Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 09, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Entity Information [Line Items] | ||
Entity Registrant Name | MIDDLESEX WATER COMPANY | |
Entity Central Index Key | 0000066004 | |
Entity File Number | 0-422 | |
Entity Tax Identification Number | 22-1114430 | |
Entity Incorporation, State or Country Code | NJ | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Contact Personnel [Line Items] | ||
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 | |
Entity Phone Fax Numbers [Line Items] | ||
City Area Code | (732) | |
Local Phone Number | 634-1500 | |
Entity Listings [Line Items] | ||
Title of 12(b) Security | Common Stock | |
Trading Symbol | MSEX | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 17,806,696 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
Operating Revenues | $ 46,715 | $ 47,732 | $ 127,672 | $ 123,611 |
Operating Expenses: | ||||
Operations and Maintenance | 22,581 | 20,312 | 64,042 | 59,007 |
Depreciation | 6,376 | 5,814 | 18,546 | 17,107 |
Other Taxes | 4,936 | 5,031 | 14,104 | 13,543 |
Total Operating Expenses | 33,893 | 31,157 | 96,692 | 89,657 |
Gain on Sale of Subsidiary | 5,232 | |||
Operating Income | 12,822 | 16,575 | 30,980 | 39,186 |
Other Income (Expense): | ||||
Allowance for Funds Used During Construction | 496 | 627 | 2,162 | 1,553 |
Other Income (Expense), net | 936 | 1,412 | 3,124 | 4,185 |
Total Other Income, net | 1,432 | 2,039 | 5,286 | 5,738 |
Interest Charges | 3,518 | 2,355 | 9,364 | 6,574 |
Income before Income Taxes | 10,736 | 16,259 | 26,902 | 38,350 |
Income Taxes | 746 | 1,968 | 1,143 | 3,092 |
Net Income | 9,990 | 14,291 | 25,759 | 35,258 |
Preferred Stock Dividend Requirements | 30 | 30 | 90 | 90 |
Earnings Applicable to Common Stock | $ 9,960 | $ 14,261 | $ 25,669 | $ 35,168 |
Earnings per share of Common Stock: | ||||
Basic (in Dollars per share) | $ 0.56 | $ 0.81 | $ 1.45 | $ 2 |
Diluted (in Dollars per share) | $ 0.56 | $ 0.8 | $ 1.44 | $ 1.99 |
Common Shares Outstanding : | ||||
Basic (in Shares) | 17,758,000 | 17,628,000 | 17,708,000 | 17,583,000 |
Diluted (in Shares) | 17,873,000 | 17,743,000 | 17,823,000 | 17,698,000 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Water Production | $ 299,187 | $ 249,153 |
Transmission and Distribution | 784,194 | 735,138 |
General | 99,933 | 97,581 |
Construction Work in Progress | 32,308 | 53,570 |
TOTAL | 1,215,622 | 1,135,442 |
Less Accumulated Depreciation | 230,124 | 214,891 |
UTILITY PLANT - NET | 985,498 | 920,551 |
Cash and Cash Equivalents | 2,970 | 3,828 |
Accounts Receivable, net of allowance for uncollectible accounts of $2,055 and $2,326, respectively | 18,990 | 16,018 |
Litigation Settlement Receivable | 93,163 | |
Unbilled Revenues | 11,316 | 8,659 |
Materials and Supplies (at average cost) | 6,405 | 6,177 |
Prepayments | 2,918 | 2,624 |
TOTAL CURRENT ASSETS | 135,762 | 37,306 |
Operating Lease Right of Use Asset | 3,338 | 3,826 |
Preliminary Survey and Investigation Charges | 2,372 | 2,806 |
Regulatory Assets | 94,485 | 90,046 |
Non-utility Assets - Net | 11,383 | 11,207 |
Employee Benefit Plans | 10,527 | 8,689 |
Other | 51 | 19 |
TOTAL OTHER ASSETS | 122,156 | 116,593 |
TOTAL ASSETS | 1,243,416 | 1,074,450 |
CAPITALIZATION AND LIABILITIES | ||
Common Stock, No Par Value | 243,250 | 233,054 |
Retained Earnings | 176,333 | 167,274 |
TOTAL COMMON EQUITY | 419,583 | 400,328 |
Preferred Stock | 2,084 | 2,084 |
Long-term Debt | 354,276 | 290,280 |
TOTAL CAPITALIZATION | 775,943 | 692,692 |
Current Portion of Long-term Debt | 7,444 | 17,462 |
Notes Payable | 42,250 | 55,500 |
Accounts Payable | 28,604 | 24,847 |
Litigation Settlement Payable | 27,949 | |
Accrued Taxes | 8,143 | 12,162 |
Accrued Interest | 2,546 | 2,535 |
Unearned Revenues and Advanced Service Fees | 1,459 | 1,365 |
Other | 2,908 | 3,988 |
TOTAL CURRENT LIABILITIES | 121,303 | 117,859 |
COMMITMENTS AND CONTINGENT LIABILITIES (Note 7) | ||
Customer Advances for Construction | 21,464 | 21,382 |
Lease Obligations | 3,221 | 3,706 |
Accumulated Deferred Income Taxes | 87,763 | 77,783 |
Regulatory Liabilities | 112,815 | 46,734 |
Other | 681 | 919 |
TOTAL OTHER LIABILITIES | 225,944 | 150,524 |
CONTRIBUTIONS IN AID OF CONSTRUCTION | 120,226 | 113,375 |
TOTAL CAPITALIZATION AND LIABILITIES | $ 1,243,416 | $ 1,074,450 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Accounts Receivable, Net of Allowance for Uncollectible Accounts | $ 2,055 | $ 2,326 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net Income | $ 25,759 | $ 35,258 |
Net Cash Provided by Operating Activities: | ||
Depreciation and Amortization | 22,106 | 20,135 |
Provision for Deferred Income Taxes and Investment Tax Credits | (4,685) | (4,312) |
Equity Portion of Allowance for Funds Used During Construction (AFUDC) | (1,300) | (914) |
Cash Surrender Value of Life Insurance | (144) | 474 |
Stock Compensation Expense | 1,790 | 1,270 |
Gain on Sale of Subsidiary | (5,232) | |
Changes in Assets and Liabilities: | ||
Accounts Receivable | (2,972) | (2,770) |
Unbilled Revenues | (2,657) | (3,749) |
Materials and Supplies | (228) | (434) |
Prepayments | (294) | (789) |
Accounts Payable | 3,757 | 4,748 |
Accrued Taxes | (4,019) | 3,964 |
Accrued Interest | 11 | 188 |
Employee Benefit Plans | (1,487) | (1,973) |
Unearned Revenue and Advanced Service Fees | 94 | 146 |
Other Assets and Liabilities | 4,255 | (1,769) |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 39,986 | 44,241 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Utility Plant Expenditures, Including AFUDC of $862 in 2023 and $639 in 2022 | (73,074) | (65,939) |
Proceeds from Sale of Subsiary | 3,122 | |
NET CASH USED IN INVESTING ACTIVITIES | (73,074) | (62,817) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Redemption of Long-term Debt | (16,460) | (6,397) |
Proceeds from Issuance of Long-term Debt | 70,640 | 2,663 |
Net Short-term Bank Borrowings | (13,250) | 27,500 |
Deferred Debt Issuance Expense | (123) | (612) |
Common Stock Issuance Expense | (10) | (25) |
Payment of Grantee Witholding Taxes in Exchange for Restricted Stock | (619) | |
Proceeds from Issuance of Common Stock | 9,025 | 10,064 |
Payment of Common Dividends | (16,600) | (15,298) |
Payment of Preferred Dividends | (90) | (90) |
Construction Advances and Contributions-Net | (283) | 146 |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 32,230 | 17,951 |
NET CHANGES IN CASH AND CASH EQUIVALENTS | (858) | (625) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 3,828 | 3,533 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 2,970 | 2,908 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITY: | ||
Utility Plant received as Construction Advances and Contributions | 5,954 | 5,705 |
Non-Cash Consideration for Sale of Subsidiary | 2,100 | |
Litigation Settlement Receivable | 93,163 | |
Litigation Settlement Payable | 27,949 | |
Cash Paid During the Year for: | ||
Interest | 9,589 | 6,793 |
Interest Capitalized | 862 | 639 |
Income Taxes | $ 2,716 | $ 2,125 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Parentheticals) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Cash Flows [Abstract] | ||
Utility Plant Expenditures, Including AFUDC | $ 862 | $ 639 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CAPITAL STOCK AND LONG-TERM DEBT (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Common Stock, No Par Value: | ||
Shares Authorized - 40,000 | ||
Shares Outstanding - 2023 - 17,729; 2022 - 17,642 | 243,250 | 233,054 |
Retained Earnings | 176,333 | 167,274 |
TOTAL COMMON EQUITY | 419,583 | 400,328 |
Cumulative Preferred Stock, No Par Value: | ||
Shares Authorized - 120 | ||
Shares Outstanding - 20 | ||
Convertible: | ||
TOTAL PREFERRED STOCK | 2,084 | 2,084 |
Long-term Debt: | ||
SUBTOTAL LONG-TERM DEBT | 360,567 | 306,387 |
Add: Premium on Issuance of Long-term Debt | 6,577 | 6,873 |
Less: Unamortized Debt Expense | (5,424) | (5,518) |
Less: Current Portion of Long-term Debt | (7,444) | (17,462) |
TOTAL LONG-TERM DEBT | 354,276 | 290,280 |
First Mortgage Bonds | ||
Long-term Debt: | ||
SUBTOTAL LONG-TERM DEBT | 278,374 | 252,269 |
Amortizing Secured Notes | ||
Long-term Debt: | ||
SUBTOTAL LONG-TERM DEBT | 70,396 | 44,918 |
State Revolving Trust Notes | ||
Long-term Debt: | ||
SUBTOTAL LONG-TERM DEBT | 11,797 | 9,200 |
Convertible Preferred Stock $7.00 Series | ||
Convertible: | ||
TOTAL PREFERRED STOCK | 1,005 | 1,005 |
Nonredeemable Preferred Stock $7.00 Series | ||
Convertible: | ||
TOTAL PREFERRED STOCK | 79 | 79 |
Nonredeemable Preferred Stock $4.75 Series | ||
Convertible: | ||
TOTAL PREFERRED STOCK | $ 1,000 | $ 1,000 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CAPITAL STOCK AND LONG-TERM DEBT (Unaudited) (Parentheticals) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Common stock, shares authorized | 40,000 | 40,000 |
Shares Outstanding | 17,771 | 17,642 |
Preferred stock, shares authorized (in Dollars) | $ 120 | $ 120 |
Preferred stock, shares outstanding | 20 | 20 |
Convertible Preferred Stock $7.00 Series | ||
Preferred stock, shares outstanding | 10 | 10 |
Nonredeemable Preferred Stock $7.00 Series | ||
Preferred stock, shares outstanding | 1 | 1 |
Nonredeemable Preferred Stock $4.75 Series | ||
Preferred stock, shares outstanding | 10 | 10 |
First Mortgage Bonds due 2023-2059 | ||
Long term debt maturity period | 2023-2059 | |
First Mortgage Bonds due 2023-2059 | Minimum | ||
Interest rate | 0% | |
First Mortgage Bonds due 2023-2059 | Maximum | ||
Interest rate | 5.50% | |
Amortizing Secured Notes due 2028-2046 | ||
Long term debt maturity period | 2028-2046 | |
Amortizing Secured Notes due 2028-2046 | Minimum | ||
Interest rate | 3.94% | |
Amortizing Secured Notes due 2028-2046 | Maximum | ||
Interest rate | 7.05% | |
State Revolving Trust Notes due 2025-2044 | ||
Long term debt maturity period | 2025-2038 | |
State Revolving Trust Notes due 2025-2044 | Minimum | ||
Interest rate | 2% | |
State Revolving Trust Notes due 2025-2044 | Maximum | ||
Interest rate | 4.03% |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Common Stock | Retained Earnings | Total |
Balance at Dec. 31, 2021 | $ 221,919 | $ 145,807 | $ 367,726 |
Balance (in 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 (in Shares) | 110 | ||
Restricted Stock Award - Net - Employees | $ 160 | 160 | |
Restricted Stock Award - Net - Employees (in Shares) | 3 | ||
Stock Award - Board of Directors | $ 280 | 280 | |
Stock Award - Board of Directors (in 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 (in Shares) at Sep. 30, 2022 | 17,638 | ||
Balance at Jun. 30, 2022 | $ 229,037 | 156,530 | 385,567 |
Balance (in 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 (in Shares) | 34 | ||
Restricted Stock Award - Net - Employees | $ 361 | 361 | |
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 (in Shares) at Sep. 30, 2022 | 17,638 | ||
Balance at Dec. 31, 2022 | $ 233,054 | 167,274 | 400,328 |
Balance (in Shares) at Dec. 31, 2022 | 17,642 | ||
Net Income | 25,759 | 25,759 | |
Middlesex Water Company Invesment Plan | $ 9,025 | 9,025 | |
Middlesex Water Company Invesment Plan (in Shares) | 117 | ||
Restricted Stock Award - Net - Employees | $ 811 | 811 | |
Restricted Stock Award - Net - Employees (in Shares) | 7 | ||
Stock Award - Board of Directors | $ 360 | 360 | |
Stock Award - Board of Directors (in Shares) | 5 | ||
Cash Dividends on Common Stock | (16,600) | (16,600) | |
Cash Dividends on Preferred Stock | (90) | (90) | |
Common Stock Expenses | (10) | (10) | |
Balance at Sep. 30, 2023 | $ 243,250 | 176,333 | 419,583 |
Balance (in Shares) at Sep. 30, 2023 | 17,771 | ||
Balance at Jun. 30, 2023 | $ 239,545 | 171,932 | 411,477 |
Balance (in Shares) at Jun. 30, 2023 | 17,729 | ||
Net Income | 9,990 | 9,990 | |
Middlesex Water Company Invesment Plan | $ 3,281 | 3,281 | |
Middlesex Water Company Invesment Plan (in Shares) | 42 | ||
Restricted Stock Award - Net - Employees | $ 424 | 424 | |
Cash Dividends on Common Stock | (5,549) | (5,549) | |
Cash Dividends on Preferred Stock | (30) | (30) | |
Common Stock Expenses | (10) | (10) | |
Balance at Sep. 30, 2023 | $ 243,250 | $ 176,333 | $ 419,583 |
Balance (in Shares) at Sep. 30, 2023 | 17,771 |
CONDENSED CONSOLIDATED STATEM_7
CONDENSED CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDERS' EQUITY (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Common Stock | ||||
Cash dividends, per share | $ 0.3125 | $ 0.29 | $ 0.9375 | $ 0.87 |
Basis of Presentation and Recen
Basis of Presentation and Recent Developments | 9 Months Ended |
Sep. 30, 2023 | |
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 2022 Annual Report on Form 10-K/A (the 2022 Form 10-K/A) 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, 2023, the results of operations for the three and nine month periods ended September 30, 2023 and 2022 and cash flows for the nine month periods ended September 30, 2023 and 2022. Information included in the Condensed Consolidated Balance Sheet as of December 31, 2022, has been derived from the Company’s December 31, 2022 audited financial statements included in the 2022 Form 10-K/A. Recent Developments Middlesex President and Chief Executive Officer Retirement Announcement - Regulatory Notice of Non-Compliance – The Notice further required the Company to take any action necessary to comply with the new standard by September 7, 2022. Consequently, in November 2021, the Company implemented an interim solution to meet the Notice requirements, which included putting the Park Avenue Wellfield Treatment Plant in off-line status and obtaining alternate sources of supply. In June 2022, the Company accelerated the in-service date for a portion of the enhanced treatment project based on engineering analysis that allowed a restart of the Park Avenue Wellfield Treatment Plant to ensure continued compliance with all state and federal drinking water standards. On September 13, 2022, the Company entered into an Administrative Consent Order (ACO) with the NJDEP, which required the Company to take whatever actions necessary to achieve and maintain compliance with applicable regulations. As prescribed in the ACO, the Company was to issue periodic public notifications until the ACO was closed. In June 2023, the Company completed the permanent construction of the entire Park Avenue Wellfield treatment upgrades and placed the upgrades into operation in full compliance with the NJDEP PFOA standards. The Company received confirmation from the NJDEP that it has complied with all requirements of the ACO and consequently, the ACO has been closed. The Company had previously initiated a lawsuit against 3M Company (3M), in connection with the Company’s claim that 3M introduced perfluoroalkyl substances (commonly known as “PFAS”), which include PFOA, into the Company’s water supply at its Park Avenue Wellfield facility. On August 29, 2023, Middlesex and 3M executed a settlement agreement (the Settlement Agreement) to resolve the lawsuit. The Settlement Agreement provides that: ● 3M will pay Middlesex $93.2 million in two installments, one payment of $23.3 million in December 2023 and one payment of $69.9 million in July 2024. Middlesex is obligated to pay 30% of the proceeds received to its lawyers as legal fees, or $27.9 million in total; ● Middlesex anticipates its receipt of the Settlement Agreement payments will have the effect of mitigating future increases in customer rates, the determination of which are based, in part, on Middlesex’s investments in utility infrastructure. For additional details, see “Item 1. Business – Regulation - Regulation of Rates and Services” in Middlesex’s 2022 Form 10-K; ● Middlesex, by nature of its status as a U.S. water purveyor impacted by PFAS, was automatically included in a Multi-District Litigation Settlement before the United States District Court for the District of South Carolina in which 3M and other companies (Non-3M Companies) are participants. Middlesex agreed as part of this settlement to remain a member of the plaintiff class in order to be eligible to obtain future additional compensation from 3M and the Non-3M Companies for the remediation of its water treatment facilities; and ● Middlesex and 3M agreed to enter into a joint mediation, scheduled for November 2023, to resolve two PFOA-related class action lawsuits against Middlesex seeking restitution for medical, water replacement and other claimed related costs. Both Middlesex and 3M are defendants in these lawsuits. These lawsuits remain in the early stages of the legal process and their ultimate resolution cannot be predicted at this time. It is the Company’s intent that any financial benefit which may result from the Settlement Agreement, net of any litigation costs to Middlesex, will ultimately inure to the benefit of the Middlesex customers in the form of mitigating future customer rate increases. As such, the anticipated net Settlement Agreement proceeds of $65.2 million have been recorded as a Regulatory Liability in the Company’s September 30, 2023 Consolidated Balance Sheet. 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. Coronavirus (COVID-19) Pandemic The NJBPU has approved the tracking of COVID-19 related incremental costs for potential recovery in customer rates in future rate proceedings. In May 2023, Middlesex filed a petition to defer consideration of rate recovery of COVID-19 related incremental costs incurred until its next base rate case. The Company has increased its allowance for doubtful accounts for expected higher accounts receivable write-offs due to the financial impact of COVID-19 on customers. 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, 2023 | |
Rate and Regulatory Matters [Abstract] | |
Rate and Regulatory Matters | Note 2 Rate and Regulatory Matters Middlesex – In May 2023, Middlesex filed a petition with the NJBPU seeking permission to increase annual base water revenues by approximately $34 million. The request was necessitated predominantly by capital infrastructure investments Middlesex has made, or has committed to make, to upgrade or replace utility assets to support continued regulatory compliance and overall quality of service. We cannot predict when and whether the NJBPU will ultimately approve, deny, or reduce the amount of the request. Under New Jersey statute, the NJPBU must render a decision within nine months of filing a base rate change petition. Replacement of Middlesex and Middlesex customer-owned lead service lines is required by the New Jersey Lead Service Line Replacement Law. In May 2023, Middlesex filed a petition seeking NJBPU approval of Middlesex’s proposed cost recovery of its Lead Service Line Replacement Plan and cost recovery of project costs associated with replacing Middlesex customer-owned lead service lines. Under this legislation, these costs would be recovered through future customer surcharges. Middlesex currently estimates that replacement of Middlesex and Middlesex customer-owned lead service lines will be approximately $46 million to $77 million over a nine-year period. A decision in this matter is expected in the fourth quarter of 2023. We cannot predict if the NJBPU will ultimately approve, deny, or amend this petition. In May 2023, Middlesex filed a petition with the NJBPU seeking approval of a Distribution System Improvement Charge (DSIC) Foundation Filing, which is a prerequisite to implementing a DSIC rate that allows water utilities to recover investments in, and generate a return on, qualifying capital improvements to their water distribution system made between base rate proceedings. This petition was approved by the NJBPU in October 2023 and will result in future rate increases for future DSIC qualifying projects. In September 2022, the NJBPU approved Middlesex's Emergency Relief Motion to reset its Purchased Water Adjustment Clause (PWAC) tariff rate to recover additional costs of $2.7 million for the purchase of treated water from a non-affiliated water utility. A PWAC is a rate mechanism that allows for recovery of increased purchased water costs between base rate case filings. The increase, effective October 1, 2022, was on an interim basis and subject to refund with interest, pending final resolution of this matter, which the NJBPU provided in August 2023. In connection with the full recovery of the $2.7 million of additional costs, Middlesex reset its PWAC rate to zero in October 2023. Pinelands – 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, the parent company of Twin Lakes, 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 (Appeal Petition) 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’ claims that because the $1.7 million escrow requirement placed on Middlesex violated Middlesex’s constitutional rights, Middlesex’s refusal to submit this escrow payment would jeopardize the relief Twin Lakes was otherwise entitled to in the appointment of the Receiver Utility. In March 2023, the Supreme Court of Pennsylvania issued a decision denying Twin Lakes’ Appeal Petition without addressing this claim on the merits. As a result of the Pennsylvania Courts’ failure to address Twin Lakes’ claim, Middlesex has subsequently filed a Complaint with the United States District Court for the Middle District of Pennsylvania to address the issue of whether the PAPUC’s Order violated Middlesex’s rights under the United States Constitution. We are currently awaiting the Court’s decision. The financial results, total assets and financial obligations of Twin Lakes are not material to Middlesex. |
Capitalization
Capitalization | 9 Months Ended |
Sep. 30, 2023 | |
Capitalization [Abstract] | |
Capitalization | Note 3 – Capitalization Common Stock During the nine months ended September 30, 2023 and 2022, there were 118,501 common shares (approximately $9.0 million) and 110,614 common shares (approximately $10.0 million) respectively, issued under the Middlesex Water Company Investment Plan (the Investment Plan). In April 2023, Middlesex received approval from the NJBPU to issue and sell up to 1.0 million shares of its common stock, without par value, through December 31, 2025. Sales of additional shares of common stock are part of the Company’s comprehensive financing plan to fund its multi-year utility plant infrastructure investment program. As described below in “Long-term Debt”, the NJBPU also approved the debt funding component of the financing plan. In March 2023, the Company began offering shares of its common stock for purchase at a 3% discount to participants in the Investment Plan. The discount offering will continue until 200,000 shares are purchased at the discounted price or December 1, 2023, whichever event occurs first. The discount applies to all common stock purchases made under the Investment Plan, whether by optional cash payment or by dividend reinvestment. In May 2023, Middlesex received approval from the NJBPU to increase the number of authorized shares under the Investment Plan by 0.7 million shares. Long-term Debt – Under the New Jersey SRF program, borrowers first enter into a construction loan agreement with the New Jersey Infrastructure Bank (NJIB) at a below market interest rate. When construction on the qualifying project is substantially complete, NJIB will coordinate the conversion of the construction loan into a long-term securitized loan with a portion of the principal balance having a stated interest rate of zero percent (0%) and a portion of the principal balance at a market interest rate at the time of closing using the credit rating of the State of New Jersey. Although the Company has no current projects in the NJIB loan program, it is seeking to have several projects added to the qualified list in order to borrow under the NJIB loan program. In April 2023, Middlesex received approval from the NJBPU to borrow up to $300.0 million from the New Jersey SRF Program, the New Jersey Economic Development Authority, private placement and other financial institutions as needed through December 31, 2025. The Company expects to issue debt securities in a series of one or more transaction offerings over a multi-year period to help fund Middlesex’s multi-year capital construction program. In March 2023, Middlesex closed on a $40.0 million, 5.24% private placement of First Mortgage Bonds (FMBs) with a 2043 maturity date designated as Series 2023A. Proceeds were used to reduce the Company’s outstanding balances under its bank lines of credit. In May 2023, Tidewater closed on a $20.0 million loan from CoBank, ACB (CoBank) with an interest rate of 5.71% and a 2033 maturity date and fully drew all funds by June 30, 2023. Proceeds from the loan were used to pay off Tidewater’s outstanding balances under its bank lines of credit and for other general corporate purposes. In April 2023, Tidewater closed on three Delaware Public Service Commission (DEPSC)-approved Delaware SRF loans totaling $10.2 million, all at interest rates of 2.0% with maturity dates in 2043 and 2044. These loans are for the construction, relocation, improvement, and/or interconnection of transmission mains. Tidewater has drawn a total of $1.5 million through September 30, 2023 and expects that the requisitions will continue through mid-2025. In December 2021, Tidewater closed on a DEPSC-approved $5.0 million Delaware SRF loan at an interest rate of 2.0%. The loan was for construction of a one million gallon elevated storage tank. Through September 30, 2023, Tidewater has drawn a total of $4.2 million and expects that the requisitions will continue through the first quarter of 2024. The final maturity date on the loan is 2044. Under the Delaware SRF Program, borrowers submit reimbursement requisitions during the construction period. As the proceeds are received from the requisitions, Tidewater records a corresponding debt obligation amount. In July 2023, Pinelands Water and Pinelands Wastewater closed on $3.9 million and $3.6 million CoBank amortizing mortgage type loans, respectively, with an interest rate of 6.17% and a final maturity date of 2043 for each loan. Proceeds were used to pay off outstanding intercompany loans with Middlesex and for ongoing capital projects. 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, accounts receivable, accounts payable and notes payable approximate their respective fair values due to the short-term maturities of these instruments. The fair value of FMBs in the table below 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 FMBs in the table below are classified as Level 2 measurements. The carrying amount and fair value of the FMBs were as follows: (Thousands of Dollars) September 30, 2023 December 31, 2022 Carrying Fair Carrying Fair Amount Value Amount Value FMBs $ 133,374 $ 123,235 $ 147,269 $ 138,756 It was not practicable to estimate the 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 Notes” and “State Revolving Trust Notes” on the Condensed Consolidated Statements of Capital Stock and Long-Term Debt). The carrying amount of these instruments was $227.2 million and $159.1 million at September 30, 2023 and December 31, 2022, respectively. Customer advances for construction have carrying amounts of $21.5 million and $21.4 million at September 30, 2023 and December 31, 2022, 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. 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, 2023 | |
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 the Convertible Preferred Stock $7.00 Series. (In Thousands Except per Share Amounts) Three Months Ended September 30, 2023 2022 Basic: Income Shares Income Shares Net Income $ 9,990 17,758 $ 14,291 17,628 Preferred Dividend (30 ) (30 ) Earnings Applicable to Common Stock $ 9,960 17,758 $ 14,261 17,628 Basic EPS $ 0.56 $ 0.81 Diluted: Earnings Applicable to Common Stock $ 9,960 17,758 $ 14,261 17,628 $7.00 Series Preferred Dividend 17 115 17 115 Adjusted Earnings Applicable to Common Stock $ 9,977 17,873 $ 14,278 17,743 Diluted EPS $ 0.56 $ 0.80 (In Thousands Except per Share Amounts) Nine Months Ended September 30, 2023 2022 Basic: Income Shares Income Shares Net Income $ 25,759 17,708 $ 35,258 17,583 Preferred Dividend (90 ) (90 ) Earnings Applicable to Common Stock $ 25,669 17,708 $ 35,168 17,583 Basic EPS $ 1.45 $ 2.00 Diluted: Earnings Applicable to Common Stock $ 25,669 17,708 $ 35,168 17,583 $7.00 Series Preferred Dividend 51 115 51 115 Adjusted Earnings Applicable to Common Stock $ 25,720 17,823 $ 35,219 17,698 Diluted EPS $ 1.44 $ 1.99 |
Business Segment Data
Business Segment Data | 9 Months Ended |
Sep. 30, 2023 | |
Business Segment Data [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 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: 2023 2022 2023 2022 Revenues: Regulated $ 43,763 $ 44,861 $ 118,625 $ 115,222 Non – Regulated 3,251 3,431 9,649 9,316 Inter-segment Elimination (299 ) (560 ) (602 ) (927 ) Consolidated Revenues $ 46,715 $ 47,732 $ 127,672 $ 123,611 Operating Income: Regulated $ 12,008 $ 15,750 $ 28,543 $ 36,793 Non – Regulated 814 825 2,437 2,393 Consolidated Operating Income $ 12,822 $ 16,575 $ 30,980 $ 39,186 Net Income: Regulated $ 9,384 $ 13,683 $ 24,017 $ 33,496 Non – Regulated 606 608 1,742 1,762 Consolidated Net Income $ 9,990 $ 14,291 $ 25,759 $ 35,258 Capital Expenditures: Regulated $ 22,415 $ 26,588 $ 72,994 $ 65,722 Non – Regulated 24 8 80 217 Total Capital Expenditures $ 22,439 $ 26,596 $ 73,074 $ 65,939 As of As of September 30, 2023 December 31, 2022 Assets: Regulated $ 1,241,123 $ 1,079,180 Non – Regulated 7,382 6,999 Inter-segment Elimination (5,089 ) (11,729 ) Consolidated Assets $ 1,243,416 $ 1,074,450 |
Short-Term Borrowings
Short-Term Borrowings | 9 Months Ended |
Sep. 30, 2023 | |
Short-Term Borrowings [Abstract] | |
Short-term Borrowings | Note 6 – Short-term Borrowings The Company maintains lines of credit aggregating $140.0 million. (Millions) As of September 30, 2023 Outstanding Available Maximum Credit Type Renewal Date Bank of America $ 4.0 $ 56.0 $ 60.0 Uncommitted January 25, 2024 PNC Bank 35.3 $ 32.7 68.0 Committed July 31, 2025 CoBank 3.0 9.0 12.0 Committed May 20, 2026 $ 42.3 $ 97.7 $ 140.0 The interest rates are set for borrowings under the Bank of America and PNC Bank lines of credit using the Bloomberg Short-Term Bank Yield Index and the Secured Overnight Financing Rate (SOFR), respectively, and then adding a specific financial institution credit spread. 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 SOFR 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, 2023 under these credit lines is 6.51%. The weighted average daily amounts of borrowings outstanding under these credit lines and the weighted average interest rates on those amounts were as follows: (In Thousands) Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Average Daily Amounts Outstanding $ 25,015 $ 33,750 $ 32,860 $ 22,648 Weighted Average Interest Rates 6.37% 3.34% 5.89% 2.48% The maturity dates for the $42.3 million outstanding as of September 30, 2023 were in October 2023 and continue through December 2023 and were or are expected to be extended at the discretion of the Company. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingent Liabilities [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). The agreement renewal process is underway and a new agreement is expected to be in place prior to the expiration date of the existing agreement. Middlesex does not expect the agreement terms and conditions to vary. 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, provides for the minimum purchase of 3 mgd of treated water with provisions for additional purchases. Tidewater contracts with the City of Dover, Delaware to purchase 15 million gallons of treated water annually. Purchased water costs are shown below: (In Thousands) Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Treated $ 1,607 $ 936 $ 4,353 $ 2,467 Untreated 812 835 2,352 2,384 Total Costs $ 2,419 $ 1,771 $ 6,705 $ 4,851 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%) based on the information available at the commencement date in determining the present value of lease payments. 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 million for each of the three months ended September 30, 2023 and 2022, respectively, and $0.6 million for each of the nine months ended September 30, 2023 and 2022, respectively. Information related to operating lease ROU assets and lease liabilities is as follows: (In Millions) As of September 30, 2023 December 31, 2022 ROU Asset at Lease Inception $ 7.3 $ 7.3 Accumulated Amortization (4.0 ) (3.5 ) Current ROU Asset $ 3.3 $ 3.8 The Company’s future minimum operating lease commitments as of September 30, 2023 are as follows: (In Millions) 2023 $ 0.2 2024 0.8 2025 0.8 2026 0.9 2027 0.9 Thereafter 1.8 Total Lease Payments $ 5.4 Imputed Interest (1.6 ) Present Value of Lease Payments 3.8 Less Current Portion* (0.6 ) Non-Current Lease Liability $ 3.2 *Included in Other Current Liabilities Construction – The Company has forecasted to spend approximately $96 million for its construction program in 2023. The Company has entered into several construction contracts that, in the aggregate, obligate expenditure of an estimated $8 million in the future. The actual amount and timing of capital expenditures is dependent on the need for upgrade or 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. With continued upward pressure on mortgage interest rates, as well as other financial market uncertainties, 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. For further discussion of this matter, see Note 1 - Regulatory Notice of Non-Compliance Contingencies – Change in Control Agreements – The Company has Change in Control Agreements with its executive officers that provide compensation and benefits in the event of termination of employment under certain conditions in connection with a change in control of the Company. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2023 | |
Employee Benefit Plans [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 nine month periods ended September 30, 2023 and 2022, the Company did not make cash contributions to the Pension Plan. The Company expects to make cash contributions of approximately $1.9 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 $0.5 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 nine month periods ended September 30, 2023 and 2022, the Company did not make cash contributions to its Other Benefits Plan. The Company expects to make additional Other Benefits Plan cash contributions of $0.9 million over the remainder of the current year. 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, 2023 2022 2023 2022 Service Cost $ 388 $ 591 $ 98 $ 200 Interest Cost 1,067 761 402 331 Expected Return on Assets (1,466 ) (1,760 ) (771 ) (887 ) Amortization of Unrecognized Losses 164 418 (48 ) — Net Periodic Benefit Cost (Benefit)* $ 153 $ 10 $ (319 ) $ (356 ) (In Thousands) Pension Benefits Other Benefits Nine Months Ended September 30, 2023 2022 2023 2022 Service Cost $ 1,163 $ 1,772 $ 293 $ 599 Interest Cost 3,202 2,282 1,206 994 Expected Return on Assets (4,399 ) (5,281 ) (2,312 ) (2,660 ) Amortization of Unrecognized Losses 493 1,255 (143 ) — Net Periodic Benefit Cost (Benefit)* $ 459 $ 28 $ (956 ) $ (1,067 ) *Service cost is included Operations and Maintenance expense on the 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, 2023 | |
Revenue Recognition from Contracts with Customers [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. The Company’s operating revenues are comprised of the following: (In Thousands) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Regulated Tariff Sales Residential $ 25,070 $ 25,108 $ 66,726 $ 65,767 Commercial 6,926 7,167 18,553 16,796 Industrial 3,396 3,208 9,041 8,504 Fire Protection 3,203 3,248 9,453 9,541 Wholesale 4,958 5,644 14,479 13,905 Non-Regulated Contract Operations 3,137 3,321 9,309 8,986 Total Revenue from Contracts with Customers $ 46,690 $ 47,696 $ 127,561 $ 123,499 Other Regulated Revenues 210 486 373 709 Other Non-Regulated Revenues 114 110 340 330 Inter-segment Elimination (299 ) (560 ) (602 ) (927 ) Total Revenue $ 46,715 $ 47,732 $ 127,672 $ 123,611 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 9,990 | $ 14,291 | $ 25,759 | $ 35,258 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Middlesex President and Chief Executive Officer Retirement Announcement | Middlesex President and Chief Executive Officer Retirement Announcement - |
Regulatory Notice of Non-Compliance | Regulatory Notice of Non-Compliance – The Notice further required the Company to take any action necessary to comply with the new standard by September 7, 2022. Consequently, in November 2021, the Company implemented an interim solution to meet the Notice requirements, which included putting the Park Avenue Wellfield Treatment Plant in off-line status and obtaining alternate sources of supply. In June 2022, the Company accelerated the in-service date for a portion of the enhanced treatment project based on engineering analysis that allowed a restart of the Park Avenue Wellfield Treatment Plant to ensure continued compliance with all state and federal drinking water standards. On September 13, 2022, the Company entered into an Administrative Consent Order (ACO) with the NJDEP, which required the Company to take whatever actions necessary to achieve and maintain compliance with applicable regulations. As prescribed in the ACO, the Company was to issue periodic public notifications until the ACO was closed. In June 2023, the Company completed the permanent construction of the entire Park Avenue Wellfield treatment upgrades and placed the upgrades into operation in full compliance with the NJDEP PFOA standards. The Company received confirmation from the NJDEP that it has complied with all requirements of the ACO and consequently, the ACO has been closed. The Company had previously initiated a lawsuit against 3M Company (3M), in connection with the Company’s claim that 3M introduced perfluoroalkyl substances (commonly known as “PFAS”), which include PFOA, into the Company’s water supply at its Park Avenue Wellfield facility. On August 29, 2023, Middlesex and 3M executed a settlement agreement (the Settlement Agreement) to resolve the lawsuit. The Settlement Agreement provides that: ● 3M will pay Middlesex $93.2 million in two installments, one payment of $23.3 million in December 2023 and one payment of $69.9 million in July 2024. Middlesex is obligated to pay 30% of the proceeds received to its lawyers as legal fees, or $27.9 million in total; ● Middlesex anticipates its receipt of the Settlement Agreement payments will have the effect of mitigating future increases in customer rates, the determination of which are based, in part, on Middlesex’s investments in utility infrastructure. For additional details, see “Item 1. Business – Regulation - Regulation of Rates and Services” in Middlesex’s 2022 Form 10-K; ● Middlesex, by nature of its status as a U.S. water purveyor impacted by PFAS, was automatically included in a Multi-District Litigation Settlement before the United States District Court for the District of South Carolina in which 3M and other companies (Non-3M Companies) are participants. Middlesex agreed as part of this settlement to remain a member of the plaintiff class in order to be eligible to obtain future additional compensation from 3M and the Non-3M Companies for the remediation of its water treatment facilities; and ● Middlesex and 3M agreed to enter into a joint mediation, scheduled for November 2023, to resolve two PFOA-related class action lawsuits against Middlesex seeking restitution for medical, water replacement and other claimed related costs. Both Middlesex and 3M are defendants in these lawsuits. These lawsuits remain in the early stages of the legal process and their ultimate resolution cannot be predicted at this time. It is the Company’s intent that any financial benefit which may result from the Settlement Agreement, net of any litigation costs to Middlesex, will ultimately inure to the benefit of the Middlesex customers in the form of mitigating future customer rate increases. As such, the anticipated net Settlement Agreement proceeds of $65.2 million have been recorded as a Regulatory Liability in the Company’s September 30, 2023 Consolidated Balance Sheet. 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. |
Coronavirus (COVID-19) Pandemic | Coronavirus (COVID-19) Pandemic The NJBPU has approved the tracking of COVID-19 related incremental costs for potential recovery in customer rates in future rate proceedings. In May 2023, Middlesex filed a petition to defer consideration of rate recovery of COVID-19 related incremental costs incurred until its next base rate case. The Company has increased its allowance for doubtful accounts for expected higher accounts receivable write-offs due to the financial impact of COVID-19 on customers. 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 Pronouncements | 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. |
Capitalization (Tables)
Capitalization (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Capitalization [Abstract] | |
Schedule of Carrying Amount and Fair Value of the Bonds | equivalents is classified as a Level 1 measurement and the fair value of notes payable and the FMBs in the table below are classified as Level 2 measurements. The carrying amount and fair value of the FMBs were as follows: (Thousands of Dollars) September 30, 2023 December 31, 2022 Carrying Fair Carrying Fair Amount Value Amount Value FMBs $ 133,374 $ 123,235 $ 147,269 $ 138,756 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 the Convertible Preferred Stock $7.00 Series. (In Thousands Except per Share Amounts) Three Months Ended September 30, 2023 2022 Basic: Income Shares Income Shares Net Income $ 9,990 17,758 $ 14,291 17,628 Preferred Dividend (30 ) (30 ) Earnings Applicable to Common Stock $ 9,960 17,758 $ 14,261 17,628 Basic EPS $ 0.56 $ 0.81 Diluted: Earnings Applicable to Common Stock $ 9,960 17,758 $ 14,261 17,628 $7.00 Series Preferred Dividend 17 115 17 115 Adjusted Earnings Applicable to Common Stock $ 9,977 17,873 $ 14,278 17,743 Diluted EPS $ 0.56 $ 0.80 (In Thousands Except per Share Amounts) Nine Months Ended September 30, 2023 2022 Basic: Income Shares Income Shares Net Income $ 25,759 17,708 $ 35,258 17,583 Preferred Dividend (90 ) (90 ) Earnings Applicable to Common Stock $ 25,669 17,708 $ 35,168 17,583 Basic EPS $ 1.45 $ 2.00 Diluted: Earnings Applicable to Common Stock $ 25,669 17,708 $ 35,168 17,583 $7.00 Series Preferred Dividend 51 115 51 115 Adjusted Earnings Applicable to Common Stock $ 25,720 17,823 $ 35,219 17,698 Diluted EPS $ 1.44 $ 1.99 |
Business Segment Data (Tables)
Business Segment Data (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Business Segment Data [Abstract] | |
Schedule of Segment Reporting Information, by Segment | (In Thousands) Three Months Ended Nine Months Ended September 30, September 30, Operations by Segments: 2023 2022 2023 2022 Revenues: Regulated $ 43,763 $ 44,861 $ 118,625 $ 115,222 Non – Regulated 3,251 3,431 9,649 9,316 Inter-segment Elimination (299 ) (560 ) (602 ) (927 ) Consolidated Revenues $ 46,715 $ 47,732 $ 127,672 $ 123,611 Operating Income: Regulated $ 12,008 $ 15,750 $ 28,543 $ 36,793 Non – Regulated 814 825 2,437 2,393 Consolidated Operating Income $ 12,822 $ 16,575 $ 30,980 $ 39,186 Net Income: Regulated $ 9,384 $ 13,683 $ 24,017 $ 33,496 Non – Regulated 606 608 1,742 1,762 Consolidated Net Income $ 9,990 $ 14,291 $ 25,759 $ 35,258 Capital Expenditures: Regulated $ 22,415 $ 26,588 $ 72,994 $ 65,722 Non – Regulated 24 8 80 217 Total Capital Expenditures $ 22,439 $ 26,596 $ 73,074 $ 65,939 As of As of September 30, 2023 December 31, 2022 Assets: Regulated $ 1,241,123 $ 1,079,180 Non – Regulated 7,382 6,999 Inter-segment Elimination (5,089 ) (11,729 ) Consolidated Assets $ 1,243,416 $ 1,074,450 |
Short-Term Borrowings (Tables)
Short-Term Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Short-Term Borrowings [Abstract] | |
Schedule of Lines of Credit | The Company maintains lines of credit aggregating $140.0 million. (Millions) As of September 30, 2023 Outstanding Available Maximum Credit Type Renewal Date Bank of America $ 4.0 $ 56.0 $ 60.0 Uncommitted January 25, 2024 PNC Bank 35.3 $ 32.7 68.0 Committed July 31, 2025 CoBank 3.0 9.0 12.0 Committed May 20, 2026 $ 42.3 $ 97.7 $ 140.0 |
Schedule of Information Regarding Short-Term Borrowings | The weighted average daily amounts of borrowings outstanding under these credit lines and the weighted average interest rates on those amounts were as follows: (In Thousands) Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Average Daily Amounts Outstanding $ 25,015 $ 33,750 $ 32,860 $ 22,648 Weighted Average Interest Rates 6.37% 3.34% 5.89% 2.48% |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingent Liabilities [Abstract] | |
Schedule of Purchased Water Costs | Purchased water costs are shown below: (In Thousands) Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Treated $ 1,607 $ 936 $ 4,353 $ 2,467 Untreated 812 835 2,352 2,384 Total Costs $ 2,419 $ 1,771 $ 6,705 $ 4,851 |
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, 2023 December 31, 2022 ROU Asset at Lease Inception $ 7.3 $ 7.3 Accumulated Amortization (4.0 ) (3.5 ) Current ROU Asset $ 3.3 $ 3.8 |
Schedule of Future Minimum Operating Lease Commitments | The Company’s future minimum operating lease commitments as of September 30, 2023 are as follows: (In Millions) 2023 $ 0.2 2024 0.8 2025 0.8 2026 0.9 2027 0.9 Thereafter 1.8 Total Lease Payments $ 5.4 Imputed Interest (1.6 ) Present Value of Lease Payments 3.8 Less Current Portion* (0.6 ) Non-Current Lease Liability $ 3.2 *Included in Other Current Liabilities |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Employee Benefit Plans [Abstract] | |
Schedule of Employee Retirement Benefit Plans | 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, 2023 2022 2023 2022 Service Cost $ 388 $ 591 $ 98 $ 200 Interest Cost 1,067 761 402 331 Expected Return on Assets (1,466 ) (1,760 ) (771 ) (887 ) Amortization of Unrecognized Losses 164 418 (48 ) — Net Periodic Benefit Cost (Benefit)* $ 153 $ 10 $ (319 ) $ (356 ) (In Thousands) Pension Benefits Other Benefits Nine Months Ended September 30, 2023 2022 2023 2022 Service Cost $ 1,163 $ 1,772 $ 293 $ 599 Interest Cost 3,202 2,282 1,206 994 Expected Return on Assets (4,399 ) (5,281 ) (2,312 ) (2,660 ) Amortization of Unrecognized Losses 493 1,255 (143 ) — Net Periodic Benefit Cost (Benefit)* $ 459 $ 28 $ (956 ) $ (1,067 ) *Service cost is included Operations and Maintenance expense on the 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, 2023 | |
Revenue Recognition from Contracts with Customers [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, 2023 2022 2023 2022 Regulated Tariff Sales Residential $ 25,070 $ 25,108 $ 66,726 $ 65,767 Commercial 6,926 7,167 18,553 16,796 Industrial 3,396 3,208 9,041 8,504 Fire Protection 3,203 3,248 9,453 9,541 Wholesale 4,958 5,644 14,479 13,905 Non-Regulated Contract Operations 3,137 3,321 9,309 8,986 Total Revenue from Contracts with Customers $ 46,690 $ 47,696 $ 127,561 $ 123,499 Other Regulated Revenues 210 486 373 709 Other Non-Regulated Revenues 114 110 340 330 Inter-segment Elimination (299 ) (560 ) (602 ) (927 ) Total Revenue $ 46,715 $ 47,732 $ 127,672 $ 123,611 |
Basis of Presentation and Rec_2
Basis of Presentation and Recent Developments (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2023 | Jul. 01, 2024 | Dec. 31, 2023 | |
Basis of Presentation and Recent Developments [Line Items] | |||
Obligation to pay percentage | 30% | ||
Proceeds received | $ 27.9 | ||
Agreement proceeds | 65.2 | ||
Middlesex Water [Member] | |||
Basis of Presentation and Recent Developments [Line Items] | |||
Installment payment | $ 93.2 | ||
Forecast [Member] | Middlesex Water [Member] | |||
Basis of Presentation and Recent Developments [Line Items] | |||
Installment payment | $ 69.9 | $ 23.3 |
Rate and Regulatory Matters (De
Rate and Regulatory Matters (Details) - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended | ||||
Apr. 12, 2023 | Oct. 31, 2023 | Sep. 30, 2022 | May 31, 2021 | Sep. 30, 2023 | Nov. 30, 2021 | |
Minimum [Member] | ||||||
Rate and Regulatory Matters [Line Items] | ||||||
Deferred Income, Revenue Recognized | $ 46 | |||||
Maximum [Member] | ||||||
Rate and Regulatory Matters [Line Items] | ||||||
Deferred Income, Revenue Recognized | $ 77 | |||||
Middlesex Water [Member] | ||||||
Rate and Regulatory Matters [Line Items] | ||||||
Escrow account | $ 1.7 | |||||
Maturity Less than 30 Days [Member] | Middlesex Water Company [Member] | ||||||
Rate and Regulatory Matters [Line Items] | ||||||
Escrow account | $ 1.7 | |||||
New Jersey Board of Public Utilities [Member] | Middlesex Water [Member] | ||||||
Rate and Regulatory Matters [Line Items] | ||||||
Approved increase in annual operating revenues | $ 2.7 | $ 34 | ||||
New Jersey Board of Public Utilities [Member] | Pinelands [Member] | ||||||
Rate and Regulatory Matters [Line Items] | ||||||
Approved increase in annual operating revenues | $ 1 | |||||
Subsequent Event [Member] | New Jersey Board of Public Utilities [Member] | Middlesex Water [Member] | ||||||
Rate and Regulatory Matters [Line Items] | ||||||
Approved increase in annual operating revenues | $ 2.7 |
Capitalization (Details)
Capitalization (Details) - USD ($) | 1 Months Ended | 9 Months Ended | |||||||
Jul. 31, 2023 | May 31, 2023 | Apr. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2021 | Sep. 30, 2023 | Sep. 30, 2022 | Mar. 31, 2024 | Dec. 31, 2022 | |
Capitalization [Line Items] | |||||||||
Issuance of common stock (in Shares) | 118,501 | ||||||||
Shares issued | $ 9,000,000 | ||||||||
Shares of common stock (in Shares) | 1,000,000 | ||||||||
Common stock purchase, percentage | 3% | ||||||||
Discount offering shares (in Shares) | 200,000 | ||||||||
Authorized shares (in Shares) | 700,000 | ||||||||
Maturity date | 2043 | 2033 | |||||||
Borrowed loan | $ 20,000,000 | ||||||||
Construction carrying amount | $ 1,000,000 | 21,500,000 | $ 21,400,000 | ||||||
Carrying instrument amount | $ 227,200,000 | $ 159,100,000 | |||||||
Common Stock [Member] | |||||||||
Capitalization [Line Items] | |||||||||
Issuance of common stock (in Shares) | 110,614 | ||||||||
Shares issued | $ 10,000,000 | ||||||||
Minimum [Member] | |||||||||
Capitalization [Line Items] | |||||||||
Maturity date | 2043 | ||||||||
Maximum [Member] | |||||||||
Capitalization [Line Items] | |||||||||
Maturity date | 2044 | ||||||||
New Jersey Infrastructure Bank [Member] | |||||||||
Capitalization [Line Items] | |||||||||
Interest rate | 0% | ||||||||
Received redeem outstanding | $ 300,000,000 | ||||||||
FMB [Member] | |||||||||
Capitalization [Line Items] | |||||||||
Maturity date | 2043 | ||||||||
Tidewater [Member] | |||||||||
Capitalization [Line Items] | |||||||||
Percentage of principal with stated interest rate | 2% | ||||||||
Borrowed loan | $ 10,200,000 | ||||||||
Interest rate | 2% | ||||||||
Program loan amount | $ 5,000,000 | ||||||||
Pinelands Water [Member] | |||||||||
Capitalization [Line Items] | |||||||||
Borrowing loan amount | $ 3,900,000 | ||||||||
Pinelands Wastewater [Member] | |||||||||
Capitalization [Line Items] | |||||||||
Borrowing loan amount | $ 3,600,000 | ||||||||
Delaware State Revolving Fund [Member] | |||||||||
Capitalization [Line Items] | |||||||||
Maturity date | 2044 | ||||||||
Private Placement Loan [Member] | FMB [Member] | |||||||||
Capitalization [Line Items] | |||||||||
Proceeds from private placement | $ 40,000,000 | ||||||||
Percentage of principal with stated interest rate | 5.24% | ||||||||
CoBank [Member] | |||||||||
Capitalization [Line Items] | |||||||||
Interest rate | 6.17% | 5.71% | |||||||
Maturity date | Jun. 30, 2023 | ||||||||
Tidewater [Member] | |||||||||
Capitalization [Line Items] | |||||||||
Drawn amount | $ 1,500,000 | ||||||||
Forecast [Member] | Tidewater [Member] | |||||||||
Capitalization [Line Items] | |||||||||
Drawn amount | $ 4,200,000 |
Capitalization (Details) - Sche
Capitalization (Details) - Schedule of Carrying Amount and Fair Value of the Bonds - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Schedule of Carrying Amount and Fair Value of Bonds [Abstract] | ||
Carrying Amount | $ 133,374 | $ 147,269 |
Fair Value | $ 123,235 | $ 138,756 |
Earnings Per Share (Details)
Earnings Per Share (Details) | Sep. 30, 2023 $ / shares |
Earnings Per Share [Line Items] | |
Convertible preferred Stock price | $ 7 |
Earnings Per Share (Details) -
Earnings Per Share (Details) - Schedule of Earnings Per Share - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
EPS Income [Member] | ||||
Earnings Per Share (Details) - Schedule of Earnings Per Share [Line Items] | ||||
Net Income | $ 9,990 | $ 14,291 | $ 25,759 | $ 35,258 |
Preferred Dividend | (30) | (30) | (90) | (90) |
Earnings Applicable to Common Stock | $ 9,960 | $ 14,261 | $ 25,669 | $ 35,168 |
Basic EPS (in Dollars per share) | $ 0.56 | $ 0.81 | $ 1.45 | $ 2 |
Diluted: | ||||
Earnings Applicable to Common Stock | $ 9,960 | $ 14,261 | $ 25,669 | $ 35,168 |
$7.00 Series Preferred Dividend (in Shares) | 17,000 | 17,000 | 51,000 | 51,000 |
Adjusted Earnings Applicable to Common Stock (in Dollars per share) | $ 9,977 | $ 14,278 | $ 25,720 | $ 35,219 |
Diluted EPS (in Dollars per share) | $ 0.56 | $ 0.8 | $ 1.44 | $ 1.99 |
EPS Share [Member] | ||||
Earnings Per Share (Details) - Schedule of Earnings Per Share [Line Items] | ||||
Net Income | $ 17,758 | $ 17,628 | $ 17,708 | $ 17,583 |
Earnings Applicable to Common Stock | 17,758 | 17,628 | 17,708 | 17,583 |
Diluted: | ||||
Earnings Applicable to Common Stock | $ 17,758 | $ 17,628 | $ 17,708 | $ 17,583 |
$7.00 Series Preferred Dividend (in Shares) | 115,000 | 115,000 | 115,000 | 115,000 |
Adjusted Earnings Applicable to Common Stock (in Dollars per share) | $ 17,873 | $ 17,743 | $ 17,823 | $ 17,698 |
Earnings Per Share (Details) _2
Earnings Per Share (Details) - Schedule of Earnings Per Share (Parentheticals) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
EPS Income [Member] | ||||
Earnings Per Share (Details) - Schedule of Earnings Per Share (Parentheticals) [Line Items] | ||||
Preferred Dividend | $ 7 | $ 7 | $ 7 | $ 7 |
Business Segment Data (Details)
Business Segment Data (Details) | 9 Months Ended |
Sep. 30, 2023 | |
Business Segment Data [Line Items] | |
Reportable segments | 2 |
Business Segment Data (Detail_2
Business Segment Data (Details) - Schedule of Segment Reporting Information, by Segment - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Revenues: | |||||
Consolidated Revenues | $ 46,715 | $ 47,732 | $ 127,672 | $ 123,611 | |
Operating Income: | |||||
Consolidated Operating Income | 12,822 | 16,575 | 30,980 | 39,186 | |
Net Income: | |||||
Consolidated Net Income | 9,990 | 14,291 | 25,759 | 35,258 | |
Capital Expenditures: | |||||
Total Capital Expenditures | 22,439 | 26,596 | 73,074 | 65,939 | |
Assets: | |||||
Consolidated Assets | 1,243,416 | 1,243,416 | $ 1,074,450 | ||
Regulated [Member] | |||||
Revenues: | |||||
Consolidated Revenues | 43,763 | 44,861 | 118,625 | 115,222 | |
Operating Income: | |||||
Consolidated Operating Income | 12,008 | 15,750 | 28,543 | 36,793 | |
Net Income: | |||||
Consolidated Net Income | 9,384 | 13,683 | 24,017 | 33,496 | |
Capital Expenditures: | |||||
Total Capital Expenditures | 22,415 | 26,588 | 72,994 | 65,722 | |
Assets: | |||||
Consolidated Assets | 1,241,123 | 1,241,123 | 1,079,180 | ||
Non - Regulated [Member] | |||||
Revenues: | |||||
Consolidated Revenues | 3,251 | 3,431 | 9,649 | 9,316 | |
Operating Income: | |||||
Consolidated Operating Income | 814 | 825 | 2,437 | 2,393 | |
Net Income: | |||||
Consolidated Net Income | 606 | 608 | 1,742 | 1,762 | |
Capital Expenditures: | |||||
Total Capital Expenditures | 24 | 8 | 80 | 217 | |
Assets: | |||||
Consolidated Assets | 7,382 | 7,382 | 6,999 | ||
Inter segment Elimination [Member] | |||||
Revenues: | |||||
Consolidated Revenues | (299) | $ (560) | (602) | $ (927) | |
Assets: | |||||
Consolidated Assets | $ (5,089) | $ (5,089) | $ (11,729) |
Short-Term Borrowings (Details)
Short-Term Borrowings (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Short-term Borrowings [Line Items] | |
Lines of credit | $ 140 |
Outstanding amount | $ 42.3 |
Minimum [Member] | |
Short-term Borrowings [Line Items] | |
Outstanding maturity date | October 2023 |
Maximum [Member] | |
Short-term Borrowings [Line Items] | |
Outstanding maturity date | December 2023 |
Short-term Borrowings [Member] | |
Short-term Borrowings [Line Items] | |
Weighted average interest rate on outstanding borrowings | 6.51% |
Short-Term Borrowings (Detail_2
Short-Term Borrowings (Details) - Schedule of Lines of Credit $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Line of Credit Facility [Line Items] | |
Outstanding | $ 42.3 |
Available | 97.7 |
Maximum | 140 |
Bank of America [Member] | |
Line of Credit Facility [Line Items] | |
Outstanding | 4 |
Available | 56 |
Maximum | $ 60 |
Credit Type | Uncommitted |
Renewal Date | Jan. 25, 2024 |
PNC Bank [Member] | |
Line of Credit Facility [Line Items] | |
Outstanding | $ 35.3 |
Available | 32.7 |
Maximum | $ 68 |
Credit Type | Committed |
Renewal Date | Jul. 31, 2025 |
CoBank [Member] | |
Line of Credit Facility [Line Items] | |
Outstanding | $ 3 |
Available | 9 |
Maximum | $ 12 |
Credit Type | Committed |
Renewal Date | May 20, 2026 |
Short-Term Borrowings (Detail_3
Short-Term Borrowings (Details) - Schedule of Information Regarding Short-Term Borrowings - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Schedule of information regarding short-term borrowings [Abstract] | ||||
Average Daily Amounts Outstanding | $ 25,015 | $ 33,750 | $ 32,860 | $ 22,648 |
Weighted Average Interest Rates | 6.37% | 3.34% | 5.89% | 2.48% |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Commitments and Contingent Liabilities [Line Items] | ||||
Estimated incremental borrowing rate | 4.03% | 4.03% | ||
Rental expenses under operating leases | $ 200,000 | $ 200,000 | $ 600,000 | $ 600,000 |
Construction program expenses | 96,000,000 | |||
Estimated obligation expenditure | $ 8,000,000 | |||
Purchase Commitment [Member] | ||||
Commitments and Contingent Liabilities [Line Items] | ||||
Purchase commitment expiration date of contract | Nov. 30, 2023 | |||
Average purchase | $ 27,000,000 | |||
Regulated Water Utility [Member] | ||||
Commitments and Contingent Liabilities [Line Items] | ||||
Purchase commitment expiration date of contract | Feb. 27, 2026 | |||
Average purchase | $ 3,000,000 | |||
City of Dover [Member] | ||||
Commitments and Contingent Liabilities [Line Items] | ||||
Average purchase | $ 15,000,000 |
Commitments and Contingent Li_4
Commitments and Contingent Liabilities (Details) - Schedule of Purchased Water Costs - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Schedule of purchased water costs [Abstract] | ||||
Treated | $ 1,607 | $ 936 | $ 4,353 | $ 2,467 |
Untreated | 812 | 835 | 2,352 | 2,384 |
Total Costs | $ 2,419 | $ 1,771 | $ 6,705 | $ 4,851 |
Commitments and Contingent Li_5
Commitments and Contingent Liabilities (Details) - Schedule of Operating Lease ROU Assets and Lease Liabilities - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Schedule of operating lease ROU assets [Abstract] | ||
ROU Asset at Lease Inception | $ 7,300 | $ 7,300 |
Accumulated Amortization | (4,000) | (3,500) |
Current ROU Asset | $ 3,338 | $ 3,826 |
Commitments and Contingent Li_6
Commitments and Contingent Liabilities (Details) - Schedule of Future Minimum Operating Lease Commitments $ in Millions | Sep. 30, 2023 USD ($) | |
Schedule of future minimum operating lease commitments [Abstract] | ||
2023 | $ 0.2 | |
2024 | 0.8 | |
2025 | 0.8 | |
2026 | 0.9 | |
2027 | 0.9 | |
Thereafter | 1.8 | |
Total Lease Payments | 5.4 | |
Imputed Interest | (1.6) | |
Present Value of Lease Payments | 3.8 | |
Less Current Portion | (0.6) | [1] |
Non-Current Lease Liability | $ 3.2 | |
[1]Included in Other Current Liabilities |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Pension Benefit Plan [Member] | |
Employee Benefit Plans [Line Items] | |
Cash contributions | $ 1.9 |
Annual Benefits Plan [Member] | |
Employee Benefit Plans [Line Items] | |
Cash contributions | 0.5 |
Other Pension Plan [Member] | |
Employee Benefit Plans [Line Items] | |
Cash contributions | $ 0.9 |
Employee Benefit Plans (Detai_2
Employee Benefit Plans (Details) - Schedule of Employee Retirement Benefit Plans - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Pension Benefit Plan [Member] | |||||
Schedule of Employee Retirement Benefit Plans [Line Items] | |||||
Service Cost | $ 388 | $ 591 | $ 1,163 | $ 1,772 | |
Interest Cost | 1,067 | 761 | 3,202 | 2,282 | |
Expected Return on Assets | (1,466) | (1,760) | (4,399) | (5,281) | |
Amortization of Unrecognized Losses | 164 | 418 | 493 | 1,255 | |
Net Periodic Benefit Cost (Benefit) | [1] | 153 | 10 | 459 | 28 |
Other Benefits Plan [Member] | |||||
Schedule of Employee Retirement Benefit Plans [Line Items] | |||||
Service Cost | 98 | 200 | 293 | 599 | |
Interest Cost | 402 | 331 | 1,206 | 994 | |
Expected Return on Assets | (771) | (887) | (2,312) | (2,660) | |
Amortization of Unrecognized Losses | (48) | (143) | |||
Net Periodic Benefit Cost (Benefit) | [1] | $ (319) | $ (356) | $ (956) | $ (1,067) |
[1]Service cost is included Operations and Maintenance expense on the 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 (Details) - Schedule of Operating Revenue - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Regulated Tariff Sales | ||||
Residential | $ 25,070 | $ 25,108 | $ 66,726 | $ 65,767 |
Commercial | 6,926 | 7,167 | 18,553 | 16,796 |
Industrial | 3,396 | 3,208 | 9,041 | 8,504 |
Fire Protection | 3,203 | 3,248 | 9,453 | 9,541 |
Wholesale | 4,958 | 5,644 | 14,479 | 13,905 |
Non-Regulated Contract Operations | 3,137 | 3,321 | 9,309 | 8,986 |
Total Revenue from Contracts with Customers | 46,690 | 47,696 | 127,561 | 123,499 |
Other Regulated Revenues | 210 | 486 | 373 | 709 |
Other Non-Regulated Revenues | 114 | 110 | 340 | 330 |
Inter-segment Elimination | (299) | (560) | (602) | (927) |
Total Revenue | $ 46,715 | $ 47,732 | $ 127,672 | $ 123,611 |