Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 31, 2018 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | MIDDLESEX WATER CO | |
Entity Central Index Key | 66,004 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 16,392,350 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,018 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement [Abstract] | ||||
Operating Revenues | $ 34,919 | $ 33,014 | $ 66,096 | $ 63,145 |
Operating Expenses: | ||||
Operations and Maintenance | 16,825 | 16,856 | 34,659 | 32,795 |
Depreciation | 3,736 | 3,385 | 7,345 | 6,693 |
Other Taxes | 3,637 | 3,415 | 7,021 | 6,724 |
Total Operating Expenses | 24,198 | 23,656 | 49,025 | 46,212 |
Operating Income | 10,721 | 9,358 | 17,071 | 16,933 |
Other Income (Expense): | ||||
Allowance for Funds Used During Construction | 214 | 180 | 381 | 299 |
Other Income (Expense), net | 571 | 230 | 868 | 436 |
Total Other Income, net | 785 | 410 | 1,249 | 735 |
Interest Charges | 2,068 | 1,469 | 3,206 | 2,472 |
Income before Income Taxes | 9,438 | 8,299 | 15,114 | 15,196 |
Income Taxes | 763 | 2,918 | 1,945 | 5,374 |
Net Income | 8,675 | 5,381 | 13,169 | 9,822 |
Preferred Stock Dividend Requirements | 36 | 36 | 72 | 72 |
Earnings Applicable to Common Stock | $ 8,639 | $ 5,345 | $ 13,097 | $ 9,750 |
Earnings per share of Common Stock: | ||||
Basic | $ 0.53 | $ 0.33 | $ 0.80 | $ 0.60 |
Diluted | $ 0.52 | $ 0.33 | $ 0.80 | $ 0.59 |
Average Number of Common Shares Outstanding: | ||||
Basic | 16,388 | 16,332 | 16,371 | 16,316 |
Diluted | 16,544 | 16,488 | 16,527 | 16,472 |
Cash Dividends Paid per Common Share | $ 0.2238 | $ 0.2113 | $ 0.4475 | $ 0.4225 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
UTILITY PLANT: | ||
Water Production | $ 154,542 | $ 153,844 |
Transmission and Distribution | 480,265 | 468,649 |
General | 70,837 | 69,457 |
Construction Work in Progress | 26,517 | 11,562 |
TOTAL | 732,161 | 703,512 |
Less Accumulated Depreciation | 151,681 | 146,272 |
UTILITY PLANT - NET | 580,480 | 557,240 |
CURRENT ASSETS: | ||
Cash and Cash Equivalents | 2,673 | 4,937 |
Accounts Receivable, net | 11,011 | 10,785 |
Unbilled Revenues | 8,744 | 6,999 |
Materials and Supplies (at average cost) | 4,826 | 4,118 |
Prepayments | 3,805 | 2,408 |
TOTAL CURRENT ASSETS | 31,059 | 29,247 |
Preliminary Survey and Investigation Charges | 4,859 | 4,676 |
Regulatory Assets | 99,717 | 58,423 |
Operations Contracts, Developer and Other Receivables | 439 | 439 |
Restricted Cash | 3,157 | 1,460 |
Non-utility Assets - Net | 9,598 | 9,478 |
Other | 435 | 177 |
TOTAL DEFERRED CHARGES AND OTHER ASSETS | 118,205 | 74,653 |
TOTAL ASSETS | 729,744 | 661,140 |
CAPITALIZATION: | ||
Common Stock, No Par Value | 156,251 | 155,120 |
Retained Earnings | 79,826 | 74,055 |
TOTAL COMMON EQUITY | 236,077 | 229,175 |
Preferred Stock | 2,433 | 2,433 |
Long-term Debt | 142,129 | 139,045 |
TOTAL CAPITALIZATION | 380,639 | 370,653 |
CURRENT LIABILITIES: | ||
Current Portion of Long-term Debt | 7,236 | 6,865 |
Notes Payable | 39,000 | 28,000 |
Accounts Payable | 16,413 | 13,929 |
Accrued Taxes | 14,700 | 11,418 |
Accrued Interest | 1,259 | 1,093 |
Unearned Revenues and Advanced Service Fees | 974 | 951 |
Other | 1,993 | 2,281 |
TOTAL CURRENT LIABILITIES | 81,575 | 64,537 |
COMMITMENTS AND CONTINGENT LIABILITIES (Note 7) | ||
DEFERRED CREDITS AND OTHER LIABILITIES: | ||
Customer Advances for Construction | 21,832 | 21,423 |
Accumulated Deferred Income Taxes | 43,706 | 43,160 |
Employee Benefit Plans | 35,128 | 36,686 |
Regulatory Liabilities | 83,298 | 43,745 |
Other | 1,250 | 1,315 |
TOTAL DEFERRED CREDITS AND OTHER LIABILITIES | 185,214 | 146,329 |
CONTRIBUTIONS IN AID OF CONSTRUCTION | 82,316 | 79,621 |
TOTAL CAPITALIZATION AND LIABILITIES | $ 729,744 | $ 661,140 |
CONDENSED CONSOLIDATED STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net Income | $ 13,169 | $ 9,822 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||
Depreciation and Amortization | 7,793 | 6,887 |
Provision for Deferred Income Taxes | (2,760) | 4,395 |
Equity Portion of Allowance for Funds Used During Construction (AFUDC) | (256) | (205) |
Cash Surrender Value of Life Insurance | (60) | (114) |
Stock Compensation Expense | 535 | 437 |
Changes in Assets and Liabilities: | ||
Accounts Receivable | (226) | 176 |
Unbilled Revenues | (1,745) | (1,694) |
Materials & Supplies | (708) | (787) |
Prepayments | (1,397) | (888) |
Accounts Payable | 2,484 | 2,702 |
Accrued Taxes | 3,282 | 752 |
Accrued Interest | 166 | (6) |
Employee Benefit Plans | (2,478) | (640) |
Unearned Revenue & Advanced Service Fees | 23 | 44 |
Other Assets and Liabilities | 1,401 | (710) |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 19,223 | 20,171 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Utility Plant Expenditures, Including AFUDC of $125 in 2018, $94 in 2017 | (28,377) | (21,165) |
NET CASH USED IN INVESTING ACTIVITIES | (28,377) | (21,165) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Redemption of Long-term Debt | (2,144) | (2,115) |
Proceeds from Issuance of Long-term Debt | 5,567 | 4,047 |
Net Short-term Bank Borrowings | 11,000 | 5,000 |
Deferred Debt Issuance Expense | (75) | (33) |
Proceeds from Issuance of Common Stock | 596 | 592 |
Payment of Common Dividends | (7,325) | (6,893) |
Payment of Preferred Dividends | (72) | (72) |
Construction Advances and Contributions-Net | 1,040 | 278 |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 8,587 | 804 |
NET CHANGES IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (567) | (190) |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF PERIOD | 4,937 | 4,318 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD | 2,673 | 4,128 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITY: | ||
Utility Plant received as Construction Advances and Contributions | 2,064 | 1,131 |
Cash Paid During the Year for: | ||
Interest | 2,711 | 2,594 |
Interest Capitalized | 125 | 94 |
Income Taxes | $ 1,989 | $ 714 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Cash Flows [Abstract] | ||
Allowance for funds used during construction | $ 125 | $ 94 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CAPITAL STOCK AND LONG-TERM DEBT - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Common Stock, No Par Value | $ 156,251 | $ 155,120 |
Retained Earnings | 79,826 | 74,055 |
TOTAL COMMON EQUITY | 236,077 | 229,175 |
TOTAL PREFERRED STOCK | 2,433 | 2,433 |
SUBTOTAL LONG-TERM DEBT | 151,276 | 147,852 |
Add: Premium on Issuance of Long-term Debt | 1,369 | 1,367 |
Less: Unamortized Debt Expense | (3,280) | (3,309) |
Less: Current Portion of Long-term Debt | (7,236) | (6,865) |
TOTAL LONG-TERM DEBT | 142,129 | 139,045 |
Amortizing Secured Note, due December 20, 2021 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 1,055 | 1,180 |
Amortizing Secured Note, due May 19, 2028 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 4,165 | 4,375 |
Amortizing Secured Note, due August 25, 2030 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 3,407 | 3,547 |
Amortizing Secured Note, due September 19, 2031 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 3,687 | 3,827 |
State Revolving Trust Note, due December 31, 2022 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 253 | 279 |
State Revolving Trust Note, due May 1, 2025 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 1,743 | 1,851 |
State Revolving Trust Note, due March 1, 2026 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 372 | 392 |
State Revolving Trust Note, due January 25, 2027 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 408 | 427 |
State Revolving Trust Note, due December 1, 2026 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 527 | 553 |
State Revolving Trust Bond 4.00% to 5.00%, due August 1, 2021 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 162 | 162 |
State Revolving Trust Bond 0.00%, due August 1, 2021 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 124 | 128 |
State Revolving Trust Note, due January 1, 2028 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 80 | 84 |
State Revolving Trust Note, due July 1, 2028 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 246 | 256 |
State Revolving Trust Note, due August 1, 2031 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 935 | 962 |
Amortizing Secured Note, due April 20, 2029 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 3,779 | 3,953 |
Amortizing Secured Note 7.05%, due January 20, 2030 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 2,896 | 3,021 |
Amortizing Secured Note 5.69%, due January 20, 2030 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 5,940 | 6,197 |
Amortizing Secured Note, due April 20, 2040 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 9,607 | 9,827 |
Amortizing Secured Note, due April 20, 2040 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 3,566 | 3,646 |
State Revolving Trust Note, due July 1, 2031 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 2,015 | 2,075 |
State Revolving Trust Note, due November 30, 2030 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 1,057 | 1,090 |
Construction Loans [Member] | ||
SUBTOTAL LONG-TERM DEBT | 3,874 | |
First Mortgage Bonds - Series X [Member] | ||
SUBTOTAL LONG-TERM DEBT | 54 | 55 |
First Mortgage Bonds - Series Y [Member] | ||
SUBTOTAL LONG-TERM DEBT | 61 | 61 |
First Mortgage Bonds - Series Z [Member] | ||
SUBTOTAL LONG-TERM DEBT | 221 | 224 |
First Mortgage Bonds - Series AA [Member] | ||
SUBTOTAL LONG-TERM DEBT | 300 | 300 |
First Mortgage Bonds - Series BB [Member] | ||
SUBTOTAL LONG-TERM DEBT | 471 | 482 |
First Mortgage Bonds - Series CC [Member] | ||
SUBTOTAL LONG-TERM DEBT | 636 | 636 |
First Mortgage Bonds - Series EE [Member] | ||
SUBTOTAL LONG-TERM DEBT | 2,231 | 2,296 |
First Mortgage Bonds - Series FF [Member] | ||
SUBTOTAL LONG-TERM DEBT | 3,495 | 3,495 |
First Mortgage Bonds - Series GG [Member] | ||
SUBTOTAL LONG-TERM DEBT | 799 | 813 |
First Mortgage Bonds - Series HH [Member] | ||
SUBTOTAL LONG-TERM DEBT | 880 | 880 |
First Mortgage Bonds - Series II [Member] | ||
SUBTOTAL LONG-TERM DEBT | 594 | 610 |
First Mortgage Bonds - Series JJ [Member] | ||
SUBTOTAL LONG-TERM DEBT | 750 | 750 |
First Mortgage Bonds - Series KK [Member] | ||
SUBTOTAL LONG-TERM DEBT | 969 | 988 |
First Mortgage Bonds - Series LL [Member] | ||
SUBTOTAL LONG-TERM DEBT | 1,095 | 1,095 |
First Mortgage Bonds - Series MM [Member] | ||
SUBTOTAL LONG-TERM DEBT | 1,203 | 1,237 |
First Mortgage Bonds - Series NN [Member] | ||
SUBTOTAL LONG-TERM DEBT | 1,505 | 1,505 |
First Mortgage Bonds - Series OO [Member] | ||
SUBTOTAL LONG-TERM DEBT | 2,057 | 2,107 |
First Mortgage Bonds - Series PP [Member] | ||
SUBTOTAL LONG-TERM DEBT | 740 | 740 |
First Mortgage Bonds - Series QQ [Member] | ||
SUBTOTAL LONG-TERM DEBT | 9,915 | 9,915 |
First Mortgage Bonds - Series RR [Member] | ||
SUBTOTAL LONG-TERM DEBT | 22,500 | 22,500 |
First Mortgage Bonds - Series SS [Member] | ||
SUBTOTAL LONG-TERM DEBT | 23,000 | 23,000 |
First Mortgage Bonds - Series TT [Member] | ||
SUBTOTAL LONG-TERM DEBT | 2,208 | 2,258 |
First Mortgage Bonds - Series UU [Member] | ||
SUBTOTAL LONG-TERM DEBT | 845 | 845 |
First Mortgage Bonds - Series VV [Member] | ||
SUBTOTAL LONG-TERM DEBT | 2,243 | 2,290 |
First Mortgage Bonds - Series WW [Member] | ||
SUBTOTAL LONG-TERM DEBT | 830 | 830 |
First Mortgage Bonds - Series XX [Member] | ||
SUBTOTAL LONG-TERM DEBT | 11,259 | 11,259 |
First Mortgage Bonds - Series YY [Member] | ||
SUBTOTAL LONG-TERM DEBT | 3,860 | 3,860 |
0.00%, Series 2018A, due August 1, 2047 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 7,076 | |
3.00% to 5.00%, Series 2018B, due August 1, 2047 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 2,365 | |
Convertible Preferred Stock $7.00 Series [Member] | ||
TOTAL PREFERRED STOCK | 1,005 | 1,005 |
Convertible Preferred Stock $8.00 Series [Member] | ||
TOTAL PREFERRED STOCK | 349 | 349 |
Nonredeemable Preferred Stock $7.00 Series [Member] | ||
TOTAL PREFERRED STOCK | 79 | 79 |
Nonredeemable Preferred Stock $4.75 Series [Member] | ||
TOTAL PREFERRED STOCK | 1,000 | 1,000 |
State Revolving Trust Note, due February 1, 2036 [Member] | ||
SUBTOTAL LONG-TERM DEBT | $ 1,090 | $ 1,115 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CAPITAL STOCK AND LONG-TERM DEBT (Parenthetical) - shares shares in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Common Stock, Shares Authorized | 40,000 | 40,000 |
Common Stock, Shares Outstanding | 16,392 | 16,352 |
Preferred Stock, Shares Authorized | 126 | 126 |
Preferred Stock, Shares Outstanding | 24 | 24 |
State Revolving Trust Note, due February 1, 2036 [Member] | ||
Interest rate | 2.00% | |
Due date of debt | Feb. 1, 2036 | |
Convertible Preferred Stock $7.00 Series [Member] | ||
Preferred Stock, Shares Outstanding | 10 | 10 |
Convertible Preferred Stock $8.00 Series [Member] | ||
Preferred Stock, Shares Outstanding | 3 | 3 |
Nonredeemable Preferred Stock $7.00 Series [Member] | ||
Preferred Stock, Shares Outstanding | 1 | 1 |
Nonredeemable Preferred Stock $4.75 Series [Member] | ||
Preferred Stock, Shares Outstanding | 10 | 10 |
Amortizing Secured Note, due December 20, 2021 [Member] | ||
Interest rate | 8.05% | |
Due date of debt | Dec. 20, 2021 | |
Amortizing Secured Note, due May 19, 2028 [Member] | ||
Interest rate | 6.25% | |
Due date of debt | May 19, 2028 | |
Amortizing Secured Note, due August 25, 2030 [Member] | ||
Interest rate | 6.44% | |
Due date of debt | Aug. 25, 2030 | |
Amortizing Secured Note, due September 19, 2031 [Member] | ||
Interest rate | 6.46% | |
Due date of debt | Sep. 19, 2031 | |
State Revolving Trust Note, due December 31, 2022 [Member] | ||
Interest rate | 4.22% | |
Due date of debt | Dec. 31, 2022 | |
State Revolving Trust Note, due May 1, 2025 [Member] | ||
Interest rate | 3.60% | |
Due date of debt | May 1, 2025 | |
State Revolving Trust Note, due March 1, 2026 [Member] | ||
Interest rate | 3.30% | |
Due date of debt | Mar. 1, 2026 | |
State Revolving Trust Note, due January 25, 2027 [Member] | ||
Interest rate | 3.49% | |
Due date of debt | Jan. 25, 2027 | |
State Revolving Trust Note, due December 1, 2026 [Member] | ||
Interest rate | 4.03% | |
Due date of debt | Dec. 1, 2026 | |
State Revolving Trust Bond 4.00% to 5.00%, due August 1, 2021 [Member] | ||
Due date of debt | Aug. 1, 2021 | |
State Revolving Trust Bond 4.00% to 5.00%, due August 1, 2021 [Member] | Minimum [Member] | ||
Interest rate | 4.00% | |
State Revolving Trust Bond 4.00% to 5.00%, due August 1, 2021 [Member] | Maximum [Member] | ||
Interest rate | 5.00% | |
State Revolving Trust Bond 0.00%, due August 1, 2021 [Member] | ||
Due date of debt | Aug. 1, 2021 | |
State Revolving Trust Note, due July 1, 2028 [Member] | ||
Interest rate | 3.64% | |
Due date of debt | Jul. 1, 2028 | |
State Revolving Trust Note, due January 1, 2028 [Member] | ||
Interest rate | 3.64% | |
Due date of debt | Jan. 1, 2028 | |
State Revolving Trust Note, due August 1, 2031 [Member] | ||
Interest rate | 3.45% | |
Due date of debt | Aug. 1, 2031 | |
Amortizing Secured Note, due April 20, 2029 [Member] | ||
Interest rate | 6.59% | |
Due date of debt | Apr. 20, 2029 | |
Amortizing Secured Note 7.05%, due January 20, 2030 [Member] | ||
Interest rate | 7.05% | |
Due date of debt | Jan. 20, 2030 | |
Amortizing Secured Note 5.69%, due January 20, 2030 [Member] | ||
Interest rate | 5.69% | |
Due date of debt | Jan. 20, 2030 | |
Amortizing Secured Note, due April 20, 2040 [Member] | ||
Interest rate | 4.45% | |
Due date of debt | Apr. 20, 2040 | |
Amortizing Secured Note, due April 20, 2040 [Member] | ||
Interest rate | 4.47% | |
Due date of debt | Apr. 20, 2040 | |
State Revolving Trust Note, due July 1, 2031 [Member] | ||
Interest rate | 3.75% | |
Due date of debt | Jul. 1, 2031 | |
State Revolving Trust Note, due November 30, 2030 [Member] | ||
Interest rate | 3.75% | |
Due date of debt | Nov. 30, 2030 | |
First Mortgage Bonds - Series X [Member] | ||
Interest rate | 0.00% | |
Due date of debt | Aug. 1, 2018 | |
First Mortgage Bonds - Series Y [Member] | ||
Due date of debt | Aug. 1, 2018 | |
First Mortgage Bonds - Series Y [Member] | Minimum [Member] | ||
Interest rate | 4.25% | |
First Mortgage Bonds - Series Y [Member] | Maximum [Member] | ||
Interest rate | 4.63% | |
First Mortgage Bonds - Series Z [Member] | ||
Interest rate | 0.00% | |
Due date of debt | Aug. 1, 2019 | |
First Mortgage Bonds - Series AA [Member] | ||
Due date of debt | Aug. 1, 2019 | |
First Mortgage Bonds - Series AA [Member] | Minimum [Member] | ||
Interest rate | 5.25% | |
First Mortgage Bonds - Series AA [Member] | Maximum [Member] | ||
Interest rate | 5.75% | |
First Mortgage Bonds - Series BB [Member] | ||
Interest rate | 0.00% | |
Due date of debt | Aug. 1, 2021 | |
First Mortgage Bonds - Series CC [Member] | ||
Due date of debt | Aug. 1, 2021 | |
First Mortgage Bonds - Series CC [Member] | Minimum [Member] | ||
Interest rate | 4.00% | |
First Mortgage Bonds - Series CC [Member] | Maximum [Member] | ||
Interest rate | 5.00% | |
First Mortgage Bonds - Series EE [Member] | ||
Interest rate | 0.00% | |
Due date of debt | Aug. 1, 2023 | |
First Mortgage Bonds - Series FF [Member] | ||
Due date of debt | Aug. 1, 2024 | |
First Mortgage Bonds - Series FF [Member] | Minimum [Member] | ||
Interest rate | 3.00% | |
First Mortgage Bonds - Series FF [Member] | Maximum [Member] | ||
Interest rate | 5.50% | |
First Mortgage Bonds - Series GG [Member] | ||
Interest rate | 0.00% | |
Due date of debt | Aug. 1, 2026 | |
First Mortgage Bonds - Series HH [Member] | ||
Due date of debt | Aug. 1, 2026 | |
First Mortgage Bonds - Series HH [Member] | Minimum [Member] | ||
Interest rate | 4.00% | |
First Mortgage Bonds - Series HH [Member] | Maximum [Member] | ||
Interest rate | 5.00% | |
First Mortgage Bonds - Series II [Member] | ||
Interest rate | 0.00% | |
Due date of debt | Aug. 1, 2024 | |
First Mortgage Bonds - Series JJ [Member] | ||
Due date of debt | Aug. 1, 2027 | |
First Mortgage Bonds - Series JJ [Member] | Minimum [Member] | ||
Interest rate | 3.40% | |
First Mortgage Bonds - Series JJ [Member] | Maximum [Member] | ||
Interest rate | 5.00% | |
First Mortgage Bonds - Series KK [Member] | ||
Interest rate | 0.00% | |
Due date of debt | Aug. 1, 2028 | |
First Mortgage Bonds - Series LL [Member] | ||
Due date of debt | Aug. 1, 2028 | |
First Mortgage Bonds - Series LL [Member] | Minimum [Member] | ||
Interest rate | 5.00% | |
First Mortgage Bonds - Series LL [Member] | Maximum [Member] | ||
Interest rate | 5.50% | |
First Mortgage Bonds - Series MM [Member] | ||
Interest rate | 0.00% | |
Due date of debt | Aug. 1, 2030 | |
First Mortgage Bonds - Series NN [Member] | ||
Due date of debt | Aug. 1, 2030 | |
First Mortgage Bonds - Series NN [Member] | Minimum [Member] | ||
Interest rate | 3.00% | |
First Mortgage Bonds - Series NN [Member] | Maximum [Member] | ||
Interest rate | 4.375% | |
First Mortgage Bonds - Series OO [Member] | ||
Interest rate | 0.00% | |
Due date of debt | Aug. 1, 2031 | |
First Mortgage Bonds - Series PP [Member] | ||
Due date of debt | Aug. 1, 2031 | |
First Mortgage Bonds - Series PP [Member] | Minimum [Member] | ||
Interest rate | 2.00% | |
First Mortgage Bonds - Series PP [Member] | Maximum [Member] | ||
Interest rate | 5.00% | |
First Mortgage Bonds - Series QQ [Member] | ||
Interest rate | 5.00% | |
Due date of debt | Oct. 1, 2023 | |
First Mortgage Bonds - Series RR [Member] | ||
Interest rate | 3.80% | |
Due date of debt | Oct. 1, 2038 | |
First Mortgage Bonds - Series SS [Member] | ||
Interest rate | 4.25% | |
Due date of debt | Oct. 1, 2047 | |
First Mortgage Bonds - Series TT [Member] | ||
Interest rate | 0.00% | |
Due date of debt | Aug. 1, 2032 | |
First Mortgage Bonds - Series UU [Member] | ||
Due date of debt | Aug. 1, 2032 | |
First Mortgage Bonds - Series UU [Member] | Minimum [Member] | ||
Interest rate | 3.00% | |
First Mortgage Bonds - Series UU [Member] | Maximum [Member] | ||
Interest rate | 3.25% | |
First Mortgage Bonds - Series VV [Member] | ||
Interest rate | 0.00% | |
Due date of debt | Aug. 1, 2033 | |
First Mortgage Bonds - Series WW [Member] | ||
Due date of debt | Aug. 1, 2033 | |
First Mortgage Bonds - Series WW [Member] | Minimum [Member] | ||
Interest rate | 3.00% | |
First Mortgage Bonds - Series WW [Member] | Maximum [Member] | ||
Interest rate | 5.00% | |
First Mortgage Bonds - Series XX [Member] | ||
Interest rate | 0.00% | |
Due date of debt | Aug. 1, 2047 | |
First Mortgage Bonds - Series YY [Member] | ||
Due date of debt | Aug. 1, 2047 | |
First Mortgage Bonds - Series YY [Member] | Minimum [Member] | ||
Interest rate | 3.00% | |
First Mortgage Bonds - Series YY [Member] | Maximum [Member] | ||
Interest rate | 5.00% | |
0.00%, Series 2018A, due August 1, 2047 [Member] | ||
Interest rate | 0.00% | |
Due date of debt | Aug. 1, 2047 | |
3.00% to 5.00%, Series 2018B, due August 1, 2047 [Member] | ||
Due date of debt | Aug. 1, 2047 | |
3.00% to 5.00%, Series 2018B, due August 1, 2047 [Member] | Minimum [Member] | ||
Interest rate | 3.00% | |
3.00% to 5.00%, Series 2018B, due August 1, 2047 [Member] | Maximum [Member] | ||
Interest rate | 5.00% | |
State Revolving Fund Bond 0.00%, due August 1, 2021 [Member] | ||
Interest rate | 0.00% | |
Construction Loans [Member] | ||
Interest rate | 0.00% |
Basis of Presentation and Recen
Basis of Presentation and Recent Developments | 6 Months Ended |
Jun. 30, 2018 | |
Basis of Presentation and Recent Developments [Abstract] | |
Basis of Presentation and Recent Developments | Note 1 – Basis of Presentation and Recent Developments Middlesex Water Company (Middlesex or the Company) is the parent company and sole shareholder of Tidewater Utilities, Inc. (Tidewater), Tidewater Environmental Services, Inc. (TESI), Pinelands Water Company (Pinelands Water) and Pinelands Wastewater Company (Pinelands Wastewater) (collectively, Pinelands), Utility Service Affiliates, Inc. (USA), Utility Service Affiliates (Perth Amboy) Inc. (USA-PA), and Twin Lakes Utilities, Inc. (Twin Lakes). Southern Shores Water Company, LLC (Southern Shores) and White Marsh Environmental Systems, Inc. (White Marsh) are wholly-owned subsidiaries of Tidewater. The financial statements for Middlesex and its wholly-owned subsidiaries (the Company) are reported on a consolidated basis. All significant intercompany accounts and transactions have been eliminated. The consolidated notes within the 2017 Annual Report on Form 10-K (the 2017 Form 10-K) are applicable to these financial statements and, in the opinion of the Company, the accompanying unaudited condensed consolidated financial statements contain all adjustments necessary (including normal recurring accruals) to present fairly the financial position as of June 30, 2018, the results of operations for the three and six month periods ended June 30, 2018 and 2017 and cash flows for the six month periods ended June 30, 2018 and 2017. Information included in the Condensed Consolidated Balance Sheet as of December 31, 2017, has been derived from the Company’s audited financial statements for the year ended December 31, 2017 included in the 2017 Form 10-K. Recent Developments USA-PA currently operates the City of Perth Amboy, New Jersey’s water and wastewater systems under a 20-year agreement, which expires in December 2018. In July 2018, through a competitive proposal process, USA-PA was awarded a $67 million base professional services contract to continue to operate the water and wastewater systems through December 31, 2028. Recent Accounting Guidance Revenue Recognition Revenue Recognition from Contracts with Customers Recognition and Measurement of Financial Assets and Financial Liabilities Statement of Cash Flows - Restricted Cash - Employee Benefit Plans-Net Periodic Benefit Cost – Employee Benefit Plans Leases - There are no other new adopted or proposed accounting guidance that the Company is aware of that could have a material impact on the Company’s financial statements. |
Rate and Regulatory Matters
Rate and Regulatory Matters | 6 Months Ended |
Jun. 30, 2018 | |
Regulated Operations [Abstract] | |
Rate and Regulatory Matters | Note 2 Rate and Regulatory Matters Middlesex – Tidewater - Tax Act - In March 2018, the Company submitted compliance filings with the DEPSC proposing to reduce rates charged to its Delaware customers to reflect the impact of the Tax Act. It is uncertain at this time when the DEPSC will act upon the rate reduction proposals or whether it will accept the proposed methodologies. As of June 30, 2018, the Company has recorded regulatory liabilities of $32.6 million for excess income taxes collected through rates due to the lower income tax rate under the Tax Act. These regulatory liabilities are overwhelmingly related to accelerated tax depreciation deduction timing differences, which are subject to IRS normalization rules. The IRS rules limit how quickly the excess taxes attributable to accelerated tax depreciation can be returned to customers. |
Capitalization
Capitalization | 6 Months Ended |
Jun. 30, 2018 | |
CAPITALIZATION: | |
Capitalization | Note 3 – Capitalization Common Stock - Long-term Debt - In April 2018, the NJBPU approved Middlesex’s request to borrow up to $55.0 million under the NJIB program to fund upgrades to the Company’s CJO water treatment plant. Middlesex currently expects to close on the NJIB construction loan in the fourth quarter of 2018 with funding requisitions beginning late in 2018 and through 2020. In March 2018, the NJBPU approved Middlesex’s request to borrow up to $14.0 million under the NJIB program to fund the 2018 RENEW Program, which is an ongoing initiative to eliminate all unlined water distribution mains in the Middlesex system. Middlesex expects to close on the NJIB construction loan in the third quarter of 2018 with funding requisitions beginning in September 2018 through early 2019. In March 2018, the DEPSC approved Tidewater’s request to borrow up to $0.9 million under the Delaware State Revolving Fund (SRF) program to fund the replacement of an entire water distribution system of a small Delaware subdivision. Tidewater closed on the SRF loan in May 2018 and expects to complete the project in the fourth quarter of 2018. In November 2017, Middlesex closed out three of its NJIB construction loans (booster station upgrade, RENEW 2015 and RENEW 2016 projects) by issuing to the NJIB first mortgage bonds designated as Series XX ($11.3 million) and Series YY ($3.9 million). The interest rate on the Series XX bond is zero and the interest rate on the Series YY bond range between 3.0% and 5.0%. Through June 30, 2018, Middlesex has drawn down $14.9 million and expects to draw down the remaining proceeds during the third quarter of 2018. The final maturity date for both bonds is August 1, 2047, with scheduled debt service payments over the life of the loan. In May 2018, Middlesex closed out its RENEW 2017 construction loan by issuing to the NJIB first mortgage bonds designated as Series 2018A ($7.1 million) and Series 2018B ($2.4 million). The interest rate on the Series 2018A bond is zero and the interest rate on the Series 2018B bond ranges between 3.0% and 5.0%. Through June 30, 2018, Middlesex has drawn down $7.1 million and expects to draw down the remaining proceeds during the third quarter of 2018. The final maturity date for both bonds is August 1, 2047, with scheduled debt service payments over the life of the loan. Fair Value of Financial Instruments - June 30, 2018 December 31, 2017 Carrying Fair Carrying Fair Amount Value Amount Value Bonds $ 104,449 $ 106,188 $95,322 $98,036 For other long-term debt for which there was no quoted market price and there is not an active trading market, it was not practicable to estimate their fair value (for details, including carrying value, interest rate and due date on these series of long-term debt, please refer to those series noted as “Amortizing Secured Note”, “State Revolving Trust Note” and “Construction Loans” on the Condensed Consolidated Statements of Capital Stock and Long-Term Debt). The carrying amount of these instruments was $46.8 million and $52.5 million at June 30, 2018 and December 31, 2017, respectively. Customer advances for construction have carrying amounts of $21.8 million and $21.4 million at June 30, 2018 and December 31, 2017, respectively. Their relative fair values cannot be accurately estimated since future refund payments depend on several variables, including new customer connections, customer consumption levels and future rate increases. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 4 – Earnings Per Share Basic earnings per share (EPS) are computed on the basis of the weighted average number of shares outstanding during the period presented. Diluted EPS assumes the conversion of both the Convertible Preferred Stock $7.00 Series and the Convertible Preferred Stock $8.00 Series. (In Thousands Except per Share Amounts) Three Months Ended June 30, 2018 2017 Basic: Income Shares Income Shares Net Income $ 8,675 16,388 $ 5,381 16,332 Preferred Dividend (36 ) (36 ) Earnings Applicable to Common Stock $ 8,639 16,388 $ 5,345 16,332 Basic EPS $ 0.53 $ 0.33 Diluted: Earnings Applicable to Common Stock $ 8,639 16,388 $ 5,345 16,332 $7.00 Series Preferred Dividend 17 115 17 115 $8.00 Series Preferred Dividend 6 41 6 41 Adjusted Earnings Applicable to Common Stock $ 8,662 16,544 $ 5,368 16,488 Diluted EPS $ 0.52 $ 0.33 (In Thousands Except per Share Amounts) Six Months Ended June 30, 2018 2017 Basic: Income Shares Income Shares Net Income $ 13,169 16,371 $ 9,822 16,316 Preferred Dividend (72 ) (72 ) Earnings Applicable to Common Stock $ 13,097 16,371 $ 9,750 16,316 Basic EPS $ 0.80 $ 0.60 Diluted: Earnings Applicable to Common Stock $ 13,097 16,371 $ 9,750 16,316 $7.00 Series Preferred Dividend 34 115 34 115 $8.00 Series Preferred Dividend 12 41 12 41 Adjusted Earnings Applicable to Common Stock $ 13,143 16,527 $ 9,796 16,472 Diluted EPS $ 0.80 $ 0.59 |
Business Segment Data
Business Segment Data | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Business Segment Data | Note 5 – Business Segment Data The Company has identified two reportable segments. One is the regulated business of collecting, treating and distributing water on a retail and wholesale basis to residential, commercial, industrial and fire protection customers in parts of New Jersey, Delaware and Pennsylvania. This segment also includes regulated wastewater systems in New Jersey and Delaware. The Company is subject to regulations as to its rates, services and other matters by New Jersey, Delaware and Pennsylvania with respect to utility services within these states. The other segment is primarily comprised of non-regulated contract services for the operation and maintenance of municipal and private water and wastewater systems in New Jersey and Delaware. Inter-segment transactions relating to operational costs are treated as pass-through expenses. Finance charges on inter-segment loan activities are based on interest rates that are below what would normally be charged by a third party lender. (In Thousands) Three Months Ended Six Months Ended June 30, June 30, Operations by Segments: 2018 2017 2018 2017 Revenues: Regulated $ 31,168 $ 29,278 $ 58,374 $ 55,771 Non – Regulated 3,882 3,863 7,982 7,613 Inter-segment Elimination (131 ) (127 ) (260 ) (239 ) Consolidated Revenues $ 34,919 $ 33,014 $ 66,096 $ 63,145 Operating Income: Regulated $ 9,988 $ 8,672 $ 15,613 $ 15,687 Non – Regulated 733 686 1,458 1,246 Consolidated Operating Income $ 10,721 $ 9,358 $ 17,071 $ 16,933 Net Income: Regulated $ 8,151 $ 4,972 $ 12,134 $ 9,111 Non – Regulated 524 409 1,035 711 Consolidated Net Income $ 8,675 $ 5,381 $ 13,169 $ 9,822 Capital Expenditures: Regulated $ 18,350 $ 11,588 $ 28,328 $ 21,160 Non – Regulated 16 — 49 5 Total Capital Expenditures $ 18,366 $ 11,588 $ 28,377 $ 21,165 As of As of June 30, December 31, 2018 2017 Assets: Regulated $ 732,592 $ 661,816 Non – Regulated 6,819 7,093 Inter-segment Elimination (9,667 ) (7,769 ) Consolidated Assets $ 729,744 $ 661,140 |
Short-term Borrowings
Short-term Borrowings | 6 Months Ended |
Jun. 30, 2018 | |
Short-term Debt [Abstract] | |
Short-term Borrowings | Note 6 – Short-term Borrowings As of June 30, 2018, the Company has established lines of credit aggregating $92.0 million. At June 30, 2018, the outstanding borrowings under these credit lines were $39.0 million at a weighted average interest rate of 3.18%. The weighted average daily amounts of borrowings outstanding under the Company’s credit lines and the weighted average interest rates on those amounts were as follows: (In Thousands) Three Months Six Months June 30, June 30, 2018 2017 2018 2017 Average Daily Amounts Outstanding $ 31,555 $ 15,582 $ 29,721 $ 14,221 Weighted Average Interest Rates 3.10% 2.08% 2.94% 1.95% The maturity dates for the $39.0 million outstanding as of June 30, 2018 are in July 2018 through September 2018 and are extendable at the discretion of the Company. Interest rates for short-term borrowings under the lines of credit are below the prime rate with no requirement for compensating balances. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Note 7 – Commitments and Contingent Liabilities Water Supply Middlesex also has an agreement with a non-affiliated regulated water utility for the purchase of treated water. This agreement, which expires February 27, 2021, provides for the minimum purchase of 3.0 mgd of treated water with provisions for additional purchases. Tidewater contracts with the City of Dover, Delaware to purchase 15.0 million gallons of treated water annually. Purchased water costs are shown below: (In Thousands) Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Treated $ 703 $ 795 $ 1,591 $ 1,574 Untreated 850 573 1,780 1,232 Total Costs $ 1,553 $ 1,368 $ 3,371 $ 2,806 Guarantees - If requested to perform under the guaranty to the County and, if AWM and NSU, as guarantor to Middlesex, do not fulfill their obligations to indemnify Middlesex against any claims that may arise under the Middlesex guaranty to the County, Middlesex would be required to fulfill the remaining operational commitment of AWM. As of both June 30, 2018 and December 31, 2017, the liability recognized in Other Non-Current Liabilities on the balance sheet for the guaranty is less than $0.1 million. Leases - Construction Litigation Change in Control Agreements |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2018 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Note 8 – Employee Benefit Plans Pension Benefits Other Postretirement Benefits - The following tables set forth information relating to the Company’s periodic costs for its employee retirement benefit plans: (In Thousands) Pension Benefits Other Benefits Three Months Ended June 30, 2018 2017 2018 2017 Service Cost $ 607 $ 600 $ 284 $ 272 Interest Cost 765 786 474 491 Expected Return on Assets (1,218 ) (1,122 ) (637 ) (601 ) Amortization of Unrecognized Losses 415 391 447 445 Amortization of Unrecognized Prior Service Cost (Credit) — — (402 ) (432 ) Net Periodic Benefit Cost* $ 569 $ 655 $ 166 $ 175 Pension Benefits Other Benefits Six Months Ended June 30, 2018 2017 2018 2017 Service Cost $ 1,213 $ 1,200 $ 567 $ 544 Interest Cost 1,530 1,572 949 982 Expected Return on Assets (2,435 ) (2,245 ) (1,275 ) (1,203 ) Amortization of Unrecognized Losses 829 783 894 890 Amortization of Unrecognized Prior Service Cost (Credit) — — (803 ) (864 ) Net Periodic Benefit Cost* $ 1,137 $ 1,310 $ 332 $ 349 *Service cost is included in Operations and Maintenance expense on Consolidated Statements of Income; all other amounts are included in Other Income/Expense, net. |
Revenue Recognition from Contra
Revenue Recognition from Contracts with Customers | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition from Contracts with Customers | Note 9 – Revenue Recognition from Contracts with Customers The Company’s revenues are primarily generated from regulated tariff-based sales of water and wastewater services and non-regulated operation and maintenance contracts for services on water and wastewater systems owned by others. Revenue from contracts with customers is recognized when control of a promised good or service is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The Company’s regulated revenue from contracts with customers is derived from tariff-based sales that result from the obligation to provide water and wastewater services to residential, industrial, commercial, fire-protection and wholesale customers. The Company’s residential customers are billed quarterly while most of the Company’s industrial, commercial, fire-protection and wholesale customers are billed monthly. Payments by customers are due between 15 to 30 days after the invoice date. The Company recognizes revenue as the water and wastewater services are delivered to customers as well as records unbilled revenues estimated from the last meter reading date to the end of the accounting period utilizing factors such as historical customer data, regional weather indicators and general economic conditions in its service territories. Unearned Revenues and Advance Service Fees include fixed service charge billings in advance to Tidewater customers that are recognized as service is provided to the customer. Non-regulated service contract revenues consist of base service fees as well as fees for additional billable services provided to customers, are billed monthly and are due within 30 days after the invoice date. The Company considers the amounts billed to represent the value of these services provided to customers. These contracts expire between December 2018 and 2022 and thus contain remaining performance obligations for which the Company expects to recognize revenue in the future. These contracts also contain customary termination provisions. Almost all of the amounts included in operating revenues and accounts receivable are from contracts with customers. The Company records its allowance for doubtful accounts based on historical write-offs combined with an evaluation of current economic conditions within its service territories. The Company’s contracts do not contain any significant financing components. The Company’s operating revenues are comprised of the following: (In Thousands) Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Regulated Tariff Sales Residential $ 17,892 $ 17,024 $ 33,515 $ 32,183 Commercial 3,771 3,493 6,880 6,447 Industrial 2,689 2,395 5,001 4,578 Fire Protection 3,073 2,911 5,961 5,824 Wholesale 3,680 3,397 6,892 6,631 Non-Regulated Contract Operations 3,781 3,762 7,780 7,411 Total Revenue from Contracts with Customers $ 34,886 $ 32,982 $ 66,029 $ 63,074 Other Regulated Revenues 63 48 125 98 Other Non-Regulated Revenues 101 111 202 212 Inter-segment Elimination (131 ) (127 ) (260 ) (239 ) Total Revenue $ 34,919 $ 33,014 $ 66,096 $ 63,145 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 10 – Income Taxes As part of its 2014 Federal income tax return, the Company adopted the final IRS tangible property regulations and changed its accounting method for the tax treatment of expenditures that qualified as deductible repairs. The adoption resulted in a net reduction of $17.6 million in taxes previously remitted to the IRS, for which the Company has already sought and received the tax refunds. While the Company believes that its treatment of qualifying tangible property repair costs is proper, a reserve provision against refunded taxes of $2.3 million was recorded in 2015 at the time of filing its change in accounting method. This was based on a possible challenge by the IRS during an audit examination. The Company’s 2014 federal income tax return was subsequently selected for examination by the IRS in 2016. During the second quarter of 2018, the Company received information from the IRS regarding certain aspects of the its adopted accounting method used to calculate qualifying tangible property repair cost deductions and has determined that it should increase its reserve provision to $3.7 million. As the IRS examination continues and pending its completion, the tax liability could be different than the recorded reserve provision. For the three and six months ended June 30, 2018, the Company has recorded $0.4 million in interest expense due to this reserve provision. |
Capitalization (Tables)
Capitalization (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
CAPITALIZATION: | |
Schedule of carrying amount and fair value of bonds | The carrying amount and fair value of the Bonds were as follows: June 30, 2018 December 31, 2017 Carrying Fair Carrying Fair Amount Value Amount Value Bonds $ 104,449 $ 106,188 $95,322 $98,036 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | Basic earnings per share (EPS) are computed on the basis of the weighted average number of shares outstanding during the period presented. Diluted EPS assumes the conversion of both the Convertible Preferred Stock $7.00 Series and the Convertible Preferred Stock $8.00 Series. (In Thousands Except per Share Amounts) Three Months Ended June 30, 2018 2017 Basic: Income Shares Income Shares Net Income $ 8,675 16,388 $ 5,381 16,332 Preferred Dividend (36 ) (36 ) Earnings Applicable to Common Stock $ 8,639 16,388 $ 5,345 16,332 Basic EPS $ 0.53 $ 0.33 Diluted: Earnings Applicable to Common Stock $ 8,639 16,388 $ 5,345 16,332 $7.00 Series Preferred Dividend 17 115 17 115 $8.00 Series Preferred Dividend 6 41 6 41 Adjusted Earnings Applicable to Common Stock $ 8,662 16,544 $ 5,368 16,488 Diluted EPS $ 0.52 $ 0.33 (In Thousands Except per Share Amounts) Six Months Ended June 30, 2018 2017 Basic: Income Shares Income Shares Net Income $ 13,169 16,371 $ 9,822 16,316 Preferred Dividend (72 ) (72 ) Earnings Applicable to Common Stock $ 13,097 16,371 $ 9,750 16,316 Basic EPS $ 0.80 $ 0.60 Diluted: Earnings Applicable to Common Stock $ 13,097 16,371 $ 9,750 16,316 $7.00 Series Preferred Dividend 34 115 34 115 $8.00 Series Preferred Dividend 12 41 12 41 Adjusted Earnings Applicable to Common Stock $ 13,143 16,527 $ 9,796 16,472 Diluted EPS $ 0.80 $ 0.59 |
Business Segment Data (Tables)
Business Segment Data (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information, by segment | Finance charges on inter-segment loan activities are based on interest rates that are below what would normally be charged by a third party lender. (In Thousands) Three Months Ended Six Months Ended June 30, June 30, Operations by Segments: 2018 2017 2018 2017 Revenues: Regulated $ 31,168 $ 29,278 $ 58,374 $ 55,771 Non – Regulated 3,882 3,863 7,982 7,613 Inter-segment Elimination (131 ) (127 ) (260 ) (239 ) Consolidated Revenues $ 34,919 $ 33,014 $ 66,096 $ 63,145 Operating Income: Regulated $ 9,988 $ 8,672 $ 15,613 $ 15,687 Non – Regulated 733 686 1,458 1,246 Consolidated Operating Income $ 10,721 $ 9,358 $ 17,071 $ 16,933 Net Income: Regulated $ 8,151 $ 4,972 $ 12,134 $ 9,111 Non – Regulated 524 409 1,035 711 Consolidated Net Income $ 8,675 $ 5,381 $ 13,169 $ 9,822 Capital Expenditures: Regulated $ 18,350 $ 11,588 $ 28,328 $ 21,160 Non – Regulated 16 — 49 5 Total Capital Expenditures $ 18,366 $ 11,588 $ 28,377 $ 21,165 As of As of June 30, December 31, 2018 2017 Assets: Regulated $ 732,592 $ 661,816 Non – Regulated 6,819 7,093 Inter-segment Elimination (9,667 ) (7,769 ) Consolidated Assets $ 729,744 $ 661,140 |
Short-term Borrowings (Tables)
Short-term Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Shortterm Borrowings Tables Abstract | |
Schedule of Credit Lines | The weighted average daily amounts of borrowings outstanding under the Company’s credit lines and the weighted average interest rates on those amounts were as follows: (In Thousands) Three Months Six Months June 30, June 30, 2018 2017 2018 2017 Average Daily Amounts Outstanding $ 31,555 $ 15,582 $ 29,721 $ 14,221 Weighted Average Interest Rates 3.10% 2.08% 2.94% 1.95% |
Commitments and Contingent Li22
Commitments and Contingent Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of purchased water cost | Purchased water costs are shown below: (In Thousands) Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Treated $ 703 $ 795 $ 1,591 $ 1,574 Untreated 850 573 1,780 1,232 Total Costs $ 1,553 $ 1,368 $ 3,371 $ 2,806 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Retirement Benefits [Abstract] | |
Schedule of periodic costs for employee retirement benefit plan | The following tables set forth information relating to the Company’s periodic costs for its employee retirement benefit plans: (In Thousands) Pension Benefits Other Benefits Three Months Ended June 30, 2018 2017 2018 2017 Service Cost $ 607 $ 600 $ 284 $ 272 Interest Cost 765 786 474 491 Expected Return on Assets (1,218 ) (1,122 ) (637 ) (601 ) Amortization of Unrecognized Losses 415 391 447 445 Amortization of Unrecognized Prior Service Cost (Credit) — — (402 ) (432 ) Net Periodic Benefit Cost* $ 569 $ 655 $ 166 $ 175 Pension Benefits Other Benefits Six Months Ended June 30, 2018 2017 2018 2017 Service Cost $ 1,213 $ 1,200 $ 567 $ 544 Interest Cost 1,530 1,572 949 982 Expected Return on Assets (2,435 ) (2,245 ) (1,275 ) (1,203 ) Amortization of Unrecognized Losses 829 783 894 890 Amortization of Unrecognized Prior Service Cost (Credit) — — (803 ) (864 ) Net Periodic Benefit Cost* $ 1,137 $ 1,310 $ 332 $ 349 *Service cost is included in Operations and Maintenance expense on Consolidated Statements of Income; all other amounts are included in Other Income/Expense, net. |
Revenue Recognition from Cont24
Revenue Recognition from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Operating Revenue | The Company’s operating revenues are comprised of the following: (In Thousands) Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Regulated Tariff Sales Residential $ 17,892 $ 17,024 $ 33,515 $ 32,183 Commercial 3,771 3,493 6,880 6,447 Industrial 2,689 2,395 5,001 4,578 Fire Protection 3,073 2,911 5,961 5,824 Wholesale 3,680 3,397 6,892 6,631 Non-Regulated Contract Operations 3,781 3,762 7,780 7,411 Total Revenue from Contracts with Customers $ 34,886 $ 32,982 $ 66,029 $ 63,074 Other Regulated Revenues 63 48 125 98 Other Non-Regulated Revenues 101 111 202 212 Inter-segment Elimination (131 ) (127 ) (260 ) (239 ) Total Revenue $ 34,919 $ 33,014 $ 66,096 $ 63,145 |
Basis of Presentation and Rec25
Basis of Presentation and Recent Developments (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |
Jul. 31, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Product Information [Line Items] | ||||
Cash, Cash Equivalents and Restricted Cash | $ 400 | |||
Other Income (Expense) | $ 200 | $ 400 | ||
Wastewater system description | USA-PA currently operates the City of Perth Amboy, New Jersey's water and wastewater systems under a 20-year agreement, which expires in December 2018. | |||
Subsequent Event [Member] | ||||
Product Information [Line Items] | ||||
Professional services contract | $ 67,000 |
Rate and Regulatory Matters (De
Rate and Regulatory Matters (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | |
Oct. 17, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Regulatory Liabilities [Line Items] | |||
Deferred income tax benefits | $ (2,760) | $ 4,395 | |
Regulatory liabilities | $ 32,600 | ||
Minimum [Member] | |||
Regulatory Liabilities [Line Items] | |||
Corporate tax rate | 21.00% | ||
Base rate amount | $ 4,900 | ||
Maximum [Member] | |||
Regulatory Liabilities [Line Items] | |||
Corporate tax rate | 35.00% | ||
Base rate amount | $ 10,400 | ||
Middlesex [Member] | |||
Regulatory Liabilities [Line Items] | |||
Base rate amount | $ 15,300 | ||
Deferred income tax benefits | $ 28,700 | ||
Amortization period | 4 years | ||
Middlesex [Member] | New Jersey Board Of Public Utilities [Member] | |||
Regulatory Liabilities [Line Items] | |||
Approved increase in annual operating revenues | $ 5,500 | ||
Base rate amount | $ 245,500 | ||
Return on equity | 9.60% | ||
Tidewater Utilities Inc [Member] | |||
Regulatory Liabilities [Line Items] | |||
Projected annual revenue | $ 200 |
Capitalization (Narrative) (Det
Capitalization (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | |||||
May 31, 2018 | Nov. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Apr. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Schedule of Capitalization [Line Items] | |||||||
Issuance of shares under the DRP, shares | 15,026 | 15,954 | |||||
Issuance of shares under the DRP | $ 600 | $ 600 | |||||
Other long term debt | 46,800 | $ 52,500 | |||||
Customer advances | 21,832 | $ 21,423 | |||||
Amount drawn | 5,567 | $ 4,047 | |||||
New Jersey Infrastructure Bank [Member] | |||||||
Schedule of Capitalization [Line Items] | |||||||
Amount drawn | 14,900 | ||||||
Middlesex [Member] | |||||||
Schedule of Capitalization [Line Items] | |||||||
Amount drawn | $ 7,100 | ||||||
Series XX [Member] | |||||||
Schedule of Capitalization [Line Items] | |||||||
Proceeds from issuance of first mortgage bond | $ 11,300 | ||||||
Interest rate | 0.00% | ||||||
Due date of debt | Aug. 1, 2047 | ||||||
Series YY [Member] | |||||||
Schedule of Capitalization [Line Items] | |||||||
Proceeds from issuance of first mortgage bond | $ 3,900 | ||||||
Due date of debt | Aug. 1, 2047 | ||||||
Series YY [Member] | Minimum [Member] | |||||||
Schedule of Capitalization [Line Items] | |||||||
Interest rate | 3.00% | ||||||
Series YY [Member] | Maximum [Member] | |||||||
Schedule of Capitalization [Line Items] | |||||||
Interest rate | 5.00% | ||||||
Series 2018A [Member] | |||||||
Schedule of Capitalization [Line Items] | |||||||
Proceeds from issuance of first mortgage bond | $ 7,100 | ||||||
Interest rate | 0.00% | ||||||
Due date of debt | Aug. 1, 2047 | ||||||
Series 2018B [Member] | |||||||
Schedule of Capitalization [Line Items] | |||||||
Proceeds from issuance of first mortgage bond | $ 2,400 | ||||||
Due date of debt | Aug. 1, 2047 | ||||||
Series 2018B [Member] | Minimum [Member] | |||||||
Schedule of Capitalization [Line Items] | |||||||
Interest rate | 3.00% | ||||||
Series 2018B [Member] | Maximum [Member] | |||||||
Schedule of Capitalization [Line Items] | |||||||
Interest rate | 5.00% | ||||||
New Jersey NJIB Program [Member] | |||||||
Schedule of Capitalization [Line Items] | |||||||
Maximum borrowing amount | $ 57,000 | $ 14,000 | |||||
Maximum borrowing capacity, construction loan | $ 55,000 | ||||||
Delaware State Revolving Fund [Member] | |||||||
Schedule of Capitalization [Line Items] | |||||||
Maximum borrowing amount | $ 900 |
Capitalization (Schedule of Car
Capitalization (Schedule of Carrying Amount and Fair Value of Bonds) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Carrying Amount [Member] | ||
First Mortgage Bonds | $ 104,449 | $ 95,322 |
Fair Value [Member] | ||
First Mortgage Bonds | $ 106,188 | $ 98,036 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Basic: | ||||
Net Income | $ 8,675 | $ 5,381 | $ 13,169 | $ 9,822 |
Preferred Dividend | (36) | (36) | (72) | (72) |
Earnings Applicable to Common Stock | $ 8,639 | $ 5,345 | $ 13,097 | $ 9,750 |
Basic EPS | $ 0.53 | $ 0.33 | $ 0.80 | $ 0.60 |
Weighted average number of basic shares outstanding | 16,388 | 16,332 | 16,371 | 16,316 |
Diluted: | ||||
Adjusted Earnings Applicable to Common Stock | $ 8,662 | $ 5,368 | $ 13,143 | $ 9,796 |
Diluted EPS | $ 0.52 | $ 0.33 | $ 0.80 | $ 0.59 |
Weighted average number of diluted shares outstanding | 16,544 | 16,488 | 16,527 | 16,472 |
Convertible Preferred Stock $7.00 Series [Member] | ||||
Diluted: | ||||
Preferred Dividend | $ 17 | $ 17 | $ 34 | $ 34 |
Common Shares Attributable to Dilutive Effect of Conversion of Preferred Stock (in shares) | 115 | 115 | 115 | 115 |
Convertible Preferred Stock $8.00 Series [Member] | ||||
Diluted: | ||||
Preferred Dividend | $ 6 | $ 6 | $ 12 | $ 12 |
Common Shares Attributable to Dilutive Effect of Conversion of Preferred Stock (in shares) | 41 | 41 | 41 | 41 |
Business Segment Data (Details)
Business Segment Data (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of Reportable Segments | 2 | 2 | |||
Operating Revenues | $ 34,919 | $ 33,014 | $ 66,096 | $ 63,145 | |
Operating Income | 10,721 | 9,358 | 17,071 | 16,933 | |
Net Income | 8,675 | 5,381 | 13,169 | 9,822 | |
Capital Expenditures | 18,366 | 11,588 | 28,377 | 21,165 | |
Assets | 729,744 | 729,744 | $ 661,140 | ||
Regulated [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating Revenues | 31,168 | 29,278 | 58,374 | 55,771 | |
Operating Income | 9,988 | 8,672 | 15,613 | 15,687 | |
Net Income | 8,151 | 4,972 | 12,134 | 9,111 | |
Capital Expenditures | 18,350 | 11,588 | 28,328 | 21,160 | |
Assets | 732,592 | 732,592 | 661,816 | ||
Non - Regulated [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating Revenues | 3,882 | 3,863 | 7,982 | 7,613 | |
Operating Income | 733 | 686 | 1,458 | 1,246 | |
Net Income | 524 | 409 | 1,035 | 711 | |
Capital Expenditures | 16 | 49 | 5 | ||
Assets | 6,819 | 6,819 | 7,093 | ||
Inter-segment Elimination [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating Revenues | (131) | $ (127) | (260) | $ (239) | |
Assets | $ (9,667) | $ (9,667) | $ (7,769) |
Short-term Borrowings (Details)
Short-term Borrowings (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Lines Of Credit Facility | ||||
Established lines of credit | $ 92,000 | $ 92,000 | ||
Established lines of credit, amount outstanding | $ 39,000 | $ 39,000 | ||
Weighted average interest rate at period end | 3.18% | 3.18% | ||
Average Daily Amounts Outstanding | $ 31,555 | $ 15,582 | $ 29,721 | $ 14,221 |
Weighted Average Interest Rates | 3.10% | 2.08% | 2.94% | 1.95% |
Commitments and Contingent Li32
Commitments and Contingent Liabilities (Narrative) (Details) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2018USD ($)gal | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||
Guaranty liabilty for AWM's performance | $ | $ 100 | $ 100 | |
Budgeted construction cost for construction program, 2018 | $ | 78,000 | ||
Rental expenses under operating leases | $ | $ 100 | $ 100 | |
NJ Water Supply Authority [Member] | |||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||
Purchase commitment expiration date of contract | Nov. 30, 2023 | ||
Water purchase per commitment | gal | 27,000,000 | ||
Regulated Water Authority [Member] | |||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||
Purchase commitment expiration date of contract | Feb. 27, 2021 | ||
Water purchase per commitment | gal | 3,000,000 | ||
City of Dover [Member] | |||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||
Water purchase per commitment | gal | 15,000,000 |
Commitments and Contingent Li33
Commitments and Contingent Liabilities (Schedule of Purchased Water Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Purchased Water | ||||
Treated | $ 703 | $ 795 | $ 1,591 | $ 1,574 |
Untreated | 850 | 573 | 1,780 | 1,232 |
Total Costs | $ 1,553 | $ 1,368 | $ 3,371 | $ 2,806 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Annual benefits paid to retired participants | $ 300 | |||
Other Benefits Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Benfit plan, cash contributions | $ 200 | $ 200 | 400 | $ 200 |
Expected cash contributions | 1,200 | 1,200 | ||
Pension Benefit Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Benfit plan, cash contributions | 800 | $ 1,000 | 1,300 | $ 1,500 |
Expected cash contributions | $ 2,000 | $ 2,000 |
Employee Benefit Plans (Schedul
Employee Benefit Plans (Schedule of Benefits Plans) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Pension Benefit Plan [Member] | |||||
Periodic costs for employee retirement benefit plans | |||||
Service Cost | $ 607 | $ 600 | $ 1,213 | $ 1,200 | |
Interest Cost | 765 | 786 | 1,530 | 1,572 | |
Expected Return on Assets | (1,218) | (1,122) | (2,435) | (2,245) | |
Amortization of Unrecognized Losses | 415 | 391 | 829 | 783 | |
Amortization of Unrecognized Prior Service Cost (Credit) | |||||
Net Periodic Benefit Cost | [1] | 569 | 655 | 1,137 | 1,310 |
Other Benefits Plan [Member] | |||||
Periodic costs for employee retirement benefit plans | |||||
Service Cost | 284 | 272 | 567 | 544 | |
Interest Cost | 474 | 491 | 949 | 982 | |
Expected Return on Assets | (637) | (601) | (1,275) | (1,203) | |
Amortization of Unrecognized Losses | 447 | 445 | 894 | 890 | |
Amortization of Unrecognized Prior Service Cost (Credit) | (402) | (432) | (803) | (864) | |
Net Periodic Benefit Cost | [1] | $ 166 | $ 175 | $ 332 | $ 349 |
[1] | Service cost is included in Operations and Maintenance expense on Consolidated Statements of Income; all other amounts are included in Other Income/Expense, net. |
Revenue Recognition from Cont36
Revenue Recognition from Contracts with Customers (Schedule of Operating Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Regulated Tariff Sales | ||||
Residential | $ 17,892 | $ 17,024 | $ 33,515 | $ 32,183 |
Commercial | 3,771 | 3,493 | 6,880 | 6,447 |
Industrial | 2,689 | 2,395 | 5,001 | 4,578 |
Fire Protection | 3,073 | 2,911 | 5,961 | 5,824 |
Wholesale | 3,680 | 3,397 | 6,892 | 6,631 |
Non-Regulated Contract Operations | 3,781 | 3,762 | 7,780 | 7,411 |
Total Revenue from Contracts with Customers | 34,886 | 32,982 | 66,029 | 63,074 |
Other Regulated Revenues | 63 | 48 | 125 | 98 |
Other Non-Regulated Revenues | 101 | 111 | 202 | 212 |
Inter-segment Elimination | (131) | (127) | (260) | (239) |
Total Revenue | $ 34,919 | $ 33,014 | $ 66,096 | $ 63,145 |
Income Taxes (Details)
Income Taxes (Details) - Tax Year 2014 [Member] - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2015 | |
Operating Loss Carryforwards [Line Items] | ||
Net reduction in taxes due to the federal government | $ 17,600 | |
Income tax refund receivable | 3,700 | $ 2,300 |
Interest expense | $ 400 |