Middlesex Water (MSEX) 10-Q 28 Oct 22 2022 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2022	Oct. 28, 2022
Cover [Abstract]
Document Type	10-Q
Entity Central Index Key	0000066004
Document Period End Date	Sep. 30, 2022
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	0-422
Entity Registrant Name	MIDDLESEX WATER COMPANY
Entity Incorporation State Country Code	NJ
Entity Tax Identification Number	22-1114430
Entity Address, Address Line One	485C Route One South
Entity Address, City or Town	Iselin
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	08830
City Area Code	732
Local Phone Number	634-1500
Title of 12(b) Security	Common Stock
Trading Symbol	MSEX
Name of Exchange on which Security is Registered	NASDAQ
Entity Reporting Status Current	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		17,638,595

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Statement [Abstract]
Operating Revenues	$ 47,732	$ 39,874	$ 123,611	$ 109,117
Operating Expenses:
Operations and Maintenance	20,312	18,950	59,007	55,265
Depreciation	5,814	5,504	17,107	15,523
Other Taxes	5,031	3,996	13,543	11,456
Total Operating Expenses	31,157	28,450	89,657	82,244
Gain on Sale of Subsidiary			5,232
Operating Income	16,575	11,424	39,186	26,873
Other Income (Expense):
Allowance for Funds Used During Construction	627	344	1,553	2,376
Other Income (Expense), net	1,412	744	4,185	2,308
Total Other Income, net	2,039	1,088	5,738	4,684
Interest Charges	2,355	2,101	6,574	5,910
Income before Income Taxes	16,259	10,411	38,350	25,647
Income Taxes	1,968	(1,065)	3,092	(3,658)
Net Income	14,291	11,476	35,258	29,305
Preferred Stock Dividend Requirements	30	30	90	90
Earnings Applicable to Common Stock	$ 14,261	$ 11,446	$ 35,168	$ 29,215
Earnings per share of Common Stock:
Basic	$ 0.81	$ 0.65	$ 2	$ 1.67
Diluted	$ 0.8	$ 0.65	$ 1.99	$ 1.66
Average Number of Common Shares Outstanding:
Basic	17,628	17,491	17,583	17,485
Diluted	17,743	17,606	17,698	17,600

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
UTILITY PLANT:
Water Production	$ 246,426	$ 247,286
Transmission and Distribution	709,748	697,200
General	96,433	95,658
Construction Work in Progress	59,152	24,947
TOTAL	1,111,759	1,065,091
Less Accumulated Depreciation	211,902	199,723
UTILITY PLANT - NET	899,857	865,368
CURRENT ASSETS:
Cash and Cash Equivalents	2,908	3,533
Accounts Receivable, net of allowance for uncollectible accounts of $2,593 and $2,574, respectively	18,081	15,311
Unbilled Revenues	11,022	7,273
Materials and Supplies (at average cost)	5,792	5,358
Prepayments	3,669	2,880
TOTAL CURRENT ASSETS	41,472	34,355
OTHER ASSETS:
Operating Lease Right of Use Asset	3,992	4,503
Preliminary Survey and Investigation Charges	3,244	3,540
Regulatory Assets	104,903	100,738
Non-utility Assets - Net	11,096	11,428
Other	105	83
TOTAL OTHER ASSETS	123,340	120,292
TOTAL ASSETS	1,064,669	1,020,015
CAPITALIZATION:
Common Stock, No Par Value	232,423	221,919
Retained Earnings	165,652	145,807
TOTAL COMMON EQUITY	398,075	367,726
Preferred Stock	2,084	2,084
Long-term Debt	301,238	306,520
TOTAL CAPITALIZATION	701,397	676,330
CURRENT LIABILITIES:
Current Portion of Long-term Debt	7,567	6,731
Notes Payable	40,500	13,000
Accounts Payable	25,873	21,125
Accrued Taxes	12,585	8,621
Accrued Interest	2,174	1,986
Unearned Revenues and Advanced Service Fees	1,477	1,330
Other	2,791	3,826
TOTAL CURRENT LIABILITIES	92,967	56,619
OTHER LIABILITIES:
Customer Advances for Construction	22,425	23,529
Lease Obligations - Operating	3,871	4,367
Accumulated Deferred Income Taxes	76,979	69,500
Employee Benefit Plans	8,062	11,290
Regulatory Liabilities	46,693	49,431
Other	1,004	1,086
TOTAL OTHER LIABILITIES	159,034	159,203
CONTRIBUTIONS IN AID OF CONSTRUCTION	111,271	127,863
TOTAL CAPITALIZATION AND LIABILITIES	$ 1,064,669	$ 1,020,015

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Allowance for uncollectible accounts	$ 2,593	$ 2,574

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$ 35,258	$ 29,305
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Depreciation and Amortization	20,135	17,253
Provision for Deferred Income Taxes	(4,312)	(11,801)
Equity Portion of Allowance for Funds Used During Construction (AFUDC)	(914)	(1,356)
Cash Surrender Value of Life Insurance	474	(97)
Stock Compensation Expense	1,270	1,033
Gain on Sale of Subsidiary	(5,232)
Changes in Assets and Liabilities:
Accounts Receivable	(2,770)	(2,459)
Unbilled Revenues	(3,749)	(2,009)
Materials and Supplies	(434)	(44)
Prepayments	(789)	(1,141)
Accounts Payable	4,748	(13,103)
Accrued Taxes	3,964	2,550
Accrued Interest	188	(943)
Employee Benefit Plans	(1,973)	1,187
Unearned Revenue & Advanced Service Fees	146	139
Other Assets and Liabilities	(1,769)	124
NET CASH PROVIDED BY OPERATING ACTIVITIES	44,241	18,638
CASH FLOWS FROM INVESTING ACTIVITIES:
Utility Plant Expenditures, Including AFUDC of $639 in 2022 and $1,020 in 2021	(65,939)	(61,245)
Proceeds from Sale of Subsidiary	3,122
NET CASH USED IN INVESTING ACTIVITIES	(62,817)	(61,245)
CASH FLOWS FROM FINANCING ACTIVITIES:
Redemption of Long-term Debt	(6,397)	(28,655)
Proceeds from Issuance of Long-term Debt	2,663	21,595
Net Short-term Bank Borrowings	27,500	48,000
Deferred Debt Issuance Expense	(612)	(35)
Common Stock Issuance Expense	(25)
Proceeds from Issuance of Common Stock	10,064	885
Payment of Common Dividends	(15,298)	(14,294)
Payment of Preferred Dividends	(90)	(90)
Construction Advances and Contributions-Net	146	10,079
NET CASH PROVIDED BY FINANCING ACTIVITIES	17,951	37,485
NET CHANGES IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	(625)	(5,122)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF PERIOD	3,533	10,404
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD	2,908	5,282
SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITY:
Utility Plant received as Construction Advances and Contributions	5,705	4,279
Non-Cash Consideration for Sale of Subsidiary	2,100
Cash Paid During the Year for:
Interest	2,125	7,091
Interest Capitalized	639	1,020
Income Taxes	$ 6,793	$ 3,235

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Statement of Cash Flows [Abstract]
Allowance for funds used during construction	$ 639	$ 1,020

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CAPITAL STOCK AND LONG-TERM DEBT (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Common Stock, No Par Value	$ 232,423	$ 221,919
Retained Earnings	165,652	145,807
TOTAL COMMON EQUITY	398,075	367,726
TOTAL PREFERRED STOCK	2,084	2,084
SUBTOTAL LONG-TERM DEBT	307,412	311,146
Add: Premium on Issuance of Long-term Debt	6,973	7,271
Less: Unamortized Debt Expense	(5,580)	(5,166)
Less: Current Portion of Long-term Debt	(7,567)	(6,731)
TOTAL LONG-TERM DEBT	301,238	306,520
First Mortgage Bonds [Member]
SUBTOTAL LONG-TERM DEBT	252,269	203,892
Amortizing Secured Notes [Member]
SUBTOTAL LONG-TERM DEBT	45,592	47,613
State Revolving Trust Notes [Member]
SUBTOTAL LONG-TERM DEBT	9,551	7,510
Construction Loans [Member]
SUBTOTAL LONG-TERM DEBT		52,131
Convertible Preferred Stock $7.00 Series [Member]
TOTAL PREFERRED STOCK	1,005	1,005
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

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENTS OF CAPITAL STOCK AND LONG-TERM DEBT (Unaudited) (Parenthetical) - shares shares in Thousands	9 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Common Stock, Shares Authorized	40,000	40,000
Common Stock, Shares Outstanding	17,638	17,522
Preferred Stock, Shares Authorized	120	120
Preferred Stock, Shares Outstanding	20	20
First Mortgage Bonds due 2021-2059 [Member]
Long term debt maturity period	2023-2059
First Mortgage Bonds due 2021-2059 [Member] | Minimum [Member]
Interest rate	0%
First Mortgage Bonds due 2021-2059 [Member] | Maximum [Member]
Interest rate	5.50%
Amortizing Secured Notes due 2021-2040 [Member]
Long term debt maturity period	2028-2046
Amortizing Secured Notes due 2021-2040 [Member] | Minimum [Member]
Interest rate	3.94%
Amortizing Secured Notes due 2021-2040 [Member] | Maximum [Member]
Interest rate	7.05%
State Revolving Trust Notes due 2022-2038 [Member]
Long term debt maturity period	2022-2041
State Revolving Trust Notes due 2022-2038 [Member] | Minimum [Member]
Interest rate	2%
State Revolving Trust Notes due 2022-2038 [Member] | Maximum [Member]
Interest rate	4.22%
Construction Loans [Member]
Interest rate	0%
Convertible Preferred Stock $7.00 Series [Member]
Preferred Stock, Shares Outstanding	10	10
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

CONDENSED CONSOLIDATED STATEM_6

CONDENSED CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Common Stock [Member]	Retained Earnings [Member]	Total
Balance at Dec. 31, 2020	$ 217,451	$ 128,757	$ 346,208
Balance, shares at Dec. 31, 2020	17,473
Net Income		29,305	29,305
Middlesex Water Company Invesment Plan	$ 885		885
Middlesex Water Company Invesment Plan, shares	11
Restricted Stock Award - Net - Employees	$ 81		81
Restricted Stock Award - Net - Employees, shares	6
Restricted Stock Award - Board of Directors	$ 245		245
Restricted Stock Award - Board of Directors, shares	3
Cash Dividends on Common Stock		(14,294)	(14,294)
Cash Dividends on Preferred Stock		(90)	(90)
Balance at Sep. 30, 2021	$ 218,662	143,678	362,340
Balance, shares at Sep. 30, 2021	17,493
Balance at Jun. 30, 2021	$ 218,100	136,998	355,098
Balance, shares at Jun. 30, 2021	17,490
Net Income		11,476	11,476
Middlesex Water Company Invesment Plan	$ 289		289
Middlesex Water Company Invesment Plan, shares	3
Restricted Stock Award - Net - Employees	$ 273		273
Restricted Stock Award - Net - Employees, shares
Cash Dividends on Common Stock		(4,766)	(4,766)
Cash Dividends on Preferred Stock		(30)	(30)
Balance at Sep. 30, 2021	$ 218,662	143,678	362,340
Balance, shares at Sep. 30, 2021	17,493
Balance at Dec. 31, 2021	$ 221,919	145,807	367,726
Balance, shares at Dec. 31, 2021	17,522
Net Income		35,258	35,258
Middlesex Water Company Invesment Plan	$ 10,064		10,064
Middlesex Water Company Invesment Plan, shares	110
Restricted Stock Award - Net - Employees	$ 160		160
Restricted Stock Award - Net - Employees, shares	3
Restricted Stock Award - Board of Directors	$ 280		280
Restricted Stock Award - Board of Directors, shares	3
Cash Dividends on Common Stock		(15,298)	(15,298)
Cash Dividends on Preferred Stock		(90)	(90)
Common Stock Expenses		(25)	(25)
Balance at Sep. 30, 2022	$ 232,423	165,652	398,075
Balance, shares at Sep. 30, 2022	17,638
Balance at Jun. 30, 2022	$ 229,037	156,530	385,567
Balance, shares at Jun. 30, 2022	17,604
Net Income		14,291	14,291
Middlesex Water Company Invesment Plan	$ 3,025		3,025
Middlesex Water Company Invesment Plan, shares	34
Restricted Stock Award - Net - Employees	$ 361		361
Restricted Stock Award - Net - Employees, shares
Cash Dividends on Common Stock		(5,114)	(5,114)
Cash Dividends on Preferred Stock		(30)	(30)
Common Stock Expenses		(25)	(25)
Balance at Sep. 30, 2022	$ 232,423	$ 165,652	$ 398,075
Balance, shares at Sep. 30, 2022	17,638

CONDENSED CONSOLIDATED STATEM_7

CONDENSED CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Statement of Stockholders' Equity [Abstract]
Cash dividends paid, per share	$ 0.2900	$ 0.2725	$ 0.8700	$ 0.8175

Basis of Presentation and Recen

Basis of Presentation and Recent Developments	9 Months Ended
	Sep. 30, 2022
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), Pinelands Water Company (Pinelands Water) and Pinelands Wastewater Company (Pinelands Wastewater) (collectively, Pinelands), Utility Service Affiliates, Inc. (USA), and Utility Service Affiliates (Perth Amboy) Inc. (USA-PA). 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 are reported on a consolidated basis. All significant intercompany accounts and transactions have been eliminated. The consolidated notes within the 2021 Annual Report on Form 10-K (the 2021 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 September 30, 2022, the results of operations for the three month and nine month periods ended September 30, 2022 and 2021 and cash flows for the nine month periods ended September 30, 2022 and 2021. Information included in the Condensed Consolidated Balance Sheet as of December 31, 2021, has been derived from the Company’s December 31, 2021 audited financial statements included in the 2021 Form 10-K. Recent Developments Regulatory Notice of Non-Compliance – In September 2021, the New Jersey Department of Environmental Protection (NJDEP) issued a Notice of Non-Compliance (Notice) to Middlesex based on self-reporting by Middlesex that the level of Perfluorooctanoic Acid (PFOA) in water treated at its Park Avenue Wellfield Treatment Plant in South Plainfield, New Jersey exceeded a recently promulgated NJDEP standard effective in 2021. The NJDEP standard for PFOA was developed based on a Health-based Maximum Contaminant Level of 14 parts per trillion. Neither the NJDEP nor Middlesex has characterized this exceedance as an acute health threat. However, Middlesex was required to notify its affected customers and complied in November 2021 as required by the regulation. The Notice further required the Company to take any action necessary to comply with the new standard by September 7, 2022. The Company began construction of an enhanced treatment process at the Park Avenue Wellfield Treatment Plant to comply with the new standard prior to the regulation being enacted. Since completion is not expected until mid-2023, in December 2021, the Company implemented an interim solution to meet the Notice requirements. The Park Avenue Wellfield Treatment Plant was taken off-line and alternate sources of supply have been obtained. Simultaneously, the Company accelerated a portion of the enhanced treatment project to allow a restart of the Park Avenue Wellfield Treatment Plant ahead of historical higher water demand periods during the summer months. In June 2022, construction of the accelerated portion was completed and the Park Avenue Wellfield Treatment Plant is effectively treating ground water to ensure compliance with all state and federal drinking water standards. Working in coordination with the NJDEP, the Company successfully restarted the Park Avenue Wellfield Treatment Plant and introduced wellfield water into the distribution system. Water being delivered to customers is in compliance with all United States Environmental Protection Agency and NJDEP drinking water standards, including the newly established water quality standard for PFOA. On September 13, 2022, the Company entered into an Administrative Consent Order (ACO) with the NJDEP, which requires the Company to take whatever actions are necessary to achieve and maintain compliance with the Safe Drinking Water Act, N.J.S.A, 58:12A-1 et seq., and the Safe Drinking Water Act regulations N.J.A.C. 7:10-1 et seq., including applicable public notifications. The Company’s agreement to enter into an ACO avoided any further Notice regarding the fact that the permanent treatment solution was not in service by September 7, 2022. The Company must issue the public notifications by February 22, 2023 and continue to complete and distribute public information as prescribed in the ACO. In addition, in accordance with the ACO: • On or before June 30, 2023, the Company shall complete the permanent construction of the Park Avenue Wellfield treatment upgrades, place the treatment upgrades into operation, and all water at the Park Avenue Wellfield Treatment Plant shall be treated to comply with the PFOA NJDEP standards. • The Company must perform required sample testing and reporting for PFOA subsequent to completion of the Park Avenue Wellfield treatment upgrades. • The Company shall submit to the NJDEP quarterly progress reports detailing the Company’s compliance with the ACO. The Company’s failure to comply with the compliance schedule and/or progress reporting requirements of the ACO could lead to penalties up to $ 500 In November 2021, the Company was served with two PFOA-related class action lawsuits seeking restitution for medical, water replacement and other claimed related costs. These lawsuits are in the early stages of the legal process and their ultimate resolution cannot be predicted at this time. The Company’s insurance provider has acknowledged coverage of potential liability which may result from these lawsuits. In May 2022, the Company impleaded 3M Company (3M) as a third-party defendant in one of these class action lawsuits. The Company has taken this action in addition to a separate lawsuit the Company initiated against 3M seeking to hold 3M accountable for introduction of perfluoroalkyl substances, which include PFOA, into the Company’s water supply at its Park Avenue Wellfield facility. In January 2022, the Company filed a petition with the New Jersey Board of Public Utilities (NJBPU) seeking to establish a regulatory asset and deferred accounting treatment until its next base rate setting proceeding for all costs associated with the interim solution to comply with the Notice. The Company is currently awaiting a decision on this matter from the NJBPU. Sale of Subsidiary – In January 2022, Middlesex closed on the Delaware Public Service Commission (DEPSC) approved sale of 100% of the common stock of its subsidiary Tidewater Environmental Services, Inc. to Artesian Wastewater Management, Inc. for $ 6.4 million in cash and other consideration, resulting in a $ 5.2 million pre-tax gain. The Company will continue to own and operate its non-regulated water and wastewater contract operations business in Delaware. Borough of Avalon, New Jersey Contract Renewal – In August 2022, USA, Middlesex’s non-regulated subsidiary, was awarded a competitively-bid 10-year operations and maintenance contract with the Borough of Avalon, New Jersey (Avalon) under which USA will continue to operate Avalon’s water utility, sewer utility and storm water system. USA is also required to manage capital projects funded by Avalon. USA previously operated Avalon’s water utility, sewer utility and storm water system under a 10-year contract that expired in August 2022. The new contract commenced September 1, 2022. Coronavirus (COVID-19) Pandemic – On October 13, 2022, the United States Secretary of Health and Human Services renewed the determination that a nationwide health emergency exists as a result of the COVID-19 Pandemic. While the Company’s operations and capital construction program have not been materially disrupted to date from the pandemic, the COVID-19 impact on economic conditions nationally continues to be uncertain and could affect the Company’s results of operations, financial condition and liquidity in the future. In New Jersey, the declared COVID-19 State of Emergency ended in March 2022. In Delaware, the declared COVID-19 State of Emergency Order ended in July 2021. 6 Index The NJBPU and the DEPSC have approved the tracking of COVID-19 related incremental costs for potential recovery in customer rates in future rate proceedings. Neither jurisdiction has established a timetable or definitive formal procedures for seeking cost recovery. The Company has increased its allowance for doubtful accounts for expected increases in accounts receivable write-offs due to the financial impact of COVID-19 on customers. Since the ultimate rate treatment to be determined by the NJBPU and the DEPSC regarding incremental costs related to COVID-19 is not definitively known at this time, the Company has not deferred any such costs. We will continue to monitor the effects of COVID-19 and evaluate its impact on the Company’s results of operations, financial condition and liquidity. Recent Accounting Guidance There is no 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	9 Months Ended
	Sep. 30, 2022
Regulated Operations [Abstract]
Rate and Regulatory Matters	Note 2 – Rate and Regulatory Matters Middlesex - In December 2021, Middlesex’s petition to the NJBPU seeking permission to increase its base water rates was concluded, based on a negotiated settlement, resulting in an expected increase in annual operating revenues of $ 27.7 million. The approved tariff rates were designed to recover increased operating costs as well as a return on invested capital of $ 513.5 million, based on an authorized return on common equity of 9.6 %. The increase is being implemented in two phases with $ 20.7 million of the increase effective January 1, 2022 and the remaining $ 7.0 million effective January 1, 2023. As part of the negotiated settlement, the Purchased Water Adjustment Clause (PWAC), which is a rate mechanism that allows for recovery of increased purchased water costs between base rate case filings, was reset to zero. In September 2022, the NJBPU approved Middlesex's Emergency Relief Motion to reset its PWAC tariff rate to recover additional costs of $ 2.7 Tidewater - On August 31, 2022, DEPSC issued an Order requiring Tidewater to reduce its base rates charged to general metered and private fire customers by 6 %, effective for service rendered on and after September 1, 2022. In June 2022, the Delaware Division of the Public Advocate filed a petition with the DEPSC requesting that Tidewater’s rates be reduced based on the claim that Tidewater had been earning above its authorized rate of return. The rate reduction is expected to reduce annual revenues by approximately $ 2.2 million. In June 2022, Tidewater notified the DEPSC of its intention to likely file for a base water rate increase in the first quarter of 2023 based on projected increases in operational expenses and capital construction expenditures. Pinelands - In September 2022, Pinelands Water and Pinelands Wastewater filed separate petitions with the NJBPU seeking permission to increase base rates by approximately $ 0.6 million and $ 0.4 million per year, respectively. These requests were necessitated by capital infrastructure investments both companies have made, or have committed to make, and increased operations and maintenance costs. We cannot predict whether the NJBPU will ultimately approve, deny, or reduce the amount of the requests. A decision by the NJBPU in either matter is not expected before the first quarter of 2023. Twin Lakes Utilities, Inc. (Twin Lakes) - Twin Lakes provides water services to approximately 115 residential customers in Shohola, Pennsylvania. Pursuant to the Pennsylvania Public Utility Code, Twin Lakes filed a petition requesting the Pennsylvania Public Utilities Commission (PAPUC) to order the acquisition of Twin Lakes by a capable public utility. The PAPUC assigned an Administrative Law Judge (ALJ) to adjudicate the matter and submit a recommended decision (Recommended Decision) to the PAPUC. As part of this legal proceeding the PAPUC also issued an Order in January 2021 appointing a large Pennsylvania based investor-owned water utility as the receiver (the Receiver Utility) of the Twin Lakes system until the petition is fully adjudicated by the PAPUC. In November 2021, the PAPUC issued an Order affirming the ALJ’s Recommended Decision, ordering the Receiver Utility to acquire the Twin Lakes water system and for Middlesex to submit $ 1.7 million into an escrow account within 30 days. Twin Lakes immediately filed a Petition For Review (PFR) with the Commonwealth Court of Pennsylvania (the Commonwealth Court) seeking reversal and vacation of the escrow requirement on the grounds that it violates the Pennsylvania Public Utility Code as well as the United States Constitution. In addition, Twin Lakes filed an emergency petition for stay of the PAPUC Order pending the Commonwealth Court’s review of the merits arguments contained in Twin Lakes’ PFR. In December 2021, the Commonwealth Court granted Twin Lakes’ emergency petition, pending its review. In August 2022, the Commonwealth Court issued an opinion upholding PAPUC’s November 2021 Order in its entirety. In September 2022, Twin Lakes filed a Petition For Allowance of Appeal to the Supreme Court of Pennsylvania seeking reversal of the Commonwealth Court’s decision to uphold the escrow requirement on the grounds that the Commonwealth Court erred in failing to address Twin Lakes’ constitutional claims. The timing of the final decision by the Supreme Court of Pennsylvania and the final adjudication of this matter cannot be predicted at this time. The financial results, total assets and financial obligations of Twin Lakes are not material to Middlesex.

Capitalization

Capitalization	9 Months Ended
	Sep. 30, 2022
CAPITALIZATION:
Capitalization	Note 3 – Capitalization Common Stock - During the nine months ended September 30, 2022 and 2021, there were 110,614 common shares (approximately $ 10.1 million) and 10,641 common shares (approximately $ 0.9 million) respectively, issued under the Middlesex Water Company Investment Plan (the Investment Plan). The 3 % purchase discount offering period on the Company’s common stock through the Investment Plan expired on August 1, 2022. Long-term Debt - In May 2022, Middlesex repaid its two outstanding New Jersey Infrastructure Bank (NJIB) construction loans by issuing First Mortgage Bonds (FMBs) to the NJIB under two loan agreements. The total amount of FMBs issued is $ 52.2 million and designated as Series 2022A ($ 16.2 million) and Series 2022B ($ 36.0 million). The interest rate on the Series 2022A bond is zero and the interest rate on the Series 2022B bond ranges between 2.7 % and 3.0 %. The final maturity date for both FMBs is August 1, 2056 , with scheduled debt service payments over the life of these loans. 7 Index In November 2021, Tidewater received approval from the DEPSC to borrow up to $ 5.0 5.0 2.0 2.6 Fair Value of Financial Instruments - The following methods and assumptions were used by the Company in estimating its fair value disclosure for financial instruments for which it is practicable to estimate that value. The carrying amounts reflected in the condensed consolidated balance sheets for cash and cash equivalents, trade receivables, accounts payable and notes payable approximate their respective fair values due to the short-term maturities of these instruments. The fair value of FMBs and SRF Bonds (collectively, the Bonds) issued by Middlesex is based on quoted market prices for similar publicly traded issues. Under the fair value hierarchy, the fair value of cash and cash equivalents is classified as a Level 1 measurement and the fair value of notes payable and the Bonds in the table below are classified as Level 2 measurements. The carrying amount and fair value of the Bonds were as follows: (Thousands of Dollars) September 30, 2022 December 31, 2021 Carrying Fair Carrying Fair Amount Value Amount Value FMBs $ 147,269 $ 139,285 $ 98,828 $ 107,781 It was not practicable to estimate their fair value on our outstanding long-term debt for which there is no quoted market price and there is not an active trading market. For details, including carrying value, interest rates and due dates on these series of long-term debt, please refer to those series noted as “Amortizing Secured Note”, “State Revolving Trust Note”, “State Revolving Trust Bond”, “Construction Loans” on the Condensed Consolidated Statements of Capital Stock and Long-Term Debt). The carrying amount of these instruments was $ 160.1 212.3 8 Index amounts of $ 22.4 23.5 Substantially all of the utility plant of the Company is subject to the lien of its mortgage, which includes debt service and capital ratio covenants. The Company is in compliance with all of its mortgage covenants and restrictions.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2022
Earnings per share of Common Stock:
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 the Convertible Preferred Stock $7.00 Series. (In Thousands Except per Share Amounts) Three Months Ended September 30, 2022 2021 Basic: Income Shares Income Shares Net Income $ 14,291 17,628 $ 11,476 17,491 Preferred Dividend ( 30 ) ( 30 ) Earnings Applicable to Common Stock $ 14,261 17,628 $ 11,446 17,491 Basic EPS $ 0.81 $ 0.65 Diluted: Earnings Applicable to Common Stock $ 14,261 17,628 $ 11,446 17,491 $7.00 Series Preferred Dividend 17 115 17 115 Adjusted Earnings Applicable to Common Stock $ 14,278 17,743 $ 11,463 17,606 Diluted EPS $ 0.80 $ 0.65 (In Thousands Except per Share Amounts) Nine Months Ended September 30, 2022 2021 Basic: Income Shares Income Shares Net Income $ 35,258 17,583 $ 29,305 17,485 Preferred Dividend ( 90 ) ( 90 ) Earnings Applicable to Common Stock $ 35,168 17,583 $ 29,215 17,485 Basic EPS $ 2.00 $ 1.67 Diluted: Earnings Applicable to Common Stock $ 35,168 17,583 $ 29,215 17,485 $7.00 Series Preferred Dividend 51 115 50 115 Adjusted Earnings Applicable to Common Stock $ 35,219 17,698 $ 29,265 17,600 Diluted EPS $ 1.99 $ 1.66

Business Segment Data

Business Segment Data	9 Months Ended
	Sep. 30, 2022
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 and Delaware. 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 and Delaware 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 9 Index 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 Nine Months Ended September 30, September 30, Operations by Segments: 2022 2021 2022 2021 Revenues: Regulated $ 44,861 $ 37,396 $ 115,222 $ 100,426 Non – Regulated 3,431 2,995 9,316 9,657 Inter-segment Elimination ( 560 ) ( 517 ) ( 927 ) ( 966 ) Consolidated Revenues $ 47,732 $ 39,874 $ 123,611 $ 109,117 Operating Income: Regulated $ 15,750 $ 10,654 $ 36,793 $ 24,082 Non – Regulated 825 770 2,393 2,791 Consolidated Operating Income $ 16,575 $ 11,424 $ 39,186 $ 26,873 Net Income: Regulated $ 13,683 $ 10,924 $ 33,496 $ 27,271 Non – Regulated 608 552 1,762 2,034 Consolidated Net Income $ 14,291 $ 11,476 $ 35,258 $ 29,305 Capital Expenditures: Regulated $ 26,588 $ 14,743 $ 65,722 $ 61,097 Non – Regulated 8 2 217 148 Total Capital Expenditures $ 26,596 $ 14,745 $ 65,939 $ 61,245 As of As of September 30, 2022 December 31, 2021 Assets: Regulated $ 1,066,755 $ 1,022,116 Non – Regulated 6,963 7,811 Inter-segment Elimination ( 9,049 ) ( 9,912 ) Consolidated Assets $ 1,064,669 $ 1,020,015

Short-term Borrowings

Short-term Borrowings	9 Months Ended
	Sep. 30, 2022
Short-Term Debt [Abstract]
Short-term Borrowings	Note 6 – Short-term Borrowings The Company maintains lines of credit aggregating $ 140.0 (Millions) As of September 30, 2022 Renewal Date Outstanding Available Maximum Credit Type Bank of America $ 7.0 $ 53.0 $ 60.0 Uncommitted January 26, 2023 PNC Bank 30.5 37.5 68.0 Committed January 31, 2024 CoBank 3.0 9.0 12.0 Committed November 30, 2023 $ 40.5 $ 99.5 $ 140.0 10 Index The interest rate for borrowings under the Bank of America and PNC Bank lines of credit is set using the Bloomberg Short-Term Bank Yield Index and adding a credit spread, which varies by financial institution. The interest rate for borrowings under the CoBank line of credit are set weekly using CoBank’s internal cost of funds index that is similar to the Standard Overnight Financing Rate and adding a credit spread. There is no requirement for a compensating balance under any of the established lines of credit. The weighted average interest rate on the outstanding borrowings at September 30, 2022 under these credit lines is 3.81 The weighted average daily amounts of borrowings outstanding under the Company’s lines of credit and the weighted average interest rates on those amounts were as follows: Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Average Daily Amounts Outstanding $ 33,750 $ 40,543 $ 22,648 $ 22,841 Weighted Average Interest Rates 3.34 % 1.13 % 2.48 % 1.14 % The maturity dates for the $ 40.5 December 2022

Commitments and Contingent Liab

Commitments and Contingent Liabilities	9 Months Ended
	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingent Liabilities	Note 7 – Commitments and Contingent Liabilities Water Supply - Middlesex has an agreement with the New Jersey Water Supply Authority (NJWSA) for the purchase of untreated water through November 30, 2023 , which provides for an average purchase of 27 million gallons a day (mgd). Pricing is set annually by the NJWSA through a public rate making process. The agreement has provisions for additional pricing in the event Middlesex overdrafts or exceeds certain monthly and annual thresholds. Middlesex has an agreement with a non-affiliated regulated water utility for the purchase of treated water. This agreement, which expires February 27, 2026 3 Tidewater contracts with the City of Dover, Delaware to purchase 15 Purchased water costs are shown below: (In Thousands) Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Treated $ 936 $ 889 $ 2,467 $ 2,641 Untreated 835 841 2,384 2,483 Total Costs $ 1,771 $ 1,730 $ 4,851 $ 5,124 Guarantees - As part of an agreement with the County of Monmouth, New Jersey (County), prior to 2020 Middlesex had served as guarantor of the performance of an unaffiliated wastewater treatment contractor and partner (Contractor), to operate a County-owned leachate pretreatment facility. In November 2019, Middlesex was notified that the County terminated its Agreement with the Contractor. The Contractor had initiated legal action against the County that, in part, contests the County’s exercise of this termination. The County filed a counter-claim against the Contractor’s parent company and has brought Middlesex into the suit as a third-party defendant. Our ongoing monitoring of this litigation has led to the conclusion that we do not anticipate the ultimate outcome will have a material impact, if any, on the Company’s results of operations or financial condition. 11 Index Leases - The Company determines if an arrangement is a lease at inception. Generally, a lease agreement exists if the Company determines that the arrangement gives the Company control over the use of an identified asset and obtains substantially all of the benefits from the identified asset. The Company has entered into an operating lease of office space for administrative purposes, expiring in 2030. The Company has not entered into any finance leases. The exercise of a lease renewal option for the Company’s administrative offices is solely at the discretion of the Company. The right-of-use (ROU) asset recorded represents the Company’s right to use an underlying asset for the lease term and lease liability represents the Company’s obligation to make lease payments arising from the lease. Lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The Company’s operating lease does not provide an implicit discount rate and as such the Company used an estimated incremental borrowing rate ( 4.03 Given the impacts of accounting for regulated operations, and the resulting recognition of expense at the amounts recovered in customer rates, expenditures for operating leases are consistent with lease expense and were $ 0.2 0.6 Information related to operating lease ROU assets and lease liabilities is as follows: (In Millions) As of September 30, 2022 December 31, 2021 ROU Asset at Lease Inception $ 7.3 $ 7.3 Accumulated Amortization ( 3.3 ) ( 2.8 ) Current ROU Asset $ 4.0 $ 4.5 The Company’s future minimum operating lease commitments as of September 30, 2022 are as follows: (In Millions) 2022 $ 0.2 2023 0.8 2024 0.8 2025 0.8 2026 0.9 Thereafter 2.7 Total Lease Payments $ 6.2 Imputed Interest ( 1.6 ) Present Value of Lease Payments 4.6 Less Current Portion* ( 0.7 ) Non-Current Lease Liability $ 3.9 * Included in Other Current Liabilities 12 Index Construction - The Company has forecasted to spend approximately $ 85 million for its construction program in 2022. The Company has entered into several construction contracts that, in the aggregate, obligate expenditure of an estimated $ 26 million in the future. The actual amount and timing of capital expenditures is dependent on the need for replacement of existing infrastructure, customer growth, residential new home construction and sales, project scheduling, supply chain issues and continued refinement of project scope and costs and could be impacted if the effects of new variants of COVID-19 pandemic arise and continue for an extended period of time (for further discussion of the impact of COVID-19 on the Company, see Note 1 - Coronavirus (COVID-19) Pandemic ). There is no assurance that projected customer growth and residential new home construction and sales will occur. PFOA Matter – In November 2021, the Company was served with two PFOA-related class action lawsuits seeking restitution for medical, water replacement and other related costs and economic damages. These lawsuits are in the early stages of the legal process and their ultimate resolution cannot be predicted at this time. The Company’s insurance provider has acknowledged coverage of potential liability resulting from these lawsuits (for further discussion of this matter, see Note 1 - Regulatory Notice of Non-Compliance ). Contingencies - Based on our operations in the heavily-regulated water and wastewater industries, the Company is routinely involved in disputes, claims, lawsuits and other regulatory and legal matters, including responsibility for fines and penalties relative to regulatory compliance. At this time, Management does not believe the final resolution of any such matters, whether asserted or unasserted, will have a material adverse effect on the Company’s financial position, results of operations or cash flows. In addition, the Company maintains business insurance coverage that may mitigate the effect of any current or future loss contingencies. Change in Control Agreements - The Company has Change in Control Agreements with certain of its officers that provide compensation and benefits in the event of termination of employment in connection with a change in control of the Company.

Employee Benefit Plans

Employee Benefit Plans	9 Months Ended
	Sep. 30, 2022
Retirement Benefits [Abstract]
Employee Benefit Plans	Note 8 – Employee Benefit Plans Pension Benefits - The Company’s defined benefit pension plan (Pension Plan) covers all active employees hired prior to April 1, 2007. Employees hired after March 31, 2007 are not eligible to participate in this plan, but do participate in a defined contribution plan that provides for a potential annual contribution in an amount at the discretion of the Company., based upon a percentage of the participants’ annual paid compensation. For each of the three- and nine-month periods ended September 30, 2022 and 2021, the Company did not make cash contributions to the Pension Plan. The Company expects to make cash contributions of approximately $ 3.4 million over the remainder of the current year. The Company also maintains an unfunded supplemental retirement benefit plan for certain active and retired Company officers and currently pays $ 0.4 million in annual benefits to the retired participants. Other Postretirement Benefits - – The Company’s retirement plan other than pensions (Other Benefits Plan) covers substantially all currently eligible retired employees. Employees hired after March 31, 2007 are not eligible to participate in this plan. Coverage includes healthcare and life insurance. For each of the three- month and nine-month periods ended September 30, 2022 and 2021, the Company did not make cash contributions to its Other Benefits Plan. The Company does not expect to make any cash contributions to its Other Benefits Plan over the remainder of 2022. The following tables set forth information relating to the Company’s periodic costs (benefit) for its employee retirement benefit plans: (In Thousands) Pension Benefits Other Benefits Three Months Ended September 30, 2022 2021 2022 2021 Service Cost $ 591 $ 674 $ 200 $ 229 Interest Cost 761 677 331 309 Expected Return on Assets ( 1,760 ) ( 1,556 ) ( 887 ) ( 786 ) Amortization of Unrecognized Losses 418 717 - 132 Net Periodic Benefit Cost (Benefit)* $ 10 $ 512 $ ( 356 ) $ ( 116 ) 13 Index (In Thousands) Pension Benefits Other Benefits Nine Months Ended September 30, 2022 2021 2022 2021 Service Cost $ 1,772 $ 2,022 $ 599 $ 687 Interest Cost 2,282 2,030 994 927 Expected Return on Assets ( 5,281 ) ( 4,669 ) ( 2,660 ) ( 2,357 ) Amortization of Unrecognized Losses 1,255 2,151 - 396 Net Periodic Benefit Cost (Benefit)* $ 28 $ 1,534 $ ( 1,067 ) $ ( 347 ) * Service cost is included in Operations and Maintenance expense on the Condensed Consolidated Statements of Income; all other amounts are included in Other Income/Expense, net.

Revenue Recognition from Contra

Revenue Recognition from Contracts with Customers	9 Months Ended
	Sep. 30, 2022
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 results from tariff-based sales from the provision of water and wastewater services to residential, industrial, commercial, fire-protection and wholesale customers. Residential customers are billed quarterly while most industrial, commercial, fire-protection and wholesale customers are billed monthly. Payments by customers are due between 15 and 30 days after the invoice date. Revenue is recognized as the water and wastewater services are delivered to customers as well as from accrual of 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 the relevant service territories. Unearned Revenues and Advance Service Fees include fixed service charge billings in advance to Tidewater customers 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. Fees 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 at various times through June 2032 and contain remaining performance obligations for which the Company expects to recognize revenue in the future. These contracts also contain termination provisions. Substantially 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. 14 Index The Company’s operating revenues are comprised of the following: (In Thousands) Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Regulated Tariff Sales Residential $ 25,108 $ 22,517 $ 65,767 $ 59,711 Commercial 7,167 4,903 16,796 12,587 Industrial 3,208 2,538 8,504 6,858 Fire Protection 3,248 3,171 9,541 9,436 Wholesale 5,644 3,822 13,905 11,079 Non-Regulated Contract Operations 3,321 2,888 8,986 9,336 Total Revenue from Contracts with Customers $ 47,696 $ 39,839 $ 123,499 $ 109,007 Other Regulated Revenues 486 445 709 755 Other Non-Regulated Revenues 110 107 330 321 Inter-segment Elimination ( 560 ) ( 517 ) ( 927 ) ( 966 ) Total Revenue $ 47,732 $ 39,874 $ 123,611 $ 109,117

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Note 10 – Income Taxes The Company’s federal income tax returns for the tax years 2014 through 2017 were selected for examination by the Internal Revenue Service (IRS), which included the tax year in which the Company had adopted the final IRS tangible property regulations and changed its accounting method for the tax treatment of expenditures that qualified as deductible repairs. As a result of the audit examination, the Company agreed to certain modifications of its accounting method for expenditures that qualify as deductible repairs. In 2019, the Company paid $ 2.7 0.1 0.5 0.2

Capitalization (Tables)

Capitalization (Tables)	9 Months Ended
	Sep. 30, 2022
CAPITALIZATION:
Schedule of carrying amount and fair value of bonds	(Thousands of Dollars) September 30, 2022 December 31, 2021 Carrying Fair Carrying Fair Amount Value Amount Value FMBs $ 147,269 $ 139,285 $ 98,828 $ 107,781

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2022
Earnings per share of Common Stock:
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 the Convertible Preferred Stock $7.00 Series. (In Thousands Except per Share Amounts) Three Months Ended September 30, 2022 2021 Basic: Income Shares Income Shares Net Income $ 14,291 17,628 $ 11,476 17,491 Preferred Dividend ( 30 ) ( 30 ) Earnings Applicable to Common Stock $ 14,261 17,628 $ 11,446 17,491 Basic EPS $ 0.81 $ 0.65 Diluted: Earnings Applicable to Common Stock $ 14,261 17,628 $ 11,446 17,491 $7.00 Series Preferred Dividend 17 115 17 115 Adjusted Earnings Applicable to Common Stock $ 14,278 17,743 $ 11,463 17,606 Diluted EPS $ 0.80 $ 0.65 (In Thousands Except per Share Amounts) Nine Months Ended September 30, 2022 2021 Basic: Income Shares Income Shares Net Income $ 35,258 17,583 $ 29,305 17,485 Preferred Dividend ( 90 ) ( 90 ) Earnings Applicable to Common Stock $ 35,168 17,583 $ 29,215 17,485 Basic EPS $ 2.00 $ 1.67 Diluted: Earnings Applicable to Common Stock $ 35,168 17,583 $ 29,215 17,485 $7.00 Series Preferred Dividend 51 115 50 115 Adjusted Earnings Applicable to Common Stock $ 35,219 17,698 $ 29,265 17,600 Diluted EPS $ 1.99 $ 1.66

Business Segment Data (Tables)

Business Segment Data (Tables)	9 Months Ended
	Sep. 30, 2022
Segment Reporting [Abstract]
Schedule of segment reporting information, by segment	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 and Delaware. 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 and Delaware 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 9 Index 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 Nine Months Ended September 30, September 30, Operations by Segments: 2022 2021 2022 2021 Revenues: Regulated $ 44,861 $ 37,396 $ 115,222 $ 100,426 Non – Regulated 3,431 2,995 9,316 9,657 Inter-segment Elimination ( 560 ) ( 517 ) ( 927 ) ( 966 ) Consolidated Revenues $ 47,732 $ 39,874 $ 123,611 $ 109,117 Operating Income: Regulated $ 15,750 $ 10,654 $ 36,793 $ 24,082 Non – Regulated 825 770 2,393 2,791 Consolidated Operating Income $ 16,575 $ 11,424 $ 39,186 $ 26,873 Net Income: Regulated $ 13,683 $ 10,924 $ 33,496 $ 27,271 Non – Regulated 608 552 1,762 2,034 Consolidated Net Income $ 14,291 $ 11,476 $ 35,258 $ 29,305 Capital Expenditures: Regulated $ 26,588 $ 14,743 $ 65,722 $ 61,097 Non – Regulated 8 2 217 148 Total Capital Expenditures $ 26,596 $ 14,745 $ 65,939 $ 61,245 As of As of September 30, 2022 December 31, 2021 Assets: Regulated $ 1,066,755 $ 1,022,116 Non – Regulated 6,963 7,811 Inter-segment Elimination ( 9,049 ) ( 9,912 ) Consolidated Assets $ 1,064,669 $ 1,020,015

Short-Term Borrowings (Tables)

Short-Term Borrowings (Tables)	9 Months Ended
	Sep. 30, 2022
Short-Term Debt [Abstract]
Schedule of Line of Credit	The Company maintains lines of credit aggregating $ 140.0 (Millions) As of September 30, 2022 Renewal Date Outstanding Available Maximum Credit Type Bank of America $ 7.0 $ 53.0 $ 60.0 Uncommitted January 26, 2023 PNC Bank 30.5 37.5 68.0 Committed January 31, 2024 CoBank 3.0 9.0 12.0 Committed November 30, 2023 $ 40.5 $ 99.5 $ 140.0
Schedule of Weighted Average Daily Amounts of Borrowings Outstanding	The weighted average daily amounts of borrowings outstanding under the Company’s lines of credit and the weighted average interest rates on those amounts were as follows: Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Average Daily Amounts Outstanding $ 33,750 $ 40,543 $ 22,648 $ 22,841 Weighted Average Interest Rates 3.34 % 1.13 % 2.48 % 1.14 %

Commitments and Contingent Li_2

Commitments and Contingent Liabilities (Tables)	9 Months Ended
	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Schedule of purchased water cost	Purchased water costs are shown below: (In Thousands) Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Treated $ 936 $ 889 $ 2,467 $ 2,641 Untreated 835 841 2,384 2,483 Total Costs $ 1,771 $ 1,730 $ 4,851 $ 5,124
Schedule of operating lease ROU assets and lease liabilities	Information related to operating lease ROU assets and lease liabilities is as follows: (In Millions) As of September 30, 2022 December 31, 2021 ROU Asset at Lease Inception $ 7.3 $ 7.3 Accumulated Amortization ( 3.3 ) ( 2.8 ) Current ROU Asset $ 4.0 $ 4.5
Schedule of future minimum operating lease	The Company’s future minimum operating lease commitments as of September 30, 2022 are as follows: (In Millions) 2022 $ 0.2 2023 0.8 2024 0.8 2025 0.8 2026 0.9 Thereafter 2.7 Total Lease Payments $ 6.2 Imputed Interest ( 1.6 ) Present Value of Lease Payments 4.6 Less Current Portion* ( 0.7 ) Non-Current Lease Liability $ 3.9 * Included in Other Current Liabilities

Employee Benefit Plans (Tables)

Employee Benefit Plans (Tables)	9 Months Ended
	Sep. 30, 2022
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 (benefit) for its employee retirement benefit plans: (In Thousands) Pension Benefits Other Benefits Three Months Ended September 30, 2022 2021 2022 2021 Service Cost $ 591 $ 674 $ 200 $ 229 Interest Cost 761 677 331 309 Expected Return on Assets ( 1,760 ) ( 1,556 ) ( 887 ) ( 786 ) Amortization of Unrecognized Losses 418 717 - 132 Net Periodic Benefit Cost (Benefit)* $ 10 $ 512 $ ( 356 ) $ ( 116 ) 13 Index (In Thousands) Pension Benefits Other Benefits Nine Months Ended September 30, 2022 2021 2022 2021 Service Cost $ 1,772 $ 2,022 $ 599 $ 687 Interest Cost 2,282 2,030 994 927 Expected Return on Assets ( 5,281 ) ( 4,669 ) ( 2,660 ) ( 2,357 ) Amortization of Unrecognized Losses 1,255 2,151 - 396 Net Periodic Benefit Cost (Benefit)* $ 28 $ 1,534 $ ( 1,067 ) $ ( 347 ) * Service cost is included in Operations and Maintenance expense on the Condensed Consolidated Statements of Income; all other amounts are included in Other Income/Expense, net.

Revenue Recognition from Cont_2

Revenue Recognition from Contracts with Customers (Tables)	9 Months Ended
	Sep. 30, 2022
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 September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Regulated Tariff Sales Residential $ 25,108 $ 22,517 $ 65,767 $ 59,711 Commercial 7,167 4,903 16,796 12,587 Industrial 3,208 2,538 8,504 6,858 Fire Protection 3,248 3,171 9,541 9,436 Wholesale 5,644 3,822 13,905 11,079 Non-Regulated Contract Operations 3,321 2,888 8,986 9,336 Total Revenue from Contracts with Customers $ 47,696 $ 39,839 $ 123,499 $ 109,007 Other Regulated Revenues 486 445 709 755 Other Non-Regulated Revenues 110 107 330 321 Inter-segment Elimination ( 560 ) ( 517 ) ( 927 ) ( 966 ) Total Revenue $ 47,732 $ 39,874 $ 123,611 $ 109,117

Basis of Presentation and Rec_2

Basis of Presentation and Recent Developments (Details) $ in Thousands	1 Months Ended
	Jan. 31, 2022 USD ($)
Basis of Presentation and Recent Developments [Abstract]
Penalties cost	$ 500
Cash and other consideration	6,400
Pre-tax gain	$ 5,200

Rate and Regulatory Matters (De

Rate and Regulatory Matters (Details) - USD ($) $ in Millions			1 Months Ended	9 Months Ended	12 Months Ended
	Jan. 02, 2023	Jan. 02, 2022	Aug. 31, 2022	Sep. 30, 2022	Dec. 31, 2021
Pinelands [Member]
Regulatory Liability [Line Items]
Approved increase in annual operating revenues				$ 0.4
New Jersey Board of Public Utilities [Member] | Twin Lakes [Member]
Regulatory Liability [Line Items]
Escrow account				1.7
New Jersey Board of Public Utilities [Member] | Middlesex Water [Member]
Regulatory Liability [Line Items]
Approved increase in annual operating revenues		$ 20.7			$ 27.7
Base rate amount					$ 513.5
Return on equity					9.60%
New Jersey Board of Public Utilities [Member] | Middlesex Water [Member] | Scenario Forecast [Member]
Regulatory Liability [Line Items]
Approved increase in annual operating revenues	$ 7
New Jersey Board of Public Utilities [Member] | Middlesex Member [Member]
Regulatory Liability [Line Items]
Approved increase in annual operating revenues				2.7
New Jersey Board of Public Utilities [Member] | Pinelands [Member]
Regulatory Liability [Line Items]
Approved increase in annual operating revenues				$ 0.6
Delaware Public Service Commission Member | Tidewater [Member]
Regulatory Liability [Line Items]
Return on equity			6%
Rate reduction is expected to reduce annual revenue			$ 2.2

Capitalization (Narrative) (Det

Capitalization (Narrative) (Details) - USD ($) $ in Millions	1 Months Ended	9 Months Ended
	May 31, 2022	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021	Nov. 30, 2021
Schedule of Capitalization [Line Items]
Other long term debt		$ 160.1		$ 212.3
Customer advances for construction		$ 22.4		23.5
Common Stock [Member]
Schedule of Capitalization [Line Items]
Issuance of common stock		110,614	10,641
Proceeds amount		$ 10.1	$ 0.9
Delaware SRF Program [Member]
Schedule of Capitalization [Line Items]
Maximum borrowing capacity, construction loan					$ 5
First Mortgage Bonds [Member]
Schedule of Capitalization [Line Items]
Other long term debt	$ 52.2
Maturity date	Aug. 01, 2056
First Mortgage Bonds [Member] | Series 2022A [Member]
Schedule of Capitalization [Line Items]
Other long term debt	$ 16.2
Interest rate	2.70%
First Mortgage Bonds [Member] | Series 2022B [Member]
Schedule of Capitalization [Line Items]
Other long term debt	$ 36
Interest rate	3%
Tidewater [Member]
Schedule of Capitalization [Line Items]
Maximum borrowing capacity, construction loan		$ 2.6		$ 5
Interest rate				2%
Dividend Reinvestment and Common Stock Purchase Plan [Member]
Schedule of Capitalization [Line Items]
Percentage of discount purchase of common stock in investment plan		3%

Capitalization (Schedule of Car

Capitalization (Schedule of Carrying Amount and Fair Value of Bonds) (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Carrying Amount [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
FMBs	$ 147,269	$ 98,828
Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
FMBs	$ 139,285	$ 107,781

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Basic:
Net Income	$ 14,291	$ 11,476	$ 35,258	$ 29,305
Preferred Dividend	(30)	(30)	(90)	(90)
Earnings Applicable to Common Stock	$ 14,261	$ 11,446	$ 35,168	$ 29,215
Basic EPS	$ 0.81	$ 0.65	$ 2	$ 1.67
Weighted average number of basic shares outstanding	17,628	17,491	17,583	17,485
Diluted:
Adjusted Earnings Applicable to Common Stock	$ 14,278	$ 11,463	$ 35,219	$ 29,265
Diluted EPS	$ 0.8	$ 0.65	$ 1.99	$ 1.66
Weighted average number of diluted shares outstanding	17,743	17,606	17,698	17,600
Convertible Preferred Stock $7.00 Series [Member]
Diluted:
Preferred Dividend	$ 17	$ 17	$ 51	$ 50
Common Shares Attributable to Dilutive Effect of Conversion of Preferred Stock (in shares)	115	115	115	115

Business Segment Data (Details)

Business Segment Data (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Segment Reporting Information [Line Items]
Revenues	$ 47,732	$ 39,874	$ 123,611	$ 109,117
Operating Income	16,575	11,424	39,186	26,873
Net Income	14,291	11,476	35,258	29,305
Capital Expenditures	26,596	14,745	65,939	61,245
Assets	1,064,669		1,064,669		$ 1,020,015
Inter-segment Elimination [Member]
Segment Reporting Information [Line Items]
Revenues	(560)	(517)	(927)	(966)
Assets	9,049		9,049		(9,912)
Regulated [Member]
Segment Reporting Information [Line Items]
Revenues	44,861	37,396	115,222	100,426
Operating Income	15,750	10,654	36,793	24,082
Net Income	13,683	10,924	33,496	27,271
Capital Expenditures	26,588	14,743	65,722	61,097
Assets	1,066,755		1,066,755		1,022,116
Non - Regulated [Member]
Segment Reporting Information [Line Items]
Revenues	3,431	2,995	9,316	9,657
Operating Income	825	770	2,393	2,791
Net Income	608	552	1,762	2,034
Capital Expenditures	8	$ 2	217	$ 148
Assets	$ 6,963		$ 6,963		$ 7,811

Short-Term Borrowings (Narrativ

Short-Term Borrowings (Narrative) (Details) $ in Millions	9 Months Ended
	Sep. 30, 2022 USD ($)
Line of Credit Facility [Line Items]
Lines of credit	$ 40.5
Lines of credit aggregate	$ 140
Maturity date	Aug. 30, 2021
Short-term Borrowings [Member]
Line of Credit Facility [Line Items]
Weighted average interest rate on outstanding borrowings	3.81%

Short-Term Borrowings (Schedule

Short-Term Borrowings (Schedule of Line of Credit) (Details) $ in Millions	9 Months Ended
	Sep. 30, 2022 USD ($)
Line of Credit Facility [Line Items]
Outstanding	$ 40.5
Available	99.5
Maximum	140
Bank of America [Member]
Line of Credit Facility [Line Items]
Outstanding	7
Available	53
Maximum	$ 60
Credit Type	Uncommitted
Renewal Date	Jan. 26, 2023
PNC Bank [Member]
Line of Credit Facility [Line Items]
Outstanding	$ 30.5
Available	37.5
Maximum	$ 68
Credit Type	Committed
Renewal Date	Jan. 31, 2024
CoBank [Member]
Line of Credit Facility [Line Items]
Outstanding	$ 3
Available	9
Maximum	$ 12
Credit Type	Committed
Renewal Date	Nov. 30, 2023

Short Term Borrowings (Schedule

Short Term Borrowings (Schedule of Weighted Average Daily Amounts of Borrowings Outstanding) (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Short-Term Debt [Abstract]
Average Daily Amounts Outstanding	$ 33,750	$ 40,543	$ 22,648	$ 22,841
Weighted Average Interest Rates	3.34%	1.13%	2.48%	1.14%

Commitments and Contingent Li_3

Commitments and Contingent Liabilities (Narrative) (Details) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) gal	Sep. 30, 2021 USD ($)
Purchase Commitment, Excluding Long-Term Commitment [Line Items]
Construction program | $			$ 85
Estimated obligation expenditure | $			26
Rental expenses under operating leases | $	$ 0.2	$ 0.2	$ 0.6	$ 0.6
Estimated incremental borrowing rate	(4.03%)		(4.03%)
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
Regulated Water Authority [Member]
Purchase Commitment, Excluding Long-Term Commitment [Line Items]
Purchase commitment expiration date of contract			Feb. 27, 2026
Water purchase per commitment | gal			3
City of Dover [Member]
Purchase Commitment, Excluding Long-Term Commitment [Line Items]
Water purchase per commitment | gal			15

Commitments and Contingent Li_4

Commitments and Contingent Liabilities (Schedule of Purchased Water Costs) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Purchased Water
Treated	$ 936	$ 889	$ 2,467	$ 2,641
Untreated	835	841	2,384	2,483
Total Costs	$ 1,771	$ 1,730	$ 4,851	$ 5,124

Commitments and Contingent Li_5

Commitments and Contingent Liabilities (Schedule of Operating Lease ROU Assets and Lease Liabilities) (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
ROU Asset at Lease Inception	$ 7.3	$ 7.3
Accumulated Amortization	(3.3)	(2.8)
Current ROU Asset	$ 4	$ 4.5

Commitments and Contingent Li_6

Commitments and Contingent Liabilities (Schedule of Future Minimum Operating Lease) (Details) $ in Millions	Sep. 30, 2022 USD ($)
Minimum Lease Payments, Sale Leaseback Transactions, Fiscal Year Maturity [Abstract]
2022	$ 0.2
2023	0.8
2024	0.8
2025	0.8
2026	0.9
Thereafter	2.7
Total Lease Payments	6.2
Imputed Interest	(1.6)
Present Value of Lease Payments	4.6
Less Current Portion	(0.7)	[1]
Non-Current Lease Liability	$ 3.9
[1] Included in Other Current Liabilities

Employee Benefit Plans (Narrati

Employee Benefit Plans (Narrative) (Details) $ in Millions	9 Months Ended
	Sep. 30, 2022 USD ($)
Defined Benefit Plan Disclosure [Line Items]
Annual benefits paid to retired participants	$ 0.4
Pension Benefit Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Expected cash contributions	$ 3.4

Employee Benefit Plans (Schedul

Employee Benefit Plans (Schedule of Benefits Plans) (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Pension Benefit Plan [Member]
Periodic costs for employee retirement benefit plans
Service Cost		$ 591	$ 674	$ 1,772	$ 2,022
Interest Cost		761	677	2,282	2,030
Expected Return on Assets		(1,760)	(1,556)	(5,281)	(4,669)
Amortization of Unrecognized Losses		418	717	1,255	2,151
Net Periodic Benefit Cost (Benefit)	[1]	10	512	28	1,534
Other Benefits Plan [Member]
Periodic costs for employee retirement benefit plans
Service Cost		200	229	599	687
Interest Cost		331	309	994	927
Expected Return on Assets		(887)	(786)	(2,660)	(2,357)
Amortization of Unrecognized Losses			132		396
Net Periodic Benefit Cost (Benefit)	[1]	$ (356)	$ (116)	$ (1,067)	$ (347)
[1] Service cost is included in Operations and Maintenance expense on the Condensed Consolidated Statements of Income; all other amounts are included in Other Income/Expense, net.

Revenue Recognition from Cont_3

Revenue Recognition from Contracts with Customers (Schedule of Operating Revenue) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Regulated Tariff Sales
Residential	$ 25,108	$ 22,517	$ 65,767	$ 59,711
Commercial	7,167	4,903	16,796	12,587
Industrial	3,208	2,538	8,504	6,858
Fire Protection	3,248	3,171	9,541	9,436
Wholesale	5,644	3,822	13,905	11,079
Non-Regulated Contract Operations	3,321	2,888	8,986	9,336
Total Revenue from Contracts with Customers	47,696	39,839	123,499	109,007
Other Regulated Revenues	486	445	709	755
Other Non-Regulated Revenues	110	107	330	321
Inter-segment Elimination	(560)	(517)	(927)	(966)
Total Revenue	$ 47,732	$ 39,874	$ 123,611	$ 109,117

Income Taxes (Details)

Income Taxes (Details) $ in Millions	9 Months Ended
	Sep. 30, 2022 USD ($)
Income Tax Disclosure [Abstract]
Income tax paid	$ 2.7
Interest paid	0.1
Reduce in income tax reserve provision	0.5
Interest expense liability	$ 0.2