----

----

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

|   | For the fiscal year ended December 31, 2010 |
|--------|---------------------------------------------|

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

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

| Title of Each Class:       | Name of each exchange on which registered: |
|----------------------------|--------------------------------------------|
| Common Stock, No Par Value | The  NASDAQ Stock Market, LLC    |

| Large accelerated filer  ̈ | Accelerated filer þ | Non-accelerated filer    ̈ | Smaller reporting company  ̈ |
|--------------------------------|--------------------------|-----------------------------------------------|----------------------------------|

----

----

----

MIDDLESEX 

|                       |                                                           | PAGE   |
|----------------------------|----------------------------------------------------------------|--------|
| Forward-Looking Statements | 1                                                              |   |
|                       |                                                           |   |   |
| PART I                     |                                                           | 2      |   |
| Item 1.                    | Business:                                                      | 2      |   |
|                       | Overview                                                       | 2      |   |
|                       | Financial Information                                          | 4      |   |
|                       | Water Supplies and Contracts                                   | 4      |   |
|                       | Employees                                                      | 6      |   |
|                       | Competition                                                    | 6      |   |
|                       | Regulation                                                     | 6      |   |
|                       | Seasonality                                                    | 8      |   |
|                       | Management                                                     | 8      |   |
| Item 1A.                   | Risk Factors                                                   | 10     |   |
| Item 1B.                   | Unresolved Staff Comments                                      | 14     |   |
| Item 2.                    | Properties                                                     | 14     |   |
| Item 3.                    | Legal Proceedings                                              | 16     |   |
| Item 4.                    | Removed and Reserved                                           | 16     |   |
|                       |                                                           |   |   |
| PART II                    |                                                           | 17     |   |
| Item 5.                    | Market for the Registrant's Common Equity, Related Stockholder |   |   |
|                       | Matters and Issuer Purchases of Equity Securities.             | 17     |   |
| Item 6.                    | Selected Financial Data                                        | 19     |   |
| Item 7.                    | Management's Discussion and Analysis of                        |   |   |
|                       | Financial Condition and Results of Operations                  | 19     |   |
| Item 7A.                   | Qualitative and Quantitative Disclosure About Market Risk      | 32     |   |
| Item 8.                    | Financial Statements and Supplementary Data                    | 33     |   |
| Item 9.                    | Changes in and Disagreements with Accountants on               |   |   |
|                       | Accounting and Financial Disclosure                            | 61     |   |
| Item 9A.                   | Controls and Procedures                                        | 61     |   |
| Item 9B.                   | Other Information                                              | 63     |   |
|                       |                                                           |   |   |
| PART III                   |                                                           | 64     |   |
| Item 10.                   | Directors, Executive Officers and Corporate Governance         | 64     |   |
| Item 11.                   | Executive Compensation                                         | 64     |   |
| Item 12.                   | Security Ownership of Certain Beneficial Owners                |   |   |
|                       | and Management and Related Stockholder Matters                 | 64     |   |
| Item 13.                   | Certain Relationships and Related Transactions, and            |   |   |
|                       | Director Independence                                          | 64     |   |
| Item 14.                   | Principal Accountant Fees and Services                         | 64     |   |
| PART IV                    |                                                           | 65     |   |
| Item 15.                   | Exhibits and Financial Statement Schedules                     | 65     |   |
|                       |                                                           |   |   |
| Signatures                 |                                                           |   |
| Exhibit Index              |                                                           |   |

----

Index

Forward

|   | - | 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, including the recovery of certain costs recorded as regulatory assets; |
|--------|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | statements as to the Company’s expected liquidity needs during the upcoming fiscal year 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 rate increase requests; |
|--------|---|----------------------------------------------------------------------------------------|

|   | - | new or additional water quality standards; |
|--------|---|--------------------------------------------|

|   | - | weather variations and other natural phenomena; |
|--------|---|-------------------------------------------------|

|   | - | the existence of financially attractive acquisition candidates and the risks involved in pursuing those acquisitions; |
|--------|---|-----------------------------------------------------------------------------------------------------------------------|

|   | - | acts of war or terrorism; |
|--------|---|---------------------------|

|   | - | significant changes in the pace of housing development in Delaware; |
|--------|---|---------------------------------------------------------------------|

|   | - | the availability and cost of capital resources; |
|--------|---|-------------------------------------------------|

|   | - | the ability to translate Preliminary Survey & Investigation charges into viable projects; and |
|--------|---|---------------------------------------------------------------------------------------------------|

|   | - | other factors discussed elsewhere in this annual report. |
|--------|---|----------------------------------------------------------|

----

Index

PART 

| Item 1. | Business. |
|---------|-----------|

ver

----

Index

----

Index

an

|               |   | (Thousands of Dollars)Years Ended December 31, |    |
|--------------------|--------|------------------------------------------------|---------|
|               |   | 2010                                           |    |   | 2009 |   |   | 2008 |   |
| Operating Revenues |   | $                                              | 102,735 |   |   | $ | 91,243 |   |   | $ | 91,038 |   |
| Operating Income   |   | $                                              | 26,597  |   |   | $ | 20,161 |   |   | $ | 24,019 |   |
| Net Income         |   | $                                              | 14,330  |   |   | $ | 9,977 |   |   | $ | 12,208 |   |

|                |   | Years Ended December 31, |   |
|---------------------|--------|--------------------------|--------|
|                |   | 2010                     |   |   | 2009 |   |   | 2008 |   |
|                |   |                     |   |   |   |   |   |   |   |
| Residential         |   |                     | 45.5   | % |   |   | 44.9 | % |   |   | 45.1 | % |
| Commercial          |   |                     | 9.7    |   |   |   | 9.4 |   |   |   | 9.6 |   |
| Industrial          |   |                     | 8.7    |   |   |   | 9.0 |   |   |   | 9.3 |   |
| Fire Protection     |   |                     | 9.7    |   |   |   | 10.5 |   |   |   | 10.4 |   |
| Contract Sales      |   |                     | 14.6   |   |   |   | 13.1 |   |   |   | 13.1 |   |
| Contract Operations |   |                     | 9.7    |   |   |   | 10.9 |   |   |   | 10.5 |   |
| Other               |   |                     | 2.1    |   |   |   | 2.2 |   |   |   | 2.0 |   |
| Total               |   |                     | 100.0  | % |   |   | 100.0 | % |   |   | 100.0 | % |

ate

----

Index

----

Index

m

mpe

egu

|   | · | New Jersey-New Jersey Board of Public Utilities (NJBPU) |
|--------|--------|---------------------------------------------------------|

|   | · | Delaware-Delaware Public Service Commission (DEPSC) |
|--------|--------|-----------------------------------------------------|

|   | · | Pennsylvania-Pennsylvania Public Utilities Commission (PAPUC) |
|--------|--------|---------------------------------------------------------------|

|   | · | United States Environmental Protection Agency (EPA) |
|--------|--------|-----------------------------------------------------|

|   | · | New Jersey Department of Environmental Protection (NJDEP) with respect to operations in New Jersey |
|--------|--------|----------------------------------------------------------------------------------------------------|

|   | · | Delaware Department of Natural Resources and Environmental Control (DEDNREC), the Delaware Department of Health and Social Services-Division of Public Health (DEDPH), and the Delaware River Basin Commission (DRBC) with respect to operations in Delaware |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Pennsylvania Department of Environmental Protection (PADEP) with respect to operations in Pennsylvania |
|--------|--------|--------------------------------------------------------------------------------------------------------|

----

Index

| Date                  |   | January 1, 2010 |   |   | July 1, 2010 |   |    | January 1, 2011 |   |
|-----------------------|--------|-----------------|--------|--------|--------------|--------|---------|-----------------|--------|
| % Increase (Decrease) |   |            | 1.11%  |   |         |   | (0.04)% |            |   |   | 0.27% |   |
| Cumulative %          |   |            | 1.11%  |   |         |   | 1.07%   |            |   |   | 1.34% |   |

----

Index

aso

nag

| Name                    |         | Age |         | Principal Position(s)                                                     |
|-------------------------|--------------|-----|--------------|---------------------------------------------------------------------------|
| Dennis W. Doll          |         | 52  |         | President, Chief Executive Officer and Chairman of the Board of Directors |
| A. Bruce O’Connor |    | 52  |    | Vice President and Chief Financial Officer                                |
| Richard M. Risoldi      |         | 54  |         | Vice President-Operations and Chief Operating Officer                     |
| Kenneth J. Quinn        |         | 63  |         | Vice President-General Counsel, Secretary and Treasurer                   |
| James P. Garrett        |    | 64  |    | Vice President–Human Resources                                      |
| Bernadette M. Sohler    |         | 50  |         | Vice President-Corporate Affairs                                          |
| Gerard L. Esposito      |    | 59  |    | President, Tidewater Utilities, Inc.                                      |

----

Index

----

Index

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

----

Index

----

Index

----

Index

----

Index

| Item 1B. | Unresolved Staff Comments. |
|----------|----------------------------|

| Item 2. | Properties. |
|---------|-------------|

----

Index

----

Index

| Item 3. | Legal Proceedings. |
|---------|--------------------|

| Item 4. | Removed and Reserved. |
|---------|-----------------------|

----

Index

PART 

| Item 5. | Market for the Registrant's Common Equity and Related Stockholder Matters. |
|---------|----------------------------------------------------------------------------|

| 2010           |   | High   |   |   | Low    |   |   | Dividend |   |
|----------------|--------|--------|--------|--------|--------|--------|--------|----------|--------|
|           |   |   |   |   |   |   |   |     |   |
| Fourth Quarter |   | $      | 19.31  |   |   | $      | 16.77  |     |   | $ | 0.1825 |   |
| Third Quarter  |   | $      | 17.16  |   |   | $      | 15.48  |     |   | $ | 0.1800 |   |
| Second Quarter |   | $      | 18.70  |   |   | $      | 14.74  |     |   | $ | 0.1800 |   |
| First Quarter  |   | $      | 18.00  |   |   | $      | 16.16  |     |   | $ | 0.1800 |   |

| 2009           |   | High   |   |   | Low    |   |   | Dividend |   |
|----------------|--------|--------|--------|--------|--------|--------|--------|----------|--------|
|           |   |   |   |   |   |   |   |     |   |
| Fourth Quarter |   | $      | 17.91  |   |   | $      | 14.74  |     |   | $ | 0.1800 |   |
| Third Quarter  |   | $      | 15.89  |   |   | $      | 13.62  |     |   | $ | 0.1775 |   |
| Second Quarter |   | $      | 15.29  |   |   | $      | 12.61  |     |   | $ | 0.1775 |   |
| First Quarter  |   | $      | 17.71  |   |   | $      | 11.64  |     |   | $ | 0.1775 |   |

----

Index

|                    |   | December 31, |   |
|-------------------------|--------|--------------|--------|
|                    |   | 2005         |   |   | 2006 |   |   | 2007 |   |   | 2008 |   |   | 2009 |   |   | 2010 |   |
| Middlesex Water Company |   |         | 100.00 |   |   |   | 112.00 |   |   |   | 116.50 |   |   |   | 110.20 |   |   |   | 118.10 |   |   |   | 128.20 |   |
| Dow Jones Wilshire 5000 |   |         | 100.00 |   |   |   | 115.80 |   |   |   | 122.30 |   |   |   | 76.70 |   |   |   | 98.50 |   |   |   | 115.40 |   |
| Peer Group              |   |         | 100.00 |   |   |   | 100.40 |   |   |   | 96.70 |   |   |   | 94.70 |   |   |   | 94.30 |   |   |   | 112.20 |   |

----

Index

| Item 6. | Selected Financial Data. |
|---------|--------------------------|

|                                |   | 2010   |    |   | 2009   |   |    | 2008   |   |   | 2007    |   |   | 2006   |    |
|-------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|
| Operating Revenues                  |   | $      | 102,735 |   |   | $      | 91,243  |   |   | $      | 91,038  |   |   | $      | 86,114  |   |   | $ | 81,061 |   |
| Operating Expenses:                 |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Operations and Maintenance          |   |   | 55,481  |   |   |   | 52,348  |   |   |   | 48,929  |   |   |   | 46,240  |   |   |   | 43,345 |   |
| Depreciation                        |   |   | 9,244   |   |   |   | 8,559   |   |   |   | 7,922   |   |   |   | 7,539   |   |   |   | 7,060 |   |
| Other Taxes                         |   |   | 11,413  |   |   |   | 10,175  |   |   |   | 10,168  |   |   |   | 9,664   |   |   |   | 9,338 |   |
| Total Operating Expenses            |   |   | 76,138  |   |   |   | 71,082  |   |   |   | 67,019  |   |   |   | 63,443  |   |   |   | 59,743 |   |
| Operating Income                    |   |   | 26,597  |   |   |   | 20,161  |   |   |   | 24,019  |   |   |   | 22,671  |   |   |   | 21,318 |   |
| Other Income, Net                   |   |   | 1,444   |   |   |   | 1,726   |   |   |   | 1,302   |   |   |   | 1,527   |   |   |   | 774 |   |
| Interest Charges                    |   |   | 6,925   |   |   |   | 6,750   |   |   |   | 7,057   |   |   |   | 6,619   |   |   |   | 7,012 |   |
| Income Taxes                        |   |   | 6,786   |   |   |   | 5,160   |   |   |   | 6,056   |   |   |   | 5,736   |   |   |   | 5,041 |   |
| Net Income                          |   |   | 14,330  |   |   |   | 9,977   |   |   |   | 12,208  |   |   |   | 11,843  |   |   |   | 10,039 |   |
| Preferred Stock Dividend            |   |   | 207     |   |   |   | 208     |   |   |   | 218     |   |   |   | 248     |   |   |   | 248 |   |
| Earnings Applicable to Common Stock |   | $      | 14,123  |   |   | $      | 9,769   |   |   | $      | 11,990  |   |   | $      | 11,595  |   |   | $ | 9,791 |   |
| Earnings per Share:                 |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Basic                               |   | $      | 0.96    |   |   | $      | 0.73    |   |   | $      | 0.90    |   |   | $      | 0.88    |   |   | $ | 0.83 |   |
| Diluted                             |   | $      | 0.96    |   |   | $      | 0.72    |   |   | $      | 0.89    |   |   | $      | 0.87    |   |   | $ | 0.82 |   |
| Average Shares Outstanding:         |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Basic                               |   |   | 14,654  |   |   |   | 13,454  |   |   |   | 13,317  |   |   |   | 13,203  |   |   |   | 11,844 |   |
| Diluted                             |   |   | 14,916  |   |   |   | 13,716  |   |   |   | 13,615  |   |   |   | 13,534  |   |   |   | 12,175 |   |
| Dividends Declared and Paid         |   | $      | 0.723   |   |   | $      | 0.713   |   |   | $      | 0.703   |   |   | $      | 0.693   |   |   | $ | 0.683 |   |
| Total Assets                        |   | $      | 489,185 |   |   | $      | 458,086 |   |   | $      | 440,000 |   |   | $      | 392,675 |   |   | $ | 370,267 |   |
| Convertible Preferred Stock         |   | $      | 2,273   |   |   | $      | 2,273   |   |   | $      | 2,273   |   |   | $      | 2,856   |   |   | $ | 2,856 |   |
| Long-term Debt                      |   | $      | 133,844 |   |   | $      | 124,910 |   |   | $      | 118,217 |   |   | $      | 131,615 |   |   | $ | 130,706 |   |

| Item 7. | Management's Discussion and Analysis of Financial Condition and Results of Operation. |
|---------|---------------------------------------------------------------------------------------|

----

Index

|   | • | Serve as a trusted and continually-improving provider of safe, reliable and cost-effective water, wastewater and related services; |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Provide a comprehensive suite of water and wastewater solutions in the continually-developing Delaware market that results in profitable growth; |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Pursue profitable growth in our core states of New Jersey and Delaware, as well as additional states; and |
|--------|---------|-----------------------------------------------------------------------------------------------------------|

|   | • | Invest in products, services and other viable opportunities that complement our core competencies. |
|--------|---------|----------------------------------------------------------------------------------------------------|

----

Index

| Date                  | January 1, 2010 | July 1, 2010 | January 1, 2011 |
|-----------------------|-----------------|--------------|-----------------|
| % Increase (Decrease) | 1.11%           | (0.04)%      | 0.27%           |
| Cumulative %          | 1.11%           | 1.07%        | 1.34%           |

----

Index

|                       |   | (Millions of Dollars)    |   |
|----------------------------|--------|--------------------------|--------|
|                       |   | Years ended December 31, |   |
|                       |   |                     |   |   | 2010 |   |   |   |   |   |   |   |   | 2009 |   |   |   |   |
|                       |   | Regulated                |   |   | Non-Regulated |   |   | Total |   |   | Regulated |   |   | Non-Regulated |   |   | Total |   |
| Revenues                   |   | $                        | 92.0   |   |   | $ | 10.7 |   |   | $ | 102.7 |   |   | $ | 80.6 |   |   | $ | 10.6 |   |   | $ | 91.2 |   |
| Operations and maintenance |   |                     | 47.0   |   |   |   | 8.5 |   |   |   | 55.5 |   |   |   | 44.2 |   |   |   | 8.1 |   |   |   | 52.3 |   |
| Depreciation               |   |                     | 9.1    |   |   |   | 0.1 |   |   |   | 9.2 |   |   |   | 8.4 |   |   |   | 0.1 |   |   |   | 8.5 |   |
| Other taxes                |   |                     | 11.1   |   |   |   | 0.3 |   |   |   | 11.4 |   |   |   | 9.9 |   |   |   | 0.3 |   |   |   | 10.2 |   |
| Operating income           |   | $                        | 24.8   |   |   | $ | 1.8 |   |   | $ | 26.6 |   |   | $ | 18.1 |   |   | $ | 2.1 |   |   | $ | 20.2 |   |
|                       |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other income, net          |   |                     | 1.1    |   |   |   | 0.3 |   |   |   | 1.4 |   |   |   | 1.4 |   |   |   | 0.3 |   |   |   | 1.7 |   |
| Interest expense           |   |                     | 6.8    |   |   |   | 0.1 |   |   |   | 6.9 |   |   |   | 6.5 |   |   |   | 0.2 |   |   |   | 6.7 |   |
| Income taxes               |   |                     | 6.0    |   |   |   | 0.8 |   |   |   | 6.8 |   |   |   | 4.3 |   |   |   | 0.9 |   |   |   | 5.2 |   |
| Net income                 |   | $                        | 13.1   |   |   | $ | 1.2 |   |   | $ | 14.3 |   |   | $ | 8.7 |   |   | $ | 1.3 |   |   | $ | 10.0 |   |

|   | · | Revenues in our Middlesex System increased $8.5 million, primarily as a result of the following: |
|--------|--------|--------------------------------------------------------------------------------------------------|

|   | o | Contract Sales to Municipalities increased by $2.6 million due to higher customer demand for water and the March 2010 rate increase; |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------|

|   | o | Sales to General Metered Service (GMS) Customers increased by $4.0 million from the implementation of the March 2010 base water rate increase ($3.2 million) and increased customer demand for water ($0.8 million). The increased demand primarily resulted from hot, dry weather in the summer months and an increase in demand by our commercial and industrial customers in the 3rd and 4th quarters of 2010, which mitigated decreased demand through the six months ended June 30, 2010.  In 2009 and through the 2nd quarter of 2010, water consumption by our commercial and industrial customer class was below the historical average; |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|   | o | Facilities Charges increased by $2.0 million from the March 2010 rate increase; and |
|--------|---|-------------------------------------------------------------------------------------|

|   | o | All other revenue categories decreased $0.1 million. |
|--------|---|------------------------------------------------------|

|   | · | Revenues in our Tidewater System increased $2.7 million primarily from the following: |
|--------|--------|---------------------------------------------------------------------------------------|

|   | o | Higher demand by our GMS customers ($1.5 million); |
|--------|---|----------------------------------------------------|

|   | o | Increased base water rates that went into effect during 2009 ($0.4 million); |
|--------|---|------------------------------------------------------------------------------|

|   | o | A contract to temporarily provide water to Dover Air Force Base in Delaware ($0.4 million); |
|--------|---|---------------------------------------------------------------------------------------------|

|   | o | New customer growth increased connection fees and facilities charges ($0.5 million); and |
|--------|---|------------------------------------------------------------------------------------------|

|   | o | All other revenue categories decreased $0.1 million. |
|--------|---|------------------------------------------------------|

|   | · | Additional services provided by White Marsh under non-regulated contracts increased revenues by $0.2 million. |
|--------|--------|---------------------------------------------------------------------------------------------------------------|

|   | · | All other subsidiaries’ revenues collectively increased $0.1 million. |
|--------|--------|-----------------------------------------------------------------------------|

|   | · | Increased material and supply and outside contractor costs of $0.8 million due to water main breaks in our Middlesex and Tidewater Systems; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Increased purchased water costs of $0.5 million in our Middlesex and Tidewater Systems, primarily from the aforementioned increased customer demand; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Increased net costs of $0.5 million from the implementation of a Company-wide information technology platform; |
|--------|--------|----------------------------------------------------------------------------------------------------------------|

|   | · | Increased labor costs of $0.9 million related to higher average labor rates and increased overtime related to higher water production and increased main breaks in our Middlesex and Tidewater Systems. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Increased employee benefit costs of $0.2 million primarily related to higher life insurance expenses resulting from market fluctuations in the cash surrender value of life insurance policies; and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | All other operation and maintenance expense categories collectively increased $0.3 million. |
|--------|--------|---------------------------------------------------------------------------------------------|

----

Index

|   | · | Decreased Other Income of $0.2 million, primarily related to the sale of a non-operating asset in the third quarter of 2009; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------|

|   | · | Increased Other Expenses of $0.2 million for certain costs related to potential projects at our Delaware subsidiaries; and |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------|

|   | · | All additional Other Income, net categories increased $0.1 million. |
|--------|--------|---------------------------------------------------------------------|

|                       |   | (Millions of Dollars)    |   |
|----------------------------|--------|--------------------------|--------|
|                       |   | Years ended December 31, |   |
|                       |   |                     |   |   | 2009 |   |   |   |   |   |   |   |   | 2008 |   |   |   |   |
|                       |   | Regulated                |   |   | Non-Regulated |   |   | Total |   |   | Regulated |   |   | Non-Regulated |   |   | Total |   |
| Revenues                   |   | $                        | 80.6   |   |   | $ | 10.6 |   |   | $ | 91.2 |   |   | $ | 81.1 |   |   | $ | 9.9 |   |   | $ | 91.0 |   |
| Operations and maintenance |   |                     | 44.2   |   |   |   | 8.1 |   |   |   | 52.3 |   |   |   | 41.2 |   |   |   | 7.7 |   |   |   | 48.9 |   |
| Depreciation               |   |                     | 8.4    |   |   |   | 0.1 |   |   |   | 8.5 |   |   |   | 7.8 |   |   |   | 0.1 |   |   |   | 7.9 |   |
| Other taxes                |   |                     | 9.9    |   |   |   | 0.3 |   |   |   | 10.2 |   |   |   | 10.0 |   |   |   | 0.2 |   |   |   | 10.2 |   |
| Operating income           |   | $                        | 18.1   |   |   | $ | 2.1 |   |   | $ | 20.2 |   |   | $ | 22.1 |   |   | $ | 1.9 |   |   | $ | 24.0 |   |
|                       |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other income, net          |   |                     | 1.4    |   |   |   | 0.3 |   |   |   | 1.7 |   |   |   | 0.9 |   |   |   | 0.4 |   |   |   | 1.3 |   |
| Interest expense           |   |                     | 6.5    |   |   |   | 0.2 |   |   |   | 6.7 |   |   |   | 7.0 |   |   |   | 0.1 |   |   |   | 7.1 |   |
| Income taxes               |   |                     | 4.3    |   |   |   | 0.9 |   |   |   | 5.2 |   |   |   | 5.0 |   |   |   | 1.0 |   |   |   | 6.0 |   |
| Net income                 |   | $                        | 8.7    |   |   | $ | 1.3 |   |   | $ | 10.0 |   |   | $ | 11.0 |   |   | $ | 1.2 |   |   | $ | 12.2 |   |

----

Index

|   | · | Revenues in our Middlesex System decreased $1.6 million, primarily as a result of lower water consumption across our residential, commercial and industrial customer classes. We experienced a $1.9 million decline in water use by our GMS customers compared to the same period in 2008. This lower water consumption was attributable to unfavorable weather as compared to prior years as well as decreased demand by our large commercial and industrial customers.  Increased revenues of $0.4 million from the PWAC implemented on July 1, 2009, offset some of the consumption revenue decline.  All other factors affecting Middlesex system revenues accounted for a $0.1 million decrease in revenues. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Revenues in our Tidewater system increased $1.4 million. Revenue of $1.6 million from increased rates helped to mitigate consumption revenue decreases of $0.8 million, largely attributable to those same weather and usage patterns described above.   New customer growth and other fees added $0.4 million of revenue.  All other factors affecting Tidewater system revenues accounted for a $0.2 million increase in revenues. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | USA-PA’s fees for managing the Perth Amboy water and wastewater systems were $0.5 million higher than the same period in 2008, due mostly to higher pass-through charges and scheduled management fee increases. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | All other operations accounted for a decrease of $0.1 million in revenues. |
|--------|--------|----------------------------------------------------------------------------|

|   | · | Labor costs at our regulated entities increased $0.9 million in 2009 as compared to 2008, primarily due to increases in wages and resources necessary to meet certain additional needs as well as increased overtime incurred in connection with a higher incidence of water main breaks and system maintenance in our Middlesex system.  |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Chemical and residuals disposal expenses increased by $0.8 million in 2009 as compared to 2008.  Although unfavorable weather patterns and economic conditions resulted in a decline in water production in our New Jersey and Delaware systems, costs for chemicals and residuals disposal increased due to a combination of unit cost disposal rate increases and lower quality of untreated water, as influenced by abnormally high rainfall during 2009. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Purchased water costs in our Middlesex system increased $0.5 million in 2009 as compared to 2008, primarily due to the full year’s effect of our suppliers’ rate increases that went into effect in the fourth quarter of 2008. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Employee retirement benefit plan expenses increased $0.4 million, primarily resulting from increased qualified employee retirement benefit plan expenses of $1.2 million, largely attributable to the investment performance of the benefit plans’ assets, offset by a decrease of $0.8 million in life insurance program expenses due to market fluctuations in the cash surrender value of life insurance policies. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Uncollectible accounts expense increased $0.4 million in 2009 as compared to 2008, resulting from current economic conditions. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------|

|   | · | Operating costs for USA-PA increased $0.3 million, which are recovered under the pass-through mechanism in the contract. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------|

|   | · | All other operating and maintenance expense categories increased $0.1 million in 2009 as compared to 2008. |
|--------|--------|------------------------------------------------------------------------------------------------------------|

----

Index

|   | · | Interest expense on long term debt decreased $0.5 million in 2009 as compared to 2008, primarily resulting from lower average long-term debt outstanding in 2009. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Other interest expense increased $0.1 million in 2009 as compared to 2008, primarily due to increased interest costs from higher average short-term debt outstanding in 2009 ($40.0 million) as compared to 2008 ($16.4 million) offset by decreased interest costs from lower average short term debt interest rates in 2009 (1.73%) as compared to 2008 (3.69%). |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|                                 |   | (Millions) |   |
|--------------------------------------|--------|------------|--------|
|                                 |   | 2011       |   |   | 2012 |   |   | 2013 |   |   |   | 2011-2013 |   |
| Distribution System                  |   | $          | 13.5   |   |   | $ | 12.0 |   |   | $ | 12.8 |   |   | $ | 38.3 |   |
| Production System                    |   |       | 5.2    |   |   |   | 4.5 |   |   |   | 11.0 |   |   |   | 20.7 |   |
| Computer Systems                     |   |       | 2.7    |   |   |   | 0.4 |   |   |   | 0.4 |   |   |   | 3.5 |   |
| Other                                |   |       | 1.5    |   |   |   | 1.1 |   |   |   | 0.9 |   |   |   | 3.5 |   |
| Total Estimated Capital Expenditures |   | $          | 22.9   |   |   | $ | 18.0 |   |   | $ | 25.1 |   |   | $ | 66.0 |   |

|   | · | Distribution System-Projects associated with installation and relocation of water mains and service lines, construction of water storage tanks, installation and replacement of hydrants and meters and our RENEW Program, which is our program to clean and cement unlined mains in the Middlesex System.  In connection with our RENEW Program, we expect to spend $5.0 million, $4.0 million and $4.0 million for 2011, 2012 and 2013, respectively. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Production System-Projects associated with our water production and water treatment plants, including construction of a water treatment plant in our Middlesex system expected to be completed in 2014. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Computer Systems-Purchase of hardware and software as well as expected costs to complete implementation of our enterprise resource planning system. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Other-Purchase of vehicles and other transportation equipment, tools, furniture, laboratory equipment, security requirements and other general infrastructure needs. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Internally generated funds |
|--------|--------|----------------------------|

|   | · | Proceeds from the sale of common stock through the DRP |
|--------|--------|--------------------------------------------------------|

|   | · | Funds available and held in trust under existing New Jersey State Revolving Fund (SRF) loans (currently, $5.7 million) and Delaware SRF loans (currently, $1.1 million) and, if available, proceeds |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|   | · | Short-term borrowings, if necessary, through $58.0 million of available lines of credit with several financial institutions.  As of December 31, 2010, we had $17.0 million outstanding against the lines of credit. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|                       |   | Payment Due by Period |   |
|----------------------------|--------|-----------------------|--------|
|                       |   | (Millions of Dollars) |   |
|                       |   | Total                 |   |   | Less than 1 Year |   |   | 2-3 Years |   |   | 4-5 Years |   |   | More than 5 Years |   |
|                       |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Long-term Debt             |   | $                     | 138.3  |   |   | $ | 4.4 |   |   | $ | 9.2 |   |   | $ | 9.5 |   |   | $ | 115.2 |   |
| Notes Payable              |   |                  | 17.0   |   |   |   | 17.0 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Interest on Long-term Debt |   |                  | 95.1   |   |   |   | 6.7 |   |   |   | 12.8 |   |   |   | 12.0 |   |   |   | 63.6 |   |
| Purchased Water Contracts  |   |                  | 45.8   |   |   |   | 5.2 |   |   |   | 10.4 |   |   |   | 10.3 |   |   |   | 19.9 |   |
| Wastewater Operations      |   |                  | 39.1   |   |   |   | 4.4 |   |   |   | 9.2 |   |   |   | 9.8 |   |   |   | 15.7 |   |
| Total                      |   | $                     | 335.3  |   |   | $ | 37.7 |   |   | $ | 41.6 |   |   | $ | 41.6 |   |   | $ | 214.4 |   |

----

Index

|              |   | Pension Plan |   |   | Other Benefits Plan |   |   |   |   |   |   |   |
|-------------------|--------|--------------|--------|--------|---------------------|--------|--------|--------|--------|--------|--------|--------|
| Asset Category    |   | 2010         |   |   | 2009                |   |   | 2010   |   |   | 2009   |   |   | Target |   |   | Range |   |
| Equity Securities |   |         | 64.0   | %      |                |   | 59.2   | %      |   |   | 42.3   | %      |   |   | 40.4 | % |   |   | 60 | % |   |   | 30-65 | % |
| Debt Securities   |   |         | 31.7   | %      |                |   | 36.4   | %      |   |   | 53.8   | %      |   |   | 49.5 | % |   |   | 38 | % |   |   | 25-70 | % |
| Cash              |   |         | 4.0    | %      |                |   | 4.1    | %      |   |   | 3.1    | %      |   |   | 9.0 | % |   |   | 2 | % |   |   | 0-10 | % |
| Commodities       |   |         | 0.3    | %      |                |   | 0.3    | %      |   |   | 0.8    | %      |   |   | 1.1 | % |   |   | 0 | % |   |   | 0 | % |
| Total             |   |         | 100.0  | %      |                |   | 100.0  | %      |   |   | 100.0  | %      |   |   | 100.0 | % |   |   |   |   |   |   |   |   |

----

Index

|                     | Pension Plan | Other Benefits Plan |
|--------------------------|--------------|---------------------|
| Discount Rate            | 5.48%        | 5.48%               |
| Compensation Increase    | 3.00%        | 3.00%               |
| Long-term Rate of Return | 7.50%        | 7.50%               |

| Actuarial Assumptions     |   | Estimated Increase/ (Decrease) on PBO (000s) |   |   | Estimated Increase/ (Decrease) on Expense (000s) |   |
|---------------------------|--------|----------------------------------------------|--------|--------|--------------------------------------------------|--------|
| Discount Rate 1% Increase |   | $                                            | (5,391 | )      |                                             | $      | (521 | ) |
| Discount Rate 1% Decrease |   |                                         | 6,717  |   |                                             |   | 633 |   |

| Actuarial Assumptions                  |   | Estimated Increase/ (Decrease) on PBO (000s) |   |   | Estimated Increase/ (Decrease) on Expense (000s) |   |
|----------------------------------------|--------|----------------------------------------------|--------|--------|--------------------------------------------------|--------|
| Discount Rate 1% Increase              |   | $                                            | (4,221 | )      |                                             | $      | (426 | ) |
| Discount Rate 1% Decrease              |   |                                         | 5,348  |   |                                             |   | 531 |   |
| Healthcare Cost Trend Rate 1% Increase |   |                                         | 4,553  |   |                                             |   | 696 |   |
| Healthcare Cost Trend Rate 1% Decrease |   |                                         | (3,669 | )      |                                             |   | (548 | ) |

----

Index

| Item 7A. | Qualitative and Quantitative Disclosures About Market Risk. |
|----------|-------------------------------------------------------------|

----

Index

| Item 8. | Financial Statements and Supplementary Data. |
|---------|----------------------------------------------|

----

Index

|                                            |                                                 |   | December 31, |    |   | December 31, |   |
|-------------------------------------------------|------------------------------------------------------|--------|--------------|---------|--------|--------------|--------|
| ASSETS                                          |                                                 | 2010   |         |    | 2009   |         |
| UTILITY PLANT:                                  | Water Production                                     |   | $            | 118,919 |   |         | $      | 113,124 |   |
|                                            | Transmission and Distribution                        |   |         | 308,468 |   |         |   | 293,269 |   |
|                                            | General                                              |   |         | 44,368  |   |         |   | 29,631 |   |
|                                            | Construction Work in Progress                        |   |         | 11,715  |   |         |   | 17,547 |   |
|                                            | TOTAL                                                |   |         | 483,470 |   |         |   | 453,571 |   |
|                                            | Less Accumulated Depreciation                        |   |         | 84,737  |   |         |   | 77,027 |   |
|                                            | UTILITY PLANT - NET                                  |   |         | 398,733 |   |         |   | 376,544 |   |
|                                            |                                                 |   |         |    |   |         |   |   |   |
| CURRENT ASSETS:                                 | Cash and Cash Equivalents                            |   |         | 2,453   |   |         |   | 4,278 |   |
|                                            | Accounts Receivable, net                             |   |         | 11,963  |   |         |   | 10,616 |   |
|                                            | Unbilled Revenues                                    |   |         | 4,752   |   |         |   | 4,424 |   |
|                                            | Materials and Supplies (at average cost)             |   |         | 2,196   |   |         |   | 1,618 |   |
|                                            | Prepayments                                          |   |         | 1,401   |   |         |   | 1,109 |   |
|                                            | TOTAL CURRENT ASSETS                                 |   |         | 22,765  |   |         |   | 22,045 |   |
|                                            |                                                 |   |         |    |   |         |   |   |   |
| DEFERRED CHARGES                                | Unamortized Debt Expense                             |   |         | 2,739   |   |         |   | 2,856 |   |
| AND OTHER ASSETS:                               | Preliminary Survey and Investigation Charges         |   |         | 7,023   |   |         |   | 6,999 |   |
|                                            | Regulatory Assets                                    |   |         | 38,771  |   |         |   | 33,081 |   |
|                                            | Operations and Developer Contracts Receivable   |   |         | 4,589   |   |         |   | 3,715 |   |
|                                            | Restricted Cash                                      |   |         | 7,056   |   |         |   | 5,266 |   |
|                                            | Non-utility Assets - Net                             |   |         | 7,122   |   |         |   | 7,134 |   |
|                                            | Other                                                |   |         | 387     |   |         |   | 446 |   |
|                                            | TOTAL DEFERRED CHARGES AND OTHER ASSETS              |   |         | 67,687  |   |         |   | 59,497 |   |
|                                            | TOTAL ASSETS                                         |   | $            | 489,185 |   |         | $      | 458,086 |   |
|                                            |                                                 |   |         |    |   |         |   |   |   |
| CAPITALIZATION AND LIABILITIES                  |                                                 |   |         |    |   |         |   |   |
| CAPITALIZATION:                                 | Common Stock, No Par Value                           |   | $            | 139,534 |   |         | $      | 109,366 |   |
|                                            | Retained Earnings                                    |   |         | 33,745  |   |         |   | 30,265 |   |
|                                            | TOTAL COMMON EQUITY                                  |   |         | 173,279 |   |         |   | 139,631 |   |
|                                            | Preferred Stock                                      |   |         | 3,362   |   |         |   | 3,373 |   |
|                                            | Long-term Debt                                       |   |         | 133,844 |   |         |   | 124,910 |   |
|                                            | TOTAL CAPITALIZATION                                 |   |         | 310,485 |   |         |   | 267,914 |   |
|                                            |                                                 |   |         |    |   |         |   |   |   |
| CURRENT                                         | Current Portion of Long-term Debt                    |   |         | 4,432   |   |         |   | 3,710 |   |
| LIABILITIES:                                    | Notes Payable                                        |   |         | 17,000  |   |         |   | 42,850 |   |
|                                            | Accounts Payable                                     |   |         | 6,403   |   |         |   | 4,348 |   |
|                                            | Accrued Taxes                                        |   |         | 8,752   |   |         |   | 5,686 |   |
|                                            | Accrued Interest                                     |   |         | 1,598   |   |         |   | 1,861 |   |
|                                            | Unearned Revenues and Advanced Service Fees          |   |         | 864     |   |         |   | 861 |   |
|                                            | Other                                                |   |         | 1,691   |   |         |   | 1,352 |   |
|                                            | TOTAL CURRENT LIABILITIES                            |   |         | 40,740  |   |         |   | 60,668 |   |
|                                            |                                                 |   |         |    |   |         |   |   |   |
| COMMITMENTS AND CONTINGENT LIABILITIES (Note 4) |                                                 |   |         |    |   |         |   |   |
|                                            |                                                 |   |         |    |   |         |   |   |   |
| DEFERRED CREDITS                                | Customer Advances for Construction                   |   |         | 21,261  |   |         |   | 20,806 |   |
| AND OTHER LIABILITIES:                          | Accumulated Deferred Investment Tax Credits          |   |         | 1,225   |   |         |   | 1,303 |   |
|                                            | Accumulated Deferred Income Taxes                    |   |         | 29,691  |   |         |   | 27,788 |   |
|                                            | Employee Benefit Plans                               |   |         | 28,562  |   |         |   | 25,723 |   |
|                                            | Regulatory Liability - Cost of Utility Plant Removal |   |         | 7,369   |   |         |   | 6,738 |   |
|                                            | Other                                                |   |         | 154     |   |         |   | 275 |   |
|                                            | TOTAL DEFERRED CREDITS AND OTHER LIABILITIES         |   |         | 88,262  |   |         |   | 82,633 |   |
|                                            |                                                 |   |         |    |   |         |   |   |   |
| CONTRIBUTIONS IN AID OF CONSTRUCTION            |                                                 |   | 49,698       |    |   |         | 46,871 |   |
|                                            | TOTAL CAPITALIZATION AND LIABILITIES                 |   | $            | 489,185 |   |         | $      | 458,086 |   |

----

Index

|                                         |   | Years Ended December 31, |    |
|----------------------------------------------|--------|--------------------------|---------|
|                                         |   | 2010                     |    |   | 2009 |   |   | 2008 |   |
|                                         |   |                     |    |   |   |   |   |   |   |
| Operating Revenues                           |   | $                        | 102,735 |   |   | $ | 91,243 |   |   | $ | 91,038 |   |
|                                         |   |                     |    |   |   |   |   |   |   |   |   |   |
| Operating Expenses:                          |   |                     |    |   |   |   |   |   |   |   |   |   |
| Operations and Maintenance                   |   |                     | 55,481  |   |   |   | 52,348 |   |   |   | 48,929 |   |
| Depreciation                                 |   |                     | 9,244   |   |   |   | 8,559 |   |   |   | 7,922 |   |
| Other Taxes                                  |   |                     | 11,413  |   |   |   | 10,175 |   |   |   | 10,168 |   |
|                                         |   |                     |    |   |   |   |   |   |   |   |   |   |
| Total Operating Expenses                     |   |                     | 76,138  |   |   |   | 71,082 |   |   |   | 67,019 |   |
|                                         |   |                     |    |   |   |   |   |   |   |   |   |   |
| Operating Income                             |   |                     | 26,597  |   |   |   | 20,161 |   |   |   | 24,019 |   |
|                                         |   |                     |    |   |   |   |   |   |   |   |   |   |
| Other Income (Expense):                      |   |                     |    |   |   |   |   |   |   |   |   |   |
| Allowance for Funds Used During Construction |   |                     | 970     |   |   |   | 1,001 |   |   |   | 667 |   |
| Other Income                                 |   |                     | 912     |   |   |   | 1,011 |   |   |   | 906 |   |
| Other Expense                                |   |                     | (438    | ) |   |   | (286 | ) |   |   | (271 | ) |
|                                         |   |                     |    |   |   |   |   |   |   |   |   |   |
| Total Other Income, net                      |   |                     | 1,444   |   |   |   | 1,726 |   |   |   | 1,302 |   |
|                                         |   |                     |    |   |   |   |   |   |   |   |   |   |
| Interest Charges                             |   |                     | 6,925   |   |   |   | 6,750 |   |   |   | 7,057 |   |
|                                         |   |                     |    |   |   |   |   |   |   |   |   |   |
| Income before Income Taxes                   |   |                     | 21,116  |   |   |   | 15,137 |   |   |   | 18,264 |   |
|                                         |   |                     |    |   |   |   |   |   |   |   |   |   |
| Income Taxes                                 |   |                     | 6,786   |   |   |   | 5,160 |   |   |   | 6,056 |   |
|                                         |   |                     |    |   |   |   |   |   |   |   |   |   |
| Net Income                                   |   |                     | 14,330  |   |   |   | 9,977 |   |   |   | 12,208 |   |
|                                         |   |                     |    |   |   |   |   |   |   |   |   |   |
| Preferred Stock Dividend Requirements        |   |                     | 207     |   |   |   | 208 |   |   |   | 218 |   |
|                                         |   |                     |    |   |   |   |   |   |   |   |   |   |
| Earnings Applicable to Common Stock          |   | $                        | 14,123  |   |   | $ | 9,769 |   |   | $ | 11,990 |   |
|                                         |   |                     |    |   |   |   |   |   |   |   |   |   |
| Earnings per share of Common Stock:          |   |                     |    |   |   |   |   |   |   |   |   |   |
| Basic                                        |   | $                        | 0.96    |   |   | $ | 0.73 |   |   | $ | 0.90 |   |
| Diluted                                      |   | $                        | 0.96    |   |   | $ | 0.72 |   |   | $ | 0.89 |   |
|                                         |   |                     |    |   |   |   |   |   |   |   |   |   |
| Average Number of                            |   |                     |    |   |   |   |   |   |   |   |   |   |
| Common Shares Outstanding :                  |   |                     |    |   |   |   |   |   |   |   |   |   |
| Basic                                        |   |                     | 14,654  |   |   |   | 13,454 |   |   |   | 13,317 |   |
| Diluted                                      |   |                     | 14,916  |   |   |   | 13,716 |   |   |   | 13,615 |   |
|                                         |   |                     |    |   |   |   |   |   |   |   |   |   |
| Cash Dividends Paid per Common Share         |   | $                        | 0.723   |   |   | $ | 0.713 |   |   | $ | 0.703 |   |

----

Index

|                                                                                       |   | Years Ended December 31, |    |
|--------------------------------------------------------------------------------------------|--------|--------------------------|---------|
|                                                                                       |   | 2010                     |    |   | 2009 |   |   | 2008 |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                                      |   |                     |    |   |   |   |   |   |   |
| Net Income                                                                                 |   | $                        | 14,330  |   |   | $ | 9,977 |   |   | $ | 12,208 |   |
| Adjustments to Reconcile Net Income to                                                     |   |                     |    |   |   |   |   |   |   |   |   |   |
| Net Cash Provided by Operating Activities:                                                 |   |                     |    |   |   |   |   |   |   |   |   |   |
| Depreciation and Amortization                                                              |   |                     | 9,958   |   |   |   | 9,217 |   |   |   | 8,530 |   |
| Provision for Deferred Income Taxes and ITC                                                |   |                     | 630     |   |   |   | 5,522 |   |   |   | 1,032 |   |
| Equity Portion of AFUDC                                                                    |   |                     | (611    | ) |   |   | (580 | ) |   |   | (348 | ) |
| Cash Surrender Value of Life Insurance                                                     |   |                     | 104     |   |   |   | (387 | ) |   |   | 576 |   |
| Gain on Disposal of Equity Investments                                                     |   |                     | -       |   |   |   | - |   |   |   | (86 | ) |
| Stock Compensation Expense                                                                 |   |                     | 323     |   |   |   | 386 |   |   |   | 288 |   |
| Changes in Assets and Liabilities:                                                         |   |                     |    |   |   |   |   |   |   |   |   |   |
| Accounts Receivable                                                                        |   |                     | (2,222  | ) |   |   | (1,112 | ) |   |   | (807 | ) |
| Unbilled Revenues                                                                          |   |                     | (328    | ) |   |   | 398 |   |   |   | (213 | ) |
| Materials & Supplies                                                                   |   |                     | (578    | ) |   |   | (143 | ) |   |   | (270 | ) |
| Prepayments                                                                                |   |                     | (292    | ) |   |   | 372 |   |   |   | (118 | ) |
| Accounts Payable                                                                           |   |                     | 2,055   |   |   |   | (1,341 | ) |   |   | 147 |   |
| Accrued Taxes                                                                              |   |                     | 3,066   |   |   |   | (2,096 | ) |   |   | 206 |   |
| Accrued Interest                                                                           |   |                     | (263    | ) |   |   | (192 | ) |   |   | 137 |   |
| Employee Benefit Plans                                                                     |   |                     | (1,904  | ) |   |   | (354 | ) |   |   | (1,146 | ) |
| Unearned Revenue & Advanced Service Fees                                               |   |                     | 3       |   |   |   | 19 |   |   |   | 84 |   |
| Other Assets and Liabilities                                                               |   |                     | 1,294   |   |   |   | (1,180 | ) |   |   | (816 | ) |
|                                                                                       |   |                     |    |   |   |   |   |   |   |   |   |   |
| NET CASH PROVIDED BY OPERATING ACTIVITIES                                                  |   |                     | 25,565  |   |   |   | 18,506 |   |   |   | 19,404 |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                                      |   |                     |    |   |   |   |   |   |   |   |   |   |
| Utility Plant Expenditures, Including AFUDC of $359 in 2010, $421 in 2009 and $319 in 2008 |   |                     | (29,604 | ) |   |   | (20,128 | ) |   |   | (30,336 | ) |
| Restricted Cash                                                                            |   |                     | (1,790  | ) |   |   | 456 |   |   |   | (591 | ) |
|                                                                                       |   |                     |    |   |   |   |   |   |   |   |   |   |
| NET CASH USED IN INVESTING ACTIVITIES                                                      |   |                     | (31,394 | ) |   |   | (19,672 | ) |   |   | (30,927 | ) |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                                      |   |                     |    |   |   |   |   |   |   |   |   |   |
| Redemption of Long-term Debt                                                               |   |                     | (4,314  | ) |   |   | (18,244 | ) |   |   | (2,787 | ) |
| Proceeds from Issuance of Long-term Debt                                                   |   |                     | 13,970  |   |   |   | 12,014 |   |   |   | 4,652 |   |
| Net Short-term Bank Borrowings                                                             |   |                     | (25,850 | ) |   |   | 16,973 |   |   |   | 19,627 |   |
| Deferred Debt Issuance Expense                                                             |   |                     | (25     | ) |   |   | (116 | ) |   |   | (158 | ) |
| Common Stock Issuance Expense                                                              |   |                     | (133    | ) |   |   | - |   |   |   | - |   |
| Restricted Cash                                                                            |   |                     | -       |   |   |   | (25 | ) |   |   | (40 | ) |
| Repurchase of Preferred Stock                                                              |   |                     | (11     | ) |   |   | - |   |   |   |  - |   |
| Proceeds from Issuance of Common Stock                                                     |   |                     | 29,845  |   |   |   | 1,251 |   |   |   | 1,187 |   |
| Payment of Common Dividends                                                                |   |                     | (10,510 | ) |   |   | (9,582 | ) |   |   | (9,353 | ) |
| Payment of Preferred Dividends                                                             |   |                     | (207    | ) |   |   | (208 | ) |   |   | (218 | ) |
| Construction Advances and Contributions-Net                                                |   |                     | 1,239   |   |   |   | 93 |   |   |   | (128 | ) |
|                                                                                       |   |                     |    |   |   |   |   |   |   |   |   |   |
| NET CASH PROVIDED BY FINANCING ACTIVITIES                                                  |   |                     | 4,004   |   |   |   | 2,156 |   |   |   | 12,782 |   |
| NET CHANGES IN CASH AND CASH EQUIVALENTS                                                   |   |                     | (1,825  | ) |   |   | 990 |   |   |   | 1,259 |   |
| CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                                           |   |                     | 4,278   |   |   |   | 3,288 |   |   |   | 2,029 |   |
| CASH AND CASH EQUIVALENTS AT END OF PERIOD                                                 |   | $                        | 2,453   |   |   | $ | 4,278 |   |   | $ | 3,288 |   |
|                                                                                       |   |                     |    |   |   |   |   |   |   |   |   |   |
|                                                                                       |   |                     |    |   |   |   |   |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITY:                                              |   |                     |    |   |   |   |   |   |   |   |   |   |
| Utility Plant received as Construction Advances and Contributions                          |   | $                        | 2,043   |   |   | $ | 4,264 |   |   | $ | 5,452 |   |
| Transfer of Equity Investment to Employee Retirement Benefit Plans                         |   | $                        | -       |   |   | $ | - |   |   | $ | 132 |   |
| Long-term Debt Deobligation                                                                |   | $                        | -       |   |   | $ | 1,352 |   |   | $ | - |   |
|                                                                                       |   |                     |    |   |   |   |   |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION:                                         |   |                     |    |   |   |   |   |   |   |   |   |   |
| Cash Paid During the Year for:                                                             |   |                     |    |   |   |   |   |   |   |   |   |   |
| Interest                                                                                   |   | $                        | 7,155   |   |   | $ | 6,887 |   |   | $ | 6,864 |   |
| Interest Capitalized                                                                       |   | $                        | 359     |   |   | $ | 421 |   |   | $ | 319 |   |
| Income Taxes                                                                               |   | $                        | 4,617   |   |   | $ | 1,856 |   |   | $ | 5,205 |   |

----

Index

|                                                              |   | December 31, 2010 |    |   | December 31, 2009 |    |
|-------------------------------------------------------------------|--------|-------------------|---------|--------|-------------------|---------|
| Common Stock, No Par Value                                        |   |              |    |   |              |    |
| Shares Authorized - 40,000                                        |   |              |    |   |              |    |
| Shares Outstanding -  2010 - 15,566                          |   | $                 | 139,534 |   |              | $       | 109,366 |   |
| 2009 - 13,519                                                     |   |              |    |   |              |    |   |   |
|                                                              |   |              |    |   |              |    |   |   |
| Retained Earnings                                                 |   |              | 33,745  |   |              |    | 30,265 |   |
| TOTAL COMMON EQUITY                                               |   | $                 | 173,279 |   |              | $       | 139,631 |   |
|                                                              |   |              |    |   |              |    |   |   |
| 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                  |   |              | 89      |   |              |    | 100 |   |
| Shares Outstanding, $4.75 Series - 10                             |   |              | 1,000   |   |              |    | 1,000 |   |
| TOTAL PREFERRED STOCK                                             |   | $                 | 3,362   |   |              | $       | 3,373 |   |
|                                                              |   |              |    |   |              |    |   |   |
| Long-term Debt:                                                   |   |              |    |   |              |    |   |   |
| 8.05%, Amortizing Secured Note, due December 20, 2021             |   | $                 | 2,456   |   |              | $       | 2,581 |   |
| 6.25%, Amortizing Secured Note, due May 22, 2028                  |   |              | 7,315   |   |              |    | 7,735 |   |
| 6.44%, Amortizing Secured Note, due August 25, 2030               |   |              | 5,507   |   |              |    | 5,787 |   |
| 6.46%, Amortizing Secured Note, due September 19, 2031            |   |              | 5,787   |   |              |    | 6,067 |   |
| 4.22%, State Revolving Trust Note, due December 31, 2022          |   |              | 585     |   |              |    | 622 |   |
| 3.30% to 3.60%, State Revolving Trust Note, due May 1, 2025       |   |              | 3,655   |   |              |    | 3,687 |   |
| 3.49%, State Revolving Trust Note, due January 25, 2027           |   |              | 664     |   |              |    | 678 |   |
| 4.03%, State Revolving Trust Note, due December 1, 2026           |   |              | 865     |   |              |    | 903 |   |
| 4.00% to 5.00%, State Revolving Trust Bond, due September 1, 2021 |   |              | 522     |   |              |    | 625 |   |
| 0.00%, State Revolving Fund Bond, due September 1, 2021           |   |              | 397     |   |              |    | 436 |   |
| 3.64%, State Revolving Trust Note, due July 1, 2028               |   |              | 387     |   |              |    | 395 |   |
| 3.64%, State Revolving Trust Note, due January 1, 2028            |   |              | 130     |   |              |    | 132 |   |
| 3.45%, State Revolving Trust Note, due August 1, 2031             |   |              | 17      |   |              |    | - |   |
| 6.59%, Amortizing Secured Note, due April 20, 2029                |   |              | 6,395   |   |              |    | 6,743 |   |
| 7.05%, Amortizing Secured Note, due January 20, 2030              |   |              | 4,771   |   |              |    | 5,000 |   |
| 5.69%, Amortizing Secured Note, due January 20, 2030              |   |              | 9,786   |   |              |    | - |   |
| 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 |   |
| 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                            |   |              | 430     |   |              |    | 483 |   |
| 4.25% to 4.63%, Series Y, due September 1, 2018                   |   |              | 590     |   |              |    | 650 |   |
| 0.00%, Series Z, due September 1, 2019                            |   |              | 1,007   |   |              |    | 1,118 |   |
| 5.25% to 5.75%, Series AA, due September 1, 2019                  |   |              | 1,440   |   |              |    | 1,560 |   |
| 0.00%, Series BB, due September 1, 2021                           |   |              | 1,328   |   |              |    | 1,447 |   |
| 4.00% to 5.00%, Series CC, due September 1, 2021                  |   |              | 1,680   |   |              |    | 1,790 |   |
| 5.10%, Series DD, due January 1, 2032                             |   |              | 6,000   |   |              |    | 6,000 |   |
| 0.00%, Series EE, due August 1, 2023                              |   |              | 5,224   |   |              |    | 5,642 |   |
| 3.00% to 5.50%, Series FF, due August 1, 2024                     |   |              | 6,555   |   |              |    | 6,935 |   |
| 0.00%, Series GG, due August 1, 2026                              |   |              | 1,440   |   |              |    | 1,530 |   |
| 4.00% to 5.00%, Series HH, due August 1, 2026                     |   |              | 1,715   |   |              |    | 1,810 |   |
| 0.00%, Series II, due August 1, 2024                              |   |              | 1,239   |   |              |    | 1,619 |   |
| 3.40% to 5.00%, Series JJ, due August 1, 2024                     |   |              | 1,625   |   |              |    | 1,690 |   |
| 0.00%, Series KK, due August 1, 2028                              |   |              | 1,616   |   |              |    | 1,705 |   |
| 5.00% to 5.50%, Series LL, due August 1, 2028                     |   |              | 1,695   |   |              |    | 1,750 |   |
| 0.00%, Series MM, due August 1, 2030                              |   |              | 1,968   |   |              |    | - |   |
| 3.00% to 4.375%, Series NN, due August 1, 2030                    |   |              | 1,985   |   |              |    | - |   |
| SUBTOTAL LONG-TERM DEBT                                           |   |              | 138,276 |   |              |    | 128,620 |   |
| Less: Current Portion of Long-term Debt                           |   |              | (4,432  | )      |              |    | (3,710 | ) |
| TOTAL LONG-TERM DEBT                                              |   | $                 | 133,844 |   |              | $       | 124,910 |   |

----

Index

|                                          |   | CommonStockShares |   |   | CommonStockAmount |   |    | RetainedEarnings |   |   | AccumulatedOtherComprehensiveIncome (Loss) |   |   | Total  |   |
|-----------------------------------------------|--------|-------------------|--------|--------|-------------------|--------|---------|------------------|--------|--------|--------------------------------------------|--------|--------|--------|--------|
|                                          |   |              |   |   |              |   |    |             |   |   |                                       |   |   |   |   |
| Balance at January 1, 2008                    |   |              | 13,246 |   |              | $      | 105,668 |             |   | $      | 27,441                                     |   |   | $      | 69     |   |   | $ | 133,178 |   |
|                                          |   |              |   |   |              |   |    |             |   |   |                                       |   |   |   |   |   |   |   |   |   |
| Net Income                                    |   |              |   |   |              |   |    |             |   |   | 12,208                                     |   |   |   |   |   |   |   | 12,208 |   |
| Change in Value of Equity Investments, Net of |   |              |   |   |              |   |    |             |   |   |                                       |   |   |   |   |   |   |   |   |   |
|  $36 Income Tax                          |   |              |   |   |              |   |    |             |   |   |                                       |   |   |   | (69    | ) |   |   | (69 | ) |
| Comprehensive Income                          |   |              |   |   |              |   |    |             |   |   |                                       |   |   |   |   |   |   |   | 12,139 |   |
| Dividend Reinvestment & Common Stock      |   |              |   |   |              |   |    |             |   |   |                                       |   |   |   |   |   |   |   |   |   |
| Purchase Plan                                 |   |              | 67     |   |              |   | 1,187   |             |   |   |                                       |   |   |   |   |   |   |   | 1,187 |   |
| Conversion of $8 Convertible Preferred Stock  |   |              | 69     |   |              |   | 583     |             |   |   |                                       |   |   |   |   |   |   |   | 583 |   |
| Restricted Stock Award, Net - Employees       |   |              | 22     |   |              |   | 288     |             |   |   |                                       |   |   |   |   |   |   |   | 288 |   |
| Cash Dividends on Common Stock                |   |              |   |   |              |   |    |             |   |   | (9,353                                     | )      |   |   |   |   |   |   | (9,353 | ) |
| Cash Dividends on Preferred Stock             |   |              |   |   |              |   |    |             |   |   | (218                                       | )      |   |   |   |   |   |   | (218 | ) |
| Other                                         |   |              |   |   |              |   |    |             |   |   | (1                                         | )      |   |   |   |   |   |   | (1 | ) |
| Balance at December 31, 2008                  |   |              | 13,404 |   |              | $      | 107,726 |             |   | $      | 30,077                                     |   |   | $      | -      |   |   | $ | 137,803 |   |
|                                          |   |              |   |   |              |   |    |             |   |   |                                       |   |   |   |   |   |   |   |   |   |
| Net Income                                    |   |              |   |   |              |   |    |             |   |   | 9,977                                      |   |   |   |   |   |   |   | 9,977 |   |
| Dividend Reinvestment & Common Stock      |   |              |   |   |              |   |    |             |   |   |                                       |   |   |   |   |   |   |   |   |   |
| Purchase Plan                                 |   |              | 84     |   |              |   | 1,254   |             |   |   |                                       |   |   |   |   |   |   |   | 1,254 |   |
| Restricted Stock Award, Net - Employees       |   |              | 29     |   |              |   | 365     |             |   |   |                                       |   |   |   |   |   |   |   | 365 |   |
| Stock Award - Board Of Directors              |   |              | 2      |   |              |   | 21      |             |   |   |                                       |   |   |   |   |   |   |   | 21 |   |
| Cash Dividends on Common Stock                |   |              |   |   |              |   |    |             |   |   | (9,582                                     | )      |   |   |   |   |   |   | (9,582 | ) |
| Cash Dividends on Preferred Stock             |   |              |   |   |              |   |    |             |   |   | (208                                       | )      |   |   |   |   |   |   | (208 | ) |
| Other                                         |   |              |   |   |              |   |    |             |   |   | 1                                          |   |   |   |   |   |   |   | 1 |   |
| Balance at December 31, 2009                  |   |              | 13,519 |   |              | $      | 109,366 |             |   | $      | 30,265                                     |   |   | $      | -      |   |   | $ | 139,631 |   |
|                                          |   |              |   |   |              |   |    |             |   |   |                                       |   |   |   |   |   |   |   |   |   |
| Net Income                                    |   |              |   |   |              |   |    |             |   |   | 14,330                                     |   |   |   |   |   |   |   | 14,330 |   |
| Dividend Reinvestment & Common Stock      |   |              |   |   |              |   |    |             |   |   |                                       |   |   |   |   |   |   |   |   |   |
| Purchase Plan                                 |   |              | 116    |   |              |   | 1,917   |             |   |   |                                       |   |   |   |   |   |   |   | 1,917 |   |
| Restricted Stock Award, Net - Employees       |   |              | 14     |   |              |   | 299     |             |   |   |                                       |   |   |   |   |   |   |   | 299 |   |
| Stock Award - Board Of Directors              |   |              | 2      |   |              |   | 24      |             |   |   |                                       |   |   |   |   |   |   |   | 24 |   |
| Issuance of Common Stock                      |   |              | 1,915  |   |              |   | 27,928  |             |   |   |                                       |   |   |   |   |   |   |   | 27,928 |   |
| Cash Dividends on Common Stock                |   |              |   |   |              |   |    |             |   |   | (10,510                                    | )      |   |   |   |   |   |   | (10,510 | ) |
| Cash Dividends on Preferred Stock             |   |              |   |   |              |   |    |             |   |   | (207                                       | )      |   |   |   |   |   |   | (207 | ) |
| Common Stock Expenses                         |   |              |   |   |              |   |    |             |   |   | (133                                       | )      |   |   |   |   |   |   | (133 | ) |
| Balance at December 31, 2010                  |   |              | 15,566 |   |              | $      | 139,534 |             |   | $      | 33,745                                     |   |   | $      | -      |   |   | $ | 173,279 |   |

----

Index

----

Index

| Source of Supply | 1.15% -   3.44% |   | Transmission and Distribution (T&D): |
|------------------|--------------------------------|--------|------------------------------------------|
| Pumping          | 2.87% -   5.39% |   | T&D – Mains                    | 1.10%  -   3.13% |
| Water Treatment  | 1.65% -   7.09% |   | T&D – Services                 | 2.12%  -   3.16% |
| General Plant    | 2.08% - 17.84%                 |   | T&D – Other                    | 1.61%  -   4.63% |

|      |   | For The Year Ended December 31, |   |
|-----------|--------|---------------------------------|--------|
|      |   | 2010                            |   |   | 2009 |   |   | 2008 |   |
| Middlesex |   |                            | 7.54   | % |   |   | 7.65 | % |   |   | 7.65 | % |
| Tidewater |   |                            | 8.24   | % |   |   | 8.24 | % |   |   | 8.33 | % |

----

Index

----

Index

----

Index

| Period                    | DSIC % |   | Period                     | DSIC % |
|---------------------------|--------|--------|----------------------------|--------|
| January 2008-June 2008    | 1.62%  |   | April 2009 - December 2009 | -      |
| July 2008 - December 2008 | 2.94%  |   | January 2010 - June 2010   | 1.11%  |
| January 2009 - March 2009 | 5.25%  |   | July 2010 - December 2010  | 1.07%  |

----

Index

|                    |   | (Thousands of Dollars) |   |      |
|-------------------------|--------|------------------------|--------|-----------|
|                    |   | December 31,           |   | Remaining |
| Regulatory Assets       |   | 2010                   |   |      | 2009 |   | Recovery Periods |
| Postretirement Benefits |   | $                      | 25,786 |      |   | $ | 21,167 |   | Various |
| Income Taxes            |   |                   | 12,551 |      |   |   | 11,356 |   | Various |
| Tank Painting           |   |                   | 136    |      |   |   | 168 |   | 4-9 years |
| Rate Cases and Other    |   |                   | 298    |      |   |   | 390 |   | Up to 2 years |
| Total                   |   | $                      | 38,771 |      |   | $ | 33,081 |   |   |

|                           |   | (Thousands of Dollars)Years Ended December 31, |   |
|--------------------------------|--------|------------------------------------------------|--------|
|                           |   | 2010                                           |   |   | 2009 |   |   | 2008 |   |
| Income Tax at Statutory Rate   |   | $                                              | 7,224  |   |   | $ | 5,147 |   |   | $ | 6,253 |   |
| Tax Effect of:                 |   |                                           |   |   |   |   |   |   |   |   |   |   |
| Utility Plant Related          |   |                                           | (826   | ) |   |   | (247 | ) |   |   | (725 | ) |
| State Income Taxes – Net |   |                                           | 336    |   |   |   | 339 |   |   |   | 309 |   |
| Employee Benefits              |   |                                           | 33     |   |   |   | (86 | ) |   |   | 202 |   |
| Other                          |   |                                           | 19     |   |   |   | 7 |   |   |   | 17 |   |
| Total Income Tax Expense       |   | $                                              | 6,786  |   |   | $ | 5,160 |   |   | $ | 6,056 |   |

----

Index

|                     |   | (Thousands of Dollars)Years Ended December 31, |   |
|--------------------------|--------|------------------------------------------------|--------|
|                     |   | 2010                                           |   |   | 2009 |   |   | 2008 |   |
|                     |   |                                           |   |   |   |   |   |   |   |
| Current:                 |   |                                           |   |   |   |   |   |   |   |
| Federal                  |   | $                                              | 5,584  |   |   | $ | (208 | ) |   | $ | 4,651 |   |
| State                    |   |                                           | 481    |   |   |   | 35 |   |   |   | 392 |   |
| Deferred:                |   |                                           |   |   |   |   |   |   |   |   |   |   |
| Federal                  |   |                                           | 770    |   |   |   | 4,933 |   |   |   | 1,018 |   |
| State                    |   |                                           | 30     |   |   |   | 479 |   |   |   | 74 |   |
| Investment Tax Credits   |   |                                           | (79    | ) |   |   | (79 | ) |   |   | (79 | ) |
| Total Income Tax Expense |   | $                                              | 6,786  |   |   | $ | 5,160 |   |   | $ | 6,056 |   |

|                                 |   | (Thousands of Dollars)December 31, |   |
|--------------------------------------|--------|------------------------------------|--------|
|                                 |   | 2010                               |   |   | 2009 |   |
| Utility Plant Related                |   | $                                  | 32,010 |   |   | $ | 31,942 |   |
| Customer Advances                    |   |                               | (3,840 | ) |   |   | (3,914 | ) |
| Employee Benefits                    |   |                               | 1,912  |   |   |   | 217 |   |
| Investment Tax Credits (ITC)         |   |                               | 1,225  |   |   |   | 1,303 |   |
| Other                                |   |                               | (391   | ) |   |   | (457 | ) |
| Total Deferred Tax Liability and ITC |   | $                                  | 30,916 |   |   | $ | 29,091 |   |

----

Index

|            |   | Years Ended December 31,(Millions of Dollars) |   |
|-----------------|--------|-----------------------------------------------|--------|
| Purchased Water |   | 2010                                          |   |   | 2009 |   |   | 2008 |   |
| Untreated       |   | $                                             | 2.5    |   |   | $ | 2.4 |   |   | $ | 2.4 |   |
| Treated         |   |                                          | 2.9    |   |   |   | 2.6 |   |   |   | 2.1 |   |
| Total Costs     |   | $                                             | 5.4    |   |   | $ | 5.0 |   |   | $ | 4.5 |   |

|                                       |   | (Millions of Dollars) |   |
|--------------------------------------------|--------|-----------------------|--------|
|                                       |   | 2010                  |   |   | 2009 |   |
| Established Lines at Year-End              |   | $                     | 58.0   |   |   | $ | 53.0 |   |
| Maximum Amount Outstanding                 |   |                  | 45.9   |   |   |   | 44.2 |   |
| Average Outstanding                        |   |                  | 26.4   |   |   |   | 40.0 |   |
| Notes Payable at Year-End                  |   |                  | 17.0   |   |   |   | 42.9 |   |
| Weighted Average Interest Rate             |   |                  | 1.58   | % |   |   | 1.73 | % |
| Weighted Average Interest Rate at Year-End |   |                  | 1.53   | % |   |   | 1.53 | % |

----

Index

----

Index

| Year |   | (Millions of Dollars)Annual Maturities |   |
|------|--------|----------------------------------------|--------|
| 2011 |   | $                                      | 4.4    |   |
| 2012 |   | $                                      | 4.6    |   |
| 2013 |   | $                                      | 4.6    |   |
| 2014 |   | $                                      | 4.7    |   |
| 2015 |   | $                                      | 4.8    |   |

----

Index

|                                         |   | (In Thousands, Except per Share Amounts) |   |
|----------------------------------------------|--------|------------------------------------------|--------|
|                                         |   | 2010                                     |   |   | 2009 |   |   | 2008 |   |
| Basic:                                       |   | Income                                   |   |   | Shares |   |   | Income |   |   | Shares |   |   | Income |   |   | Shares |   |
| Net Income                                   |   | $                                        | 14,330 |   |   |   | 14,654 |   |   | $ | 9,977 |   |   |   | 13,454 |   |   | $ | 12,208 |   |   |   | 13,317 |   |
| Preferred Dividend                           |   |                                     | (207   | ) |   |   |   |   |   |   | (208 | ) |   |   |   |   |   |   | (218 | ) |   |   |   |   |
| Earnings Applicable to Common Stock          |   | $                                        | 14,123 |   |   |   | 14,654 |   |   | $ | 9,769 |   |   |   | 13,454 |   |   | $ | 11,990 |   |   |   | 13,317 |   |
| Basic EPS                                    |   | $                                        | 0.96   |   |   |   |   |   |   | $ | 0.73 |   |   |   |   |   |   | $ | 0.90 |   |   |   |   |   |
| Diluted:                                     |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings Applicable to Common Stock          |   | $                                        | 14,123 |   |   |   | 14,654 |   |   | $ | 9,769 |   |   |   | 13,454 |   |   | $ | 11,990 |   |   |   | 13,317 |   |
| $7.00 Series Dividend                        |   |                                     | 97     |   |   |   | 166 |   |   |   | 97 |   |   |   | 166 |   |   |   | 97 |   |   |   | 167 |   |
| $8.00 Series Dividend                        |   |                                     | 56     |   |   |   | 96 |   |   |   | 56 |   |   |   | 96 |   |   |   | 66 |   |   |   | 131 |   |
| Adjusted Earnings Applicable to Common Stock |   | $                                        | 14,276 |   |   |   | 14,916 |   |   | $ | 9,922 |   |   |   | 13,716 |   |   | $ | 12,153 |   |   |   | 13,615 |   |
| Diluted EPS                                  |   | $                                        | 0.96   |   |   |   |   |   |   | $ | 0.72 |   |   |   |   |   |   | $ | 0.89 |   |   |   |   |   |

|                  |   | (Thousands of Dollars)At December 31, |   |
|-----------------------|--------|---------------------------------------|--------|
|                  |   | 2010                                  |   |   | 2009 |   |
|                  |   | Carrying                              |   |   | Fair |   |   | Carrying |   |   | Fair |   |
|                  |   | Amount                                |   |   | Value |   |   | Amount |   |   | Value |   |
| First Mortgage Bonds  |   | $                                     | 89,037 |   |   | $ | 85,405 |   |   | $ | 87,230 |   |   | $ | 84,429 |   |
| State Revolving Bonds |   | $                                     | 919    |   |   | $ | 937 |   |   | $ | 1,061 |   |   | $ | 1,091 |   |

----

Index

----

Index

|                                                              |   | December 31,(Thousands of Dollars) |    |
|-------------------------------------------------------------------|--------|------------------------------------|---------|
|                                                              |   | Pension Plan                       |    |   | Other Benefits Plan |   |
|                                                              |   | 2010                               |    |   | 2009 |   |   | 2010 |   |   | 2009 |   |
| Change in Projected Benefit Obligation:                           |   |                               |    |   |   |   |   |   |   |   |   |   |
| Beginning Balance                                                 |   | $                                  | 38,311  |   |   | $ | 34,352 |   |   | $ | 22,736 |   |   | $ | 18,771 |   |
| Service Cost                                                      |   |                               | 1,396   |   |   |   | 1,372 |   |   |   | 1,025 |   |   |   | 891 |   |
| Interest Cost                                                     |   |                               | 2,228   |   |   |   | 2,101 |   |   |   | 1,335 |   |   |   | 1,086 |   |
| Actuarial Loss                                                    |   |                               | 2,022   |   |   |   | 2,217 |   |   |   | 5,032 |   |   |   | 2,508 |   |
| Benefits Paid                                                     |   |                               | (1,819  | ) |   |   | (1,731 | ) |   |   | (523 | ) |   |   | (520 | ) |
| Ending Balance                                                    |   | $                                  | 42,138  |   |   | $ | 38,311 |   |   | $ | 29,605 |   |   | $ | 22,736 |   |
| Change in Fair Value of Plan Assets:                              |   |                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Beginning Balance                                                 |   | $                                  | 25,298  |   |   | $ | 20,036 |   |   | $ | 9,680 |   |   | $ | 7,239 |   |
| Actual Return on Plan Assets                                      |   |                               | 3,054   |   |   |   | 4,110 |   |   |   | 910 |   |   |   | 1,066 |   |
| Employer Contributions                                            |   |                               | 3,456   |   |   |   | 2,883 |   |   |   | 2,823 |   |   |   | 1,895 |   |
| Benefits Paid                                                     |   |                               | (1,819  | ) |   |   | (1,731 | ) |   |   | (523 | ) |   |   | (520 | ) |
| Ending Balance                                                    |   | $                                  | 29,989  |   |   | $ | 25,298 |   |   | $ | 12,890 |   |   | $ | 9,680 |   |
|                                                              |   |                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Funded Status                                                     |   | $                                  | (12,149 | ) |   | $ | (13,013 | ) |   | $ | (16,715 | ) |   | $ | (13,056 | ) |
|                                                              |   |                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Amounts Recognized in the Consolidated Balance Sheets consist of: |   |                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current Liability                                                 |   |                               | (302    | ) |   |   | (346 | ) |   |   | - |   |   |   | - |   |
| Noncurrent Liability                                              |   |                               | (11,847 | ) |   |   | (12,667 | ) |   |   | (16,715 | ) |   |   | (13,056 | ) |
| Net Liability Recognized                                          |   | $                                  | (12,149 | ) |   | $ | (13,013 | ) |   | $ | (16,715 | ) |   | $ | (13,056 | ) |

|                                      |   | Years Ended December 31,(Thousands of Dollars) |   |
|-------------------------------------------|--------|------------------------------------------------|--------|
|                                      |   | Pension Plan                                   |   |   | Other Benefits Plan |   |
|                                      |   | 2010                                           |   |   | 2009 |   |   | 2008 |   |   | 2010 |   |   | 2009 |   |   | 2008 |   |
| Components of Net Periodic Benefit Cost   |   |                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Service Cost                              |   | $                                              | 1,396  |   |   | $ | 1,372 |   |   | $ | 1,248 |   |   | $ | 1,025 |   |   | $ | 891 |   |   | $ | 775 |   |
| Interest Cost                             |   |                                           | 2,228  |   |   |   | 2,101 |   |   |   | 1,950 |   |   |   | 1,335 |   |   |   | 1,086 |   |   |   | 1,010 |   |
| Expected Return on Plan Assets            |   |                                           | (2,020 | ) |   |   | (1,602 | ) |   |   | (1,938 | ) |   |   | (759 | ) |   |   | (595 | ) |   |   | (581 | ) |
| Amortization of Net Transition Obligation |   |                                           | -      |   |   |   | - |   |   |   | - |   |   |   | 135 |   |   |   | 135 |   |   |   | 135 |   |
| Amortization of Net Actuarial Loss        |   |                                           | 506    |   |   |   | 615 |   |   |   | - |   |   |   | 531 |   |   |   | 493 |   |   |   | 287 |   |
| Amortization of Prior Service Cost        |   |                                           | 10     |   |   |   | 10 |   |   |   | 10 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Net Periodic Benefit Cost                 |   | $                                              | 2,120  |   |   | $ | 2,496 |   |   | $ | 1,270 |   |   | $ | 2,267 |   |   | $ | 2,010 |   |   | $ | 1,626 |   |

----

Index

|                  |   | (Thousands of Dollars) |   |
|-----------------------|--------|------------------------|--------|
|                  |   | Pension Plan           |   |   | OtherBenefits Plan |   |
| Actuarial Loss        |   | $                      | 565    |   |   | $ | 836 |   |
| Prior Service Cost    |   |                   | 10     |   |   |   | - |   |
| Transition Obligation |   |                   | -      |   |   |   | 135 |   |

|                           |   | Pension Plan |   |   | Other Benefits Plan |   |
|--------------------------------|--------|--------------|--------|--------|---------------------|--------|
|                           |   | 2010         |   |   | 2009                |   |   | 2008 |   |   | 2010 |   |   | 2009 |   |   | 2008 |   |
|                           |   |         |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted Average Assumptions:  |   |         |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Expected Return on Plan Assets |   |         | 7.50   | %      |                |   | 8.00 | % |   |   | 8.00 | % |   |   | 7.50 | % |   |   | 7.50 | % |   |   | 7.50 | % |
| Discount Rate for:             |   |         |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Benefit Obligation             |   |         | 5.48   | %      |                |   | 5.95 | % |   |   | 6.17 | % |   |   | 5.48 | % |   |   | 5.95 | % |   |   | 6.12 | % |
| Benefit Cost                   |   |         | 5.95   | %      |                |   | 6.17 | % |   |   | 6.59 | % |   |   | 5.95 | % |   |   | 6.12 | % |   |   | 6.59 | % |
| Compensation Increase for:     |   |         |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Benefit Obligation             |   |         | 3.00   | %      |                |   | 3.50 | % |   |   | 3.50 | % |   |   | 3.00 | % |   |   | 3.50 | % |   |   | 3.50 | % |
| Benefit Cost                   |   |         | 3.00   | %      |                |   | 3.50 | % |   |   | 3.50 | % |   |   | 3.00 | % |   |   | 3.50 | % |   |   | 3.50 | % |

|                                                     |   | (Thousands of Dollars)1 Percentage Point |   |
|----------------------------------------------------------|--------|------------------------------------------|--------|
|                                                     |   | Increase                                 |   |   | Decrease |   |
| Effect on Current Year’s Service and Interest Cost |   | $                                        | 461    |   |   | $ | (360 | ) |
| Effect on Projected Benefit Obligation                   |   | $                                        | 4,553  |   |   | $ | (3,669 | ) |

----

Index

|      |   |   | (Thousands of Dollars) |   |
|-----------|--------|--------|------------------------|--------|
| Year      |   |   | Pension Plan           |   |   | Other Benefits Plan |   |
| 2011      |   |   | $                      | 1,784  |   |   | $ | 690 |   |
| 2012      |   |   |                   | 1,794  |   |   |   | 811 |   |
| 2013      |   |   |                   | 1,859  |   |   |   | 933 |   |
| 2014      |   |   |                   | 1,864  |   |   |   | 1,066 |   |
| 2015      |   |   |                   | 1,856  |   |   |   | 1,185 |   |
| 2016-2020 |   |   |                   | 10,858 |   |   |   | 7,791 |   |
| Totals    |   |   | $                      | 20,015 |   |   | $ | 12,476 |   |

|              |   | Pension Plan |   |   | Other Benefits Plan |   |   |   |   |   |   |   |
|-------------------|--------|--------------|--------|--------|---------------------|--------|--------|--------|--------|--------|--------|--------|
| Asset Category    |   | 2010         |   |   | 2009                |   |   | 2010   |   |   | 2009   |   |   | Target |   |   | Range |   |
| Equity Securities |   |         | 64.0   | %      |                |   | 59.2   | %      |   |   | 42.3   | %      |   |   | 40.4 | % |   |   | 60 | % |   |   | 30-65 | % |
| Debt Securities   |   |         | 31.7   | %      |                |   | 36.4   | %      |   |   | 53.8   | %      |   |   | 49.5 | % |   |   | 38 | % |   |   | 25-70 | % |
| Cash              |   |         | 4.0    | %      |                |   | 4.1    | %      |   |   | 3.1    | %      |   |   | 9.0 | % |   |   | 2 | % |   |   | 0-10 | % |
| Commodities       |   |         | 0.3    | %      |                |   | 0.3    | %      |   |   | 0.8    | %      |   |   | 1.1 | % |   |   | 0 | % |   |   | 0 | % |
| Total             |   |         | 100.0  | %      |                |   | 100.0  | %      |   |   | 100.0  | %      |   |   | 100.0 | % |   |   |   |   |   |   |   |   |

|   | · | Level 1 – Inputs to the valuation methodology are unadjusted quoted market prices for identical assets or liabilities in accessible active markets. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Level 2 – Inputs to the valuation methodology that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|   | · | Level 3- Inputs to the valuation methodology are unobservable and significant to the fair value measurement. |
|--------|--------|--------------------------------------------------------------------------------------------------------------|

|                           |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |   | Total  |   |
|--------------------------------|--------|---------|--------|--------|---------|--------|--------|---------|--------|--------|--------|--------|
| Common Trust Fund-Large Cap    |   | $       | -      |   |    | $      | 6,844  |    |   | $      | -      |   |   | $ | 6,844 |   |
| Mutual Funds:                  |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |
| Mid Cap Growth                 |   |    | 717    |   |    |   | -      |    |   |   | -      |   |   |   | 717 |   |
| Mid Cap Value                  |   |    | 374    |   |    |   | -      |    |   |   | -      |   |   |   | 374 |   |
| Foreign Small Mid Growth       |   |    | 255    |   |    |   | -      |    |   |   | -      |   |   |   | 255 |   |
| Foreign Large Blend            |   |    | 599    |   |    |   | -      |    |   |   | -      |   |   |   | 599 |   |
| Foreign Large Core             |   |    | 114    |   |    |   | -      |    |   |   | -      |   |   |   | 114 |   |
| Foreign Large Growth           |   |    | 207    |   |    |   | -      |    |   |   | -      |   |   |   | 207 |   |
| Diversified Emerging Markets   |   |    | 398    |   |    |   | -      |    |   |   | -      |   |   |   | 398 |   |
| Preferred Stock Index          |   |    | 80     |   |    |   | -      |    |   |   | -      |   |   |   | 80 |   |
| Money Market Funds:            |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |
| Cash                           |   |    | 553    |   |    |   | 643    |    |   |   | -      |   |   |   | 1,196 |   |
| Equity Securities:             |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |
| Non-Financial Services         |   |    | 209    |   |    |   | -      |    |   |   | -      |   |   |   | 209 |   |
| Financial Services             |   |    | 976    |   |    |   | -      |    |   |   | -      |   |   |   | 976 |   |
| Utilities                      |   |    | 1,555  |   |    |   | -      |    |   |   | -      |   |   |   | 1,555 |   |
| Consumer Growth                |   |    | 1,447  |   |    |   | -      |    |   |   | -      |   |   |   | 1,447 |   |
| Consumer Staples               |   |    | 937    |   |    |   | -      |    |   |   | -      |   |   |   | 937 |   |
| Consumer Cyclicals             |   |    | 998    |   |    |   | -      |    |   |   | -      |   |   |   | 998 |   |
| Industrial Resources           |   |    | 498    |   |    |   | -      |    |   |   | -      |   |   |   | 498 |   |
| Capital Equipment              |   |    | 729    |   |    |   | -      |    |   |   | -      |   |   |   | 729 |   |
| Technology                     |   |    | 1,188  |   |    |   | -      |    |   |   | -      |   |   |   | 1,188 |   |
| Energy                         |   |    | 1,033  |   |    |   | -      |    |   |   | -      |   |   |   | 1,033 |   |
| Other                          |   |    | 25     |   |    |   | -      |    |   |   | -      |   |   |   | 25 |   |
| Corporate Bonds                |   |    | -      |   |    |   | 2,915  |    |   |   | -      |   |   |   | 2,915 |   |
| Mortgage-Backed Securities (1) |   |    | -      |   |    |   | 2,323  |    |   |   | -      |   |   |   | 2,323 |   |
| Asset-Backed Securities (1)    |   |    | -      |   |    |   | 93     |    |   |   | -      |   |   |   | 93 |   |
| Agency/US/State/Municipal Debt |   |    | 129    |   |    |   | 3,864  |    |   |   | -      |   |   |   | 3,993 |   |
| Sovereign/Non-US Debt          |   |    | -      |   |    |   | 191    |    |   |   | -      |   |   |   | 191 |   |
| Commodities                    |   |    | 95     |   |    |   | -      |    |   |   | -      |   |   |   | 95 |   |
| Total Investments              |   | $       | 13,116 |   |    | $      | 16,873 |    |   | $      | -      |   |   | $ | 29,989 |   |

----

Index

|                                                                                                                                                                                                                                                       |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |   | Total  |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------|--------|--------|---------|--------|--------|---------|--------|--------|--------|--------|
| Common Trust Fund-Large Cap                                                                                                                                                                                                                                |   | $       | -      |   |    | $      | 4,467  |    |   | $      | -      |   |   | $ | 4,467 |   |
| Mutual Funds:                                                                                                                                                                                                                                              |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |
| Mid Cap Growth                                                                                                                                                                                                                                             |   |    | 509    |   |    |   | -      |    |   |   | -      |   |   |   | 509 |   |
| Mid Cap Value                                                                                                                                                                                                                                              |   |    | 237    |   |    |   | -      |    |   |   | -      |   |   |   | 237 |   |
| Foreign Small Mid Growth                                                                                                                                                                                                                                   |   |    | 191    |   |    |   | -      |    |   |   | -      |   |   |   | 191 |   |
| Foreign Large Blend                                                                                                                                                                                                                                        |   |    | 450    |   |    |   | -      |    |   |   | -      |   |   |   | 450 |   |
| Foreign Large Core                                                                                                                                                                                                                                         |   |    | 122    |   |    |   | -      |    |   |   | -      |   |   |   | 122 |   |
| Foreign Large Growth                                                                                                                                                                                                                                       |   |    | 308    |   |    |   | -      |    |   |   | -      |   |   |   | 308 |   |
| Diversified Emerging Markets                                                                                                                                                                                                                               |   |    | 280    |   |    |   | -      |    |   |   | -      |   |   |   | 280 |   |
| Money Market Funds:                                                                                                                                                                                                                                        |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |
| Cash                                                                                                                                                                                                                                                       |   |    | 435    |   |    |   | 598    |    |   |   | -      |   |   |   | 1,033 |   |
| Equity Securities:                                                                                                                                                                                                                                         |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |
| Financial Services                                                                                                                                                                                                                                         |   |    | 1,026  |   |    |   | -      |    |   |   | -      |   |   |   | 1,026 |   |
| Utilities                                                                                                                                                                                                                                                  |   |    | 1,259  |   |    |   | -      |    |   |   | -      |   |   |   | 1,259 |   |
| Consumer Staples                                                                                                                                                                                                                                           |   |    | 1,015  |   |    |   | -      |    |   |   | -      |   |   |   | 1,015 |   |
| Consumer Cyclicals                                                                                                                                                                                                                                         |   |    | 1,209  |   |    |   | -      |    |   |   | -      |   |   |   | 1,209 |   |
| Healthcare                                                                                                                                                                                                                                                 |   |    | 733    |   |    |   | -      |    |   |   | -      |   |   |   | 733 |   |
| Industrial Resources                                                                                                                                                                                                                                       |   |    | 773    |   |    |   | -      |    |   |   | -      |   |   |   | 773 |   |
| Technology                                                                                                                                                                                                                                                 |   |    | 1,594  |   |    |   | -      |    |   |   | -      |   |   |   | 1,594 |   |
| Energy                                                                                                                                                                                                                                                     |   |    | 809    |   |    |   | -      |    |   |   | -      |   |   |   | 809 |   |
| Corporate Bonds                                                                                                                                                                                                                                            |   |    | -      |   |    |   | 4,129  |    |   |   | -      |   |   |   | 4,129 |   |
| Mortgage-Backed Securities (1)                                                                                                                                                                                                                             |   |    | -      |   |    |   | 1,915  |    |   |   | -      |   |   |   | 1,915 |   |
| Asset-Backed Securities (1)                                                                                                                                                                                                                                |   |    | -      |   |    |   | 91     |    |   |   | -      |   |   |   | 91 |   |
| Agency/US/State/Municipal Debt                                                                                                                                                                                                                             |   |    | -      |   |    |   | 2,855  |    |   |   | -      |   |   |   | 2,855 |   |
| Sovereign/Non-US Debt                                                                                                                                                                                                                                      |   |    | -      |   |    |   | 208    |    |   |   | -      |   |   |   | 208 |   |
| Commodities                                                                                                                                                                                                                                                |   |    | 85     |   |    |   | -      |    |   |   | -      |   |   |   | 85 |   |
| Total Investments                                                                                                                                                                                                                                          |   | $       | 11,035 |   |    | $      | 14,263 |    |   | $      | -      |   |   | $ | 25,298 |   |
|                                                                                                                                                                                                                                                       |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |
| (1) Mortgage-backed securities represent AAA rated securities and substantially all of the asset-backed securities are highly-rated (Standard & Poor’s rating of AA+), secured primarily by credit card, auto loan, and home equity receivables. |   |

----

|                           |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |   | Total  |   |
|--------------------------------|--------|---------|--------|--------|---------|--------|--------|---------|--------|--------|--------|--------|
| Mutual Funds:                  |   |    |   |   |    |   |   |    |   |   |   |   |
| Small Cap Core                 |   | $       | 95     |   |    | $      | -      |    |   | $      | -      |   |   | $ | 95 |   |
| Mid Cap Growth                 |   |    | 277    |   |    |   | -      |    |   |   | -      |   |   |   | 277 |   |
| Mid Cap Value                  |   |    | 259    |   |    |   | -      |    |   |   | -      |   |   |   | 259 |   |
| Large Cap Core                 |   |    | 3,002  |   |    |   | -      |    |   |   | -      |   |   |   | 3,002 |   |
| Large Cap Growth               |   |    | 365    |   |    |   | -      |    |   |   | -      |   |   |   | 365 |   |
| Large Cap Value                |   |    | 298    |   |    |   | -      |    |   |   | -      |   |   |   | 298 |   |
| Foreign Small Mid Growth       |   |    | 246    |   |    |   | -      |    |   |   | -      |   |   |   | 246 |   |
| Foreign Large Core             |   |    | 276    |   |    |   | -      |    |   |   | -      |   |   |   | 276 |   |
| Foreign Large Growth           |   |    | 306    |   |    |   | -      |    |   |   | -      |   |   |   | 306 |   |
| Diversified Emerging Markets   |   |    | 217    |   |    |   | -      |    |   |   | -      |   |   |   | 217 |   |
| Preferred Stock Index          |   |    | 116    |   |    |   | -      |    |   |   | -      |   |   |   | 116 |   |
| Money Market Funds:            |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |
| Cash                           |   |    | -      |   |    |   | 399    |    |   |   | -      |   |   |   | 399 |   |
| Agency/US/State/Municipal Debt |   |    | 765    |   |    |   | 6,170  |    |   |   | -      |   |   |   | 6,935 |   |
| Commodities                    |   |    | 99     |   |    |   | -      |    |   |   | -      |   |   |   | 99 |   |
| Total Investments              |   | $       | 6,321  |   |    | $      | 6,569  |    |   | $      | -      |   |   | $ | 12,890 |   |

|                           |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |   | Total  |   |
|--------------------------------|--------|---------|--------|--------|---------|--------|--------|---------|--------|--------|--------|--------|
| Mutual Funds:                  |   |    |   |   |    |   |   |    |   |   |   |   |
| Small Cap Core                 |   | $       | 76     |   |    | $      | -      |    |   | $      | -      |   |   | $ | 76 |   |
| Mid Cap Growth                 |   |    | 227    |   |    |   | -      |    |   |   | -      |   |   |   | 227 |   |
| Mid Cap Value                  |   |    | 109    |   |    |   | -      |    |   |   | -      |   |   |   | 109 |   |
| Large Cap Core                 |   |    | 2,121  |   |    |   | -      |    |   |   | -      |   |   |   | 2,121 |   |
| Large Cap Growth               |   |    | 616    |   |    |   | -      |    |   |   | -      |   |   |   | 616 |   |
| Foreign Small Mid Growth       |   |    | 230    |   |    |   | -      |    |   |   | -      |   |   |   | 230 |   |
| Foreign Large Core             |   |    | 160    |   |    |   | -      |    |   |   | -      |   |   |   | 160 |   |
| Foreign Large Growth           |   |    | 240    |   |    |   | -      |    |   |   | -      |   |   |   | 240 |   |
| Diversified Emerging Markets   |   |    | 135    |   |    |   | -      |    |   |   | -      |   |   |   | 135 |   |
| Money Market Funds:            |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |
| Cash                           |   |    | -      |   |    |   | 873    |    |   |   | -      |   |   |   | 873 |   |
| Agency/US/State/Municipal Debt |   |    | -      |   |    |   | 4,792  |    |   |   | -      |   |   |   | 4,792 |   |
| Commodities                    |   |    | 101    |   |    |   | -      |    |   |   | -      |   |   |   | 101 |   |
| Total Investments              |   | $       | 4,015  |   |    | $      | 5,665  |    |   | $      | -      |   |   | $ | 9,680 |   |

----

Index

----

|                                 |   | Shares(thousands) |    |   | Unearned Compensation(thousands) |   |    | Weighted Average Grant Price |   |
|--------------------------------------|--------|-------------------|---------|--------|----------------------------------|--------|---------|------------------------------|--------|
|                                 |   |              |    |   |                             |   |    |                         |   |
| Balance, January 1, 2008             |   |              | 71      |   |                             | $      | 861     |                         |   |   |   |
| Granted                              |   |              | 22      |   |                             |   | 377     |                         |   | $ | 17.30 |   |
| Vested                               |   |              | (12     | )      |                             |   |  - |                         |   |   |   |   |
| Forfeited                            |   |              |  - |   |                             |   | (5      | )                            |   |   |   |   |
| Amortization of Compensation Expense |   |              |  - |   |                             |   | (305    | )                            |   |   |   |   |
| Balance, December 31, 2008           |   |              | 81      |   |                             | $      | 928     |                         |   |   |   |   |
| Granted                              |   |              | 30      |   |                             |   | 448     |                         |   | $ | 15.11 |   |
| Vested                               |   |              | (17     | )      |                             |   |  - |                         |   |   |   |   |
| Forfeited                            |   |              | (1      | )      |                             |   | (6      | )                            |   |   |   |   |
| Amortization of Compensation Expense |   |              |  - |   |                             |   | (380    | )                            |   |   |   |   |
| Balance, December 31, 2009           |   |              | 93      |   |                             | $      | 990     |                         |   |   |   |   |
| Granted                              |   |              | 14      |   |                             |   | 239     |                         |   | $ | 16.97 |   |
| Vested                               |   |              | (13     | )      |                             |   |  - |                         |   |   |   |   |
| Forfeited                            |   |              | -       |   |                             |   |  - |                         |   |   |   |   |
| Amortization of Compensation Expense |   |              |  - |   |                             |   | (338    | )                            |   |   |   |   |
| Balance, December 31, 2010           |   |              | 94      |   |                             | $      | 891     |                         |   |   |   |   |

----

Index

|                            |   | (Thousands of Dollars)Years Ended December 31, |    |
|---------------------------------|--------|------------------------------------------------|---------|
| Operations by Segments:         |   | 2010                                           |    |   | 2009 |   |   | 2008 |   |
| Revenues:                       |   |                                           |    |   |   |   |   |   |   |
| Regulated                       |   | $                                              | 92,378  |   |   | $ | 80,910 |   |   | $ | 81,118 |   |
| Non – Regulated           |   |                                           | 10,937  |   |   |   | 10,857 |   |   |   | 10,327 |   |
| Inter-segment Elimination       |   |                                           | (580    | ) |   |   | (524 | ) |   |   | (407 | ) |
| Consolidated Revenues           |   | $                                              | 102,735 |   |   | $ | 91,243 |   |   | $ | 91,038 |   |
|                            |   |                                           |    |   |   |   |   |   |   |   |   |   |
| Operating Income:               |   |                                           |    |   |   |   |   |   |   |   |   |   |
| Regulated                       |   | $                                              | 24,815  |   |   | $ | 18,117 |   |   | $ | 22,132 |   |
| Non – Regulated           |   |                                           | 1,782   |   |   |   | 2,044 |   |   |   | 1,887 |   |
| Consolidated Operating Income   |   | $                                              | 26,597  |   |   | $ | 20,161 |   |   | $ | 24,019 |   |
|                            |   |                                           |    |   |   |   |   |   |   |   |   |   |
| Depreciation:                   |   |                                           |    |   |   |   |   |   |   |   |   |   |
| Regulated                       |   | $                                              | 9,093   |   |   | $ | 8,401 |   |   | $ | 7,798 |   |
| Non – Regulated           |   |                                           | 151     |   |   |   | 158 |   |   |   | 124 |   |
|  Consolidated Depreciation |   | $                                              | 9,244   |   |   | $ | 8,559 |   |   | $ | 7,922 |   |
|                            |   |                                           |    |   |   |   |   |   |   |   |   |   |
| Other Income, Net:              |   |                                           |    |   |   |   |   |   |   |   |   |   |
| Regulated                       |   | $                                              | 1,265   |   |   | $ | 1,565 |   |   | $ | 1,077 |   |
| Non – Regulated           |   |                                           | 313     |   |   |   | 337 |   |   |   | 387 |   |
| Inter-segment Elimination       |   |                                           | (134    | ) |   |   | (176 | ) |   |   | (162 | ) |
| Consolidated Other Income, Net  |   | $                                              | 1,444   |   |   | $ | 1,726 |   |   | $ | 1,302 |   |
|                            |   |                                           |    |   |   |   |   |   |   |   |   |   |
| Interest Expense:               |   |                                           |    |   |   |   |   |   |   |   |   |   |
| Regulated                       |   | $                                              | 6,925   |   |   | $ | 6,733 |   |   | $ | 6,981 |   |
| Non – Regulated           |   |                                           | 134     |   |   |   | 193 |   |   |   | 238 |   |
| Inter-segment Elimination       |   |                                           | (134    | ) |   |   | (176 | ) |   |   | (162 | ) |
| Consolidated Interest Charges   |   | $                                              | 6,925   |   |   | $ | 6,750 |   |   | $ | 7,057 |   |
|                            |   |                                           |    |   |   |   |   |   |   |   |   |   |
| Net Income:                     |   |                                           |    |   |   |   |   |   |   |   |   |   |
| Regulated                       |   | $                                              | 13,152  |   |   | $ | 8,652 |   |   | $ | 10,976 |   |
| Non – Regulated           |   |                                           | 1,178   |   |   |   | 1,325 |   |   |   | 1,232 |   |
| Consolidated Net Income         |   | $                                              | 14,330  |   |   | $ | 9,977 |   |   | $ | 12,208 |   |
|                            |   |                                           |    |   |   |   |   |   |   |   |   |   |
| Capital Expenditures:           |   |                                           |    |   |   |   |   |   |   |   |   |   |
| Regulated                       |   | $                                              | 29,344  |   |   | $ | 20,104 |   |   | $ | 29,095 |   |
| Non – Regulated           |   |                                           | 260     |   |   |   | 24 |   |   |   | 1,241 |   |
| Total Capital Expenditures      |   | $                                              | 29,604  |   |   | $ | 20,128 |   |   | $ | 30,336 |   |

|                      |   | As ofDecember 31, 2010 |    |   | As ofDecember 31, 2009 |   |
|---------------------------|--------|------------------------|---------|--------|------------------------|--------|
| Assets:                   |   |                   |    |   |                   |   |
| Regulated                 |   | $                      | 486,918 |   |                   | $      | 451,734 |   |
| Non – Regulated     |   |                   | 8,116   |   |                   |   | 11,022 |   |
| Inter-segment Elimination |   |                   | (5,849  | )      |                   |   | (4,670 | ) |
| Consolidated Assets       |   | $                      | 489,185 |   |                   | $      | 458,086 |   |

----

Index

|                       |   | (Thousands of Dollars, Except per Share Data) |   |
|----------------------------|--------|-----------------------------------------------|--------|
| 2010                       |   | 1st                                           |   |   | 2nd |   |   | 3rd |   |   | 4th |   |   | Total |   |
|                       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating Revenues         |   | $                                             | 21,645 |   |   | $ | 26,538 |   |   | $ | 29,585 |   |   | $ | 24,967 |   |   | $ | 102,735 |   |
| Operating Income           |   |                                          | 3,288  |   |   |   | 7,894 |   |   |   | 10,021 |   |   |   | 5,394 |   |   |   | 26,597 |   |
| Net Income                 |   |                                          | 1,560  |   |   |   | 4,424 |   |   |   | 5,736 |   |   |   | 2,610 |   |   |   | 14,330 |   |
| Basic Earnings per Share   |   | $                                             | 0.11   |   |   | $ | 0.31 |   |   | $ | 0.37 |   |   | $ | 0.17 |   |   | $ | 0.96 |   |
| Diluted Earnings per Share |   | $                                             | 0.11   |   |   | $ | 0.31 |   |   | $ | 0.37 |   |   | $ | 0.17 |   |   | $ | 0.96 |   |

| 2009                       |   | 1st    |   |   | 2nd    |   |   | 3rd    |   |   | 4th    |   |   | Total  |   |
|----------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating Revenues         |   | $      | 20,583 |   |   | $      | 23,083 |   |   | $      | 25,498 |   |   | $      | 22,079 |   |   | $ | 91,243 |   |
| Operating Income           |   |   | 3,002  |   |   |   | 5,547  |   |   |   | 7,324  |   |   |   | 4,288  |   |   |   | 20,161 |   |
| Net Income                 |   |   | 1,361  |   |   |   | 2,846  |   |   |   | 4,027  |   |   |   | 1,743  |   |   |   | 9,977 |   |
| Basic Earnings per Share   |   | $      | 0.10   |   |   | $      | 0.21   |   |   | $      | 0.30   |   |   | $      | 0.12   |   |   | $ | 0.73 |   |
| Diluted Earnings per Share |   | $      | 0.10   |   |   | $      | 0.21   |   |   | $      | 0.29   |   |   | $      | 0.12   |   |   | $ | 0.72 |   |

----

Index

| Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure. |
|---------|---------------------------------------------------------------------------------------|

| Item 9A. | Controls and Procedures |
|----------|-------------------------|

|  /s/ Dennis W. Doll                   | /s/ A. Bruce O’Connor |
|--------------------------------------------|-----------------------------|
| Dennis W. Doll                             | A. Bruce O’Connor     |
| Chairman of the Board, President and Chief | Vice President and Chief    |
| Executive Officer                          | Financial Officer           |

----

Index

----

Index

| Item 9B. | Other Information. |
|----------|--------------------|

|   | None. |
|--------|-------|

----

Index

PART 

| Item 10. | Directors, Executive Officers and Corporate Governance. |
|----------|---------------------------------------------------------|

| Item 11. | Executive Compensation. |
|----------|-------------------------|

| Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. |
|----------|-------------------------------------------------------------------------------------------------|

| Item 13. | Certain Relationships and Related Transactions, and Director Independence. |
|----------|----------------------------------------------------------------------------|

| Item 14. | Principal Accounting Fees and Services. |
|----------|-----------------------------------------|

----

Index

PART 

| Item 15.  | Exhibits and Financial Statement Schedules. |
|----------------|---------------------------------------------|

| 1. | The following Financial Statements and Supplementary Data are included in Part II- Item 8. of this Annual Report: |
|----|-------------------------------------------------------------------------------------------------------------------|

| 2. | Financial Statement Schedules |
|----|-------------------------------|

| 3,  | Exhibits |
|----------|----------|

----

Index

SIGNATURES

| By:    | /s/ Dennis W. Doll                                                     |   |
|--------|------------------------------------------------------------------------|--------|
|   | Dennis W. Doll                                                         |
|   | Chairman of the Board, President, Chief Executive Officer and Director |
| Date:  | March 9, 2011                                                          |

| By:    | /s/ A. Bruce O’Connor                                            |   |
|--------|------------------------------------------------------------------------|--------|
|   | A. Bruce O’Connor                                                |   |
|   | Vice President and Chief Financial Officer                             |   |
|   | (Principal Financial Officer and Principal Accounting Officer)         |   |
|   |                                                                   |   |
| By:    | /s/ Dennis W. Doll                                                     |   |
|   | Dennis W. Doll                                                         |   |
|   | Chairman of the Board, President, Chief Executive Officer and Director |   |
|   | (Principal Executive Officer)                                          |   |
|   |                                                                   |   |
| By:    | /s/ James F. Cosgrove Jr.                                              |   |
|   | James F. Cosgrove Jr.                                                  |   |
|   | Director                                                               |   |
|   |                                                                   |   |
| By:    | /s/ John C. Cutting                                                    |   |
|   | John C. Cutting                                                        |   |
|   | Director                                                               |   |
|   |                                                                   |   |
| By:    | /s/ Steven M. Klein                                                    |   |
|   | Steven M. Klein                                                        |   |
|   | Director                                                               |   |
|   |                                                                   |   |
| By:    | /s/ Amy B. Mansue                                                      |   |
|   | Amy B. Mansue                                                          |   |
|   | Director                                                               |   |
|   |                                                                   |   |
| By:    | /s/ John R. Middleton, M.D.                                            |   |
|   | John R. Middleton, M.D.                                                |   |
|   | Director                                                               |   |
|   |                                                                   |   |
| By:    | /s/ Walter G. Reinhard                                                 |   |
|   | Walter G. Reinhard                                                     |   |
|   | Director                                                               |   |
|   |                                                                   |   |
| By:    | /s/ Jeffries Shein                                                     |   |
|   | Jeffries Shein                                                         |   |
|   | Director                                                               |   |
|   |                                                                   |   |
| By:    | /s/ J. Richard Tompkins                                                |   |
|   | J. Richard Tompkins                                                    |   |
|   | Director                                                               |   |

----

Index

EXHIBIT 

| Exhibit No. | Document Description                                                                                                                                                                                                                                   | Previous Registration No. | Filing’s Exhibit No. |
|-------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------|---------------------------------|
| 3.1         | Certificate of Amendment to the Restated Certificate of Incorporation, filed with the State of New Jersey on June 19, 1997, included as Exhibit 3.1 to the Company’s Current Report on Form 8-K filed April 30, 2010.                       |                      |                            |
| 3.2         | Certificate of Amendment to the Restated Certificate of Incorporation, filed with the State of New Jersey on May 27, 1998, filed as Exhibit 3.1 to the Company’s Annual Report on Form 10-K for the year ended December 31, 1998. |                      |                            |
| 3.3         | Certificate of Correction of Middlesex Water Company filed with the State of New Jersey on April 30, 1999, filed as Exhibit 3.3 of 2003 Form 10-K/A-2.                                                                                                 |                      |                            |
| 3.4         | Certificate of Amendment to the Restated Certificate of Incorporation Middlesex Water Company, filed with the State of New Jersey on February 17, 2000, filed as Exhibit 3.4 of 2003 Form 10-K/A-2.                                                    |                      |                            |
| 3.5         | Certificate of Amendment to the Restated Certificate of Incorporation Middlesex Water Company, filed with the State of New Jersey on June 5, 2002, filed as Exhibit 3.5 of 2003 Form 10-K/A-2.                                                         |                      |                            |
| 3.6         | Certificate of Amendment to the Restated Certificate of Incorporation, filed with the State of New Jersey on June 10, 1998, filed as Exhibit 3.1 to the Company’s Annual Report on Form 10-K for the year ended December 31, 1998.     |                      |                            |
| 3.7         | Bylaws of the Company, as amended, filed as Exhibit 4.1 of 2010 Second Quarter Form 10-Q.                                                                                                                                                              |                      |                            |
| 4.1         | Form of Common Stock Certificate.                                                                                                                                                                                                                      | 2-55058                   | 2(a)                            |
| 10.1        | Copy of Purchased Water Agreement between the Company and Elizabethtown Water Company, filed as Exhibit 10 of 2006 First Quarter Form 10-Q.                                                                                                            |                      |                            |
| 10.2        | Copy of Mortgage, dated April 1, 1927, between the Company and Union County Trust Company, as Trustee, as supplemented by Supplemental Indentures, dated as of October 1, 1939 and April 1, 1949.                                                      | 2-15795                   | 4(a)-4(f)                       |
| 10.3        | Copy of Supplemental Indenture, dated as of July 1, 1964 and June 15, 1991, between the Company and Union County Trust Company, as Trustee.                                                                                                            | 33-54922                  | 10.4-10.9                       |
| 10.4        | Copy of Supply Agreement, dated as of November 17, 1986, between the Company and the Old Bridge Municipal Utilities Authority.                                                                                                                         | 33-31476                  | 10.12                           |

----

Index

| Exhibit No. | Document Description                                                                                                                                                                                                                   | PreviousRegistrationNo. | Filing’sExhibitNo. |
|-------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------|--------------------------|
| 10.5        | Copy of Supply Agreement, dated as of July 14, 1987, between the Company and the Marlboro Township Municipal Utilities Authority, as amended.                                                                                          | 33-31476                | 10.13                    |
| 10.6        | Copy of Supply Agreement, dated as of February 11, 1988, with modifications dated February 25, 1992, and April 20, 1994, between the Company and the Borough of Sayreville filed as Exhibit No. 10.11 of 1994 First Quarter Form 10-Q. |                    |                     |
| 10.7        | Copy of Water Purchase Contract, dated as of September 25, 2003, between the Company and the New Jersey Water Supply Authority, filed as Exhibit No. 10.7 of 2003 Form 10-K.                                                           |                    |                     |
| 10.8        | Copy of Treating and Pumping Agreement, dated April 9, 1984, between the Company and the Township of East Brunswick.                                                                                                                   | 33-31476                | 10.17                    |
| 10.9        | Copy of Supply Agreement, dated June 4, 1990, between the Company and Edison Township.                                                                                                                                                 | 33-54922                | 10.24                    |
| 10.10       | Copy of amended Supply Agreement, between the Company and the Borough of Highland Park, filed as Exhibit No. 10.1 of 2006 First Quarter Form 10-Q.                                                                                     |                    |                     |
| (t)10.11    | Copy of Supplemental Executive Retirement Plan, filed as Exhibit 10.13 of 1999 Third Quarter Form 10-Q.                                                                                                                                |                    |                     |
| (t)10.12(a) | Copy of 2008 Restricted Stock Plan, filed as Appendix A to the Company’s Definitive Proxy Statement, dated and filedApril 11, 2008.                                                                                              |                    |                     |
| (t)10.12(b) | Copy of 2008 Outside Director Stock Compensation Stock Plan, filed as Appendix B to the Company’s Definitive Proxy Statement, dated and filed April 11, 2008.                                                                    |                    |                     |
| (t)10.13(a) | Change in Control Termination Agreement between Middlesex Water Company and Dennis W. Doll), filed as Exhibit 10.13(a) of the 2008 Form 10-K.                                                                                          |                    |                     |
| (t)10.13(b) | Change in Control Termination Agreement between Middlesex Water Company and A. Bruce O’Connor), filed as Exhibit 10.13(b) of the 2008 Form 10-K.                                                                                 |                    |                     |
| (t)10.13(c) | Change in Control Termination Agreement between Middlesex Water Company and Richard M. Risoldi), filed as Exhibit 10.13(d) of the 2008 Form 10-K.                                                                                      |                    |                     |
| (t)10.13(d) | Change in Control Termination Agreement between Middlesex Water Company and Kenneth J. Quinn), filed as Exhibit 10.13(e) of the 2008 Form 10-K.                                                                                        |                    |                     |
| (t)10.13(e) | Change in Control Termination Agreement between Middlesex Water Company and James P. Garrett), filed as Exhibit 10.13(f) of the 2008 Form 10-K.                                                                                        |                    |                     |

----

Index

| Exhibit No. | Document Description                                                                                                                                                                                                                                                                                                                                                 | Previous Registration No. | Filing’s ExhibitNo. |
|-------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------|--------------------------------|
| (t)10.13(f) | Change in Control Termination Agreement between Tidewater Utilities, Inc. and Gerard L. Esposito), filed as Exhibit 10.13(g) of the 2008 Form 10-K.                                                                                                                                                                                                                  |                      |                           |
| (t)10.13(g) | Change in Control Termination Agreement between Middlesex Water Company and Bernadette M. Sohler), filed as Exhibit 10.13(h) of the 2008 Form 10-K.                                                                                                                                                                                                                  |                      |                           |
| 10.14       | Copy of Transmission Agreement, dated October 16, 1992, between the Company and the Township of East Brunswick.                                                                                                                                                                                                                                                      | 33-54922                  | 10.23                          |
| 10.15       | Copy of Supplemental Indentures, dated September 1, 1993, (Series S & T) and January 1, 1994, (Series V), between the Company and United Counties Trust Company, as Trustee, filed as Exhibit No. 10.22 of 1993 Form 10-K.                                                                                                                                       |                      |                           |
| 10.16       | Copy of Trust Indentures, dated September 1, 1993, (Series S & T) and January 1, 1994, (Series V), between the New Jersey Economic Development Authority and First Fidelity Bank (Series S & T), as Trustee, and Midlantic National Bank (Series V), as Trustee, filed as Exhibit No. 10.23 of 1993 Form 10-K.                                               |                      |                           |
| 10.17       | Copy of Supplemental Indenture dated October 15, 1998 between Middlesex Water Company and First Union National Bank, as Trustee.  Copy of Loan Agreement dated November 1, 1998 between the New Jersey Environmental Infrastructure Trust and Middlesex Water Company (Series X), filed as Exhibit No. 10.22 of the 1998 Third Quarter Form 10-Q.          |                      |                           |
| 10.18       | Copy of Supplemental Indenture dated October 15, 1998 between Middlesex Water Company and First Union National Bank, as Trustee.  Copy of Loan Agreement dated November 1, 1998 between the State of New Jersey Environmental Infrastructure Trust and Middlesex Water Company (Series Y), filed as Exhibit No. 10.23 of the 1998 Third Quarter Form 10-Q. |                      |                           |
| 10.19       | Copy of Operation, Maintenance and Management Services Agreement dated January 1, 1999 between the Company City of Perth Amboy, Middlesex County Improvement Authority and Utility Service Affiliates, Inc.                                                                                                                                                          | 333-66727                 | 10.24                          |
| 10.20       | Copy of  Supplemental Indenture dated October 15, 1999 between Middlesex Water Company and First Union National Bank, as Trustee and copy of Loan Agreement dated November 1, 1999 between the State of New Jersey and Middlesex Water Company (Series Z), filed as Exhibit No. 10.25 of the 1999 Form 10-K.                                               |                      |                           |

----

Index

| Exhibit No. | Document Description                                                                                                                                                                                                                                                                                                                                                  | Previous Registration No. | Filing’s Exhibit No. |
|-------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------|----------------------------|
| 10.21       | Copy of Supplemental Indenture dated October 15, 1999 between Middlesex Water Company and First Union National Bank, as Trustee and copy of Loan Agreement dated November 1, 1999 between the New Jersey Environmental Infrastructure Trust and Middlesex Water Company (Series AA), filed as Exhibit No. 10.26 of the 1999 Form 10-K.                                |                      |                       |
| 10.22       | Copy of Supplemental Indenture dated October 15, 2001 between Middlesex Water Company and First Union National Bank, as Trustee and copy of Loan Agreement dated November 1, 2001 between the State of New Jersey and Middlesex Water Company (Series BB).  Filed as Exhibit No. 10.22 of the 2001 Form 10-K.                                               |                      |                       |
| 10.23       | Copy of Supplemental Indenture dated October 15, 2001 between Middlesex Water Company and First Union National Bank, as Trustee and copy of Loan Agreement dated November 1, 2001 between the New Jersey Environmental Infrastructure Trust and Middlesex Water Company (Series CC).  Filed as Exhibit No. 10.22 of the 2001 Form 10-K.                     |                      |                       |
| 10.24       | Copy of Supplemental Indenture dated January 15, 2002 between Middlesex Water Company and First Union National Bank, as Trustee and copy of Loan Agreement dated January 1, 2002 between the New Jersey Economic Development Authority and Middlesex Water Company (Series DD), filed as Exhibit No. 10.24 of the 2001 Form 10-K.                                     |                      |                       |
| 10.25       | Copy of Supplemental Indenture dated March 1, 1998 between Middlesex Water Company and First Union National Bank, as Trustee.  Copy of Trust Indenture dated March 1, 1998 between the New Jersey Economic Development Authority and PNC Bank, National Association, as Trustee (Series W), filed as Exhibit No. 10.21 of the 1998 Third Quarter Form 10-Q. |                      |                       |
| 10.26       | Copy of Supplemental Indenture dated October 15, 2004 between Middlesex Water Company and Wachovia Bank, as Trustee and copy of Loan Agreement dated November 1, 2004 between the State of New Jersey and Middlesex Water Company (Series EE), filed as Exhibit No. 10.26 of the 2004 Form 10-K.                                                                      |                      |                       |
| 10.27       | Copy of Supplemental Indenture dated October 15, 2004 between Middlesex Water Company and Wachovia Bank, as Trustee and copy of Loan Agreement dated November 1, 2004 between the New Jersey Environmental Infrastructure Trust and Middlesex Water Company (Series FF), filed as Exhibit No. 10.27 of the 2004 Form 10-K.                                            |                      |                       |

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Index

| Exhibit No. | Document Description                                                                                                                                                                                                                                                                                                                        | PreviousRegistrationNo. | Filing’sExhibitNo. |
|-------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------|--------------------------|
| 10.28       | Copy of Promissory Notes and Amendment to Combination Water Utility Real Estate Mortgage and Security Agreement, by Tidewater Utilities, Inc., Dated March 19, 2009, filed as Exhibit No. 10.28 of the 2009 First Quarter Form 10-Q.                                                                                                        |                    |                     |
| 10.29       | Copy of Supply Agreement, between the Company and the City of Rahway, filed as Exhibit No. 10.2 of 2006 First Quarter Form 10-Q.                                                                                                                                                                                                            |                    |                     |
| 10.30       | Copy of Supplemental Indenture dated October 15, 2006 between Middlesex Water Company and U.S. Bank National Association, as Trustee and copy of Loan Agreement dated November 1, 2006 between the State of New Jersey and Middlesex Water Company (Series GG), filed as Exhibit No. 10.30 of the 2006 Form 10-K.                           |                    |                     |
| 10.31       | Copy of Supplemental Indenture dated October 15, 2006 between Middlesex Water Company and U.S. Bank National Association, as Trustee and copy of Loan Agreement dated November 1, 2006 between the New Jersey Environmental Infrastructure Trust and Middlesex Water Company (Series HH), filed as Exhibit No. 10.31 of the 2006 Form 10-K. |                    |                     |
| 10.32       | Copy of Loan Agreement By and Between New Jersey Environmental Infrastructure Trust and Middlesex Water Company dated as of November 1, 2007 (Series II), filed as Exhibit No. 10.32 of the 2007 Form 10-K.                                                                                                                                 |                    |                     |
| 10.33       | Copy of Loan Agreement By and Between The State of New Jersey, Acting By and Through The New Jersey Department of Environmental Protection, and Middlesex Water Company dated as of November 1, 2007 (Series JJ), filed as Exhibit 10.33 of the 2007 Form 10-K.                                                                             |                    |                     |
| 10.34       | Copy of Loan Agreement By and Between New Jersey Environmental Infrastructure Trust and Middlesex Water Company dated as of November 1, 2008 (Series KK),  filed as Exhibit 10.34 of the 2008 Form 10-K.                                                                                                                          |                    |                     |
| 10.35       | Copy of Loan Agreement By and Between The State of New Jersey, Acting By and Through The New Jersey Department of Environmental Protection, and Middlesex Water Company dated as of November 1, 2008 (Series LL) ),  filed as Exhibit 10.35 of the 2008 Form 10-K.                                                                |                    |                     |
| 10.36       | Registration Statement, Form S-3, under Securities Act of 1933 filed July 23, 2009, relating to the Dividend Reinvestment and Common Stock Purchase Plan.                                                                                                                                                                                   | 333-160757              |                     |
| 10.37       | Amended and Restated Line of Credit Note and PNC Bank, filed as Exhibit 10.2 to the Company’s Current Report on Form 8-K filed April 30, 2010                                                                                                                                                                                         |                    |                     |

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Index

| Exhibit No. | Document Description                                                                                                                                                                                                                                                   | PreviousRegistrationNo. | Filing’sExhibitNo. |
|-------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------|--------------------------|
| 10.38       | Uncommitted Line of Credit Letter Agreement and Master Promissory Note between registrant and Bank of America, N.A., filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed April 30, 2010.                                                     |                    |                     |
| 10.39       | Uncommitted Line of Credit Letter Agreement between registrant’s wholly-owned subsidiary Utility Services Affiliates (Perth Amboy) Inc. and Bank of America, N.A., filed as Exhibit 10.3 to the Company’s Current Report on Form 8-K filed April 30, 2010. |                    |                     |
| 10.40       | Promissory Note for a committed line of credit between registrant’s wholly-owned subsidiary Tidewater Utilities, Inc. and CoBank, ACB., filed as Exhibit 10.4 to the Company’s Current Report on Form 8-K filed April 30, 2010.                            |                    |                     |
| *10.41      | Copy of Loan Agreement By and Between The state of New Jersey, Acting By and Through The New Jersey Department of Environmental Protection and Middlesex Water Company, dated as of December 1, 2010 (Series MM), filed as Exhibit 10.41 of the 2010 Form 10-K.        |                    |                     |
| *10.42      | Copy of Loan Agreement By and Between New Jersey Environmental Infrastructure Trust and Middlesex Water Company dated as of December 1, 2010 (Series NN), filed as Exhibit 10.42 of the 2010 Form 10-K.                                                                |                    |                     |
| *21         | Middlesex Water Company Subsidiaries.                                                                                                                                                                                                                                  |                    |                     |
| *23.1       | Consent of Independent Registered Public Accounting Firm, ParenteBeard LLC.                                                                                                                                                                                            |                    |                     |
| *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.                                                                                                                                                                                           |                    |                     |
| *32.1       | Section 906 Certification by A. Bruce O’Connor pursuant to 18 U.S.C.§1350.                                                                                                                                                                                  |                    |                     |

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