   | (6,977 | ) |
| Payment of Preferred Dividends                                            |   |                            | (156    | )      |   |   | (166 | ) |
| Construction Advances and Contributions-Net                               |   |                            | (687    | )      |   |   | 65 |   |
|                                                                      |   |                            |    |   |   |   |   |   |
| NET CASH PROVIDED BY FINANCING ACTIVITIES                                 |   |                            | 5,076   |   |   |   | 8,364 |   |
| NET CHANGES IN CASH AND CASH EQUIVALENTS                                  |   |                            | (235    | )      |   |   | 1,114 |   |
| CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                          |   |                            | 3,288   |   |   |   | 2,029 |   |
| CASH AND CASH EQUIVALENTS AT END OF PERIOD                                |   | $                               | 3,053   |   |   | $      | 3,143 |   |
|                                                                      |   |                            |    |   |   |   |   |   |
|                                                                      |   |                            |    |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITY:                             |   |                            |    |   |   |   |   |   |
| Utility Plant received as Construction Advances and Contributions         |   | $                               | 2,986   |   |   | $      | 4,612 |   |
| Transfer of Equity Investment to Employee Retirement Benefit Plans        |   | $                               | -       |   |   | $      | 132 |   |
|                                                                      |   |                            |    |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION:                        |   |                            |    |   |   |   |   |   |
|    Cash Paid During the Year for:                          |   |                            |    |   |   |   |   |   |
| Interest                                                                  |   | $                               | 6,043   |   |   | $      | 6,026 |   |
| Interest Capitalized                                                      |   | $                               | (316    | )      |   | $      | (215 | ) |
| Income Taxes                                                              |   | $                               | 1,431   |   |   | $      | 3,515 |   |
|                                                                      |   |                            |    |   |   |   |   |   |
| See Notes to Condensed Consolidated Financial Statements.                 |   |                            |    |   |   |   |   |   |

----

Index

A

|                                                                                |            |   |          |    |   |         |    |
|-------------------------------------------------------------------------------------|-----------------|--------|---------------|---------|--------|--------------|---------|
|                                                                                |            |   | September 30, |    |   | December 31, |    |
|                                                                                |            |   | 2009          |    |   | 2008         |    |
| Common Stock, No Par Value                                                          |            |   |          |    |   |         |
|       Shares Authorized -                                       | 40,000          |   |          |    |   |         |    |
|       Shares Outstanding -                                      | 2009 - 13,469   |   | $             | 108,896 |   |         | $       | 107,726 |   |
|                                                                                | 2008 - 13,404   |   |          |    |   |         |    |   |   |
|                                                                                |            |   |          |    |   |         |    |   |   |
| Retained Earnings                                                                   |            |   |          | 31,004  |   |         |    | 30,077 |   |
|           TOTAL COMMON EQUITY          |            | $      | 139,900       |    |   | $            | 137,803 |   |
|                                                                                |            |   |          |    |   |         |    |   |   |
| Cumulative Preference Stock, No Par Value:                                          |            |   |          |    |   |         |    |   |
|       Shares Authorized -                                  | 100             |   |          |    |   |         |    |   |   |
|       Shares Outstanding -                                 | None            |   |          |    |   |         |    |   |   |
| Cumulative Preferred Stock, No Par Value:                                           |            |   |          |    |   |         |    |   |
|       Shares Authorized -                                  | 134             |   |          |    |   |         |    |   |   |
|       Shares Outstanding -                                 |    32 |   |          |    |   |         |    |   |   |
|    Convertible:                                                      |            |   |          |    |   |         |    |   |   |
|   Shares Outstanding, $7.00 Series - 14                                        |            | $      | 1,457         |    |   | $            | 1,457   |   |
|   Shares Outstanding, $8.00 Series - 7                                         |            |   | 816           |    |   |         | 816     |   |
|    Nonredeemable:                                                    |            |   |          |    |   |         |    |   |   |
|   Shares Outstanding, $7.00 Series -   1                        |            |   | 100           |    |   |         | 102     |   |
|   Shares Outstanding, $4.75 Series - 10                                        |            |   | 1,000         |    |   |         | 1,000   |   |
|           TOTAL PREFERRED STOCK        |            | $      | 3,373         |    |   | $            | 3,375   |   |
|                                                                                |            |   |          |    |   |         |    |   |
| Long-term Debt:                                                                     |            |   |          |    |   |         |    |   |
|    8.05%, Amortizing Secured Note, due December 20, 2021             |            | $      | 2,611         |    |   | $            | 2,695   |   |
|    6.25%, Amortizing Secured Note, due May 19, 2028                  |            |   | 7,840         |    |   |         | 8,155   |   |
|    6.44%, Amortizing Secured Note, due August 25, 2030               |            |   | 5,857         |    |   |         | 6,067   |   |
|    6.46%, Amortizing Secured Note, due September 19, 2031            |            |   | 6,137         |    |   |         | 6,347   |   |
|    6.59%, Amortizing Secured Note, due April 20, 2029                |            |   | 6,831         |    |   |         | -       |   |
|    7.05%, Amortizing Secured Note, due January 20, 2030              |            |   | 5,000         |    |   |         | -       |   |
|    4.22%, State Revolving Trust Note, due December 31, 2022          |            |   | 639           |    |   |         | 657     |   |
|    3.30% to 3.60%, State Revolving Trust Note, due May 1, 2025       |            |   | 3,687         |    |   |         | 3,689   |   |
|    3.49%, State Revolving Trust Note, due January 25, 2027           |            |   | 678           |    |   |         | 675     |   |
|    4.03%, State Revolving Trust Note, due December 1, 2026           |            |   | 921           |    |   |         | 939     |   |
|    4.00% to 5.00%, State Revolving Trust Bond, due September 1, 2021 |            |   | 625           |    |   |         | 660     |   |
|    0.00%, State Revolving Fund Bond, due September 1, 2021           |            |   | 436           |    |   |         | 500     |   |
|    3.64%, State Revolving Trust Note, due July 1, 2028               |            |   | 395           |    |   |         | 389     |   |
|    3.64%, State Revolving Trust Note, due January 1, 2028            |            |   | 135           |    |   |         | 140     |   |
|    First Mortgage Bonds:                                             |            |   |          |    |   |         |    |   |
|  5.20%, Series S, due October 1, 2022                                          |            |   | 12,000        |    |   |         | 12,000  |   |
|  5.25%, Series T, due October 1, 2023                                          |            |   | 6,500         |    |   |         | 6,500   |   |
|  6.40%, Series U, due February 1, 2009                                         |            |   | -             |    |   |         | 15,000  |   |
|  5.25%, Series V, due February 1, 2029                                         |            |   | 10,000        |    |   |         | 10,000  |   |
|  5.35%, Series W, due February 1, 2038                                         |            |   | 23,000        |    |   |         | 23,000  |   |
|  0.00%, Series X, due September 1, 2018                                        |            |   | 483           |    |   |         | 538     |   |
|     4.25% to 4.63%, Series Y, due September 1, 2018                  |            |   | 650           |    |   |         | 710     |   |
|  0.00%, Series Z, due September 1, 2019                                        |            |   | 1,118         |    |   |         | 1,230   |   |
|     5.25% to 5.75%, Series AA, due September 1, 2019                 |            |   | 1,560         |    |   |         | 1,675   |   |
|  0.00%, Series BB, due September 1, 2021                                       |            |   | 1,447         |    |   |         | 1,566   |   |
|     4.00% to 5.00%, Series CC, due September 1, 2021                 |            |   | 1,790         |    |   |         | 1,895   |   |
|  5.10%, Series DD, due January 1, 2032                                         |            |   | 6,000         |    |   |         | 6,000   |   |
|  0.00%, Series EE, due September 1, 2024                                       |            |   | 6,274         |    |   |         | 6,693   |   |
|     3.00% to 5.50%, Series FF, due September 1, 2024                 |            |   | 7,655         |    |   |         | 8,025   |   |
|  0.00%, Series GG, due August 1, 2026                                          |            |   | 1,530         |    |   |         | 1,619   |   |
|  4.00% to 5.00%, Series HH, due August 1, 2026                                 |            |   | 1,810         |    |   |         | 1,880   |   |
|  0.00%, Series II, due August 1, 2027                                          |            |   | 1,619         |    |   |         | 1,708   |   |
|  3.40% to 5.00%, Series JJ, due August 1, 2027                                 |            |   | 1,690         |    |   |         | 1,750   |   |
|  0.00%, Series KK, due August 1, 2028                                          |            |   | 1,705         |    |   |         | 1,750   |   |
|  5.00% to 5.50%, Series LL, due August 1, 2028                                 |            |   | 1,750         |    |   |         | 1,750   |   |
| SUBTOTAL LONG-TERM DEBT                                                             |            |   | 130,373       |    |   |         | 136,202 |   |
| Less: Current Portion of Long-term Debt                                             |            |   | (3,643        | )       |   |         | (17,985 | ) |
| TOTAL LONG-TERM DEBT                                                                |            | $      | 126,730       |    |   | $            | 118,217 |   |

| See Notes to Condensed Consolidated Financial Statements. |   |   |   |   |
|-----------------------------------------------------------|--------|--------|--------|--------|

----

Index

O

----

Index

----

Index

----

Index

|                  |   | (Thousands of Dollars) |   |
|-----------------------|--------|------------------------|--------|
|                  |   | September 30, 2009     |   |   | December 31, 2008 |   |
|                  |   |                   |   |   |   |   |   |   |   |   |   |   |
|                  |   | Carrying               |   |   | Fair |   |   | Carrying |   |   | Fair |   |
|                  |   | Amount                 |   |   | Value |   |   | Amount |   |   | Value |   |
| First Mortgage Bonds  |   | $                      | 88,581 |   |   | $ | 85,816 |   |   | $ | 105,290 |   |   | $ | 95,171 |   |
| State Revolving Bonds |   | $                      | 1,061  |   |   | $ | 1,091 |   |   | $ | 1,160 |   |   | $ | 1,170 |   |

|                                                    |   | (In Thousands Except per Share Amounts) |   |
|---------------------------------------------------------|--------|-----------------------------------------|--------|
|                                                    |   | Three Months Ended September 30,        |   |
| Basic:                                                  |   | 2009                                    |   |   | Shares |   |   | 2008 |   |   | Shares |   |
| Net Income                                              |   | $                                       | 4,027  |   |   |   | 13,458 |   |   | $ | 4,715 |   |   |   | 13,350 |   |
| Preferred Dividend                                      |   |                                    | (52    | ) |   |   |   |   |   |   | (52 | ) |   |   |   |   |
| Earnings Applicable to Common Stock                     |   | $                                       | 3,975  |   |   |   | 13,458 |   |   | $ | 4,663 |   |   |   | 13,350 |   |
|                                                    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic EPS                                               |   | $                                       | 0.30   |   |   |   |   |   |   | $ | 0.35 |   |   |   |   |   |
|                                                    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted:                                                |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings Applicable to Common Stock                     |   | $                                       | 3,975  |   |   |   | 13,458 |   |   | $ | 4,663 |   |   |   | 13,350 |   |
| $7.00 Series Preferred Dividend                         |   |                                    | 24     |   |   |   | 166 |   |   |   | 24 |   |   |   | 167 |   |
| $8.00 Series Preferred Dividend                         |   |                                    | 14     |   |   |   | 96 |   |   |   | 14 |   |   |   | 100 |   |
| Adjusted Earnings Applicable to  Common Stock |   | $                                       | 4,013  |   |   |   | 13,720 |   |   | $ | 4,701 |   |   |   | 13,617 |   |
|                                                    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted EPS                                             |   | $                                       | 0.29   |   |   |   |   |   |   | $ | 0.35 |   |   |   |   |   |

----

Index

|                                                    |   | (In Thousands Except per Share Amounts) |   |
|---------------------------------------------------------|--------|-----------------------------------------|--------|
|                                                    |   | Nine Months Ended September 30,         |   |
| Basic:                                                  |   | 2009                                    |   |   | Shares |   |   | 2008 |   |   | Shares |   |
| Net Income                                              |   | $                                       | 8,234  |   |   |   | 13,435 |   |   | $ | 10,284 |   |   |   | 13,291 |   |
| Preferred Dividend                                      |   |                                    | (156   | ) |   |   |   |   |   |   | (166 | ) |   |   |   |   |
| Earnings Applicable to Common Stock                     |   | $                                       | 8,078  |   |   |   | 13,435 |   |   | $ | 10,118 |   |   |   | 13,291 |   |
|                                                    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic EPS                                               |   | $                                       | 0.60   |   |   |   |   |   |   | $ | 0.76 |   |   |   |   |   |
|                                                    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted:                                                |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings Applicable to Common Stock                     |   | $                                       | 8,078  |   |   |   | 13,435 |   |   | $ | 10,118 |   |   |   | 13,291 |   |
| $7.00 Series Preferred Dividend                         |   |                                    | 73     |   |   |   | 167 |   |   |   | 73 |   |   |   | 167 |   |
| $8.00 Series Preferred Dividend                         |   |                                    | 42     |   |   |   | 96 |   |   |   | 52 |   |   |   | 143 |   |
| Adjusted Earnings Applicable to  Common Stock |   | $                                       | 8,193  |   |   |   | 13,698 |   |   | $ | 10,243 |   |   |   | 13,601 |   |
|                                                    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted EPS                                             |   | $                                       | 0.60   |   |   |   |   |   |   | $ | 0.75 |   |   |   |   |   |

|                                    |   | (In Thousands)                  |   |
|-----------------------------------------|--------|---------------------------------|--------|
|                                    |   | Three Months EndedSeptember 30, |   |   | Nine Months EndedSeptember 30, |   |
| Operations by Segments:                 |   | 2009                            |   |   | 2008 |   |   | 2009 |   |   | 2008 |   |
| Revenues:                               |   |                            |   |   |   |   |   |   |   |   |   |   |
|    Regulated             |   | $                               | 22,943 |   |   | $ | 23,191 |   |   | $ | 61,407 |   |   | $ | 62,151 |   |
|    Non – Regulated |   |                            | 2,806  |   |   |   | 2,654 |   |   |   | 8,197 |   |   |   | 7,745 |   |
| Inter-segment Elimination               |   |                            | (251   | ) |   |   | (192 | ) |   |   | (440 | ) |   |   | (353 | ) |
| Consolidated Revenues                   |   | $                               | 25,498 |   |   | $ | 25,653 |   |   | $ | 69,164 |   |   | $ | 69,543 |   |
|  Operating Income:                 |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Regulated             |   | $                               | 6,607  |   |   | $ | 7,886 |   |   | $ | 14,248 |   |   | $ | 18,122 |   |
|    Non – Regulated |   |                            | 717    |   |   |   | 498 |   |   |   | 1,625 |   |   |   | 1,433 |   |
| Consolidated Operating Income           |   | $                               | 7,324  |   |   | $ | 8,384 |   |   | $ | 15,873 |   |   | $ | 19,555 |   |
|                                    |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Income:                             |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Regulated             |   | $                               | 3,580  |   |   | $ | 4,392 |   |   | $ | 7,179 |   |   | $ | 9,353 |   |
|    Non – Regulated |   |                            | 447    |   |   |   | 323 |   |   |   | 1,055 |   |   |   | 931 |   |
| Consolidated Net Income                 |   | $                               | 4,027  |   |   | $ | 4,715 |   |   | $ | 8,234 |   |   | $ | 10,284 |   |
|                                    |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital Expenditures:                   |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Regulated             |   | $                               | 3,943  |   |   | $ | 6,703 |   |   | $ | 15,877 |   |   | $ | 21,124 |   |
|    Non – Regulated |   |                            | 3      |   |   |   | 326 |   |   |   | 12 |   |   |   | 581 |   |
| Total Capital Expenditures              |   | $                               | 3,946  |   |   | $ | 7,029 |   |   | $ | 15,889 |   |   | $ | 21,705 |   |

----

Index

|                                    |   | As ofSeptember 30,2009 |    |   | As ofDecember 31,2008 |   |
|-----------------------------------------|--------|------------------------|---------|--------|-----------------------|--------|
| Assets:                                 |   |                   |    |   |                  |   |
|    Regulated             |   | $                      | 450,951 |   |                  | $      | 433,109 |   |
|    Non – Regulated |   |                   | 11,258  |   |                  |   | 11,537 |   |
| Inter-segment Elimination               |   |                   | (5,400  | )      |                  |   | (4,646 | ) |
| Consolidated Assets                     |   | $                      | 456,809 |   |                  | $      | 440,000 |   |

----

Index

|             |   | (In Thousands)     |   |
|------------------|--------|--------------------|--------|
|             |   | Three Months Ended |   |   | Nine Months Ended |   |
|             |   | September 30,      |   |   | September 30, |   |
|             |   | 2009               |   |   | 2008 |   |   | 2009 |   |   | 2008 |   |
|             |   |               |   |   |   |   |   |   |   |   |   |   |
| Purchased Water: |   |               |   |   |   |   |   |   |   |   |   |   |
| Treated          |   | $                  | 720    |   |   | $ | 539 |   |   | $ | 1,827 |   |   | $ | 1,588 |   |
| Untreated        |   |               | 625    |   |   |   | 618 |   |   |   | 1,736 |   |   |   | 1,739 |   |
| Total Costs      |   | $                  | 1,345  |   |   | $ | 1,157 |   |   | $ | 3,563 |   |   | $ | 3,327 |   |

----

Index

|                                            |   | (In Thousands)                   |   |
|-------------------------------------------------|--------|----------------------------------|--------|
|                                            |   | Pension Benefits                 |   |   | Other Benefits |   |
|                                            |   | Three Months Ended September 30, |   |
|                                            |   | 2009                             |   |   | 2008 |   |   | 2009 |   |   | 2008 |   |
|                                            |   |                             |   |   |   |   |   |   |   |   |   |   |
| Service Cost                                    |   | $                                | 343    |   |   | $ | 312 |   |   | $ | 223 |   |   | $ | 194 |   |
| Interest Cost                                   |   |                             | 525    |   |   |   | 488 |   |   |   | 272 |   |   |   | 252 |   |
| Expected Return on Assets                       |   |                             | (401   | ) |   |   | (484 | ) |   |   | (149 | ) |   |   | (145 | ) |
| Amortization of Unrecognized Losses             |   |                             | 154    |   |   |   | - |   |   |   | 123 |   |   |   | 72 |   |
| Amortization of Unrecognized Prior Service Cost |   |                             | 2      |   |   |   | 2 |   |   |   | - |   |   |   | - |   |
| Amortization of Transition Obligation           |   |                             | -      |   |   |   | - |   |   |   | 34 |   |   |   | 34 |   |
| Net Periodic Benefit Cost                       |   | $                                | 623    |   |   | $ | 318 |   |   | $ | 503 |   |   | $ | 407 |   |

|                                            |   | (In Thousands)                  |   |
|-------------------------------------------------|--------|---------------------------------|--------|
|                                            |   | Pension Benefits                |   |   | Other Benefits |   |
|                                            |   | Nine Months Ended September 30, |   |
|                                            |   | 2009                            |   |   | 2008 |   |   | 2009 |   |   | 2008 |   |
|                                            |   |                            |   |   |   |   |   |   |   |   |   |   |
| Service Cost                                    |   | $                               | 1,029  |   |   | $ | 936 |   |   | $ | 668 |   |   | $ | 581 |   |
| Interest Cost                                   |   |                            | 1,575  |   |   |   | 1,463 |   |   |   | 815 |   |   |   | 757 |   |
| Expected Return on Assets                       |   |                            | (1,202 | ) |   |   | (1,453 | ) |   |   | (447 | ) |   |   | (436 | ) |
| Amortization of Unrecognized Losses             |   |                            | 462    |   |   |   | - |   |   |   | 370 |   |   |   | 216 |   |
| Amortization of Unrecognized Prior Service Cost |   |                            | 7      |   |   |   | 7 |   |   |   | - |   |   |   | - |   |
| Amortization of Transition Obligation           |   |                            | -      |   |   |   | - |   |   |   | 101 |   |   |   | 101 |   |
| Net Periodic Benefit Cost                       |   | $                               | 1,871  |   |   | $ | 953 |   |   | $ | 1,507 |   |   | $ | 1,219 |   |

----

Index

|                                                                           |   | (In Thousands)     |   |
|--------------------------------------------------------------------------------|--------|--------------------|--------|
|                                                                           |   | Three Months Ended |   |   | Nine Months Ended |   |
|                                                                           |   | September 30,      |   |   | September 30, |   |
|                                                                           |   | 2009               |   |   | 2008 |   |   | 2009 |   |   | 2008 |   |
|                                                                           |   |               |   |   |   |   |   |   |   |   |   |   |
| Net Income                                                                     |   | $                  | 4,027  |   |   | $ | 4,715 |   |   | $ | 8,234 |   |   | $ | 10,284 |   |
|                                                                           |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other Comprehensive Loss:                                                      |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Change in Value of Equity Investments,  Net of Income Tax            |   |               | ---    |   |   |   | --- |   |   |   | --- |   |   |   | (12 | ) |
| Less:  Adjustment for Gain Included in Net Income, Net of Income Tax |   |               | ---    |   |   |   | --- |   |   |   | --- |   |   |   | (57 | ) |
|      Other Comprehensive Loss                         |   |               | ---    |   |   |   | --- |   |   |   | --- |   |   |   | (69 | ) |
|                                                                           |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive Income                                                           |   | $                  | 4,027  |   |   | $ | 4,715 |   |   | $ | 8,234 |   |   | $ | 10,215 |   |

----

Index

c

|   | - | statements as to expected financial condition, performance, prospects and earnings of the Company; |
|--------|---|----------------------------------------------------------------------------------------------------|
|   | - | statements regarding strategic plans for growth;                                                   |

|   | - | statements regarding the amount and timing of rate increases and other regulatory matters; |
|--------|---|--------------------------------------------------------------------------------------------|
|   | - | statements regarding expectations and events concerning capital expenditures;              |

|   | - | statements as to the Company’s expected liquidity needs during current annual fiscal period and beyond and statements as to the sources and availability of funds to meet its liquidity needs; |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | - | statements as to expected rates, consumption volumes, service fees, revenues, margins, expenses and operating results;                                                                               |

|   | - | statements as to the Company’s compliance with environmental laws and regulations and estimations of the materiality of any related costs; |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------------------|
|   | - | statements as to the safety and reliability of the Company’s equipment, facilities and operations;                                         |

|   | - | statements as to financial projections;                       |
|--------|---|---------------------------------------------------------------|
|   | - | statements as to the ability of the Company to pay dividends; |

|   | - | statements as to the Company’s plans to renew municipal franchises and consents in the territories it serves;                                                                                 |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | - | expectations as to the amount of cash contributions to fund the Company’s retirement benefit plans, including statements as to anticipated discount rates and rates of return on plan assets; |

|   | - | statements as to trends; and                                           |
|--------|---|------------------------------------------------------------------------|
|   | - | statements regarding the availability and quality of our water supply. |

|   | - | the effects of general economic conditions;                    |
|--------|---|----------------------------------------------------------------|
|   | - | increases in competition in the markets served by the Company; |

|   | - | the ability of the Company to control operating expenses and to achieve efficiencies in its operations; |
|--------|---|---------------------------------------------------------------------------------------------------------|
|   | - | the availability of adequate supplies of water;                                                         |

|   | - | actions taken by government regulators, including decisions on base rate increase requests; |
|--------|---|---------------------------------------------------------------------------------------------|
|   | - | new or additional water quality standards;                                                  |

|   | - | weather variations and other natural phenomena;                                                           |
|--------|---|-----------------------------------------------------------------------------------------------------------|
|   | - | the existence of attractive acquisition candidates and the risks involved in pursuing those acquisitions; |

|   | - | acts of war or terrorism;                              |
|--------|---|--------------------------------------------------------|
|   | - | significant changes in the housing starts in Delaware; |

|   | - | the availability and cost of capital resources; and                                           |
|--------|---|-----------------------------------------------------------------------------------------------|
|   | - | other factors discussed elsewhere in this quarterly report.                                   |
|   | - | the ability to translate Preliminary Survey & Investigation charges into viable projects. |

----

Index

----

Index

----

Index

|                                |   | (In Thousands)                   |   |
|-------------------------------------|--------|----------------------------------|--------|
|                                |   | Three Months Ended September 30, |   |
|                                |   | 2009                             |   |   | 2008 |   |
|                                |   | Regulated                        |   |   | Non-Regulated |   |   | Total |   |   | Regulated |   |   | Non-Regulated |   |   | Total |   |
| Revenues                            |   | $                                | 22,943 |   |   | $ | 2,555 |   |   | $ | 25,498 |   |   | $ | 23,191 |   |   | $ | 2,462 |   |   | $ | 25,653 |   |
| Operations and maintenance expenses |   |                             | 11,545 |   |   |   | 1,740 |   |   |   | 13,285 |   |   |   | 10,704 |   |   |   | 1,870 |   |   |   | 12,574 |   |
| Depreciation expense                |   |                             | 2,131  |   |   |   | 43 |   |   |   | 2,174 |   |   |   | 1,955 |   |   |   | 32 |   |   |   | 1,987 |   |
| Other taxes                         |   |                             | 2,660  |   |   |   | 55 |   |   |   | 2,715 |   |   |   | 2,646 |   |   |   | 62 |   |   |   | 2,708 |   |
|   Operating income        |   |                             | 6,607  |   |   |   | 717 |   |   |   | 7,324 |   |   |   | 7,886 |   |   |   | 498 |   |   |   | 8,384 |   |
|                                |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other income, net                   |   |                             | 572    |   |   |   | 74 |   |   |   | 646 |   |   |   | 223 |   |   |   | 95 |   |   |   | 318 |   |
| Interest expense                    |   |                             | 1,749  |   |   |   | 42 |   |   |   | 1,791 |   |   |   | 1,780 |   |   |   | 58 |   |   |   | 1,838 |   |
| Income taxes                        |   |                             | 1,850  |   |   |   | 302 |   |   |   | 2,152 |   |   |   | 1,937 |   |   |   | 212 |   |   |   | 2,149 |   |
|   Net income              |   | $                                | 3,580  |   |   | $ | 447 |   |   | $ | 4,027 |   |   | $ | 4,392 |   |   | $ | 323 |   |   | $ | 4,715 |   |

----

Index

|                                |   | (In Thousands)                  |   |
|-------------------------------------|--------|---------------------------------|--------|
|                                |   | Nine Months Ended September 30, |   |
|                                |   |                            |   |   | 2009 |   |   |   |   |   |   |   |   | 2008 |   |   |   |   |
|                                |   | Regulated                       |   |   | Non-Regulated |   |   | Total |   |   | Regulated |   |   | Non-Regulated |   |   | Total |   |
| Revenues                            |   | $                               | 61,407 |   |   | $ | 7,757 |   |   | $ | 69,164 |   |   | $ | 62,151 |   |   | $ | 7,392 |   |   | $ | 69,543 |   |
| Operations and maintenance expenses |   |                            | 33,380 |   |   |   | 5,842 |   |   |   | 39,222 |   |   |   | 30,710 |   |   |   | 5,691 |   |   |   | 36,401 |   |
| Depreciation expense                |   |                            | 6,256  |   |   |   | 114 |   |   |   | 6,370 |   |   |   | 5,782 |   |   |   | 90 |   |   |   | 5,872 |   |
| Other taxes                         |   |                            | 7,523  |   |   |   | 176 |   |   |   | 7,699 |   |   |   | 7,537 |   |   |   | 178 |   |   |   | 7,715 |   |
|   Operating income        |   |                            | 14,248 |   |   |   | 1,625 |   |   |   | 15,873 |   |   |   | 18,122 |   |   |   | 1,433 |   |   |   | 19,555 |   |
|                                |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other income, net                   |   |                            | 1,175  |   |   |   | 263 |   |   |   | 1,438 |   |   |   | 640 |   |   |   | 304 |   |   |   | 944 |   |
| Interest expense                    |   |                            | 4,798  |   |   |   | 151 |   |   |   | 4,949 |   |   |   | 4,978 |   |   |   | 183 |   |   |   | 5,161 |   |
| Income taxes                        |   |                            | 3,446  |   |   |   | 682 |   |   |   | 4,128 |   |   |   | 4,431 |   |   |   | 623 |   |   |   | 5,054 |   |
|   Net income              |   | $                               | 7,179  |   |   | $ | 1,055 |   |   | $ | 8,234 |   |   | $ | 9,353 |   |   | $ | 931 |   |   | $ | 10,284 |   |

----

Index

----

Index

----

Index

| Item 3. | Quantitative and Qualitative Disclosures of Market Risk |
|---------|---------------------------------------------------------|

| Item4. | Controls and Procedures |
|--------|-------------------------|

----

Index

I

| Item 1.     Legal Proceedings |
|---------------------------------------------------|

| Item 1A.  Risk Factors |
|----------------------------------|

| Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds |
|--------------------------------------------------------------------------------|

| Item 3.  Defaults Upon Senior Securities |
|----------------------------------------------------|

| Item 4.  Submission of Matters to a Vote of Security Holders |
|------------------------------------------------------------------------|

| Item 5.  OtherInformation |
|-------------------------------------|

----

Index

| Item 6. | Exhibits                                                                                                                |
|---------|-------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                    |
| 31      | Section 302 Certification by Dennis W. Doll pursuant to Rules 13a-14 and 15d-14 of the Securities Exchange Act of 1934. |

| 31.1 | Section 302 Certification by A. Bruce O’Connor pursuant to Rules 13a-14 and 15d-14 of the Securities Exchange Act of 1934. |
|------|----------------------------------------------------------------------------------------------------------------------------------|

| 32 | Section 906 Certification by Dennis W. Doll pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| 32.1 | Section 906 Certification by A. Bruce O’Connor pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

T

|   | MIDDLESEX WATER COMPANY |
|--------|-------------------------|
|   |                    |   |   |
|   | By:                     | /s/A. Bruce O’Connor |   |
|   |                    | A. Bruce O’Connor |   |
|   |                    | Vice President and |   |
|   |                    | Chief Financial Officer |   |