Middlesex Water Company seeks a $24.9 million rate increase to fund infrastructure improvements and enhance water service reliability.
Quiver AI Summary
Middlesex Water Company has submitted a petition to the New Jersey Board of Public Utilities, seeking a $24.9 million increase in annual revenue to support nearly $100 million in investments aimed at enhancing water quality and meeting environmental regulations. Recent improvements include upgrading treatment facilities, replacing old water mains and fire hydrants, advancing lead elimination initiatives, and implementing new technologies to enhance efficiency and cybersecurity. If approved, the average residential customer would see an increase of approximately $14.13 per month on their water bill. The company emphasizes its commitment to providing safe, reliable water services while addressing climate risks and contaminants through its ongoing infrastructure investments.
Potential Positives
- Middlesex Water Company is seeking a significant annual revenue increase of $24.9 million, which could enhance its financial stability and capacity for future investments.
- The company is implementing advanced technologies, such as Work and Asset Cloud Services, to improve operational efficiency, data management, and cybersecurity, contributing to long-term sustainability.
- The company's proactive measures to replace aging infrastructure, including water mains and fire hydrants, will enhance system reliability and safety, directly benefiting the communities it serves.
- Middlesex Water's commitment to eliminating lead service lines by 2031 demonstrates a strong focus on public health and environmental responsibility, potentially increasing customer trust and loyalty.
Potential Negatives
- The company's request for a $24.9 million annual revenue increase could lead to customer dissatisfaction and potential loss of clientele, particularly in economic conditions where consumers are already facing rising costs.
- Increased scrutiny may arise regarding the “prudent” nature of the $100 million investments, potentially raising questions about past expenditures and operational efficiency.
- The planned increases in water bills, averaging an additional $14.13 per month for residential customers, may be viewed negatively by the community, impacting public perception and customer satisfaction.
FAQ
What is Middlesex Water Company's recent request about?
Middlesex Water Company filed a petition for new rates due to $100 million in investments for water quality improvements and regulatory compliance.
How will the proposed rate increase affect residential customers?
If approved, the average residential customer could see an increase of approximately $14.13 per month on their water bill.
What infrastructure improvements is Middlesex Water Company making?
The company is upgrading treatment facilities, replacing old water mains, hydrants, and enhancing cyber security for better service delivery.
What is the “Knocking Out Lead” initiative?
This initiative aims to eliminate lead and galvanized steel service lines by 2031 to ensure safe drinking water for customers.
Who can be contacted for more information about Middlesex Water Company's plans?
Brian Hague, Vice President of Communications, can be contacted at (732) 638-7584 or via email for media inquiries.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$MSEX Insider Trading Activity
$MSEX insiders have traded $MSEX stock on the open market 3 times in the past 6 months. Of those trades, 0 have been purchases and 3 have been sales.
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$MSEX Hedge Fund Activity
We have seen 89 institutional investors add shares of $MSEX stock to their portfolio, and 116 decrease their positions in their most recent quarter.
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Full Release
ISELIN, N.J., June 30, 2025 (GLOBE NEWSWIRE) -- Middlesex Water Company (NASDAQ: MSEX) (Middlesex or the Company) today filed a petition with the New Jersey Board of Public Utilities (NJBPU) requesting new rates driven by close to $100 million in prudently-incurred investments made to meet water quality and environmental regulations and to continue to provide safe and reliable water service to its customers.
These improvements include:
- Protecting and enhancing the resiliency of the Company’s treatment facilities through the installation of storm surge mitigation methods and the updating of corrosion inhibitors and chlorination systems
- Implementing Work and Asset Cloud Services to improve data management and system scalability, enhance workplace efficiency, bolster the Company’s cyber security profile, and ensure business continuity
- Replacing approximately 12 miles of cast iron water mains with priority given to those with repetitive failures, ensuring system reliability and reducing water loss
- Replacing aging fire hydrants with new units to increase fire protection
- Advancing the Company’s “Knocking Out Lead” initiative to eliminate utility and customer-owned lead and galvanized steel service lines by 2031
- Upgrading water-treatment methods at water purification facilities, improving treatment process to yield improved water quality for our customers
“Middlesex Water Company’s prudent and consistent investments in our water infrastructure underscore our commitment to delivering safe, reliable water services to the communities we serve,” said Nadine Leslie, Middlesex Water Company Chair, President and Chief Executive Officer. “By modernizing our treatment plants, upgrading critical distribution systems, and investing in technological improvements, we are strengthening system resilience against climate risks and emerging contaminants, while continuing to provide our customers with quality service at an affordable rate.”
The Company is seeking a total annual revenue increase of $24.9 million. If the Company’s base rate increase request is approved in its entirety by the NJBPU, the average residential customer using approximately 15,000 gallons of water per quarter would see an increase to the water bill of approximately $14.13 per month or $0.47 per day.
About Middlesex Water Company
Middlesex Water Company (“Middlesex”) is one of the nation’s premier investor-owned water and wastewater utilities. Established in 1897, Middlesex is a trusted provider of life-sustaining services to more than half a million people in New Jersey and Delaware. The company focuses on employee engagement, operational excellence, superior customer experience, investment in infrastructure, and selective and sustainable growth to deliver value to our customers, investors, and the communities we serve.
This release contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, among others, our long-term strategy and expectations, the status of our acquisition program, the impact of our acquisitions, the impact of current and projected rate requests and the impact of our capital program on our environmental compliance. There are important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements including: general economic business conditions, unfavorable weather conditions, the success of certain cost containment initiatives, changes in regulations or regulatory treatment, availability and the cost of capital, the success of growth initiatives and other factors discussed in our filings with the Securities and Exchange Commission.
Media Contact:
Brian Hague
Vice President, Communications and Corporate Affairs
(732) 638-7584
[email protected]
Investor Contact:
Jennifer Ketschke
Director, Treasury and Investor Relations
(732) 638-7549
[email protected]
