Middlesex(MSEX) - 2023 Q4 - Annual Report

Financial Projections and Rate Changes - Middlesex's Lead Service Line Replacement (LSLR) Plan is estimated to cost between $46 million and $77 million over a nine-year period[59]. - Middlesex is authorized to recover Distribution System Improvement Charge (DSIC) revenues up to 5% of total revenues, approximately $5.5 million, starting from April 2024[60]. - The approved base water rate increase from a December 2021 settlement is expected to generate an additional $27.7 million in annual operating revenues[62]. - Tidewater implemented a new DSIC rate of 3.71% effective January 1, 2024, projected to generate approximately $1.3 million annually[63]. - Tidewater's base rate reduction of 6.0% resulted in reduced annual revenues of approximately $2.1 million in 2023[64]. - Pinelands Water and Wastewater received a combined $1.0 million increase in annual base rates effective April 15, 2023[67]. Compliance and Construction Updates - The company completed the permanent construction of treatment upgrades at the Park Avenue Plant in June 2023, ensuring compliance with NJDEP PFOA standards[78]. Management Changes - Management announced the appointment of Nadine Leslie as the new President and CEO effective March 1, 2024[86]. Regulatory and Filing Requirements - The company must file for a change in its DSIC rate semi-annually, beginning in April 2024, to recover eligible investments[60]. - The company is required to file a base rate petition before November 2026 as part of the DSIC foundational filing[60]. Risk Management - The company is exposed to market risks associated with interest rates and commodity prices, managing interest rate risk through fixed-rate long-term debt and limiting variable-rate short-term debt exposure[281]. - Approximately $7.8 million of the current portion of existing long-term debt instruments will mature over the next twelve months[281]. - The company mitigates risks associated with commodity price increases through contractual arrangements and the ability to recover price increases through rates[282]. - Credit risk is managed through established credit and collection policies, with a diversified credit portfolio and no significant customer or industry concentrations[283]. - The company's retirement benefit plan assets are exposed to market price variations, impacting retirement benefit plan expenses and funded status[284].