Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2024 | May 08, 2024 | |
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 | Mar. 31, 2024 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
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 | 17,828,604 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement [Abstract] | ||
Operating Revenues | $ 40,524 | $ 38,156 |
Operating Expenses: | ||
Operations and Maintenance | 20,465 | 20,257 |
Depreciation | 5,396 | 5,986 |
Other Taxes | 4,798 | 4,423 |
Total Operating Expenses | 30,659 | 30,666 |
Operating Income | 9,865 | 7,490 |
Other Income: | ||
Allowance for Funds Used During Construction | 176 | 813 |
Other Income, net | 5,189 | 898 |
Total Other Income, net | 5,365 | 1,711 |
Interest Charges | 3,269 | 2,595 |
Income before Income Taxes | 11,961 | 6,606 |
Income Taxes | 1,279 | 738 |
Net Income | 10,682 | 5,868 |
Preferred Stock Dividend Requirements | 30 | 30 |
Earnings Applicable to Common Stock | $ 10,652 | $ 5,838 |
Earnings per share of Common Stock: | ||
Basic (in Dollars per share) | $ 0.6 | $ 0.33 |
Diluted (in Dollars per share) | $ 0.59 | $ 0.33 |
Average Number of Common Shares Outstanding: | ||
Basic (in Shares) | 17,819,000 | 17,652,000 |
Diluted (in Shares) | 17,934,000 | 17,767,000 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Water Production | $ 306,884 | $ 303,791 |
Transmission and Distribution | 816,933 | 809,862 |
General | 101,047 | 100,593 |
Construction Work in Progress | 24,056 | 19,636 |
TOTAL | 1,248,920 | 1,233,882 |
Less Accumulated Depreciation | 239,630 | 235,540 |
UTILITY PLANT - NET | 1,009,290 | 998,342 |
Cash and Cash Equivalents | 2,855 | 2,390 |
Accounts Receivable, net of allowance for credit losses of $2,134 and $2,137, respectively | 15,732 | 18,172 |
Litigation Settlement Receivable | 69,872 | 69,872 |
Unbilled Revenues | 11,312 | 9,297 |
Materials and Supplies (at average cost) | 7,072 | 6,972 |
Prepayments | 4,371 | 1,833 |
TOTAL CURRENT ASSETS | 111,214 | 108,536 |
Operating Lease Right of Use Asset | 3,027 | 3,185 |
Preliminary Survey and Investigation Charges | 1,952 | 1,932 |
Regulatory Assets | 90,046 | 90,694 |
Non-utility Assets - Net | 11,780 | 11,522 |
Employee Benefit Plans | 22,757 | 21,779 |
Other | 39 | 62 |
TOTAL OTHER ASSETS | 129,601 | 129,174 |
TOTAL ASSETS | 1,250,105 | 1,236,052 |
CAPITALIZATION AND LIABILITIES | ||
Common Stock, No Par Value | 246,551 | 246,764 |
Retained Earnings | 181,141 | 176,227 |
TOTAL COMMON EQUITY | 427,692 | 422,991 |
Preferred Stock | 2,084 | 2,084 |
Long-term Debt | 356,960 | 358,153 |
TOTAL CAPITALIZATION | 786,736 | 783,228 |
Current Portion of Long-term Debt | 7,831 | 7,740 |
Notes Payable | 58,000 | 42,750 |
Accounts Payable | 23,243 | 27,618 |
Litigation Settlement Payable | 6,237 | 6,237 |
Accrued Taxes | 14,719 | 10,535 |
Accrued Interest | 2,650 | 3,138 |
Unearned Revenues and Advanced Service Fees | 1,365 | 1,390 |
Other | 3,111 | 4,421 |
TOTAL CURRENT LIABILITIES | 117,156 | 103,829 |
COMMITMENTS AND CONTINGENT LIABILITIES (Note 7) | ||
Customer Advances for Construction | 21,091 | 21,313 |
Lease Obligations | 2,904 | 3,063 |
Accumulated Deferred Income Taxes | 89,693 | 88,736 |
Regulatory Liabilities | 57,818 | 113,021 |
Other | 498 | 592 |
TOTAL OTHER LIABILITIES | 172,004 | 226,725 |
CONTRIBUTIONS IN AID OF CONSTRUCTION | 174,209 | 122,270 |
TOTAL CAPITALIZATION AND LIABILITIES | $ 1,250,105 | $ 1,236,052 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Accounts Receivable, Net of Allowance for Uncollectible Accounts | $ 2,134 | $ 2,137 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net Income | $ 10,682 | $ 5,868 |
Net Cash Provided by Operating Activities: | ||
Depreciation and Amortization | 5,979 | 7,201 |
Provision for Deferred Income Taxes and Investment Tax Credits | 1,382 | (611) |
Equity Portion of Allowance for Funds Used During Construction (AFUDC) | (102) | (446) |
Cash Surrender Value of Life Insurance | (113) | (102) |
Stock Compensation Expense | (465) | 360 |
Changes in Assets and Liabilities: | ||
Accounts Receivable | 2,440 | 492 |
Unbilled Revenues | (2,015) | (1) |
Materials & Supplies | (100) | (382) |
Prepayments | (2,538) | (1,290) |
Accounts Payable | (4,375) | 2,776 |
Accrued Taxes | 4,184 | 3,834 |
Accrued Interest | (488) | (37) |
Employee Benefit Plans | (867) | (477) |
Unearned Revenue & Advanced Service Fees | (25) | (54) |
Recovered Costs - Litigation Settlement | (6,027) | |
Other Assets and Liabilities | (900) | (1,161) |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 6,652 | 15,970 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Utility Plant Expenditures, Including AFUDC of $74 in 2024, $367 in 2023 | (14,389) | (24,515) |
NET CASH USED IN INVESTING ACTIVITIES | (14,389) | (24,515) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Redemption of Long-term Debt | (1,539) | (1,553) |
Proceeds from Issuance of Long-term Debt | 425 | 40,972 |
Net Short-term Bank Borrowings (Payments) | 15,250 | (27,000) |
Deferred Debt Issuance Expense | (49) | |
Payment of Grantee Withholding Taxes in Exchange for Restricted Stock | (868) | |
Proceeds from Issuance of Common Stock | 252 | 2,342 |
Payment of Common Dividends | (5,738) | (5,513) |
Payment of Preferred Dividends | (30) | (30) |
Construction Advances and Contributions-Net | 450 | 410 |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 8,202 | 9,579 |
NET CHANGES IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 465 | 1,034 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF PERIOD | 2,390 | 3,828 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD | 2,855 | 4,862 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITY: | ||
Utility Plant received as Construction Advances and Contributions | 2,143 | 2,234 |
Cash Paid During the 3 Months for: | ||
Interest | 3,943 | 2,812 |
Interest Capitalized | $ 74 | $ 367 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Cash Flows [Abstract] | ||
Utility Plant Expenditures, Including AFUDC | $ 74 | $ 367 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CAPITAL STOCK AND LONG-TERM DEBT - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Common Stock, No Par Value | ||
Shares Authorized - 40,000 | ||
Shares Outstanding - 2024 - 17,814; 2023 - 17,821 | 246,551 | 246,764 |
Retained Earnings | 181,141 | 176,227 |
TOTAL COMMON EQUITY | 427,692 | 422,991 |
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 | 363,622 | 364,736 |
Add: Premium on Issuance of Long-term Debt | 6,481 | 6,529 |
Less: Unamortized Debt Expense | (5,312) | (5,372) |
Less: Current Portion of Long-term Debt | (7,831) | (7,740) |
TOTAL LONG-TERM DEBT | 356,960 | 358,153 |
First Mortgage Bonds | ||
Long-term Debt: | ||
SUBTOTAL LONG-TERM DEBT | 277,619 | 278,374 |
Amortizing Secured Notes | ||
Long-term Debt: | ||
SUBTOTAL LONG-TERM DEBT | 69,049 | 69,724 |
State Revolving Trust Notes | ||
Long-term Debt: | ||
SUBTOTAL LONG-TERM DEBT | 16,954 | 16,638 |
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 (Parentheticals) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Common stock, shares authorized | 40,000 | 40,000 |
Shares Outstanding | 17,814 | 17,821 |
Preferred stock, shares authorized (in Dollars) | $ 120 | $ 120 |
Preferred stock, shares outstanding | 20 | 20 |
First Mortgage Bonds due 2023-2059 | ||
Long term debt maturity period | 2024-2059 | |
Amortizing Secured Notes due 2028-2046 | ||
Long term debt maturity period | 2028-2046 | |
State Revolving Trust Notes due 2025-2044 | ||
Long term debt maturity period | 2025-2044 | |
Minimum | First Mortgage Bonds due 2023-2059 | ||
Interest rate | 0% | |
Minimum | Amortizing Secured Notes due 2028-2046 | ||
Interest rate | 3.94% | |
Minimum | State Revolving Trust Notes due 2025-2044 | ||
Interest rate | 2% | |
Maximum | First Mortgage Bonds due 2023-2059 | ||
Interest rate | 5.50% | |
Maximum | Amortizing Secured Notes due 2028-2046 | ||
Interest rate | 7.05% | |
Maximum | State Revolving Trust Notes due 2025-2044 | ||
Interest rate | 4.03% | |
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 $4.75 Series | ||
Preferred stock, shares outstanding | 10 | 10 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Common Stock | Retained Earnings | Total |
Balance at Dec. 31, 2022 | $ 233,054 | $ 167,274 | $ 400,328 |
Balance (in Shares) at Dec. 31, 2022 | 17,642,000 | ||
Net Income | 5,868 | 5,868 | |
Dividend Reinvestment & Common Stock Purchase Plan | $ 2,342 | 2,342 | |
Dividend Reinvestment & Common Stock Purchase Plan (in Shares) | 29,000 | ||
Restricted Stock Award - Net - Employees | $ 360 | 360 | |
Cash Dividends on Common Stock | (5,513) | (5,513) | |
Cash Dividends on Preferred Stock | (30) | (30) | |
Balance at Mar. 31, 2023 | $ 235,756 | 167,599 | 403,355 |
Balance (in Shares) at Mar. 31, 2023 | 17,671,000 | ||
Balance at Dec. 31, 2023 | $ 246,764 | 176,227 | $ 422,991 |
Balance (in Shares) at Dec. 31, 2023 | 17,821,000 | 17,821,000 | |
Net Income | 10,682 | $ 10,682 | |
Dividend Reinvestment & Common Stock Purchase Plan | $ 252 | 252 | |
Dividend Reinvestment & Common Stock Purchase Plan (in Shares) | 5,000 | ||
Restricted Stock Award - Net - Employees | $ (465) | (465) | |
Restricted Stock Award - Net - Employees (in Shares) | (12,000) | ||
Cash Dividends on Common Stock | (5,738) | (5,738) | |
Cash Dividends on Preferred Stock | (30) | (30) | |
Balance at Mar. 31, 2024 | $ 246,551 | $ 181,141 | $ 427,692 |
Balance (in Shares) at Mar. 31, 2024 | 17,814,000 | 17,814,000 |
CONDENSED CONSOLIDATED STATEM_7
CONDENSED CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDERS' EQUITY (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Common Stock | ||
Cash dividends, per share | $ 0.325 | $ 0.3125 |
Basis of Presentation and Recen
Basis of Presentation and Recent Developments | 3 Months Ended |
Mar. 31, 2024 | |
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 2023 Annual Report on Form 10-K (the 2023 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 March 31, 2024, the results of operations for the three month periods ended March 31, 2024 and 2023 and cash flows for the three month periods ended March 31, 2024 and 2023. Information included in the Condensed Consolidated Balance Sheet as of December 31, 2023, has been derived from the Company’s December 31, 2023 audited financial statements included in the 2023 Form 10-K. Recent Developments United States Environmental Protection Agency (USEPA) Issues Final Perfluoroalkyl Substances (PFAS) Regulations Beginning in April 2029, water systems that have Regulated PFAS in drinking water which exceeds one or more of these MCLs must take action to reduce levels of these PFAS compounds in their drinking water and must provide notification to the public of the violation. In anticipation of these new USEPA standards, in 2023, the Company began implementing its strategy to meet these lower MCLs for Regulated PFAS and is currently performing preliminary engineering studies to ensure that effective PFAS treatment approaches are implemented. 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 | 3 Months Ended |
Mar. 31, 2024 | |
Rate and Regulatory Matters [Abstract] | |
Rate and Regulatory Matters | Note 2 Rate and Regulatory Matters Middlesex The Middlesex Lead Service Line Replacement (LSLR) Plan, which was approved by the NJBPU in January 2024, has commenced and Middlesex expects to submit a customer surcharge filing with the NJBPU in July 2024 to recover costs incurred replacing Middlesex customer-owned lead service lines. The surcharge is for costs to be incurred through June 2024 and is required to be reset every six months over the life of the LSLR Plan. The current estimates for replacement of Middlesex and Middlesex customer-owned lead service lines under the LSLR Plan are approximately $46 million to $77 million over a nine-year period. Cost recovery for replacing Company-owned lead service lines are recoverable through traditional base rate case filings. As allowed under its NJBPU approved Distribution System Improvement Charge (DSIC) Foundation Filing, in April 2024, Middlesex filed a petition with the NJBPU, seeking to establish a DSIC tariff rate that would result in $0.5 million of annual revenues. The tariff rate, if approved, would apply to General Service customers and would be based on meter size. We cannot predict when and whether the NJBPU will ultimately approve, deny, or reduce the amount of the request. Tidewater - 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 (US District Court) to address the issue of whether the PAPUC’s Order violated Middlesex’s rights under the United States Constitution. On January 18, 2024, the US District Court issued a decision dismissing Middlesex’s complaint without addressing Middlesex’s claims on the merits. On January 31, 2024, Middlesex filed a Notice of Appeal of the US District Court’s decision with the United States Court of Appeals for the Third Circuit (Third Circuit Court). The Third Circuit Court has issued a briefing schedule that will extend into July 2024 and it is expected that oral arguments will be scheduled before a three-judge panel of the Third Circuit Court following the completion of the briefing schedule. The financial results, total assets and financial obligations of Twin Lakes are not material to Middlesex. |
Capitalization
Capitalization | 3 Months Ended |
Mar. 31, 2024 | |
Capitalization [Abstract] | |
Capitalization | Note 3 – Capitalization Common Stock During the three months ended March 31, 2024 and 2023, there were 4,775 common shares (approximately $0.3 million) and 29,810 common shares (approximately $2.3 million) respectively, issued under the Middlesex Water Company Investment Plan. Middlesex has 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. Long-term Debt – Middlesex has 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. 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. Under the Delaware SRF program, borrowers 1) enter into a long-term note agreement for a term not to exceed twenty years, 2) submit requisitions for cost reimbursements during the construction period for up to two years after the agreement is executed and 3) as the proceeds are received from the requisitions, borrowers record a corresponding debt obligation amount. In April 2024, the DEPSC approved four Tidewater Delaware SRF loans totaling $6.6 million. These loans are for the construction, relocation, improvement, and/or interconnection of transmission mains and construction of a water treatment facility. Tidewater expects to close on these loans in the 2 nd Separately, Tidewater has three active construction projects funded by prior year Delaware SRF loans totaling $13.3 million with remaining availability of funds for borrowing. These loans are for the construction of a one million gallon elevated storage tank and construction, relocation, improvement, and/or interconnection of transmission mains. Tidewater has drawn a total of $9.7 million through March 31, 2024 and expects that the requisitions will continue through mid-2025. 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 First Mortgage Bonds (FMBs) and SRF Bonds (collectively, the Bonds) issued by Middlesex is based on quoted market prices for similar 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) March 31, 2024 December 31, 2023 Carrying Fair Carrying Fair Amount Value Amount Value FMBs $ 132,619 $ 129,092 $ 133,374 $ 131,745 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 $231.0 million and $231.3 million at March 31, 2024 and December 31, 2023, respectively. Customer advances for construction have carrying amounts of $21.1 million and $21.3 million at March 31, 2024 and December 31, 2023, 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 | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 2023 Basic: Income Shares Income Shares Net Income $ 10,682 17,819 $ 5,868 17,652 Preferred Dividend (30 ) (30 ) Earnings Applicable to Common Stock $ 10,652 17,819 $ 5,838 17,652 Basic EPS $ 0.60 $ 0.33 Diluted: Earnings Applicable to Common Stock $ 10,652 17,819 $ 5,838 17,652 $7.00 Series Preferred Dividend 17 115 17 115 Adjusted Earnings Applicable to Common Stock $ 10,669 17,934 $ 5,855 17,767 Diluted EPS $ 0.59 $ 0.33 |
Business Segment Data
Business Segment Data | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, Operations by Segments: 2024 2023 Revenues: Regulated $ 37,465 $ 34,953 Non – Regulated 3,204 3,342 Inter-segment Elimination (145 ) (139 ) Consolidated Revenues $ 40,524 $ 38,156 Operating Income: Regulated $ 8,999 $ 6,715 Non – Regulated 866 775 Consolidated Operating Income $ 9,865 $ 7,490 Net Income: Regulated $ 10,049 $ 5,324 Non – Regulated 633 544 Consolidated Net Income $ 10,682 $ 5,868 Capital Expenditures: Regulated $ 14,376 $ 24,465 Non – Regulated 13 50 Total Capital Expenditures $ 14,389 $ 24,515 As of As of March 31, 2024 December 31, 2023 Assets: Regulated $ 1,247,041 $ 1,235,549 Non – Regulated 8,264 8,068 Inter-segment Elimination (5,200 ) (7,565 ) Consolidated Assets $ 1,250,105 $ 1,236,052 |
Short-Term Borrowings
Short-Term Borrowings | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 Outstanding Available Maximum Credit Type Renewal Date Bank of America $ — $ 60.0 $ 60.0 Uncommitted January 24, 2025 PNC Bank 51.0 $ 17.0 68.0 Committed January 31, 2026 CoBank, ACB 7.0 5.0 12.0 Committed May 20, 2026 $ 58.0 $ 82.0 $ 140.0 The interest rates are set for borrowings under the Bank of America and PNC Bank lines of credit using the Secured Overnight Financing Rate (SOFR) and then adding a specific financial institution credit spread. The interest rate for borrowings under the CoBank, ACB (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 March 31, 2024 under these credit lines is 6.46%. The weighted average daily amounts of borrowings outstanding under these credit lines and the weighted average interest rates on those amounts were as follows: Three Months Ended March 31, 2024 2023 Average Daily Amounts Outstanding $ 49,992 $ 54,561 Weighted Average Interest Rates 6.42 % 5.52 % All borrowings outstanding under the lines of credit as of March 31, 2024 mature daily and are currently being rolled over on a daily basis. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 3 Months Ended |
Mar. 31, 2024 | |
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, 2048. This agreement with the NJWSA provides for an average purchase of 27 million gallons a day (mgd). with a peak up to 47.0 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 also has an agreement with a non-affiliated NJBPU-regulated water utility for the purchase of treated water. This agreement, which expires February 27, 2026, provides for the minimum purchase of 3.0 mgd of treated water with provisions for additional purchases if needed. Tidewater contracts with the City of Dover, Delaware to purchase treated water of up to 60.0 million gallons annually. Purchased water costs are shown below: (In Thousands) Three Months Ended March 31, 2024 2023 Treated $ 909 $ 1,383 Untreated 850 802 Total Costs $ 1,759 $ 2,185 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 March 31, 2024 and 2023, respectively. Information related to operating lease ROU assets and lease liabilities is as follows: (In Millions) As of March 31, 2024 December 31, 2023 ROU Asset at Lease Inception $ 7.3 $ 7.3 Accumulated Amortization (4.3 ) (4.1 ) Current ROU Asset $ 3.0 $ 3.2 The Company’s future minimum operating lease commitments as of March 31, 2024 are as follows: (In Millions) 2024 $ 0.6 2025 0.8 2026 0.9 2027 0.9 2028 0.9 Thereafter 0.9 Total Lease Payments $ 5.0 Imputed Interest (1.5 ) Present Value of Lease Payments 3.5 Less Current Portion* (0.6 ) Non-Current Lease Liability $ 2.9 *Included in Other Current Liabilities Construction – The Company expects to spend approximately $78 million for its construction program in 2024. The Company has entered into several construction contracts that, in the aggregate, obligate expenditure of an estimated $14 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. Middlesex and 3M agreed to enter into a joint mediation on these lawsuits and their ultimate resolution is not known at this time. For further information on the 3M Settlement Agreement, see Note 2, Rate and Regulatory Matters, Middlesex 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 | 3 Months Ended |
Mar. 31, 2024 | |
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 three month periods ended March 31, 2024 and 2023, the Company did not make cash contributions to the Pension Plan. The Company expects to make cash contributions of approximately $0.9 million over the remainder of the current year. 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 periods ended March 31, 2024 and 2023, 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 March 31, 2024 2023 2024 2023 Service Cost $ 318 $ 388 $ 80 $ 98 Interest Cost 1,070 1,067 328 402 Expected Return on Assets (1,580 ) (1,466 ) (846 ) (771 ) Amortization of Unrecognized Losses 38 164 (275 ) (48 ) Net Periodic Benefit Cost (Benefit)* $ (154 ) $ 153 $ (713 ) $ (319 ) *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 | 3 Months Ended |
Mar. 31, 2024 | |
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 credit losses 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 March 31, 2024 2023 Regulated Tariff Sales Residential $ 20,331 $ 19,004 Commercial 5,976 5,379 Industrial 3,133 2,839 Fire Protection 3,292 3,104 Wholesale 4,673 4,553 Non-Regulated Contract Operations 3,088 3,229 Total Revenue from Contracts with Customers $ 40,493 $ 38,108 Other Regulated Revenues 60 74 Other Non-Regulated Revenues 116 113 Inter-segment Elimination (145 ) (139 ) Total Revenue $ 40,524 $ 38,156 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ 10,682 | $ 5,868 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
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 |
Capitalization (Tables)
Capitalization (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Capitalization [Abstract] | |
Schedule of Carrying Amount and Fair Value of the FMBs | The carrying amount and fair value of the FMBs were as follows: (Thousands of Dollars) March 31, 2024 December 31, 2023 Carrying Fair Carrying Fair Amount Value Amount Value FMBs $ 132,619 $ 129,092 $ 133,374 $ 131,745 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | (In Thousands Except per Share Amounts) Three Months Ended March 31, 2024 2023 Basic: Income Shares Income Shares Net Income $ 10,682 17,819 $ 5,868 17,652 Preferred Dividend (30 ) (30 ) Earnings Applicable to Common Stock $ 10,652 17,819 $ 5,838 17,652 Basic EPS $ 0.60 $ 0.33 Diluted: Earnings Applicable to Common Stock $ 10,652 17,819 $ 5,838 17,652 $7.00 Series Preferred Dividend 17 115 17 115 Adjusted Earnings Applicable to Common Stock $ 10,669 17,934 $ 5,855 17,767 Diluted EPS $ 0.59 $ 0.33 |
Business Segment Data (Tables)
Business Segment Data (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Business Segment Data [Abstract] | |
Schedule of Inter-Segment Transactions | 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 March 31, Operations by Segments: 2024 2023 Revenues: Regulated $ 37,465 $ 34,953 Non – Regulated 3,204 3,342 Inter-segment Elimination (145 ) (139 ) Consolidated Revenues $ 40,524 $ 38,156 Operating Income: Regulated $ 8,999 $ 6,715 Non – Regulated 866 775 Consolidated Operating Income $ 9,865 $ 7,490 Net Income: Regulated $ 10,049 $ 5,324 Non – Regulated 633 544 Consolidated Net Income $ 10,682 $ 5,868 Capital Expenditures: Regulated $ 14,376 $ 24,465 Non – Regulated 13 50 Total Capital Expenditures $ 14,389 $ 24,515 As of As of March 31, 2024 December 31, 2023 Assets: Regulated $ 1,247,041 $ 1,235,549 Non – Regulated 8,264 8,068 Inter-segment Elimination (5,200 ) (7,565 ) Consolidated Assets $ 1,250,105 $ 1,236,052 |
Short-Term Borrowings (Tables)
Short-Term Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Short-term Borrowings [Abstract] | |
Schedule of Lines of Credit | The Company maintains lines of credit aggregating $140.0 million. (Millions) As of March 31, 2024 Outstanding Available Maximum Credit Type Renewal Date Bank of America $ — $ 60.0 $ 60.0 Uncommitted January 24, 2025 PNC Bank 51.0 $ 17.0 68.0 Committed January 31, 2026 CoBank, ACB 7.0 5.0 12.0 Committed May 20, 2026 $ 58.0 $ 82.0 $ 140.0 |
Schedule of Credit Lines and the Weighted Average Interest Rates | The weighted average daily amounts of borrowings outstanding under these credit lines and the weighted average interest rates on those amounts were as follows: Three Months Ended March 31, 2024 2023 Average Daily Amounts Outstanding $ 49,992 $ 54,561 Weighted Average Interest Rates 6.42 % 5.52 % |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingent Liabilities [Abstract] | |
Schedule of Purchased Water Costs | Purchased water costs are shown below: (In Thousands) Three Months Ended March 31, 2024 2023 Treated $ 909 $ 1,383 Untreated 850 802 Total Costs $ 1,759 $ 2,185 |
Schedule of Operating Lease ROU Assets | Information related to operating lease ROU assets and lease liabilities is as follows: (In Millions) As of March 31, 2024 December 31, 2023 ROU Asset at Lease Inception $ 7.3 $ 7.3 Accumulated Amortization (4.3 ) (4.1 ) Current ROU Asset $ 3.0 $ 3.2 |
Schedule of Future Minimum Operating Lease Commitments | The Company’s future minimum operating lease commitments as of March 31, 2024 are as follows: (In Millions) 2024 $ 0.6 2025 0.8 2026 0.9 2027 0.9 2028 0.9 Thereafter 0.9 Total Lease Payments $ 5.0 Imputed Interest (1.5 ) Present Value of Lease Payments 3.5 Less Current Portion* (0.6 ) Non-Current Lease Liability $ 2.9 *Included in Other Current Liabilities |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 2023 2024 2023 Service Cost $ 318 $ 388 $ 80 $ 98 Interest Cost 1,070 1,067 328 402 Expected Return on Assets (1,580 ) (1,466 ) (846 ) (771 ) Amortization of Unrecognized Losses 38 164 (275 ) (48 ) Net Periodic Benefit Cost (Benefit)* $ (154 ) $ 153 $ (713 ) $ (319 ) *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) | 3 Months Ended |
Mar. 31, 2024 | |
Revenue Recognition from Contracts with Customers [Abstract] | |
Schedule of Operating Revenues | The Company’s operating revenues are comprised of the following: (In Thousands) Three Months Ended March 31, 2024 2023 Regulated Tariff Sales Residential $ 20,331 $ 19,004 Commercial 5,976 5,379 Industrial 3,133 2,839 Fire Protection 3,292 3,104 Wholesale 4,673 4,553 Non-Regulated Contract Operations 3,088 3,229 Total Revenue from Contracts with Customers $ 40,493 $ 38,108 Other Regulated Revenues 60 74 Other Non-Regulated Revenues 116 113 Inter-segment Elimination (145 ) (139 ) Total Revenue $ 40,524 $ 38,156 |
Rate and Regulatory Matters (De
Rate and Regulatory Matters (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Apr. 30, 2024 | Mar. 01, 2024 | Jan. 01, 2024 | Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Sep. 30, 2022 | Nov. 30, 2021 | |
Rate and Regulatory Matters [Line Items] | ||||||||
Approved increase in annual operating revenues | $ 500 | |||||||
Base rate amount | $ 563,100 | |||||||
Return on equity | 9.60% | |||||||
Reclassification from regulatory liabilities | $ 172,004 | $ 226,725 | ||||||
Depreciation | 5,396 | $ 5,986 | ||||||
Carrying costs | 3,200 | |||||||
Prior year costs | 1,400 | |||||||
DISC rate | 3.71% | |||||||
New Jersey Board of Public Utilities [Member] | ||||||||
Rate and Regulatory Matters [Line Items] | ||||||||
Reclassification from regulatory liabilities | 48,300 | |||||||
Depreciation | 900 | |||||||
Tidewater [Member] | ||||||||
Rate and Regulatory Matters [Line Items] | ||||||||
DISC rate | 7.50% | |||||||
Revenue | $ 1,300 | |||||||
Minimum [Member] | ||||||||
Rate and Regulatory Matters [Line Items] | ||||||||
Deferred income, revenue recognized | 46,000 | |||||||
Maximum [Member] | ||||||||
Rate and Regulatory Matters [Line Items] | ||||||||
Deferred income, revenue recognized | $ 77,000 | |||||||
Middlesex Water [Member] | ||||||||
Rate and Regulatory Matters [Line Items] | ||||||||
Escrow account | $ 1,700 | |||||||
Middlesex Water [Member] | New Jersey Board of Public Utilities [Member] | ||||||||
Rate and Regulatory Matters [Line Items] | ||||||||
Approved increase in annual operating revenues | $ 15,400 | |||||||
Maturity Less than 30 Days [Member] | Middlesex Water Company [Member] | ||||||||
Rate and Regulatory Matters [Line Items] | ||||||||
Escrow account | $ 1,700 |
Capitalization (Details)
Capitalization (Details) - USD ($) shares in Thousands | 3 Months Ended | |||
Apr. 30, 2024 | Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Capitalization [Line Items] | ||||
Issuance of common stock (in Shares) | 4,775 | 29,810 | ||
Shares issued | $ 300,000 | $ 2,300,000 | ||
Shares of common stock | 1,000,000 | |||
Borrowing amount | $ 500,000 | |||
Borrowed loan | 13,300,000 | |||
Carrying instrument amount | 231,000,000 | $ 231,300,000 | ||
Construction carrying amount | 21,100,000 | $ 21,300,000 | ||
Tidewater [Member] | ||||
Capitalization [Line Items] | ||||
Drawn amount | 9,700,000 | |||
New Jersey Infrastructure Bank [Member] | ||||
Capitalization [Line Items] | ||||
Borrowing amount | $ 300,000,000 | |||
Long term securitized loan interest rate | 0% | |||
Tidewater [Member] | Subsequent Event [Member] | ||||
Capitalization [Line Items] | ||||
Loans totaling | $ 6,600,000 |
Capitalization (Details) - Sche
Capitalization (Details) - Schedule of Carrying Amount and Fair Value of the FMBs - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Schedule of Carrying Amount and Fair Value of the FMBs [Abstract] | ||
Carrying Amount | $ 132,619 | $ 133,374 |
Fair Value | $ 129,092 | $ 131,745 |
Earnings Per Share (Details)
Earnings Per Share (Details) | Mar. 31, 2024 $ / shares |
Earnings Per Share [Abstract] | |
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 | |
Mar. 31, 2024 | Mar. 31, 2023 | |
EPS Income [Member] | ||
Earnings Per Share (Details) - Schedule of Earnings Per Share [Line Items] | ||
Net Income | $ 10,682 | $ 5,868 |
Preferred Dividend | (30) | (30) |
Earnings Applicable to Common Stock | $ 10,652 | $ 5,838 |
Basic EPS (in Dollars per share) | $ 0.6 | $ 0.33 |
Diluted: | ||
Earnings Applicable to Common Stock | $ 10,652 | $ 5,838 |
$7.00 Series Preferred Dividend | 17 | 17 |
Adjusted Earnings Applicable to Common Stock | $ 10,669 | $ 5,855 |
Diluted EPS (in Dollars per share) | $ 0.59 | $ 0.33 |
EPS Shares [Member] | ||
Earnings Per Share (Details) - Schedule of Earnings Per Share [Line Items] | ||
Net Income | $ 17,819 | $ 17,652 |
Earnings Applicable to Common Stock | 17,819 | 17,652 |
Diluted: | ||
Earnings Applicable to Common Stock | 17,819 | 17,652 |
$7.00 Series Preferred Dividend | 115 | 115 |
Adjusted Earnings Applicable to Common Stock | $ 17,934 | $ 17,767 |
Earnings Per Share (Details) _2
Earnings Per Share (Details) - Schedule of Earnings Per Share (Parentheticals) - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
EPS Income [Member] | ||
Earnings Per Share (Details) - Schedule of Earnings Per Share (Parentheticals) [Line Items] | ||
Preferred Dividend | $ 7 | $ 7 |
EPS Shares [Member] | ||
Earnings Per Share (Details) - Schedule of Earnings Per Share (Parentheticals) [Line Items] | ||
Preferred Dividend | $ 7 | $ 7 |
Business Segment Data (Details)
Business Segment Data (Details) | 3 Months Ended |
Mar. 31, 2024 Segments | |
Business Segment Data [Abstract] | |
Reportable segment | 2 |
Business Segment Data (Detail_2
Business Segment Data (Details) - Schedule of Inter-Segment Transactions - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Revenues: | |||
Consolidated Revenues | $ 40,524 | $ 38,156 | |
Operating Income: | |||
Consolidated Operating Income | 9,865 | 7,490 | |
Net Income: | |||
Consolidated Net Income | 10,682 | 5,868 | |
Capital Expenditures: | |||
Total Capital Expenditures | 14,389 | 24,515 | |
Assets: | |||
Consolidated Assets | 1,250,105 | $ 1,236,052 | |
Regulated [Member] | |||
Revenues: | |||
Consolidated Revenues | 37,465 | 34,953 | |
Operating Income: | |||
Consolidated Operating Income | 8,999 | 6,715 | |
Net Income: | |||
Consolidated Net Income | 10,049 | 5,324 | |
Capital Expenditures: | |||
Total Capital Expenditures | 14,376 | 24,465 | |
Assets: | |||
Consolidated Assets | 1,247,041 | 1,235,549 | |
Non - Regulated [Member] | |||
Revenues: | |||
Consolidated Revenues | 3,204 | 3,342 | |
Operating Income: | |||
Consolidated Operating Income | 866 | 775 | |
Net Income: | |||
Consolidated Net Income | 633 | 544 | |
Capital Expenditures: | |||
Total Capital Expenditures | 13 | 50 | |
Assets: | |||
Consolidated Assets | 8,264 | 8,068 | |
Inter-segment Elimination [Member] | |||
Revenues: | |||
Consolidated Revenues | (145) | $ (139) | |
Assets: | |||
Consolidated Assets | $ (5,200) | $ (7,565) |
Short-Term Borrowings (Details)
Short-Term Borrowings (Details) $ in Millions | Mar. 31, 2024 USD ($) |
Short-term Borrowings [Line Items] | |
Lines of credit | $ 140 |
CoBank [Member] | |
Short-term Borrowings [Line Items] | |
weighted average interest rate | 6.46% |
Short-Term Borrowings (Detail_2
Short-Term Borrowings (Details) - Schedule of Lines of Credit $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Schedule of Bank Lines of Credit [Line Items] | |
Outstanding | $ 58 |
Available | 82 |
Maximum | 140 |
Bank of America [Member] | |
Schedule of Bank Lines of Credit [Line Items] | |
Outstanding | |
Available | 60 |
Maximum | $ 60 |
Credit Type | Uncommitted |
Renewal Date | Jan. 24, 2025 |
PNC Bank [Member] | |
Schedule of Bank Lines of Credit [Line Items] | |
Outstanding | $ 51 |
Available | 17 |
Maximum | $ 68 |
Credit Type | Committed |
Renewal Date | Jan. 31, 2026 |
CoBank [Member] | |
Schedule of Bank Lines of Credit [Line Items] | |
Outstanding | $ 7 |
Available | 5 |
Maximum | $ 12 |
Credit Type | Committed |
Renewal Date | May 20, 2026 |
Short-Term Borrowings (Detail_3
Short-Term Borrowings (Details) - Schedule of Credit Lines and the Weighted Average Interest Rates - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Schedule of Credit Lines and the Weighted Average Interest Rates [Abstract] | ||
Average Daily Amounts Outstanding | $ 49,992 | $ 54,561 |
Weighted Average Interest Rates | 6.42% | 5.52% |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities (Details) gal in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 USD ($) gal l | Mar. 31, 2023 USD ($) | |
Commitments and Contingent Liabilities [Line Items] | ||
Estimated incremental borrowing rate | 4.03% | |
Rental expenses under operating leases | $ | $ 0.2 | $ 0.2 |
Construction program expenses | $ | 78 | |
Estimated obligation expenditure | $ | $ 14 | |
Water Supply [Member] | ||
Commitments and Contingent Liabilities [Line Items] | ||
Average purchase of gallons | gal | 27 | |
Purchase Commitment [Member] | ||
Commitments and Contingent Liabilities [Line Items] | ||
Purchase commitment expiration date of contract | Nov. 30, 2048 | |
Average purchase of gallons | l | 47 | |
Regulated Water Utility [Member] | ||
Commitments and Contingent Liabilities [Line Items] | ||
Purchase commitment expiration date of contract | Feb. 27, 2026 | |
Average purchase of gallons | l | 3 | |
City of Dover [Member] | ||
Commitments and Contingent Liabilities [Line Items] | ||
Average purchase of gallons | l | 60,000,000 |
Commitments and Contingent Li_4
Commitments and Contingent Liabilities (Details) - Schedule of Purchased Water Costs - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Schedule of Purchased Water Costs [Abstract] | ||
Treated | $ 909 | $ 1,383 |
Untreated | 850 | 802 |
Total Costs | $ 1,759 | $ 2,185 |
Commitments and Contingent Li_5
Commitments and Contingent Liabilities (Details) - Schedule of Operating Lease ROU Assets - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Schedule of Operating Lease ROU Assets [Abstract] | ||
ROU Asset at Lease Inception | $ 7,300 | $ 7,300 |
Accumulated Amortization | (4,300) | (4,100) |
Current ROU Asset | $ 3,027 | $ 3,185 |
Commitments and Contingent Li_6
Commitments and Contingent Liabilities (Details) - Schedule of Future Minimum Operating Lease Commitments $ in Millions | Mar. 31, 2024 USD ($) | |
Schedule of Future Minimum Operating Lease Commitments [Abstract] | ||
2024 | $ 0.6 | |
2025 | 0.8 | |
2026 | 0.9 | |
2027 | 0.9 | |
2028 | 0.9 | |
Thereafter | 0.9 | |
Total Lease Payments | 5 | |
Imputed Interest | (1.5) | |
Present Value of Lease Payments | 3.5 | |
Less Current Portion | (0.6) | [1] |
Non-Current Lease Liability | $ 2.9 | |
[1]Included in Other Current Liabilities |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Employee Benefit Plans [Line Items] | |
Cash contributions | $ 0.9 |
Other Benefits 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 | ||
Mar. 31, 2024 | Mar. 31, 2023 | ||
Pension Benefits [Member] | |||
Schedule of Employee Retirement Benefit Plans [Line Items] | |||
Service Cost | $ 318 | $ 388 | |
Interest Cost | 1,070 | 1,067 | |
Expected Return on Assets | (1,580) | (1,466) | |
Amortization of Unrecognized Losses | 38 | 164 | |
Net Periodic Benefit Cost (Benefit) | [1] | (154) | 153 |
Other Benefits [Member] | |||
Schedule of Employee Retirement Benefit Plans [Line Items] | |||
Service Cost | 80 | 98 | |
Interest Cost | 328 | 402 | |
Expected Return on Assets | (846) | (771) | |
Amortization of Unrecognized Losses | (275) | (48) | |
Net Periodic Benefit Cost (Benefit) | [1] | $ (713) | $ (319) |
[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 Revenues - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Regulated Tariff Sales | ||
Residential | $ 20,331 | $ 19,004 |
Commercial | 5,976 | 5,379 |
Industrial | 3,133 | 2,839 |
Fire Protection | 3,292 | 3,104 |
Wholesale | 4,673 | 4,553 |
Non-Regulated Contract Operations | 3,088 | 3,229 |
Total Revenue from Contracts with Customers | 40,493 | 38,108 |
Other Regulated Revenues | 60 | 74 |
Other Non-Regulated Revenues | 116 | 113 |
Inter-segment Elimination | (145) | (139) |
Total Revenue | $ 40,524 | $ 38,156 |