Middlesex Water Co (NASDAQ: MSEX)

Middlesex Water Co owns and operates regulated water utility and wastewater systems primarily in New Jersey and Delaware. The company provides water services to approximately 131,000 customers, treating, storing, and distributing water for residential, commercial, industrial, and fire protection purposes. Middlesex Water Co also operates water and wastewater systems under contract on behalf of municipal and private clients. The company's principal executive offices are located in Iselin, New Jersey.

Middlesex Water Co generates revenue through the provision of water and wastewater services. The company's primary products include treated water for various uses and wastewater collection and treatment services. The customer base consists of residential, commercial, industrial, and municipal clients. Revenue is derived from regulated utility operations, where rates are set by state public utility commissions, as well as from contract operations and maintenance services. The company's operating revenues are categorized into residential, commercial, industrial, fire protection, contract sales, and contract operations.

• Middlesex System: This segment provides water services to approximately 61,000 retail customers in eastern Middlesex County, New Jersey. The system includes the Carl J. Olsen Surface Water Treatment Plant (CJO Plant), company-owned wells, and purchased water from a non-affiliated utility. The Middlesex System also provides water treatment and pumping services to the Township of East Brunswick under contract. This segment caters to a mix of residential customers, large industrial concerns, and commercial and light industrial facilities. The Middlesex System produced approximately 67% of the company's 2025 consolidated operating revenues.

• Tidewater System: Together with its wholly-owned subsidiary, Southern Shores, this segment serves approximately 65,000 retail customers in New Castle, Kent, and Sussex Counties, Delaware. The Tidewater System operates 166 wells and augments water production with annual purchases from the City of Dover, Delaware. This segment caters to residential, commercial, and fire protection customers and produced approximately 25% of the company's 2025 consolidated operating revenues.

• Pinelands Water System: This segment provides water services to approximately 2,500 residential customers in Burlington County, New Jersey. The system is not physically interconnected with the Middlesex System and produced approximately 1% of the company's 2025 consolidated operating revenues.

• Pinelands Wastewater System: This segment offers wastewater collection and treatment services to approximately 2,500 residential customers and one municipal wastewater system in Burlington County, New Jersey. The system includes a wastewater treatment plant with a total capacity of 0.5 mgd and produced approximately 1% of the company's 2025 consolidated operating revenues.

• USA-PA: This segment operates the City of Perth Amboy, New Jersey's water and wastewater systems under a ten-year agreement expiring in December 2028. USA-PA is responsible for day-to-day operations, emergency responses, and management of capital projects funded by Perth Amboy. This segment produced approximately 4% of the company's 2025 consolidated operating revenues.

• USA: This segment operates the Borough of Avalon, New Jersey's water utility, sewer utility, and stormwater system under a ten-year operations and maintenance contract expiring in 2032. USA also operates the Borough of Highland Park, New Jersey's water utility and sewer utility under a ten-year operations and maintenance contract expiring in 2030. Additionally, USA offers residential customers in New Jersey and Delaware various water and wastewater-related home maintenance programs through a marketing agreement with HomeServe USA Corp. This segment produced approximately 2% of the company's 2025 consolidated operating revenues.

• White Marsh: This segment operates or maintains water and/or wastewater systems that serve approximately 3,700 service connections under 28 separate contracts, primarily in New Castle, Kent, and Sussex Counties, Delaware. White Marsh also owns two commercial properties leased to Tidewater for its administrative office campus and field operations center. This segment produced approximately 0.5% of the company's 2025 consolidated operating revenues.

Middlesex Water Co operates in a regulated environment, with rates and services overseen by state public utility commissions. The company's business in franchised service areas is substantially free from direct competition for growth with other public utilities, municipalities, and entities. However, its ability to provide contract services is subject to competition from other regulated water utilities and municipalities. The company's competitive advantages include its established infrastructure, regulatory approvals, and long-term contracts with municipal and private clients. Middlesex Water Co is subject to environmental and water quality regulation by various governmental agencies, including the United States Environmental Protection Agency, the New Jersey Department of Environmental Protection, and the Delaware Department of Natural Resources and Environmental Control.

The company's customer base includes residential, commercial, industrial, and municipal clients. Specific customers mentioned in the filing include the City of Rahway, Townships of Edison and Marlboro, the Borough of Highland Park, the Old Bridge Municipal Utilities Authority, the Township of East Brunswick, the City of Dover, Delaware, the Borough of Avalon, New Jersey, and the Borough of Highland Park, New Jersey. Middlesex Water Co serves a diverse range of customers, including large industrial concerns and commercial and light industrial facilities. The company's operations are focused on providing essential water and wastewater services to communities in New Jersey and Delaware.