Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 28, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | MIDDLESEX WATER CO | ||
Entity Central Index Key | 66,004 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity a Well-known Seasoned Issuer | No | ||
Entity a Voluntary Filer | No | ||
Entity Reporting Status Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 624,441,708 | ||
Entity Common Stock, Shares Outstanding | 16,351,940 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,017 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||
Operating Revenues | $ 130,775 | $ 132,906 | $ 126,025 |
Operating Expenses: | |||
Operations and Maintenance | 64,668 | 65,534 | 65,167 |
Depreciation | 13,922 | 12,796 | 12,051 |
Other Taxes | 13,565 | 13,944 | 12,967 |
Total Operating Expenses | 92,155 | 92,274 | 90,185 |
Operating Income | 38,620 | 40,632 | 35,840 |
Other Income (Expense): | |||
Allowance for Funds Used During Construction | 702 | 619 | 380 |
Other Income | 123 | 662 | 208 |
Other Expense | (30) | (2,143) | (295) |
Total Other Income (Expense), net | 795 | (862) | 293 |
Interest Charges | 5,506 | 5,293 | 5,554 |
Income before Income Taxes | 33,909 | 34,477 | 30,579 |
Income Taxes | 11,100 | 11,735 | 10,551 |
Net Income | 22,809 | 22,742 | 20,028 |
Preferred Stock Dividend Requirements | 144 | 144 | 144 |
Earnings Applicable to Common Stock | $ 22,665 | $ 22,598 | $ 19,884 |
Earnings per share of Common Stock: | |||
Basic | $ 1.39 | $ 1.39 | $ 1.23 |
Diluted | $ 1.38 | $ 1.38 | $ 1.22 |
Average Number of Common Shares Outstanding : | |||
Basic | 16,330,000 | 16,270,000 | 16,175,000 |
Diluted | 16,486,000 | 16,426,000 | 16,331,000 |
Cash Dividends Paid per Common Share | $ 0.858 | $ 0.808 | $ 0.776 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
UTILITY PLANT: | ||
Water Production | $ 153,844 | $ 146,914 |
Transmission and Distribution | 468,649 | 430,880 |
General | 69,457 | 63,514 |
Construction Work in Progress | 11,562 | 12,196 |
TOTAL | 703,512 | 653,504 |
Less Accumulated Depreciation | 146,272 | 135,728 |
UTILITY PLANT - NET | 557,240 | 517,776 |
CURRENT ASSETS: | ||
Cash and Cash Equivalents | 4,937 | 3,879 |
Accounts Receivable, net | 10,785 | 10,129 |
Unbilled Revenues | 6,999 | 6,590 |
Materials and Supplies (at average cost) | 4,118 | 4,094 |
Prepayments | 2,408 | 2,024 |
TOTAL CURRENT ASSETS | 29,247 | 26,716 |
Preliminary Survey and Investigation Charges | 4,676 | 2,365 |
Regulatory Assets | 58,423 | 60,894 |
Operations Contracts, Developer and Other Receivables | 439 | 1,139 |
Restricted Cash | 1,460 | 439 |
Non-utility Assets - Net | 9,478 | 9,131 |
Federal Income Tax Receivable | 1,408 | |
Other | 177 | 293 |
TOTAL DEFERRED CHARGES AND OTHER ASSETS | 74,653 | 75,669 |
TOTAL ASSETS | 661,140 | 620,161 |
CAPITALIZATION: | ||
Common Stock, No Par Value | 155,120 | 153,045 |
Retained Earnings | 74,055 | 65,392 |
TOTAL COMMON EQUITY | 229,175 | 218,437 |
Preferred Stock | 2,433 | 2,436 |
Long-term Debt | 139,045 | 134,538 |
TOTAL CAPITALIZATION | 370,653 | 355,411 |
CURRENT LIABILITIES: | ||
Current Portion of Long-term Debt | 6,865 | 6,159 |
Notes Payable | 28,000 | 12,000 |
Accounts Payable | 13,929 | 12,343 |
Accrued Taxes | 11,418 | 12,385 |
Accrued Interest | 1,093 | 1,084 |
Unearned Revenues and Advanced Service Fees | 951 | 923 |
Other | 2,281 | 2,162 |
TOTAL CURRENT LIABILITIES | 64,537 | 47,056 |
DEFERRED CREDITS AND OTHER LIABILITIES: | ||
Customer Advances for Construction | 21,423 | 20,846 |
Accumulated Deferred Income Taxes | 43,160 | 72,825 |
Employee Benefit Plans | 36,686 | 36,139 |
Regulatory Liabilities | 43,745 | 11,337 |
Other | 1,315 | 1,443 |
TOTAL DEFERRED CREDITS AND OTHER LIABILITIES | 146,329 | 142,590 |
CONTRIBUTIONS IN AID OF CONSTRUCTION | 79,621 | 75,104 |
TOTAL CAPITALIZATION AND LIABILITIES | $ 661,140 | $ 620,161 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net Income | $ 22,809 | $ 22,742 | $ 20,028 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | |||
Depreciation and Amortization | 14,846 | 13,532 | 13,087 |
Provision for Deferred Income Taxes | 7,944 | 3,553 | 15,753 |
Equity Portion of Allowance For Funds Used During Construction (AFUDC) | (481) | (423) | (228) |
Cash Surrender Value of Life Insurance | (209) | (101) | (76) |
Stock Compensation Expense | 840 | 829 | 633 |
Adoption of Repairs on Tangible Property Regulations Net | 2,680 | ||
Changes in Assets and Liabilities: | |||
Accounts Receivable | (656) | (69) | (48) |
Unbilled Revenues | (409) | (344) | (309) |
Materials & Supplies | (24) | (1,494) | (347) |
Prepayments | (384) | 11 | (46) |
Accounts Payable | 1,586 | 5,818 | 171 |
Accrued Taxes | (967) | 3,259 | 178 |
Accrued Interest | 9 | (20) | (30) |
Employee Benefit Plans | (1,920) | (1,601) | (129) |
Unearned Revenue & Advanced Service Fees | 28 | 43 | 41 |
Other Assets and Liabilities | (169) | 1,336 | (146) |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 42,843 | 47,071 | 51,212 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Utility Plant Expenditures, Including AFUDC of $221 in 2017, $196 in 2016 and $152 in 2015 | (50,301) | (47,375) | (25,773) |
(Receipt) Release of Restricted Cash | (1,021) | 1,390 | |
NET CASH USED IN INVESTING ACTIVITIES | (51,322) | (47,375) | (24,383) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Redemption of Long-term Debt | (6,159) | (5,898) | (6,284) |
Proceeds from Issuance of Long-term Debt | 11,523 | 8,585 | 7,000 |
Net Short-term Bank Borrowings | 16,000 | 9,000 | (16,000) |
Deferred Debt Issuance Expense | (230) | (152) | (65) |
Common Stock Issuance Expense | (22) | ||
Restricted Cash | 744 | ||
Proceeds from Issuance of Common Stock | 1,234 | 1,453 | 1,462 |
Payment of Common Dividends | (14,002) | (13,137) | (12,553) |
Payment of Preferred Dividends | (144) | (144) | (144) |
Construction Advances and Contributions-Net | 1,315 | 1,007 | (171) |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 9,537 | 714 | (26,033) |
NET CHANGES IN CASH AND CASH EQUIVALENTS | 1,058 | 410 | 796 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 3,879 | 3,469 | 2,673 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 4,937 | 3,879 | 3,469 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITY: | |||
Utility Plant received as Construction Advances and Contributions | 3,778 | 1,439 | 2,441 |
Long-term Debt Deobligation | 476 | 466 | |
Cash Paid During the Year for: | |||
Interest | 5,616 | 5,430 | 5,702 |
Interest Capitalized | 221 | 196 | 152 |
Income Taxes | $ 2,754 | $ 5,729 | $ 1,391 |
CONSOLIDATED STATEMENTS OF CAS5
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Cash Flows [Abstract] | |||
Allowance for funds used during construction | $ 221 | $ 196 | $ 152 |
CONSOLIDATED STATEMENTS OF CAPI
CONSOLIDATED STATEMENTS OF CAPITAL STOCK AND LONG-TERM DEBT - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Common Stock, No Par Value | $ 155,120 | $ 153,045 |
Retained Earnings | 74,055 | 65,392 |
TOTAL COMMON EQUITY | 229,175 | 218,437 |
TOTAL PREFERRED STOCK | 2,433 | 2,436 |
SUBTOTAL LONG-TERM DEBT | 147,852 | 142,489 |
Add: Premium on Issuance of Long-term Debt | 1,367 | 1,495 |
Less: Unamortized Debt Expense | (3,309) | (3,287) |
Less: Current Portion of Long-term Debt | (6,865) | (6,159) |
TOTAL LONG-TERM DEBT | 139,045 | 134,538 |
Convertible Preferred Stock $7.00 Series | ||
SUBTOTAL LONG-TERM DEBT | 1,005 | 1,007 |
Convertible Preferred Stock $8.00 Series [Member] | ||
SUBTOTAL LONG-TERM DEBT | 349 | 349 |
Nonredeemable Preferred Stock $7.00 Series | ||
SUBTOTAL LONG-TERM DEBT | 79 | 80 |
Nonredeemable Preferred Stock $4.75 Series [Member] | ||
SUBTOTAL LONG-TERM DEBT | 1,000 | 1,000 |
Amortizing Secured Note, due December 20, 2021 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 1,180 | 1,415 |
Amortizing Secured Note, due May 19, 2028 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 4,375 | 4,795 |
Amortizing Secured Note, due August 25, 2030 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 3,547 | 3,827 |
Amortizing Secured Note, due September 19, 2031 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 3,827 | 4,107 |
State Revolving Trust Note, due December 31, 2022 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 279 | 329 |
State Revolving Trust Note, due May 1, 2025 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 1,851 | 2,062 |
State Revolving Trust Note, due March 1, 2026 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 392 | 431 |
State Revolving Trust Note2 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 427 | 465 |
State Revolving Trust Note, due December 1, 2026 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 553 | 603 |
State Revolving Trust Bond 4.00% to 5.00%, due August 1, 2021 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 162 | 213 |
State Revolving Trust Bond 0.00%, due August 1, 2021 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 128 | 166 |
State Revolving Trust Note, due July 1, 2028 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 256 | 276 |
State Revolving Trust Note, due January 1, 2028 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 84 | 91 |
State Revolving Trust Note, due August 1, 2031 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 962 | 1,015 |
Amortizing Secured Note, due April 20, 2029 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 3,953 | 4,302 |
Amortizing Secured Note 7.05%, due January 20, 2030 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 3,021 | 3,271 |
Amortizing Secured Note 5.69%, due January 20, 2030 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 6,197 | 6,709 |
4.45%, Amortizing Secured Note, due April 20, 2040 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 9,827 | 10,267 |
4.47%, Amortizing Secured Note, due April 20, 2040 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 3,646 | 3,810 |
State Revolving Trust Note, due July 1, 2031 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 2,075 | 2,191 |
State Revolving Trust Note, due February 1, 2036 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 1,115 | 1,115 |
State Revolving Trust Note, due November 30, 2030 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 1,090 | 1,154 |
Construction Loans [Member] | ||
SUBTOTAL LONG-TERM DEBT | 3,874 | 7,470 |
First Mortgage Bonds - Series X [Member] | ||
SUBTOTAL LONG-TERM DEBT | 55 | 107 |
First Mortgage Bonds - Series Y [Member] | ||
SUBTOTAL LONG-TERM DEBT | 61 | 122 |
First Mortgage Bonds - Series Z [Member] | ||
SUBTOTAL LONG-TERM DEBT | 224 | 335 |
First Mortgage Bonds - Series AA [Member] | ||
SUBTOTAL LONG-TERM DEBT | 300 | 440 |
First Mortgage Bonds - Series BB [Member] | ||
SUBTOTAL LONG-TERM DEBT | 482 | 603 |
First Mortgage Bonds - Series CC [Member] | ||
SUBTOTAL LONG-TERM DEBT | 636 | 779 |
First Mortgage Bonds - Series EE [Member] | ||
SUBTOTAL LONG-TERM DEBT | 2,296 | 2,713 |
First Mortgage Bonds - Series FF [Member] | ||
SUBTOTAL LONG-TERM DEBT | 3,495 | 3,690 |
First Mortgage Bonds - Series GG [Member] | ||
SUBTOTAL LONG-TERM DEBT | 813 | 903 |
First Mortgage Bonds - Series HH [Member] | ||
SUBTOTAL LONG-TERM DEBT | 880 | 960 |
First Mortgage Bonds - Series II [Member] | ||
SUBTOTAL LONG-TERM DEBT | 610 | 700 |
First Mortgage Bonds - Series JJ [Member] | ||
SUBTOTAL LONG-TERM DEBT | 750 | 824 |
First Mortgage Bonds - Series KK [Member] | ||
SUBTOTAL LONG-TERM DEBT | 988 | 1,078 |
First Mortgage Bonds - Series LL [Member] | ||
SUBTOTAL LONG-TERM DEBT | 1,095 | 1,175 |
First Mortgage Bonds - Series MM [Member] | ||
SUBTOTAL LONG-TERM DEBT | 1,237 | 1,337 |
First Mortgage Bonds - Series NN [Member] | ||
SUBTOTAL LONG-TERM DEBT | 1,505 | 1,590 |
First Mortgage Bonds - Series OO [Member] | ||
SUBTOTAL LONG-TERM DEBT | 2,107 | 2,258 |
First Mortgage Bonds - Series PP [Member] | ||
SUBTOTAL LONG-TERM DEBT | 740 | 780 |
First Mortgage Bonds - Series QQ [Member] | ||
SUBTOTAL LONG-TERM DEBT | 9,915 | 9,915 |
First Mortgage Bonds - Series RR [Member] | ||
SUBTOTAL LONG-TERM DEBT | 22,500 | 22,500 |
First Mortgage Bonds - Series SS [Member] | ||
SUBTOTAL LONG-TERM DEBT | 23,000 | 23,000 |
First Mortgage Bonds - Series TT [Member] | ||
SUBTOTAL LONG-TERM DEBT | 2,258 | 2,408 |
First Mortgage Bonds - Series UU [Member] | ||
SUBTOTAL LONG-TERM DEBT | 845 | 890 |
First Mortgage Bonds - Series VV [Member] | ||
SUBTOTAL LONG-TERM DEBT | 2,290 | 2,433 |
First Mortgage Bonds - Series WW [Member] | ||
SUBTOTAL LONG-TERM DEBT | 830 | 865 |
First Mortgage Bonds - Series XX [Member] | ||
SUBTOTAL LONG-TERM DEBT | 11,259 | |
First Mortgage Bonds - Series YY [Member] | ||
SUBTOTAL LONG-TERM DEBT | $ 3,860 |
CONSOLIDATED STATEMENTS OF CAP7
CONSOLIDATED STATEMENTS OF CAPITAL STOCK AND LONG-TERM DEBT (Parenthetical) - shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Common Stock, Shares Authorized | 40,000,000 | 40,000,000 |
Common Stock, Shares Outstanding | 16,352,000 | 16,296,000 |
Preferred Stock, Shares Authorized | 126,000 | 126,000 |
Preferred Stock, Shares Outstanding | 24,000 | 24,000 |
Convertible Preferred Stock $7.00 Series | ||
Common Stock, Shares Outstanding | 10,000 | 10,000 |
Convertible Preferred Stock $8.00 Series [Member] | ||
Common Stock, Shares Outstanding | 3,000 | 3,000 |
Nonredeemable Preferred Stock $7.00 Series | ||
Common Stock, Shares Outstanding | 1,000 | 1,000 |
Nonredeemable Preferred Stock $4.75 Series [Member] | ||
Common Stock, Shares Outstanding | 10,000 | 10,000 |
Amortizing Secured Note, due December 20, 2021 [Member] | ||
Due date of debt | Dec. 20, 2021 | |
Interest rate | 8.05% | |
Amortizing Secured Note, due May 19, 2028 [Member] | ||
Due date of debt | May 19, 2028 | |
Interest rate | 6.25% | |
Amortizing Secured Note, due August 25, 2030 [Member] | ||
Due date of debt | Aug. 25, 2030 | |
Interest rate | 6.44% | |
Amortizing Secured Note, due September 19, 2031 [Member] | ||
Due date of debt | Sep. 19, 2031 | |
Interest rate | 6.46% | |
State Revolving Trust Note, due December 31, 2022 [Member] | ||
Due date of debt | Dec. 31, 2022 | |
Interest rate | 4.22% | |
State Revolving Trust Note, due May 1, 2025 [Member] | ||
Due date of debt | May 1, 2025 | |
Interest rate | 3.60% | |
State Revolving Trust Note, due March 1, 2026 [Member] | ||
Due date of debt | Mar. 1, 2026 | |
Interest rate | 3.30% | |
State Revolving Trust Note2 [Member] | ||
Due date of debt | Jan. 25, 2027 | |
Interest rate | 3.49% | |
State Revolving Trust Note, due December 1, 2026 [Member] | ||
Due date of debt | Dec. 1, 2026 | |
Interest rate | 4.03% | |
State Revolving Trust Bond 4.00% to 5.00%, due August 1, 2021 [Member] | ||
Due date of debt | Aug. 1, 2021 | |
State Revolving Trust Bond 4.00% to 5.00%, due August 1, 2021 [Member] | Minimum [Member] | ||
Interest rate | 4.00% | |
State Revolving Trust Bond 4.00% to 5.00%, due August 1, 2021 [Member] | Maximum [Member] | ||
Interest rate | 5.00% | |
State Revolving Trust Bond 0.00%, due August 1, 2021 [Member] | ||
Due date of debt | Aug. 1, 2021 | |
Interest rate | 0.00% | |
State Revolving Trust Note, due July 1, 2028 [Member] | ||
Due date of debt | Jul. 1, 2028 | |
Interest rate | 3.64% | |
State Revolving Trust Note, due January 1, 2028 [Member] | ||
Due date of debt | Jan. 1, 2028 | |
Interest rate | 3.64% | |
State Revolving Trust Note, due August 1, 2031 [Member] | ||
Due date of debt | Aug. 1, 2031 | |
Interest rate | 3.45% | |
Amortizing Secured Note, due April 20, 2029 [Member] | ||
Due date of debt | Apr. 20, 2029 | |
Interest rate | 6.59% | |
Amortizing Secured Note 7.05%, due January 20, 2030 [Member] | ||
Due date of debt | Jan. 20, 2030 | |
Interest rate | 7.05% | |
Amortizing Secured Note 5.69%, due January 20, 2030 [Member] | ||
Due date of debt | Jan. 20, 2030 | |
Interest rate | 5.69% | |
4.45%, Amortizing Secured Note, due April 20, 2040 [Member] | ||
Due date of debt | Apr. 20, 2040 | |
Interest rate | 4.45% | |
4.47%, Amortizing Secured Note, due April 20, 2040 [Member] | ||
Due date of debt | Apr. 20, 2040 | |
Interest rate | 4.47% | |
State Revolving Trust Note, due July 1, 2031 [Member] | ||
Due date of debt | Jul. 1, 2031 | |
Interest rate | 3.75% | |
State Revolving Trust Note, due February 1, 2036 [Member] | ||
Due date of debt | Feb. 1, 2036 | |
Interest rate | 2.00% | |
State Revolving Trust Note, due November 30, 2030 [Member] | ||
Due date of debt | Nov. 30, 2030 | |
Interest rate | 3.75% | |
Construction Loans [Member] | ||
Interest rate | 0.00% | |
First Mortgage Bonds - Series X [Member] | ||
Due date of debt | Aug. 1, 2018 | |
Interest rate | 0.00% | |
First Mortgage Bonds - Series Y [Member] | ||
Due date of debt | Aug. 1, 2018 | |
First Mortgage Bonds - Series Y [Member] | Minimum [Member] | ||
Interest rate | 4.25% | |
First Mortgage Bonds - Series Y [Member] | Maximum [Member] | ||
Interest rate | 4.63% | |
First Mortgage Bonds - Series Z [Member] | ||
Due date of debt | Aug. 1, 2019 | |
Interest rate | 0.00% | |
First Mortgage Bonds - Series AA [Member] | ||
Due date of debt | Aug. 1, 2019 | |
First Mortgage Bonds - Series AA [Member] | Minimum [Member] | ||
Interest rate | 5.25% | |
First Mortgage Bonds - Series AA [Member] | Maximum [Member] | ||
Interest rate | 5.75% | |
First Mortgage Bonds - Series BB [Member] | ||
Due date of debt | Aug. 1, 2021 | |
Interest rate | 0.00% | |
First Mortgage Bonds - Series CC [Member] | ||
Due date of debt | Aug. 1, 2021 | |
First Mortgage Bonds - Series CC [Member] | Minimum [Member] | ||
Interest rate | 4.00% | |
First Mortgage Bonds - Series CC [Member] | Maximum [Member] | ||
Interest rate | 5.00% | |
First Mortgage Bonds - Series EE [Member] | ||
Due date of debt | Aug. 1, 2023 | |
Interest rate | 0.00% | |
First Mortgage Bonds - Series FF [Member] | ||
Due date of debt | Aug. 1, 2024 | |
First Mortgage Bonds - Series FF [Member] | Minimum [Member] | ||
Interest rate | 3.00% | |
First Mortgage Bonds - Series FF [Member] | Maximum [Member] | ||
Interest rate | 5.50% | |
First Mortgage Bonds - Series GG [Member] | ||
Due date of debt | Aug. 1, 2026 | |
Interest rate | 0.00% | |
First Mortgage Bonds - Series HH [Member] | ||
Due date of debt | Aug. 1, 2026 | |
First Mortgage Bonds - Series HH [Member] | Minimum [Member] | ||
Interest rate | 4.00% | |
First Mortgage Bonds - Series HH [Member] | Maximum [Member] | ||
Interest rate | 5.00% | |
First Mortgage Bonds - Series II [Member] | ||
Due date of debt | Aug. 1, 2024 | |
Interest rate | 0.00% | |
First Mortgage Bonds - Series JJ [Member] | ||
Due date of debt | Aug. 1, 2027 | |
First Mortgage Bonds - Series JJ [Member] | Minimum [Member] | ||
Interest rate | 3.40% | |
First Mortgage Bonds - Series JJ [Member] | Maximum [Member] | ||
Interest rate | 5.00% | |
First Mortgage Bonds - Series KK [Member] | ||
Due date of debt | Aug. 1, 2028 | |
Interest rate | 0.00% | |
First Mortgage Bonds - Series LL [Member] | ||
Due date of debt | Aug. 1, 2028 | |
First Mortgage Bonds - Series LL [Member] | Minimum [Member] | ||
Interest rate | 5.00% | |
First Mortgage Bonds - Series LL [Member] | Maximum [Member] | ||
Interest rate | 5.50% | |
First Mortgage Bonds - Series MM [Member] | ||
Due date of debt | Aug. 1, 2030 | |
Interest rate | 0.00% | |
First Mortgage Bonds - Series NN [Member] | ||
Due date of debt | Aug. 1, 2030 | |
First Mortgage Bonds - Series NN [Member] | Minimum [Member] | ||
Interest rate | 3.00% | |
First Mortgage Bonds - Series NN [Member] | Maximum [Member] | ||
Interest rate | 4.375% | |
First Mortgage Bonds - Series OO [Member] | ||
Due date of debt | Aug. 1, 2031 | |
Interest rate | 0.00% | |
First Mortgage Bonds - Series PP [Member] | ||
Due date of debt | Aug. 1, 2031 | |
First Mortgage Bonds - Series PP [Member] | Minimum [Member] | ||
Interest rate | 2.00% | |
First Mortgage Bonds - Series PP [Member] | Maximum [Member] | ||
Interest rate | 5.00% | |
First Mortgage Bonds - Series QQ [Member] | ||
Due date of debt | Oct. 1, 2023 | |
Interest rate | 5.00% | |
First Mortgage Bonds - Series RR [Member] | ||
Due date of debt | Oct. 1, 2038 | |
Interest rate | 3.80% | |
First Mortgage Bonds - Series SS [Member] | ||
Due date of debt | Oct. 1, 2047 | |
Interest rate | 4.25% | |
First Mortgage Bonds - Series TT [Member] | ||
Due date of debt | Aug. 1, 2032 | |
Interest rate | 0.00% | |
First Mortgage Bonds - Series UU [Member] | ||
Due date of debt | Aug. 1, 2032 | |
First Mortgage Bonds - Series UU [Member] | Minimum [Member] | ||
Interest rate | 3.00% | |
First Mortgage Bonds - Series UU [Member] | Maximum [Member] | ||
Interest rate | 3.25% | |
First Mortgage Bonds - Series VV [Member] | ||
Due date of debt | Aug. 1, 2033 | |
Interest rate | 0.00% | |
First Mortgage Bonds - Series WW [Member] | ||
Due date of debt | Aug. 1, 2033 | |
First Mortgage Bonds - Series WW [Member] | Minimum [Member] | ||
Interest rate | 3.00% | |
First Mortgage Bonds - Series WW [Member] | Maximum [Member] | ||
Interest rate | 5.00% | |
First Mortgage Bonds - Series XX [Member] | ||
Due date of debt | Aug. 1, 2047 | |
Interest rate | 0.00% | |
First Mortgage Bonds - Series YY [Member] | ||
Due date of debt | Aug. 1, 2047 | |
First Mortgage Bonds - Series YY [Member] | Minimum [Member] | ||
Interest rate | 3.00% | |
First Mortgage Bonds - Series YY [Member] | Maximum [Member] | ||
Interest rate | 5.00% |
CONSOLIDATED STATEMENTS OF COMM
CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock [Member] | Retained Earnings [Member] | Total |
Balance at Dec. 31, 2014 | $ 148,668 | $ 48,623 | $ 197,291 |
Balance, shares at Dec. 31, 2014 | 16,124,000 | ||
Net Income | 20,028 | 20,028 | |
Dividend Reinvestment & Common Stock Purchase Plan | $ 1,462 | 1,462 | |
Dividend Reinvestment & Common Stock Purchase Plan, shares | 63,000 | ||
Restricted Stock Award, Net - Employees | $ 528 | 528 | |
Restricted Stock Award, Net - Employees, shares | 33,000 | ||
Stock Award - Board Of Directors | $ 105 | 105 | |
Stock Award - Board Of Directors, shares | 5,000 | ||
Cash Dividends on Common Stock | (12,554) | (12,554) | |
Cash Dividends on Preferred Stock | (144) | (144) | |
Common Stock Expenses | (22) | (22) | |
Balance at Dec. 31, 2015 | $ 150,763 | 55,931 | 206,694 |
Balance, shares at Dec. 31, 2015 | 16,225,000 | ||
Net Income | 22,742 | 22,742 | |
Dividend Reinvestment & Common Stock Purchase Plan | $ 1,453 | 1,453 | |
Dividend Reinvestment & Common Stock Purchase Plan, shares | 43,000 | ||
Restricted Stock Award, Net - Employees | $ 682 | 682 | |
Restricted Stock Award, Net - Employees, shares | 24,000 | ||
Stock Award - Board Of Directors | $ 147 | 147 | |
Stock Award - Board Of Directors, shares | 4,000 | ||
Cash Dividends on Common Stock | (13,137) | (13,137) | |
Cash Dividends on Preferred Stock | (144) | (144) | |
Balance at Dec. 31, 2016 | $ 153,045 | 65,392 | 218,437 |
Balance, shares at Dec. 31, 2016 | 16,296,000 | ||
Net Income | 22,809 | 22,809 | |
Dividend Reinvestment & Common Stock Purchase Plan | $ 1,234 | 1,234 | |
Dividend Reinvestment & Common Stock Purchase Plan, shares | 32,000 | ||
Restricted Stock Award, Net - Employees | $ 724 | 724 | |
Restricted Stock Award, Net - Employees, shares | 22,000 | ||
Stock Award - Board Of Directors | $ 147 | 147 | |
Stock Award - Board Of Directors, shares | 4,000 | ||
Shares Forfeited | $ (30) | (30) | |
Shares Forfeited, shares | (2,000) | ||
Cash Dividends on Common Stock | (14,002) | (14,002) | |
Cash Dividends on Preferred Stock | (144) | (144) | |
Balance at Dec. 31, 2017 | $ 155,120 | $ 74,055 | $ 229,175 |
Balance, shares at Dec. 31, 2017 | 16,352,000 |
Organization, Summary of Signif
Organization, Summary of Significant Accounting Policies and Recent Developments | 12 Months Ended |
Dec. 31, 2017 | |
Organization Summary Of Significant Accounting Policies And Recent Developments [Abstract] | |
Organization, Summary of Significant Accounting Policies and Recent Developments | Note 1 – Organization, Summary of Significant Accounting Policies and Recent Developments (a) Organization Middlesex Water Company has operated as a water utility in New Jersey since 1897, in Delaware, through our wholly-owned subsidiary, Tidewater, since 1992 and in Pennsylvania, through our wholly-owned subsidiary, Twin Lakes, since 2009. We are in the business of collecting, treating, distributing and selling water for domestic, commercial, municipal, industrial and fire protection purposes. We also operate New Jersey municipal water, wastewater and storm water systems under contract and provide unregulated water and wastewater services in New Jersey and Delaware through our subsidiaries. Our rates charged to customers for water and wastewater services, the quality of services we provide and certain other matters are regulated in New Jersey, Delaware and Pennsylvania by the New Jersey Board of Public Utilities (NJBPU), Delaware Public Service Commission (DEPSC) and Pennsylvania Public Utilities Commission (PAPUC), respectively. Our USA, USA-PA and White Marsh subsidiaries are not regulated utilities. Certain reclassifications have been made to the prior year financial statements to conform with current period presentation. The reclassifications are immaterial to the overall presentation of our consolidated financial statements. (b) Principles of Consolidation – (c) System of Accounts – (d) Regulatory Accounting Regulated Operations In accordance with ASC 980, Regulated Operations Rate and Regulatory Matters (e) Retirement Benefit Plans The Company’s costs for providing retirement benefits are dependent upon numerous factors, including actual plan experience and assumptions of future experience. Retirement benefit plan obligations and expense are determined based on investment performance, discount rates and various other demographic factors related to the population participating in the Company’s retirement benefit plans, all of which can change significantly in future years. For more information on the Company’s Retirement Benefit Plans, see Note 7 – Employee Benefit Plans (f) Utility Plant – (g) Depreciation – Source of Supply 1.15% - 3.44% Transmission and Distribution (T&D): Pumping 2.00% - 5.39% T&D – Mains 1.10% - 3.13% Water Treatment 1.65% - 7.09% T&D – Services 2.12% - 3.16% General Plant 2.08% - 17.84% T&D – Other 1.61% - 4.63% Wastewater Collection 1.42% - 1.81% Non-regulated fixed assets consist primarily of office buildings, furniture and fixtures, and transportation equipment. These assets are recorded at original cost and depreciation is calculated based on the estimated useful lives, ranging from 3 to 40 years. (h) Preliminary Survey and Investigation (PS&I) Costs – (i) Customers’ Advances for Construction (CAC) – Contributions in Aid of Construction (CIAC) CAC and CIAC are not depreciated in accordance with regulatory requirements. In addition, these amounts reduce the investment base for purposes of setting rates. (j) Allowance for Funds Used During Construction (AFUDC) 2017 2016 2015 Middlesex 6.73% 6.73% 6.72% Tidewater 7.92% 7.92% 7.92% (k) Accounts Receivable In 2011, Middlesex entered into a joint venture agreement that established the legal entity RGRME for the purpose of owning and operating a renewable energy facility at a municipal wastewater treatment plant in New Jersey. Construction was completed and the facility began operating in 2013. This public-private partnership includes the production of electricity from solar panels and biogas to meet the electric power needs of the municipal wastewater treatment plant. A major element of the project’s profitability is the ability to procure, and process, an adequate supply of high quality feedstock material from outside sources to supplement the production of biogas. Such feedstock is in the form of fats, oils, grease and other materials from various commercial operations. During the fourth quarter of 2016, RGRME determined that significant additional investment would need to be made to optimize the liquid waste disposal and biogas electricity generation process. As of December 31, 2017, Middlesex had an investment of $0.2 million of equity capital (included in “ Non-utility Assets – Net Operations Contracts, Developer and Other Receivables, net Other Expense (l) Revenues Southern Shores is an unmetered system. Customers are billed a fixed service charge in advance at the beginning of each month and revenues are recognized as earned. Customers in portions of the TESI system are billed a fixed service charge in arrears. Revenues from White Marsh’s base water and wastewater system operating contracts are fixed, billed monthly and are recorded as earned. White Marsh also provides services in addition to the base services provided under its water and wastewater operating contracts, which are billed and recorded as earned. Revenues from the City of Perth Amboy management contract are comprised of fixed and variable fees. Fixed fees are billed monthly and recorded as earned. Variable fees are recorded upon approval of the amount by the City of Perth Amboy. Revenues from USA’s operations and maintenance contract for the Borough of Avalon, New Jersey (Avalon) water utility, sewer utility and storm water system are fixed for the term of the contract, are billed monthly and recorded as earned. USA also provides services to Avalon in addition to the base services provided under the operation and maintenance contract. These additional services are recorded as earned and billed upon approval of Avalon. (m) Unamortized Debt Expense and Premiums on Long-Term Debt (n) Income Taxes Income Taxes (o) Statements of Cash Flows (p) Restricted Cash (q) Use of Estimates (r) Recent Accounting Pronouncements Consolidation - Debt Issuance Costs Deferred Income Taxes – , Inventory Accounting for Share-Based Payments - Revenue Recognition Recognition and Measurement of Financial Assets and Financial Liabilities Statement of Cash Flows - Restricted Cash - Employee Benefit Plans-Net Periodic Benefit Cost – other components elsewhere in the income statement and outside of income from operations if that subtotal is presented. In addition, the guidance requires entities to disclose the income statement lines that contain the other components if they are not presented on appropriately described separate lines. The guidance is effective January 1, 2018. The Company does not expect that the adoption of this guidance to have a material impact on the Company’s financial statements. Leases - There are no other 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 | 12 Months Ended |
Dec. 31, 2017 | |
Regulated Operations [Abstract] | |
Rate and Regulatory Matters | Note 2 - Rate and Regulatory Matters Rate Matters Middlesex In October 2017, the NJBPU approved Middlesex’s petition to reset its Purchased Water Adjustment Clause (PWAC) tariff rate to recover additional annual costs of $1.2 million, primarily for the purchase of untreated water from the New Jersey Water Supply Authority. A PWAC is a rate mechanism that allows for the recovery of increased purchased water costs between base rate case filings. The PWAC is reset to zero once those increased costs are included in base rates. The reset PWAC tariff rate became effective on November 1, 2017. In August 2015, Middlesex implemented a $5.0 million NJBPU-approved rate increase. The rate increase was needed to recover increased costs and lost customer revenues, as well as a return on invested capital in rate base of $219.0 million, based on a return on equity of 9.75%. Tidewater Pinelands Southern Shores - st Twin Lakes - Regulatory Matters We have recorded certain costs as regulatory assets because we expect full recovery of, or are currently recovering, these costs in the rates we charge customers. These deferred costs have been excluded from rate base and, therefore, we are not earning a return on the unamortized balances. These items are detailed as follows: (Thousands of Dollars) December 31, Remaining Regulatory Assets 2017 2016 Recovery Periods Retirement Benefits $ 43,070 $ 40,603 Various Income Taxes 9,876 15,899 Various Rate Cases, Tank Painting, and Other 5,477 4,392 2-10 years Total $ 58,423 $ 60,894 Retirement benefits include pension and other retirement benefits that have been recorded on the Consolidated Balance Sheet in accordance with the guidance provided in ASC 715 , Compensation – Retirement Benefits. The recovery period for income taxes is dependent upon when the temporary differences between the tax and book treatment of various items reverse. On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the Tax Act) was signed into law making significant changes to the Internal Revenue Code, including a corporate tax rate decrease from 35% to 21% effective for tax years beginning after December 31, 2017. The tariff rates charged to customers in the Company’s regulated companies, which comprise 92% of the Company’s 2017 pre-tax income, include recovery of income taxes at the statutory rate at the time those rates are approved by the respective state public utility commissions that regulate each of our regulated subsidiaries. The Company is currently performing a revaluation of its deferred income tax liabilities to comply with orders issued by the NJBPU and seeking information on the amount of income taxes collected in rates that are not expected to be incurred by the Company and the proposed methodology to adjust rates charged to customers to reflect excess taxes collected and the decreased corporate tax rate. The Company uses composite depreciation rates for its regulated utility assets, which is currently an acceptable method under generally accepted accounting principles and is widely used in the utility industry. Historically, under the composite depreciation method, the anticipated costs of removing assets upon retirement are provided for over the life of those assets as a component of depreciation expense. The Company recovers certain asset retirement costs through rates charged to customers as an approved component of depreciation expense. As of December 31, 2017 and 2016, the Company has approximately $12.2 million and $11.3 million, respectively, of expected costs of removal recovered currently in rates in excess of actual costs incurred as regulatory liabilities. The Company is recovering through customer rates acquisition premiums totaling $0.5 million over the remaining lives of the underlying Utility Plant. These deferred costs have been included in rate base as utility plant and a return is being earned on the unamortized balances during the recovery periods. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 3 – Income Taxes Income tax expense differs from the amount computed by applying the statutory rate on book income subject to tax for the following reasons: (Thousands of Dollars) Years Ended December 31, 2017 2016 2015 Income Tax at Statutory Rate $ 11,868 $ 12,007 $ 10,703 Tax Effect of: Utility Plant Related (1,016 ) (1,059 ) (920 ) State Income Taxes – Net 895 770 745 Tax Act (610 ) — — Employee Benefits (43 ) (5 ) 7 Other 6 22 16 Total Income Tax Expense $ 11,100 $ 11,735 $ 10,551 Income tax expense is comprised of the following: (Thousands of Dollars) Years Ended December 31, 2017 2016 2015 Current: Federal $ 2,090 $ 7,305 $ (15,203 ) State 1,066 877 1,153 Deferred: Federal 7,713 3,325 24,686 State 310 307 (6 ) Investment Tax Credits (79 ) (79 ) (79 ) Total Income Tax Expense $ 11,100 $ 11,735 $ 10,551 Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial purposes and the amounts used for income tax purposes. The components of the net deferred tax liability are as follows: (Thousands of Dollars) December 31, 2017 2016 Utility Plant Related $ 41,259 $ 69,019 Customer Advances (3,749 ) (3,430 ) Employee Benefits 4,903 6,904 Investment Tax Credits (ITC) 675 753 Other 72 (421 ) Total Deferred Tax Liability and ITC $ 43,160 $ 72,825 The staff of the United States Securities and Exchange Commission (SEC) has recognized the complexity of reflecting the impacts of the Tax Act, and on December 22, 2017 issued guidance in Staff Accounting Bulletin 118 (SAB 118) which clarifies accounting for income taxes if information is not yet available or complete and provides for up to a one year period in which to complete the required analyses and accounting. SAB 118 describes three scenarios or buckets associated with a company’s status of accounting for income tax reform: (1) a company is complete with its accounting for certain effects of tax reform, (2) a company is able to determine a reasonable estimate for certain effects of tax reform and records that estimate as a provisional amount, or (3) a company is not able to determine a reasonable estimate and therefore continues to account for income taxes based on the provisions of the tax laws that were in effect immediately prior to the Tax Act being enacted. The Company has made a reasonable estimate for the measurement and accounting of the effects of the Tax Act which have been reflected in the December 31, 2017 financial statements. However, the final impact of the Tax Act may differ from these estimates due to, among other things, changes in the Company’s interpretations and assumptions and additional guidance that may be issued by the IRS, the Company’s rate regulators or the FASB. The re-measurement of deferred income taxes at the new federal tax rate decreased deferred income tax expense by $0.6 million for the year ending December 31, 2017. Additionally, the re-measurement of deferred income taxes decreased accumulated deferred income taxes by $24.2 million as of December 31, 2017. As part of its 2014 Federal income tax return, the Company adopted the final IRS regulations pertaining to the tax deductibility of costs that qualify as repairs on tangible property. The adoption resulted in a net reduction of $17.6 million in taxes previously remitted to the IRS, for which the Company has already sought and received refunds pertaining to tax years 2012 through 2014 in accordance with IRS regulations. Subsequently, the Company’s 2014 federal income tax return was selected for examination by the IRS. Concurrently with the IRS examination, the Company agreed to extend the statutory review period for its 2012 thru 2014 tax years. It is unknown at this time whether the results of this examination will result in any changes to the filed 2014 tax return. While the Company believes that its treatment of qualifying tangible property repair costs is proper, its deductibility could be challenged as part of the current examination by the IRS. Therefore, the Company has recorded a provision against refundable taxes of $2.3 million. It is probable that any net tax benefits that resulted from adopting the regulations will be considered in determining the revenue requirement in the Company’s current rate increase petition (see Note 2 - Rate and Regulatory Matters The statutory review periods for income tax returns for the years prior to 2012 have been closed. In the event that there are interest and penalties associated with income tax adjustments in the current examination and future examinations, these amounts will be reported under interest expense and other expense, respectively. Other than the effects of the provision against refundable taxes discussed above, there are no unrecognized tax benefits resulting from prior period tax positions. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Note 4 - Commitments and Contingent Liabilities Water Supply Middlesex also has an agreement with a non-affiliated regulated water utility for the purchase of treated water. This agreement, which expires February 27, 2021, provides for the minimum purchase of 3.0 mgd of treated water with provisions for additional purchases. Tidewater contracts with the City of Dover, Delaware to purchase treated water of 15.0 million gallons annually. Purchased water costs are shown below: (Millions of Dollars) Years Ended December 31, Purchased Water 2017 2016 2015 Untreated $ 2.8 $ 2.6 $ 2.5 Treated 3.3 3.2 3.1 Total Costs $ 6.1 $ 5.8 $ 5.6 Contract Operations - Guarantees - If requested to perform under the guaranty to the County and, if AWM and NSU, as guarantor to Middlesex, do not fulfill their obligations to indemnify Middlesex against any claims that may arise under the Middlesex guaranty to the County, Middlesex would be required to fulfill the remaining operational commitment of AWM. As of December 31, 2017 and December 31, 2016, the liability recognized in Other Non-Current Liabilities on the balance sheet for the guaranty is approximately $0.1 million. Leases - Year (Millions of Dollars) Annual Maturities 2018 $ 0.7 2019 $ 0.7 2020 $ 0.7 2021 $ 0.7 2022 $ 0.7 Thereafter $ 3.8 Construction Litigation Change in Control Agreements |
Short-term Borrowings
Short-term Borrowings | 12 Months Ended |
Dec. 31, 2017 | |
Short-term Debt [Abstract] | |
Short-term Borrowings | Note 5 – Short-term Borrowings Information regarding the Company’s short-term borrowings for the years ended December 31, 2017 and 2016 is summarized below: (Millions of Dollars) 2017 2016 Established Lines at Year-End $ 92.0 $ 60.0 Maximum Amount Outstanding 28.0 13.1 Average Outstanding 18.6 7.4 Notes Payable at Year-End 28.0 12.0 Weighted Average Interest Rate 2.15 % 1.54 % Weighted Average Interest Rate at Year-End 2.54 % 1.71 % The maturity dates for the Notes Payable as of December 31, 2017 are in January 2018 through March 2018 and are extendable at the discretion of the Company. Interest rates for short-term borrowings are below the prime rate with no requirement for compensating balances. |
Capitalization
Capitalization | 12 Months Ended |
Dec. 31, 2017 | |
CAPITALIZATION: | |
Capitalization | Note 6 - Capitalization All the transactions discussed below related to the issuance of securities were approved by either the NJBPU or DEPSC, except where otherwise noted. Common Stock The Company periodically issues shares of its common stock in connection with its Middlesex Water Company Investment Plan (the Investment Plan), a direct share purchase and sale and dividend reinvestment plan for Middlesex common stock. In July 2015, the Company registered an additional 700,000 common shares for potential issuance under the Investment Plan with the SEC, increasing the number of NJBPU-authorized shares to 3.0 million. The cumulative number of shares issued under the Investment Plan at December 31, 2017 is 2.4 million. For the years ended December 31, 2017, 2016 and 2015, the Company raised approximately $1.2 million, $1.5 million and $1.5 million, respectively, through the issuance of shares under the Investment Plan. The Company issues shares under a restricted stock plan for certain management employees, which is described in Note 7 – Employee Benefit Plans The Company maintains a stock plan for its outside directors (the Outside Director Stock Compensation Plan). For the years ended December 31, 2017, 2016 and 2015, 3,976, 3,976 and 4,795 shares, respectively, of Middlesex common stock were granted and issued to the Company’s outside directors under the Outside Director Stock Compensation Plan and 64,168 shares remain available for future awards. The maximum number of shares authorized for grant under the Outside Director Stock Compensation Plan is 100,000. In the event dividends on the preferred stock are in arrears, no dividends may be declared or paid on the common stock of the Company. Preferred Stock At December 31, 2017 and 2016, there were 0.1 million shares of preferred stock authorized and less than 0.1 million shares of preferred stock outstanding. There were no preferred stock dividends in arrears. The Company may not pay any dividends on its common stock unless full cumulative dividends to the preceding dividend date for all outstanding shares of preferred stock have been paid or set aside for payment. If four or more quarterly dividends are in arrears, the preferred shareholders, as a class, are entitled to elect two members to the Board of Directors in addition to Directors elected by holders of the common stock. In addition, if Middlesex were to liquidate, holders of preferred stock would be paid back the stated value of their preferred shares before any distributions could be made to common stockholders. The conversion feature of the no par $7.00 Series Cumulative and Convertible Preferred Stock allows the security holders to exchange one convertible preferred share for twelve shares of the Company's common stock. In addition, the Company may redeem up to 10% of the outstanding convertible stock in any calendar year at a price equal to the fair value of twelve shares of the Company's common stock for each share of convertible stock redeemed. The conversion feature of the no par $8.00 Series Cumulative and Convertible Preferred Stock allows the security holders to exchange one convertible preferred share for 13.714 shares of the Company's common stock. The preferred shares are convertible into common stock at the election of the security holder or Middlesex. Long-term Debt Subject to regulatory approval, the Company periodically issues long-term debt to fund its investments in utility plant and other assets. To the extent possible, the Company finances qualifying capital projects under State Revolving Fund (SRF) loan programs in New Jersey and Delaware. These government programs provide financing at interest rates that are typically below rates available in the broader financial markets. A portion of the borrowings under the New Jersey SRF is interest-free. 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. The NJIB was formally known as the New Jersey Environmental Infrastructure Trust. The current interest rate on construction loan borrowings is zero percent (0%). 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. The current term of the long-term loans offered through the NJIB is up to thirty years. The current portion of the principal balance having a stated interest rate of zero percent (0%) is 75% with the remaining portion of 25% having a market based interest rate. NJIB generally schedules its long-term debt financings in May and November. Middlesex closed on a $9.5 million NJBPU approved NJIB construction loan in August 2017. The proceeds are being used to fund the RENEW 2017 project. Through December 31, 2017, Middlesex has drawn down $3.9 million and expects to draw down the remaining proceeds during the first quarter of 2018. The NJIB has notified the Company that the RENEW 2017 construction loan is scheduled for the May 2018 long-term debt financing program. In November 2017, Middlesex closed out three of its active NJIB construction loans (booster station upgrade, RENEW 2015 and RENEW 2016 projects) by issuing to the NJIB first mortgage bonds designated as Series XX ($11.3 million) and Series YY ($3.9 million). The interest rate on the Series XX bond will be zero and the interest rate on the Series YY bond range between 3.0% and 5.0%. Through December 31, 2017, Middlesex has drawn down $14.2 million and expects to draw down the remaining proceeds during the first quarter of 2018. The final maturity date for both bonds will be August 1, 2047, with scheduled principal and interest payments over the life of the loans. In February 2016, Tidewater closed on a $1.2 million General Obligation Note loan with the Delaware SRF program to fund the replacement of the water distribution system in a manufactured home community. Tidewater has drawn $1.1 million on this loan and the project is considered complete. The interest rate on the $1.1 million is 2.0% with a final repayment maturity date of February 1, 2036. In 2015, Tidewater completed the drawdown of a $15.0 million long-term debt transaction. The interest rate on $11.0 million of the loan is 4.45%. $4.0 million of the loan was initially set up as a market-based variable interest rate transaction, but which was converted to a fixed rate of 4.47% in January 2017. The proceeds were used to pay down short-term debt and for other general corporate purposes. The final maturity date of all borrowings under this loan agreement is April 2040. Bond Series QQ, RR and SS are term bonds with single maturity dates subsequent to 2022. Principal repayments for all series of the Company’s long-term debt except for Bond Series X, Y, Z, AA, BB and CC extend beyond 2022. The aggregate annual principal repayment obligations for all long-term debt over the next five years are shown below: Year (Millions of Dollars) Annual Maturities 2018 $ 6.9 2019 $ 7.1 2020 $ 6.9 2021 $ 6.9 2022 $ 6.4 The weighted average interest rate on all long-term debt at December 31, 2017 and 2016 was 3.77% and 3.88%, respectively. Except for the Amortizing Secured Notes ($39.6 million), all of the Company’s outstanding long-term debt has been issued through the New Jersey Economic Development Authority ($55.4 million), the NJIB program ($43.8 million) and the Delaware SRF program ($9.1 million). In both 2016 and 2015, the NJIB de-obligated principal payments of $0.5 million on several series of SRF long-term debt. 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 The following table presents the calculation of basic and diluted earnings per share (EPS) for the three years ended December 31, 2017. Basic EPS is computed on the basis of the weighted average number of shares outstanding. Diluted EPS assumes the conversion of both the Convertible Preferred Stock $7.00 Series and $8.00 Series. (In Thousands, Except Per Share Amounts) 2017 2016 2015 Basic: Income Shares Income Shares Income Shares Net Income $ 22,809 16,330 $ 22,742 16,270 $ 20,028 16,175 Preferred Dividend (144 ) (144 ) (144 ) Earnings Applicable to Common Stock $ 22,665 16,330 $ 22,598 16,270 $ 19,884 16,175 Basic EPS $ 1.39 $ 1.39 $ 1.23 Diluted: Earnings Applicable to Common Stock $ 22,665 16,330 $ 22,598 16,270 $ 19,884 16,175 $7.00 Series Dividend 67 115 67 115 67 115 $8.00 Series Dividend 24 41 24 41 24 41 Adjusted Earnings Applicable to Common Stock $ 22,756 16,486 $ 22,689 16,426 $ 19,975 16,331 Diluted EPS $ 1.38 $ 1.38 $ 1.22 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 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 and State Revolving Fund 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 Bonds in the table below are classified as Level 2 measurements. The carrying amount and fair value of the Bonds were as follows: (Thousands of Dollars) At December 31, 2017 2016 Carrying Fair Carrying Fair Amount Value Amount Value Bonds $ 95,322 $ 98,036 $ 82,786 $ 84,821 For other long-term debt issuances for which there is no quoted market price and there is not an active trading market, it was not practicable to estimate their fair value. For details, including carrying value, interest rate and due date on these series of long-term debt, please refer to those series of long-term debt described as “Amortizing Secured Note”, “State Revolving Trust Note” and “Construction Loans” on the Condensed Consolidated Statements of Capital Stock and Long-Term Debt). The carrying amount of these instruments was $52.5 million and $59.7 million at December 31, 2017 and December 31, 2016, respectively. Customer advances for construction have carrying amounts of $21.4 million and $20.8 million at December 31, 2017 and December 31, 2016, 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. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Note 7 - Employee Benefit Plans Pension Benefits The Company’s 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 can participate in a defined contribution profit sharing plan that provides an annual contribution at the discretion of the Company, based upon a percentage of the participants’ annual paid compensation. In order to be eligible for contribution, the eligible employee must be employed by the Company on December 31 st Other Benefits The Company’s Other Benefits Plan covers substantially all of its current retired employees. Employees hired after March 31, 2007 are not eligible to participate in this plan. Coverage includes healthcare and life insurance. Accrued retirement benefit costs are recorded each year. Regulatory Treatment of Over/Underfunded Retirement Obligations Because the Company is subject to regulation in the states in which it operates, it is required to maintain its accounts in accordance with the regulatory authority’s rules and guidelines, which may differ from other authoritative accounting pronouncements. In those instances, the Company follows the guidance of ASC 980, Regulated Operations Regulated Operations Compensation – Retirement Benefits The Company uses a December 31 measurement date for all of its employee benefit plans. The tables below set forth information relating to the Company’s Pension Plan and Other Benefits Plan for 2017 and 2016. ( Thousands of Dollars) Pension Plan Other Benefits Plan December 31, 2017 2016 2017 2016 Change in Projected Benefit Obligation: Beginning Balance $ 78,601 $ 72,542 $ 48,888 $ 46,249 Service Cost 2,399 2,308 1,089 1,099 Interest Cost 3,143 3,046 1,964 1,952 Actuarial Loss 6,203 2,810 3,052 141 Benefits Paid (2,333 ) (2,105 ) (648 ) (553 ) Ending Balance $ 88,013 $ 78,601 $ 54,345 $ 48,888 December 31, 2017 2016 2017 2016 Change in Fair Value of Plan Assets: Beginning Balance $ 59,370 $ 52,931 $ 31,607 $ 29,018 Actual Return on Plan Assets 8,543 4,909 3,521 1,591 Employer Contributions 3,635 3,635 1,603 1,551 Benefits Paid (2,333 ) (2,105 ) (648 ) (553 ) Ending Balance $ 69,215 $ 59,370 $ 36,083 $ 31,607 Funded Status $ (18,798 ) $ (19,231 ) $ (18,262 ) $ (17,281 ) ( Thousands of Dollars) Pension Plan Other Benefits Plan December 31, 2017 2016 2017 2016 Amounts Recognized in the Consolidated Balance Sheets consist of : Current Liability 374 373 — — Noncurrent Liability 18,424 18,858 18,262 17,281 Net Liability Recognized $ 18,798 $ 19,231 $ 18,262 $ 17,281 (Thousands of Dollars) Pension Plan Other Benefits Plan Years Ended December 31, 2017 2016 2015 2017 2016 2015 Components of Net Periodic Benefit Cost Service Cost $ 2,399 $ 2,308 $ 2,558 $ 1,089 $ 1,099 $ 1,373 Interest Cost 3,143 3,046 2,894 1,964 1,952 1,921 Expected Return on Plan Assets (4,489 ) (4,014 ) (3,919 ) (2,406 ) (2,213 ) (2,107 ) Amortization of Net Actuarial Loss 1,566 1,426 1,645 1,781 1,773 2,261 Amortization of Prior Service Credit — — — (1,728 ) (1,728 ) (1,728 ) Net Periodic Benefit Cost $ 2,619 $ 2,766 $ 3,178 $ 700 $ 883 $ 1,720 Amounts that are expected to be amortized from Regulatory Assets into Net Periodic Benefit Cost in 2018 are as follows: (Thousands of Dollars) Pension Other Actuarial Loss $ 1,658 $ 1,787 Prior Service Credit — (1,607 ) The discount rate and compensation increase rate for determining our postretirement benefit plans’ benefit obligations and costs as of and for the years ended December 31, 2017, 2016 and 2015, respectively, are as follows: Pension Plan Other Benefits Plan 2017 2016 2015 2017 2016 2015 Weighted Average Assumptions: Expected Return on Plan Assets 7.50% 7.50% 7.50% 7.50% 7.50% 7.50% Discount Rate for: Benefit Obligation 3.53% 4.06% 4.26% 3.53% 4.06% 4.26% Benefit Cost 4.06% 4.26% 3.91% 4.06% 4.26% 3.91% Compensation Increase for: Benefit Obligation 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Benefit Cost 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% The compensation increase assumption for the Other Benefits Plan is attributable to life insurance provided to qualifying employees upon their retirement. The insurance coverage will be determined based on the employee’s base compensation as of their retirement date. The Company utilizes the Society of Actuaries’ mortality table (RP 2014) (Mortality Improvement Scale MP2017 for the 2017 valuation). For the 2017 valuation, costs and obligations for our Other Benefits Plan assumed a 9.0% annual rate of increase in the per capita cost of covered healthcare benefits in 2018 with the annual rate of increase declining 1.0% per year for 2019-2021 and 0.5% per year for 2022-2023, resulting in an annual rate of increase in the per capita cost of covered healthcare benefits of 5% by year 2023. A one-percentage point change in assumed healthcare cost trend rates would have the following effects on the Other Benefits Plan: (Thousands of Dollars) 1 Percentage Point Increase Decrease Effect on Current Year Service and Interest Costs $ 649 $ (499 ) Effect on Projected Benefit Obligation $ 9,412 $ (7,403 ) The following benefit payments, which reflect expected future service, are expected to be paid: (Thousands of Dollars) Year Pension Plan Other Benefits Plan 2018 $ 2,639 $ 1,174 2019 2,653 1,414 2020 2,875 1,614 2021 2,971 1,816 2022 3,360 2,027 2023-2027 23,789 11,674 Totals $ 38,287 $ 19,719 Benefit Plans Assets The allocation of plan assets at December 31, 2017 and 2016 by asset category is as follows: Pension Plan Other Benefits Plan Asset Category 2017 2016 Target 2017 2016 Target Equity Securities 62.8% 59.7% 55% 57.7% 54.1% 43% Debt Securities 33.6% 36.6% 38% 32.9% 43.3% 50% Cash 1.0% 1.0% 2% 9.4% 2.6% 2% Real Estate/Commodities 2.6% 2.7% 5% 0.0% 0.0% 5% Total 100.0% 100.0% 100.0% 100.0% Two outside investment firms each manage a portion of the Pension Plan asset portfolio. One of those investment firms also manages the Other Benefits Plan asset portfolio. Quarterly meetings are held between the Company’s Pension Committee of the Board of Directors and the investment managers to review their performance and asset allocation. If the actual asset allocation is outside the targeted range, the Pension Committee reviews current market conditions and advice provided by the investment managers to determine the appropriateness of rebalancing the portfolio. The objective of the Company is to maximize the long-term return on retirement plan assets, relative to a reasonable level of risk, maintain a diversified investment portfolio and maintain compliance with the Employee Retirement Income Security Act of 1974. The expected long-term rate of return is based on the various asset categories in which plan assets are invested and the current expectations and historical performance for these categories. Equity securities include Middlesex common stock in the amounts of $0.8 million (1.1% of total Pension Plan assets) and $0.8 million (1.4% of total Pension Plan assets) and as of December 31, 2017 and 2016, respectively. Fair Value Measurements Accounting guidance provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described as follows: · Level 1 – Inputs to the valuation methodology are unadjusted quoted market prices for identical assets or liabilities in accessible active markets. · Level 2 – Inputs to the valuation methodology that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. If the asset or liability has a specified contractual term, the Level 2 input must be observable for substantially the full term of the asset or liability. · Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Certain investments in cash and cash equivalents, equity securities, and commodities are valued based on quoted market prices in active markets and are classified as Level 1 investments. Certain investments in cash and cash equivalents, equity securities and fixed income securities are valued using prices received from pricing vendors that utilize observable inputs and are therefore classified as Level 2 investments. The following tables present Middlesex’s Pension Plan assets measured and recorded at fair value within the fair value hierarchy: (Thousands of Dollars) As of December 31, 2017 Level 1 Level 2 Level 3 Total Mutual Funds $ 57,608 $ — $ — $ 57,608 Money Market Funds 677 — — 677 Common Equity Securities 10,930 — — 10,930 Total Investments $ 69,215 $ — $ — $ 69,215 (Thousands of Dollars) As of December 31, 2016 Level 1 Level 2 Level 3 Total Mutual Funds $ 49,439 $ — $ — $ 49,439 Money Market Funds 648 — — 648 Common Equity Securities 9,283 — — 9,283 Total Investments $ 59,370 $ — $ — $ 59,370 The following tables present Middlesex’s Other Benefits Plan assets measured and recorded at fair value within the fair value hierarchy: (Thousands of Dollars) As of December 31, 2017 Level 1 Level 2 Level 3 Total Mutual Funds $ 20,819 $ — $ — $ 20,819 Money Market Funds 3,388 — — 3,388 Preferred Equity Securities 115 — — 115 Agency/US/State/Municipal Debt — 11,761 — 11,761 Total Investments $ 24,322 $ 11,761 $ — $ 36,083 (Thousands of Dollars) As of December 31, 2016 Level 1 Level 2 Level 3 Total Mutual Funds $ 17,096 $ — $ — $ 17,096 Money Markey Funds 826 — — 826 Preferred Equity Securities 108 — — 108 Agency/US/State/Municipal Debt — 13,577 — 13,577 Total Investments $ 18,030 $ 13,577 $ — $ 31,607 Benefit Plans Contributions For the Pension Plan, Middlesex made total cash contributions of $3.6 million in 2017 and expects to make approximately $3.3 million of cash contributions in 2018. For the Other Benefits Plan, Middlesex made total cash contributions of $1.6 million in 2017 and expects to make approximately $1.6 million of cash contributions in 2018. 401(k) Plan The Company maintains a 401(k) defined contribution plan, which covers substantially all employees with more than 1,000 hours of service. Under the terms of the Plan, the Company matches 100% of a participant’s contributions, which do not exceed 1% of a participant’s compensation, plus 50% of a participant’s contributions exceeding 1%, but not more than 6%. The Company’s matching contribution was $0.6 million for each of the years ended December 31, 2017, 2016 and 2015. For those employees hired after March 31, 2007, and still actively employed on December 31, 2017, the Company approved, and will fund, a discretionary contribution of $0.5 million which was based on 5.0% of eligible 2017 compensation. For each of the years ended December 31, 2016 and 2015, the Company made discretionary contributions of $0.4 million for qualifying employees. Stock-Based Compensation The Company has a stock compensation plan for certain management employees (the 2008 Restricted Stock Plan). The Company maintains an escrow account for 0.1 million shares of the Company's common stock for the 2008 Restricted Stock Plan. Shares issued in connection with the 2008 Restricted Stock Plan are subject to forfeiture by the employee in the event of termination of employment within five years of the award other than as a result of normal retirement, death, disability or change in control. The maximum number of shares authorized for grant under the 2008 Restricted Stock Plan is 0.3 million shares, for which less than 50,000 shares remain as unissued shares. The 2008 Restricted Stock Plan terminates on March 31, 2018. The Company recognizes compensation expense at fair value for the 2008 Restricted Stock Plan awards in accordance with ASC 718, Compensation – Stock Compensation The following table presents information on the 2008 Restricted Stock Plan: Shares (thousands) Unearned (thousands) Weighted Balance, January 1, 2015 127 $ 1,483 Granted 33 741 $ 22.65 Vested (12 ) — Forfeited — — Amortization of Compensation Expense — (528 ) Balance, December 31, 2015 148 $ 1,696 Granted 24 750 $ 30.85 Vested (25 ) — Forfeited — — Amortization of Compensation Expense — (682 ) Balance, December 31, 2016 147 $ 1,764 Granted 22 799 $ 36.95 Vested (20 ) — Forfeited (2 ) (54 ) Amortization of Compensation Expense — (724 ) Balance, December 31, 2017 147 $ 1,785 The fair value of vested restricted shares was $0.8 million and $0.9 million as of December 31, 2017 and 2016, respectively. |
Business Segment Data
Business Segment Data | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Business Segment Data | Note 8 – 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, Delaware and Pennsylvania. 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 the states of New Jersey, Delaware and Pennsylvania with respect to utility service 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. (Thousands of Dollars) Years Ended December 31, Operations by Segments: 2017 2016 2015 Revenues: Regulated $ 115,454 $ 118,017 $ 111,247 Non – Regulated 15,912 15,388 15,238 Inter-segment Elimination (591 ) (499 ) (460 ) Consolidated Revenues $ 130,775 $ 132,906 $ 126,025 Operating Income: Regulated $ 35,952 $ 38,201 $ 33,603 Non – Regulated 2,668 2,431 2,237 Consolidated Operating Income $ 38,620 $ 40,632 $ 35,840 Depreciation: Regulated $ 13,732 $ 12,606 $ 11,874 Non – Regulated 190 190 177 Consolidated Depreciation $ 13,922 $ 12,796 $ 12,051 Other Income (Expense), Net: Regulated $ 1,198 $ 779 $ 619 Non – Regulated 64 (1,308 ) 20 Inter-segment Elimination (467 ) (333 ) (346 ) Consolidated Other Income (Expense), Net $ 795 $ (862 ) $ 293 Interest Expense: Regulated $ 5,855 $ 5,293 $ 5,554 Non – Regulated 118 89 89 Inter-segment Elimination (467 ) (89 ) (89 ) Consolidated Interest Charges $ 5,506 $ 5,293 $ 5,554 Income Taxes: Regulated $ 9,848 $ 11,091 $ 9,522 Non – Regulated 1,252 644 1,029 Consolidated Income Taxes $ 11,100 $ 11,735 $ 10,551 Net Income: Regulated $ 21,447 $ 22,353 $ 18,889 Non – Regulated 1,362 389 1,139 Consolidated Net Income $ 22,809 $ 22,742 $ 20,028 Capital Expenditures: Regulated $ 50,078 $ 47,189 $ 25,706 Non – Regulated 223 186 67 Total Capital Expenditures $ 50,301 $ 47,375 $ 25, 773 (Thousands of Dollars) As of December 31, 2017 As of December 31, 2016 Assets: Regulated $ 661,816 $ 619,915 Non – Regulated 7,093 6,245 Inter-segment Elimination (7,769 ) (5,999 ) Consolidated Assets $ 661,140 $ 620,161 |
Quarterly Operating Results - U
Quarterly Operating Results - Unaudited | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Operating Results - Unaudited | Note 9 - Quarterly Operating Results - Unaudited Operating results for each quarter of 2017 and 2016 are as follows: (Thousands of Dollars, Except per Share Data) 2017 1 st 2 nd 3 rd 4 th Total Operating Revenues $ 30, 131 $ 33,014 $ 36,174 $ 31, 456 $ 130,775 Operating Income 7,780 9,563 12,806 8,471 38,620 Net Income 4,441 5,381 7,642 5,345 22,809 Basic Earnings per Share $ 0.27 $ 0.33 $ 0.47 $ 0.32 $ 1.39 Diluted Earnings per Share $ 0.27 $ 0.33 $ 0.46 $ 0.32 $ 1.38 2016 1 st 2 nd 3 rd 4 th Total Operating Revenues $ 30,579 $ 32,725 $ 37,754 $ 31,808 $ 132,906 Operating Income 8,302 10,328 14,156 7,846 40,632 Net Income 4,790 5,919 8,813 3,220 22,742 Basic Earnings per Share $ 0.29 $ 0.36 $ 0.54 $ 0.20 $ 1.39 Diluted Earnings per Share $ 0.29 $ 0.36 $ 0.54 $ 0.19 $ 1.38 The information above, in the opinion of the Company, includes all adjustments consisting only of normal recurring accruals necessary for a fair presentation of such amounts. The business of the Company is subject to seasonal fluctuation with the peak period usually occurring during the summer months. The quarterly earnings per share amounts above may differ from previous filings due to the effects of rounding. |
Organization, Summary of Sign18
Organization, Summary of Significant Accounting Policies and Recent Developments (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Organization Summary Of Significant Accounting Policies And Recent Developments [Abstract] | |
Organization | (a) Organization Middlesex Water Company has operated as a water utility in New Jersey since 1897, in Delaware, through our wholly-owned subsidiary, Tidewater, since 1992 and in Pennsylvania, through our wholly-owned subsidiary, Twin Lakes, since 2009. We are in the business of collecting, treating, distributing and selling water for domestic, commercial, municipal, industrial and fire protection purposes. We also operate New Jersey municipal water, wastewater and storm water systems under contract and provide unregulated water and wastewater services in New Jersey and Delaware through our subsidiaries. Our rates charged to customers for water and wastewater services, the quality of services we provide and certain other matters are regulated in New Jersey, Delaware and Pennsylvania by the New Jersey Board of Public Utilities (NJBPU), Delaware Public Service Commission (DEPSC) and Pennsylvania Public Utilities Commission (PAPUC), respectively. Our USA, USA-PA and White Marsh subsidiaries are not regulated utilities. Certain reclassifications have been made to the prior year financial statements to conform with current period presentation. The reclassifications are immaterial to the overall presentation of our consolidated financial statements. |
Principles of Consolidation | (b) Principles of Consolidation – |
System of Accounts | (c) System of Accounts – |
Regulatory Accounting | (d) Regulatory Accounting Regulated Operations In accordance with ASC 980, Regulated Operations Rate and Regulatory Matters |
Retirement Benefit Plans | (e) Retirement Benefit Plans The Company’s costs for providing retirement benefits are dependent upon numerous factors, including actual plan experience and assumptions of future experience. Retirement benefit plan obligations and expense are determined based on investment performance, discount rates and various other demographic factors related to the population participating in the Company’s retirement benefit plans, all of which can change significantly in future years. For more information on the Company’s Retirement Benefit Plans, see Note 7 – Employee Benefit Plans |
Utility Plant | (f) Utility Plant – |
Depreciation | (g) Depreciation – Source of Supply 1.15% - 3.44% Transmission and Distribution (T&D): Pumping 2.00% - 5.39% T&D – Mains 1.10% - 3.13% Water Treatment 1.65% - 7.09% T&D – Services 2.12% - 3.16% General Plant 2.08% - 17.84% T&D – Other 1.61% - 4.63% Wastewater Collection 1.42% - 1.81% Non-regulated fixed assets consist primarily of office buildings, furniture and fixtures, and transportation equipment. These assets are recorded at original cost and depreciation is calculated based on the estimated useful lives, ranging from 3 to 40 years. |
Preliminary Survey and Investigation (PS&I) Costs | (h) Preliminary Survey and Investigation (PS&I) Costs – |
Customers' Advances for Construction (CAC) | (i) Customers’ Advances for Construction (CAC) – |
Contributions in Aid of Construction (CIAC) | Contributions in Aid of Construction (CIAC) CAC and CIAC are not depreciated in accordance with regulatory requirements. In addition, these amounts reduce the investment base for purposes of setting rates. |
Allowance for Funds Used During Construction (AFUDC) | (j) Allowance for Funds Used During Construction (AFUDC) 2017 2016 2015 Middlesex 6.73% 6.73% 6.72% Tidewater 7.92% 7.92% 7.92% |
Accounts Receivable | (k) Accounts Receivable In 2011, Middlesex entered into a joint venture agreement that established the legal entity RGRME for the purpose of owning and operating a renewable energy facility at a municipal wastewater treatment plant in New Jersey. Construction was completed and the facility began operating in 2013. This public-private partnership includes the production of electricity from solar panels and biogas to meet the electric power needs of the municipal wastewater treatment plant. A major element of the project’s profitability is the ability to procure, and process, an adequate supply of high quality feedstock material from outside sources to supplement the production of biogas. Such feedstock is in the form of fats, oils, grease and other materials from various commercial operations. During the fourth quarter of 2016, RGRME determined that significant additional investment would need to be made to optimize the liquid waste disposal and biogas electricity generation process. As of December 31, 2017, Middlesex had an investment of $0.2 million of equity capital (included in “ Non-utility Assets – Net Operations Contracts, Developer and Other Receivables, net Other Expense |
Revenues | (l) Revenues Southern Shores is an unmetered system. Customers are billed a fixed service charge in advance at the beginning of each month and revenues are recognized as earned. Customers in portions of the TESI system are billed a fixed service charge in arrears. Revenues from White Marsh’s base water and wastewater system operating contracts are fixed, billed monthly and are recorded as earned. White Marsh also provides services in addition to the base services provided under its water and wastewater operating contracts, which are billed and recorded as earned. Revenues from the City of Perth Amboy management contract are comprised of fixed and variable fees. Fixed fees are billed monthly and recorded as earned. Variable fees are recorded upon approval of the amount by the City of Perth Amboy. Revenues from USA’s operations and maintenance contract for the Borough of Avalon, New Jersey (Avalon) water utility, sewer utility and storm water system are fixed for the term of the contract, are billed monthly and recorded as earned. USA also provides services to Avalon in addition to the base services provided under the operation and maintenance contract. These additional services are recorded as earned and billed upon approval of Avalon. |
Unamortized Debt Expense and Premiums on Long-Term Debt | (m) Unamortized Debt Expense and Premiums on Long-Term Debt |
Income Taxes | (n) Income Taxes Income Taxes |
Statements of Cash Flows | (o) Statements of Cash Flows |
Restricted Cash | (p) Restricted Cash |
Use of Estimates | (q) Use of Estimates |
Recent Accounting Pronouncements | (r) Recent Accounting Pronouncements Consolidation - Debt Issuance Costs Deferred Income Taxes – , Inventory Accounting for Share-Based Payments - Revenue Recognition Recognition and Measurement of Financial Assets and Financial Liabilities Statement of Cash Flows - Restricted Cash - Employee Benefit Plans-Net Periodic Benefit Cost – other components elsewhere in the income statement and outside of income from operations if that subtotal is presented. In addition, the guidance requires entities to disclose the income statement lines that contain the other components if they are not presented on appropriately described separate lines. The guidance is effective January 1, 2018. The Company does not expect that the adoption of this guidance to have a material impact on the Company’s financial statements. Leases - There are no other new adopted or proposed accounting guidance that the Company is aware of that could have a material impact on the Company’s financial statements. |
Organization, Summary of Sign19
Organization, Summary of Significant Accounting Policies and Recent Developments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Organization Summary Of Significant Accounting Policies And Recent Developments [Abstract] | |
Range of depreciation rates | The following table sets forth the range of depreciation rates for the major utility plant categories used to calculate depreciation for the years ended December 31, 2017, 2016 and 2015. These rates have been approved by the NJBPU, DEPSC or PAPUC: Source of Supply 1.15% - 3.44% Transmission and Distribution (T&D): Pumping 2.00% - 5.39% T&D – Mains 1.10% - 3.13% Water Treatment 1.65% - 7.09% T&D – Services 2.12% - 3.16% General Plant 2.08% - 17.84% T&D – Other 1.61% - 4.63% Wastewater Collection 1.42% - 1.81% |
Allowance for Funds Used During Construction Rates | The AFUDC rates for the years ended December 31, 2017, 2016 and 2015 for Middlesex and Tidewater are as follows: 2017 2016 2015 Middlesex 6.73% 6.73% 6.72% Tidewater 7.92% 7.92% 7.92% |
Rate and Regulatory Matters (Ta
Rate and Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Regulated Operations [Abstract] | |
Schedule of regulatory assets | We have recorded certain costs as regulatory assets because we expect full recovery of, or are currently recovering, these costs in the rates we charge customers. These deferred costs have been excluded from rate base and, therefore, we are not earning a return on the unamortized balances. These items are detailed as follows: (Thousands of Dollars) December 31, Remaining Regulatory Assets 2017 2016 Recovery Periods Retirement Benefits $ 43,070 $ 40,603 Various Income Taxes 9,876 15,899 Various Rate Cases, Tank Painting, and Other 5,477 4,392 2-10 years Total $ 58,423 $ 60,894 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income tax expense reconciliation | Income tax expense differs from the amount computed by applying the statutory rate on book income subject to tax for the following reasons: (Thousands of Dollars) Years Ended December 31, 2017 2016 2015 Income Tax at Statutory Rate $ 11,868 $ 12,007 $ 10,703 Tax Effect of: Utility Plant Related (1,016 ) (1,059 ) (920 ) State Income Taxes – Net 895 770 745 Tax Act (610 ) — — Employee Benefits (43 ) (5 ) 7 Other 6 22 16 Total Income Tax Expense $ 11,100 $ 11,735 $ 10,551 |
Income tax expense | Income tax expense is comprised of the following: (Thousands of Dollars) Years Ended December 31, 2017 2016 2015 Current: Federal $ 2,090 $ 7,305 $ (15,203 ) State 1,066 877 1,153 Deferred: Federal 7,713 3,325 24,686 State 310 307 (6 ) Investment Tax Credits (79 ) (79 ) (79 ) Total Income Tax Expense $ 11,100 $ 11,735 $ 10,551 |
Deferred tax liability | Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial purposes and the amounts used for income tax purposes. The components of the net deferred tax liability are as follows: (Thousands of Dollars) December 31, 2017 2016 Utility Plant Related $ 41,259 $ 69,019 Customer Advances (3,749 ) (3,430 ) Employee Benefits 4,903 6,904 Investment Tax Credits (ITC) 675 753 Other 72 (421 ) Total Deferred Tax Liability and ITC $ 43,160 $ 72,825 |
Commitments and Contingent Li22
Commitments and Contingent Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of water cost purchased | Purchased water costs are shown below: (Millions of Dollars) Years Ended December 31, Purchased Water 2017 2016 2015 Untreated $ 2.8 $ 2.6 $ 2.5 Treated 3.3 3.2 3.1 Total Costs $ 6.1 $ 5.8 $ 5.6 |
Schedule of future minimum operating lease | The minimum annual future rental commitment under operating leases that have initial or remaining non-cancelable lease terms over the next 5 years and thereafter are as follows: Year (Millions of Dollars) Annual Maturities 2018 $ 0.7 2019 $ 0.7 2020 $ 0.7 2021 $ 0.7 2022 $ 0.7 Thereafter $ 3.8 |
Short-Term Borrowings (Tables)
Short-Term Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Short-term Debt [Abstract] | |
Schedule of information regarding short-term borrowings | Information regarding the Company’s short-term borrowings for the years ended December 31, 2017 and 2016 is summarized below: (Millions of Dollars) 2017 2016 Established Lines at Year-End $ 92.0 $ 60.0 Maximum Amount Outstanding 28.0 13.1 Average Outstanding 18.6 7.4 Notes Payable at Year-End 28.0 12.0 Weighted Average Interest Rate 2.15 % 1.54 % Weighted Average Interest Rate at Year-End 2.54 % 1.71 % |
Capitalization (Tables)
Capitalization (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
CAPITALIZATION: | |
Schedule of maturities of long term debt | The aggregate annual principal repayment obligations for all long-term debt over the next five years are shown below: Year (Millions of Dollars) Annual Maturities 2018 $ 6.9 2019 $ 7.1 2020 $ 6.9 2021 $ 6.9 2022 $ 6.4 |
Schedule of earnings per share | The following table presents the calculation of basic and diluted earnings per share (EPS) for the three years ended December 31, 2017. Basic EPS is computed on the basis of the weighted average number of shares outstanding. Diluted EPS assumes the conversion of both the Convertible Preferred Stock $7.00 Series and $8.00 Series. (In Thousands, Except Per Share Amounts) 2017 2016 2015 Basic: Income Shares Income Shares Income Shares Net Income $ 22,809 16,330 $ 22,742 16,270 $ 20,028 16,175 Preferred Dividend (144 ) (144 ) (144 ) Earnings Applicable to Common Stock $ 22,665 16,330 $ 22,598 16,270 $ 19,884 16,175 Basic EPS $ 1.39 $ 1.39 $ 1.23 Diluted: Earnings Applicable to Common Stock $ 22,665 16,330 $ 22,598 16,270 $ 19,884 16,175 $7.00 Series Dividend 67 115 67 115 67 115 $8.00 Series Dividend 24 41 24 41 24 41 Adjusted Earnings Applicable to Common Stock $ 22,756 16,486 $ 22,689 16,426 $ 19,975 16,331 Diluted EPS $ 1.38 $ 1.38 $ 1.22 |
Schedule of carrying amount and estimated fair value of bonds | 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 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 and State Revolving Fund 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 Bonds in the table below are classified as Level 2 measurements. The carrying amount and fair value of the Bonds were as follows: (Thousands of Dollars) At December 31, 2017 2016 Carrying Fair Carrying Fair Amount Value Amount Value Bonds $ 95,322 $ 98,036 $ 82,786 $ 84,821 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Change in projected benefit obligation and fair value of plan assets | The Company uses a December 31 measurement date for all of its employee benefit plans. The tables below set forth information relating to the Company’s Pension Plan and Other Benefits Plan for 2017 and 2016. ( Thousands of Dollars) Pension Plan Other Benefits Plan December 31, 2017 2016 2017 2016 Change in Projected Benefit Obligation: Beginning Balance $ 78,601 $ 72,542 $ 48,888 $ 46,249 Service Cost 2,399 2,308 1,089 1,099 Interest Cost 3,143 3,046 1,964 1,952 Actuarial Loss 6,203 2,810 3,052 141 Benefits Paid (2,333 ) (2,105 ) (648 ) (553 ) Ending Balance $ 88,013 $ 78,601 $ 54,345 $ 48,888 December 31, 2017 2016 2017 2016 Change in Fair Value of Plan Assets: Beginning Balance $ 59,370 $ 52,931 $ 31,607 $ 29,018 Actual Return on Plan Assets 8,543 4,909 3,521 1,591 Employer Contributions 3,635 3,635 1,603 1,551 Benefits Paid (2,333 ) (2,105 ) (648 ) (553 ) Ending Balance $ 69,215 $ 59,370 $ 36,083 $ 31,607 Funded Status $ (18,798 ) $ (19,231 ) $ (18,262 ) $ (17,281 ) |
Amounts recognized in balance sheet | ( Thousands of Dollars) Pension Plan Other Benefits Plan December 31, 2017 2016 2017 2016 Amounts Recognized in the Consolidated Balance Sheets consist of : Current Liability 374 373 — — Noncurrent Liability 18,424 18,858 18,262 17,281 Net Liability Recognized $ 18,798 $ 19,231 $ 18,262 $ 17,281 |
Components of net benefit cost | (Thousands of Dollars) Pension Plan Other Benefits Plan Years Ended December 31, 2017 2016 2015 2017 2016 2015 Components of Net Periodic Benefit Cost Service Cost $ 2,399 $ 2,308 $ 2,558 $ 1,089 $ 1,099 $ 1,373 Interest Cost 3,143 3,046 2,894 1,964 1,952 1,921 Expected Return on Plan Assets (4,489 ) (4,014 ) (3,919 ) (2,406 ) (2,213 ) (2,107 ) Amortization of Net Actuarial Loss 1,566 1,426 1,645 1,781 1,773 2,261 Amortization of Prior Service Credit — — — (1,728 ) (1,728 ) (1,728 ) Net Periodic Benefit Cost $ 2,619 $ 2,766 $ 3,178 $ 700 $ 883 $ 1,720 |
Amounts expected to be amortized from regulatory assets | Amounts that are expected to be amortized from Regulatory Assets into Net Periodic Benefit Cost in 2018 are as follows: (Thousands of Dollars) Pension Other Actuarial Loss $ 1,658 $ 1,787 Prior Service Credit — (1,607 ) |
Discount and compensation rates | The discount rate and compensation increase rate for determining our postretirement benefit plans’ benefit obligations and costs as of and for the years ended December 31, 2017, 2016 and 2015, respectively, are as follows: Pension Plan Other Benefits Plan 2017 2016 2015 2017 2016 2015 Weighted Average Assumptions: Expected Return on Plan Assets 7.50% 7.50% 7.50% 7.50% 7.50% 7.50% Discount Rate for: Benefit Obligation 3.53% 4.06% 4.26% 3.53% 4.06% 4.26% Benefit Cost 4.06% 4.26% 3.91% 4.06% 4.26% 3.91% Compensation Increase for: Benefit Obligation 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Benefit Cost 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% |
Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | A one-percentage point change in assumed healthcare cost trend rates would have the following effects on the Other Benefits Plan: (Thousands of Dollars) 1 Percentage Point Increase Decrease Effect on Current Year Service and Interest Costs $ 649 $ (499 ) Effect on Projected Benefit Obligation $ 9,412 $ (7,403 ) |
Expected benefit payments | The following benefit payments, which reflect expected future service, are expected to be paid: (Thousands of Dollars) Year Pension Plan Other Benefits Plan 2018 $ 2,639 $ 1,174 2019 2,653 1,414 2020 2,875 1,614 2021 2,971 1,816 2022 3,360 2,027 2023-2027 23,789 11,674 Totals $ 38,287 $ 19,719 |
Allocation of plan assets | The allocation of plan assets at December 31, 2017 and 2016 by asset category is as follows: Pension Plan Other Benefits Plan Asset Category 2017 2016 Target 2017 2016 Target Equity Securities 62.8% 59.7% 55% 57.7% 54.1% 43% Debt Securities 33.6% 36.6% 38% 32.9% 43.3% 50% Cash 1.0% 1.0% 2% 9.4% 2.6% 2% Real Estate/Commodities 2.6% 2.7% 5% 0.0% 0.0% 5% Total 100.0% 100.0% 100.0% 100.0% |
Fair value of plan assets | The following tables present Middlesex’s Pension Plan assets measured and recorded at fair value within the fair value hierarchy: (Thousands of Dollars) As of December 31, 2017 Level 1 Level 2 Level 3 Total Mutual Funds $ 57,608 $ — $ — $ 57,608 Money Market Funds 677 — — 677 Common Equity Securities 10,930 — — 10,930 Total Investments $ 69,215 $ — $ — $ 69,215 (Thousands of Dollars) As of December 31, 2016 Level 1 Level 2 Level 3 Total Mutual Funds $ 49,439 $ — $ — $ 49,439 Money Market Funds 648 — — 648 Common Equity Securities 9,283 — — 9,283 Total Investments $ 59,370 $ — $ — $ 59,370 The following tables present Middlesex’s Other Benefits Plan assets measured and recorded at fair value within the fair value hierarchy: (Thousands of Dollars) As of December 31, 2017 Level 1 Level 2 Level 3 Total Mutual Funds $ 20,819 $ — $ — $ 20,819 Money Market Funds 3,388 — — 3,388 Preferred Equity Securities 115 — — 115 Agency/US/State/Municipal Debt — 11,761 — 11,761 Total Investments $ 24,322 $ 11,761 $ — $ 36,083 (Thousands of Dollars) As of December 31, 2016 Level 1 Level 2 Level 3 Total Mutual Funds $ 17,096 $ — $ — $ 17,096 Money Markey Funds 826 — — 826 Preferred Equity Securities 108 — — 108 Agency/US/State/Municipal Debt — 13,577 — 13,577 Total Investments $ 18,030 $ 13,577 $ — $ 31,607 |
Restricted stock plan | The following table presents information on the 2008 Restricted Stock Plan: Shares (thousands) Unearned (thousands) Weighted Balance, January 1, 2015 127 $ 1,483 Granted 33 741 $ 22.65 Vested (12 ) — Forfeited — — Amortization of Compensation Expense — (528 ) Balance, December 31, 2015 148 $ 1,696 Granted 24 750 $ 30.85 Vested (25 ) — Forfeited — — Amortization of Compensation Expense — (682 ) Balance, December 31, 2016 147 $ 1,764 Granted 22 799 $ 36.95 Vested (20 ) — Forfeited (2 ) (54 ) Amortization of Compensation Expense — (724 ) Balance, December 31, 2017 147 $ 1,785 |
Business Segment Data (Tables)
Business Segment Data (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | (Thousands of Dollars) Years Ended December 31, Operations by Segments: 2017 2016 2015 Revenues: Regulated $ 115,454 $ 118,017 $ 111,247 Non – Regulated 15,912 15,388 15,238 Inter-segment Elimination (591 ) (499 ) (460 ) Consolidated Revenues $ 130,775 $ 132,906 $ 126,025 Operating Income: Regulated $ 35,952 $ 38,201 $ 33,603 Non – Regulated 2,668 2,431 2,237 Consolidated Operating Income $ 38,620 $ 40,632 $ 35,840 Depreciation: Regulated $ 13,732 $ 12,606 $ 11,874 Non – Regulated 190 190 177 Consolidated Depreciation $ 13,922 $ 12,796 $ 12,051 Other Income (Expense), Net: Regulated $ 1,198 $ 779 $ 619 Non – Regulated 64 (1,308 ) 20 Inter-segment Elimination (467 ) (333 ) (346 ) Consolidated Other Income (Expense), Net $ 795 $ (862 ) $ 293 Interest Expense: Regulated $ 5,855 $ 5,293 $ 5,554 Non – Regulated 118 89 89 Inter-segment Elimination (467 ) (89 ) (89 ) Consolidated Interest Charges $ 5,506 $ 5,293 $ 5,554 Income Taxes: Regulated $ 9,848 $ 11,091 $ 9,522 Non – Regulated 1,252 644 1,029 Consolidated Income Taxes $ 11,100 $ 11,735 $ 10,551 Net Income: Regulated $ 21,447 $ 22,353 $ 18,889 Non – Regulated 1,362 389 1,139 Consolidated Net Income $ 22,809 $ 22,742 $ 20,028 Capital Expenditures: Regulated $ 50,078 $ 47,189 $ 25,706 Non – Regulated 223 186 67 Total Capital Expenditures $ 50,301 $ 47,375 $ 25, 773 (Thousands of Dollars) As of December 31, 2017 As of December 31, 2016 Assets: Regulated $ 661,816 $ 619,915 Non – Regulated 7,093 6,245 Inter-segment Elimination (7,769 ) (5,999 ) Consolidated Assets $ 661,140 $ 620,161 |
Quarterly Operating Results -27
Quarterly Operating Results - Unaudited (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly financial information | Operating results for each quarter of 2017 and 2016 are as follows: (Thousands of Dollars, Except per Share Data) 2017 1 st 2 nd 3 rd 4 th Total Operating Revenues $ 30, 131 $ 33,014 $ 36,174 $ 31, 456 $ 130,775 Operating Income 7,780 9,563 12,806 8,471 38,620 Net Income 4,441 5,381 7,642 5,345 22,809 Basic Earnings per Share $ 0.27 $ 0.33 $ 0.47 $ 0.32 $ 1.39 Diluted Earnings per Share $ 0.27 $ 0.33 $ 0.46 $ 0.32 $ 1.38 2016 1 st 2 nd 3 rd 4 th Total Operating Revenues $ 30,579 $ 32,725 $ 37,754 $ 31,808 $ 132,906 Operating Income 8,302 10,328 14,156 7,846 40,632 Net Income 4,790 5,919 8,813 3,220 22,742 Basic Earnings per Share $ 0.29 $ 0.36 $ 0.54 $ 0.20 $ 1.39 Diluted Earnings per Share $ 0.29 $ 0.36 $ 0.54 $ 0.19 $ 1.38 |
Organization, Summary of Sign28
Organization, Summary of Significant Accounting Policies and Recent Developments (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Organization, Summary Of Significant Accounting Policies And Recent Developments [Line Items] | |||
Percent voting interest | 50.00% | ||
Percent of operating revenues | 88.00% | ||
Percent of total assets | 99.00% | ||
Allowance for doubtful accounts | $ 900 | $ 900 | |
Bad debt expense | 500 | 700 | $ 800 |
Write-offs | 500 | $ 600 | $ 600 |
Investment | 200 | ||
Loan to RGRME | 1,700 | ||
Uncollectible notes receivable | 1,700 | ||
Noncash impairment charge | $ 200 | ||
Minimum [Member] | |||
Organization, Summary Of Significant Accounting Policies And Recent Developments [Line Items] | |||
Estimated useful lives of non-regulated fixed assets | 3 years | ||
Maximum [Member] | |||
Organization, Summary Of Significant Accounting Policies And Recent Developments [Line Items] | |||
Estimated useful lives of non-regulated fixed assets | 40 years |
Organization, Summary of Sign29
Organization, Summary of Significant Accounting Policies and Recent Developments (Schedule of Depreciation Rates) (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Source of Supply [Member] | Minimum [Member] | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Public Utilities, Property, Plant and Equipment, Disclosure of Composite Depreciation Rate for Plants in Service | 1.15% | 1.15% | 1.15% |
Source of Supply [Member] | Maximum [Member] | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Public Utilities, Property, Plant and Equipment, Disclosure of Composite Depreciation Rate for Plants in Service | 3.44% | 3.44% | 3.44% |
Pumping [Member] | Minimum [Member] | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Public Utilities, Property, Plant and Equipment, Disclosure of Composite Depreciation Rate for Plants in Service | 2.00% | 2.00% | 2.00% |
Pumping [Member] | Maximum [Member] | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Public Utilities, Property, Plant and Equipment, Disclosure of Composite Depreciation Rate for Plants in Service | 5.39% | 5.39% | 5.39% |
Water Treatment [Member] | Minimum [Member] | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Public Utilities, Property, Plant and Equipment, Disclosure of Composite Depreciation Rate for Plants in Service | 1.65% | 1.65% | 1.65% |
Water Treatment [Member] | Maximum [Member] | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Public Utilities, Property, Plant and Equipment, Disclosure of Composite Depreciation Rate for Plants in Service | 7.09% | 7.09% | 7.09% |
General Plant [Member] | Minimum [Member] | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Public Utilities, Property, Plant and Equipment, Disclosure of Composite Depreciation Rate for Plants in Service | 2.08% | 2.08% | 2.08% |
General Plant [Member] | Maximum [Member] | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Public Utilities, Property, Plant and Equipment, Disclosure of Composite Depreciation Rate for Plants in Service | 17.84% | 17.84% | 17.84% |
Wastewater Collection [Member] | Minimum [Member] | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Public Utilities, Property, Plant and Equipment, Disclosure of Composite Depreciation Rate for Plants in Service | 1.42% | 1.42% | 1.42% |
Wastewater Collection [Member] | Maximum [Member] | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Public Utilities, Property, Plant and Equipment, Disclosure of Composite Depreciation Rate for Plants in Service | 1.81% | 1.81% | 1.81% |
T&D Mains [Member] | Minimum [Member] | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Public Utilities, Property, Plant and Equipment, Disclosure of Composite Depreciation Rate for Plants in Service | 1.10% | 1.10% | 1.10% |
T&D Mains [Member] | Maximum [Member] | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Public Utilities, Property, Plant and Equipment, Disclosure of Composite Depreciation Rate for Plants in Service | 3.13% | 3.13% | 3.13% |
T&D Services [Member] | Minimum [Member] | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Public Utilities, Property, Plant and Equipment, Disclosure of Composite Depreciation Rate for Plants in Service | 2.12% | 2.12% | 2.12% |
T&D Services [Member] | Maximum [Member] | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Public Utilities, Property, Plant and Equipment, Disclosure of Composite Depreciation Rate for Plants in Service | 3.16% | 3.16% | 3.16% |
T&D Other [Member] | Minimum [Member] | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Public Utilities, Property, Plant and Equipment, Disclosure of Composite Depreciation Rate for Plants in Service | 1.61% | 1.61% | 1.61% |
T&D Other [Member] | Maximum [Member] | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Public Utilities, Property, Plant and Equipment, Disclosure of Composite Depreciation Rate for Plants in Service | 4.63% | 4.63% | 4.63% |
Organization, Summary of Sign30
Organization, Summary of Significant Accounting Policies and Recent Developments (Schedule of AFUDC Rates) (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Middlesex [Member] | |||
Organization, Summary Of Significant Accounting Policies And Recent Developments [Line Items] | |||
Allowance for Funds Used During Construction Rates | 6.73% | 6.73% | 6.72% |
Tidewater [Member] | |||
Organization, Summary Of Significant Accounting Policies And Recent Developments [Line Items] | |||
Allowance for Funds Used During Construction Rates | 7.92% | 7.92% | 7.92% |
Rate and Regulatory Matters (Na
Rate and Regulatory Matters (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Oct. 31, 2017 | Jun. 30, 2016 | Apr. 30, 2016 | Aug. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | |
Regulatory Liabilities [Line Items] | ||||||
Regulatory Liability - Cost of Utility Plant Removal | $ 43,745 | $ 11,337 | ||||
Acquisition premiums to be recovered | $ 500 | |||||
Percentage of corporate tax regulated compaines pre-tax | 92.00% | |||||
Regulatory liabilities | $ 31,600 | |||||
Decrease in Regulatory assets | 5,900 | |||||
Middlesex [Member] | New Jersey Board Of Public Utilities [Member] | ||||||
Regulatory Liabilities [Line Items] | ||||||
Additional annual costs | $ 1,200 | |||||
Base rate amount | $ 15,300 | $ 219,000 | ||||
Return on equity | 9.75% | |||||
Increase in base rates revenue per year | $ 5,000 | |||||
Tidewater [Member] | Delaware Public Service Commission [Member] | ||||||
Regulatory Liabilities [Line Items] | ||||||
Approved increase in annual operating revenues | 400 | |||||
Pinelands Water Company [Member] | ||||||
Regulatory Liabilities [Line Items] | ||||||
Approved increase in annual operating revenues | $ 200 | |||||
Pinelands Wastewater [Member] | ||||||
Regulatory Liabilities [Line Items] | ||||||
Approved increase in annual operating revenues | $ 100 | |||||
Southern Shores [Member] | Delaware Public Service Commission [Member] | ||||||
Regulatory Liabilities [Line Items] | ||||||
Originally filed increase in annual operating revenue | $ 100 | |||||
Twin Lakes [Member] | ||||||
Regulatory Liabilities [Line Items] | ||||||
Approved increase in annual operating revenues | $ 100 | |||||
Maximum [Member] | ||||||
Regulatory Liabilities [Line Items] | ||||||
Corporate tax rate | 35.00% | |||||
Minimum [Member] | ||||||
Regulatory Liabilities [Line Items] | ||||||
Corporate tax rate | 21.00% |
Rate and Regulatory Matters (Sc
Rate and Regulatory Matters (Schedule of Regulatory Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Regulatory Assets [Line Items] | ||
Regulatory Assets | $ 58,423 | $ 60,894 |
Retirement Benefits [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory Assets | $ 43,070 | $ 40,603 |
Remaining recovery period | Various | Various |
Income Taxes [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory Assets | $ 9,876 | $ 15,899 |
Remaining recovery period | Various | Various |
Rate Cases, Tank Painting, and Other [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory Assets | $ 5,477 | $ 4,392 |
Remaining recovery period | 2-10 years | 2-10 years |
Income Taxes (Schedule of Incom
Income Taxes (Schedule of Income Tax Expense Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Income Tax at Statutory Rate | $ 11,868 | $ 12,007 | $ 10,703 |
Tax Effect of: | |||
Utility Plant Related | (1,016) | (1,059) | (920) |
State Income Taxes - Net | 895 | 770 | 745 |
Tax Act | (610) | ||
Employee Benefits | (43) | (5) | 7 |
Other | 6 | 22 | 16 |
Total Income Tax Expense | $ 11,100 | $ 11,735 | $ 10,551 |
Income Taxes (Schedule of Inc34
Income Taxes (Schedule of Income Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current: | |||
Federal | $ 2,090 | $ 7,305 | $ (15,203) |
State | 1,066 | 877 | 1,153 |
Deferred: | |||
Federal | 7,713 | 3,325 | 24,686 |
State | 310 | 307 | (6) |
Investment Tax Credits | (79) | (79) | (79) |
Total Income Tax Expense | $ 11,100 | $ 11,735 | $ 10,551 |
Income Taxes (Schedule of Net D
Income Taxes (Schedule of Net Deferred Tax Liability) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Income Tax Disclosure [Abstract] | ||
Utility Plant Related | $ 41,259 | $ 69,019 |
Customer Advances | (3,749) | (3,430) |
Employee Benefits | 4,903 | 6,904 |
Investment Tax Credits (ITC) | 675 | 753 |
Other | 72 | (421) |
Total Deferred Tax Liability and ITC | $ 43,160 | $ 72,825 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Loss Carryforwards [Line Items] | ||
Decreased deferred income tax expense | $ 600 | |
Tax Year 2014 [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net reduction in taxes due to the federal government | $ 17,600 | |
Income tax refund receivable | $ 2,300 | |
Deferred Income Taxes [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Decreased deferred income tax expense | $ 24,200 |
Commitments and Contingent Li37
Commitments and Contingent Liabilities (Narrative) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($)gal | Dec. 31, 2016USD ($) | |
Commitment And Contingencies [Line Items] | ||
Period of wastewater agreement | 20 years | |
Guarant liabilty for AWM's performance | $ 100 | $ 100 |
Budgeted construction cost for construction program, 2018 | 94,000 | |
Budgeted construction cost for construction program, 2019 | 94,000 | |
Budgeted construction cost for construction program, 2010 | 79,000 | |
Rental expenses under operating leases | $ 100 | |
Rental commitment under operating lease terms | 5 years | |
NJ Water Supply Authority [Member] | ||
Commitment And Contingencies [Line Items] | ||
Purchase commitment expiration date of contract | Nov. 30, 2023 | |
Water purchase per commitment | gal | 27,000 | |
Regulated Water Authority [Member] | ||
Commitment And Contingencies [Line Items] | ||
Purchase commitment expiration date of contract | Feb. 27, 2021 | |
Water purchase per commitment | gal | 3,000 | |
City of Dover [Member] | ||
Commitment And Contingencies [Line Items] | ||
Water purchase per commitment | gal | 15,000 |
Commitments and Contingent Li38
Commitments and Contingent Liabilities (Schedule of Purchased Water Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Purchased Water | |||
Untreated | $ 2,800 | $ 2,600 | $ 2,500 |
Treated | 3,300 | 3,200 | 3,100 |
Total Costs | $ 6,100 | $ 5,800 | $ 5,600 |
Commitments and Contingent Li39
Commitments and Contingent Liabilities (Schedule of Future Minimum Operating Lease) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Minimum Lease Payments, Sale Leaseback Transactions, Fiscal Year Maturity [Abstract] | |
2,018 | $ 700 |
2,019 | 700 |
2,020 | 700 |
2,021 | 700 |
2,022 | 700 |
Thereafter | $ 3,800 |
Short Term Borrowings (Details)
Short Term Borrowings (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Lines Of Credit Facility | ||
Established Lines at Year-End | $ 9,200 | $ 60,000 |
Maximum Amount Outstanding | 2,800 | 13,100 |
Average Outstanding | 18,600 | 7,400 |
Notes Payable at Year-End | $ 28,000 | $ 12,000 |
Weighted Average Interest Rate | 2.15% | 1.54% |
Weighted Average Interest Rate at Year-End | 2.54% | 1.71% |
Capitalization (Narrative) (Det
Capitalization (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Nov. 30, 2017 | Feb. 29, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jul. 31, 2015 | |
Schedule of Capitalization [Line Items] | ||||||
Shares authorized | 40,000,000 | 40,000,000 | ||||
Authorized shares under plan | 300,000 | |||||
Issuance of shares under the DRP | $ 1,234 | $ 1,453 | $ 1,462 | |||
Additional Shares Authorized By SEC To Be Issued | 700,000 | |||||
Maximum number of shares authorized for grant | 50,000 | |||||
Preferred Stock, Shares Authorized | 126,000 | 126,000 | ||||
Preferred Stock, Shares Outstanding | 24,000 | 24,000 | ||||
Amount drawn | $ 11,523 | $ 8,585 | 7,000 | |||
Long-term debt | 147,852 | 142,489 | ||||
Deobligated principal payments | 476 | $ 466 | ||||
Other long term debt | 52,500 | 59,700 | ||||
Customer advances | $ 21,423 | $ 20,846 | ||||
All Long-term Debt [Member] | ||||||
Schedule of Capitalization [Line Items] | ||||||
Weighted average interest rate | 3.77% | 3.88% | ||||
Convertible Preferred Stock $7.00 Series [Member] | ||||||
Schedule of Capitalization [Line Items] | ||||||
Shares issued upon conversion | 12 | |||||
Percentage of stock that may be redeemed in a given calander year | 10.00% | |||||
Convertible Preferred Stock $8.00 Series [Member] | ||||||
Schedule of Capitalization [Line Items] | ||||||
Shares issued upon conversion | 13.714 | |||||
Outside Director Stock Compensation Plan [Member] | ||||||
Schedule of Capitalization [Line Items] | ||||||
Authorized shares under plan | 64,168 | |||||
Common stock granted and issued under plan | 3,976 | 3,976 | 4,795 | |||
Maximum number of shares authorized for grant | 100,000 | |||||
Dividend Reinvestment and Common Stock Purchase Plan [Member] | ||||||
Schedule of Capitalization [Line Items] | ||||||
Issuance of Common Stock | $ 1,200 | $ 1,500 | $ 1,500 | |||
Shares authorized | 3,000,000 | |||||
Dividend Reinvestment & Common Stock Purchase Plan, cumulative shares | 2,400 | |||||
New Jersey Infrastructure Bank [Member] | ||||||
Schedule of Capitalization [Line Items] | ||||||
Maximum borrowing capacity, construction loan | $ 9,500 | |||||
Percentage of principal with stated interest rate | 75.00% | |||||
Percentage of principal with market interest rate | 25.00% | |||||
Amount drawn | $ 3,900 | |||||
Long-term debt | $ 3,800 | |||||
Interest rate | 0.00% | |||||
Deobligated principal payments | $ 500 | |||||
New Jersey Infrastructure Bank [Member] | Series XX [Member] | ||||||
Schedule of Capitalization [Line Items] | ||||||
Maximum borrowing capacity, construction loan | $ 11,300 | |||||
Percentage of principal with bond interest rate | 0.00% | |||||
New Jersey Infrastructure Bank [Member] | Series YY [Member] | ||||||
Schedule of Capitalization [Line Items] | ||||||
Maximum borrowing capacity, construction loan | $ 3,900 | |||||
New Jersey Infrastructure Bank [Member] | ||||||
Schedule of Capitalization [Line Items] | ||||||
Amount drawn | $ 14,200 | |||||
Construction Loan [Member] | ||||||
Schedule of Capitalization [Line Items] | ||||||
Interest rate | 0.00% | |||||
Tidewater [Member] | ||||||
Schedule of Capitalization [Line Items] | ||||||
Loan amount | $ 1,200 | 11,000 | ||||
Amount drawn | $ 1,100 | $ 15,000 | ||||
Interest rate | 2.00% | |||||
Maturity date | Feb. 1, 2036 | Apr. 30, 2040 | ||||
Loan amount initially set up as a market-based variable interest rate transaction | $ 4,000 | |||||
New Jersey Economic Development Authority [Member] | ||||||
Schedule of Capitalization [Line Items] | ||||||
Long-term debt | $ 55,400 | |||||
Delaware State Revolving Fund [Member] | ||||||
Schedule of Capitalization [Line Items] | ||||||
Long-term debt | $ 9,100 | |||||
Maximum [Member] | ||||||
Schedule of Capitalization [Line Items] | ||||||
Interest rate | 4.47% | |||||
Maximum [Member] | New Jersey Infrastructure Bank [Member] | Series YY [Member] | ||||||
Schedule of Capitalization [Line Items] | ||||||
Percentage of principal with bond interest rate | 5.00% | |||||
Minimum [Member] | ||||||
Schedule of Capitalization [Line Items] | ||||||
Interest rate | 4.45% | |||||
Minimum [Member] | New Jersey Infrastructure Bank [Member] | Series YY [Member] | ||||||
Schedule of Capitalization [Line Items] | ||||||
Percentage of principal with bond interest rate | 3.00% |
Capitalization (Schedule of Mat
Capitalization (Schedule of Maturities of Long-term Debt) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
CAPITALIZATION: | |
2,018 | $ 6,900 |
2,019 | 7,100 |
2,020 | 6,900 |
2,021 | 6,900 |
2,022 | $ 6,400 |
Capitalization (Schedule of Ear
Capitalization (Schedule of Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Basic: | |||||||||||
Net Income | $ 5,345 | $ 7,642 | $ 5,381 | $ 4,441 | $ 3,220 | $ 8,813 | $ 5,919 | $ 4,790 | $ 22,809 | $ 22,742 | $ 20,028 |
Preferred Dividend | (144) | (144) | (144) | ||||||||
Earnings Applicable to Common Stock | $ 22,665 | $ 22,598 | $ 19,884 | ||||||||
Weighted-average number of basic shares outstanding, shares | 16,330,000 | 16,270,000 | 16,175,000 | ||||||||
Basic EPS | $ 0.32 | $ 0.47 | $ 0.33 | $ 0.27 | $ 0.20 | $ 0.54 | $ 0.36 | $ 0.29 | $ 1.39 | $ 1.39 | $ 1.23 |
Diluted: | |||||||||||
$7.00 Series Preferred Dividend | $ 67 | $ 67 | $ 67 | ||||||||
$8.00 Series Preferred Dividend | 24 | 24 | 24 | ||||||||
Adjusted Earnings Applicable to Common Stock | $ 22,756 | $ 22,689 | $ 19,975 | ||||||||
Incremental common shares attributable to $7.00 series preferred shares, shares | 115,000 | 115,000 | 115,000 | ||||||||
Incremental common shares attributable to $8.00 series preferred shares, shares | 41,000 | 41,000 | 41,000 | ||||||||
Weighted-average diluted shares outstanding, shares | 16,486,000 | 16,426,000 | 16,331,000 | ||||||||
Diluted EPS | $ 0.32 | $ 0.46 | $ 0.33 | $ 0.27 | $ 0.19 | $ 0.54 | $ 0.36 | $ 0.29 | $ 1.38 | $ 1.38 | $ 1.22 |
Capitalization (Schedule of Car
Capitalization (Schedule of Carrying Amount and Fair Value of Bonds) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Carrying amount [Member] | ||
Bonds | $ 95,322 | $ 82,786 |
Fair value [Member] | ||
Bonds | $ 98,036 | $ 88,431 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated benefit obligation | $ 75,700 | $ 66,800 | ||
Increase (decrease) in annual rate per capita cost of covered healthcare benefits, next year | 9.00% | |||
Increase (decrease) in annual rate per capita cost of covered healthcare benefits, 2019-2021 | 1.00% | |||
Increase (decrease) in annual rate per capita cost of covered healthcare benefits, 2022-2023 | 0.50% | |||
Annual rate of increase in the per capita cost of covered healthcare benefits | 5.00% | |||
Number of hours required to participate in contribution plan | 1,000 | |||
Percent of participants contributions matched by company, below one percent of participants compensation | 100.00% | |||
Percent of participants contributions matched by company, above one percent of participants compensation | 50.00% | |||
Threshold percentage of participants compensation at which matching decreases | 1.00% | |||
Matching contributions, percent | 6.00% | |||
Matching contributions | $ 600 | 600 | $ 600 | |
Discretionary contributions, percent | 5.00% | |||
Discretionary contributions | $ 500 | 400 | $ 400 | |
Escrow account maintained for 2008 restricted stock plan | 100 | |||
Maximum number of shares authorized for grant | 300,000 | |||
Number of shares authorized for grant, unissued | 50,000 | |||
Fair value of vested restricted shares | $ 800 | $ 900 | ||
Middlesex [Member] | Equity Securities [Member] | ||||
Allocation of plan assets | 1.10% | 1.40% | ||
Common stock in plan, value | $ 800 | $ 800 | ||
Pension Benefit Plan [Member] | ||||
Allocation of plan assets | 100.00% | 100.00% | ||
Benfit plan, Cash contributions | $ 3,600 | |||
Pension Benefit Plan [Member] | Equity Securities [Member] | ||||
Allocation of plan assets | 62.80% | 59.70% | ||
Pension Benefit Plan [Member] | Scenario, Forecast [Member] | ||||
Benfit plan, Cash contributions | $ 3,300 | |||
Other Benefits Plan [Member] | ||||
Allocation of plan assets | 100.00% | 100.00% | ||
Benfit plan, Cash contributions | $ 1,600 | |||
Other Benefits Plan [Member] | Equity Securities [Member] | ||||
Allocation of plan assets | 57.70% | 54.10% | ||
Other Benefits Plan [Member] | Scenario, Forecast [Member] | ||||
Benfit plan, Cash contributions | $ 1,600 |
Employee Benefit Plans (Schedul
Employee Benefit Plans (Schedule of Change in Projected Benefit Obligation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pension Benefit Plan [Member] | |||
Change in Projected Benefit Obligation: | |||
Beginning Balance | $ 78,601 | $ 72,542 | |
Service Cost | 2,399 | 2,308 | $ 2,558 |
Interest Cost | 3,143 | 3,046 | 2,894 |
Actuarial Loss | 6,203 | 2,810 | |
Benefits Paid | (2,333) | (2,105) | |
Ending Balance | 88,013 | 78,601 | 72,542 |
Other Benefits Plan [Member] | |||
Change in Projected Benefit Obligation: | |||
Beginning Balance | 48,888 | 46,249 | |
Service Cost | 1,089 | 1,099 | 1,373 |
Interest Cost | 1,964 | 1,952 | 1,921 |
Actuarial Loss | 3,052 | 141 | |
Benefits Paid | (648) | (553) | |
Ending Balance | $ 54,345 | $ 48,888 | $ 46,249 |
Employee Benefit Plans (Sched47
Employee Benefit Plans (Schedule of Change in Fair Value of Plan Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Pension Benefit Plan [Member] | ||
Change in Fair Value of Plan Assets: | ||
Beginning Balance | $ 59,370 | $ 52,931 |
Actual Return on Plan Assets | 8,543 | 4,909 |
Employer Contributions | 3,635 | 3,635 |
Benefits Paid | (2,333) | (2,105) |
Ending Balance | 69,215 | 59,370 |
Funded Status | (18,798) | (19,231) |
Other Benefits Plan [Member] | ||
Change in Fair Value of Plan Assets: | ||
Beginning Balance | 31,607 | 29,018 |
Actual Return on Plan Assets | 3,521 | 1,591 |
Employer Contributions | 1,603 | 1,551 |
Benefits Paid | (648) | (553) |
Ending Balance | 36,083 | 31,607 |
Funded Status | $ (18,262) | $ (17,281) |
Employee Benefit Plans (Sched48
Employee Benefit Plans (Schedule of Employee Benefit Plans Recognized in Balance Sheet) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Noncurrent Liability | $ 36,686 | $ 36,139 |
Pension Benefit Plan [Member] | ||
Current Liability | 374 | 373 |
Noncurrent Liability | 18,424 | 18,858 |
Net Liability Recognized | 18,798 | 19,231 |
Other Benefits Plan [Member] | ||
Current Liability | ||
Noncurrent Liability | 18,262 | 17,281 |
Net Liability Recognized | $ 18,262 | $ 17,281 |
Employee Benefit Plans (Sched49
Employee Benefit Plans (Schedule of Periodic Costs For Employee Retirement Benefit Plans) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pension Benefit Plan [Member] | |||
Periodic costs for employee retirement benefit plans | |||
Service Cost | $ 2,399 | $ 2,308 | $ 2,558 |
Interest Cost | 3,143 | 3,046 | 2,894 |
Expected Return on Plan Assets | (4,489) | (4,014) | (3,919) |
Amortization of Net Actuarial Loss | 1,566 | 1,426 | 1,645 |
Amortization of Prior Service Credit | |||
Net Periodic Benefit Cost | 2,619 | 2,766 | 3,178 |
Other Benefits Plan [Member] | |||
Periodic costs for employee retirement benefit plans | |||
Service Cost | 1,089 | 1,099 | 1,373 |
Interest Cost | 1,964 | 1,952 | 1,921 |
Expected Return on Plan Assets | (2,406) | (2,213) | (2,107) |
Amortization of Net Actuarial Loss | 1,781 | 1,773 | 2,261 |
Amortization of Prior Service Credit | (1,728) | (1,728) | (1,728) |
Net Periodic Benefit Cost | $ 700 | $ 883 | $ 1,720 |
Employee Benefit Plans (Sched50
Employee Benefit Plans (Schedule of Amounts Expected to be Amortized from Regulatory Assets to Net Periodic Benefit Cost) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Pension Benefit Plan [Member] | |
Actuarial Loss | $ 1,658 |
Prior Service Credit | |
Other Benefits Plan [Member] | |
Actuarial Loss | 1,787 |
Prior Service Credit | $ (1,607) |
Employee Benefit Plans (Sched51
Employee Benefit Plans (Schedule of Discount and Compensation Rates) (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pension Benefit Plan [Member] | |||
Weighted Average Assumptions: | |||
Expected Return on Plan Assets | 7.50% | 7.50% | 7.50% |
Discount Rate for: | |||
Benefit Obligation | 3.53% | 4.06% | 4.26% |
Benefit Cost | 4.06% | 4.26% | 3.91% |
Compensation Increase for: | |||
Benefit Obligation | 3.00% | 3.00% | 3.00% |
Benefit Cost | 3.00% | 3.00% | 3.00% |
Other Benefits Plan [Member] | |||
Weighted Average Assumptions: | |||
Expected Return on Plan Assets | 7.50% | 7.50% | 7.50% |
Discount Rate for: | |||
Benefit Obligation | 3.53% | 4.06% | 4.26% |
Benefit Cost | 4.06% | 4.26% | 3.91% |
Compensation Increase for: | |||
Benefit Obligation | 3.00% | 3.00% | 3.00% |
Benefit Cost | 3.00% | 3.00% | 3.00% |
Employee Benefit Plans (Sched52
Employee Benefit Plans (Schedule of Effect of One-percentage Point Change in Assumed Health Care Cost Trend Rates) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Pension Benefit Plan [Member] | |
Effect on Current Year's Service and Interest Cost - Increase | $ 649 |
Effect on Projected Benefit Obligation - Increase | 9,412 |
Other Benefits Plan [Member] | |
Effect on Current Year's Service and Interest Cost - Decrease | (499) |
Effect on Projected Benefit Obligation - Decrease | $ (7,403) |
Employee Benefit Plans (Sched53
Employee Benefit Plans (Schedule of Expected Benefit Payments) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Other Benefits Plan [Member] | |
2,018 | $ 2,639 |
2,019 | 2,653 |
2,020 | 2,875 |
2,021 | 2,971 |
2,022 | 3,360 |
2023-2027 | 23,789 |
Totals | 38,287 |
Pension Benefit Plan [Member] | |
2,018 | 1,174 |
2,019 | 1,414 |
2,020 | 1,614 |
2,021 | 1,816 |
2,022 | 2,027 |
2023-2027 | 11,674 |
Totals | $ 19,719 |
Employee Benefit Plans (Sched54
Employee Benefit Plans (Schedule of Allocation of Plan Assets) (Details) | Dec. 31, 2017 | Dec. 31, 2016 |
Pension Benefit Plan [Member] | ||
Allocation of plan assets | 100.00% | 100.00% |
Pension Benefit Plan [Member] | Commodities [Member] | ||
Allocation of plan assets | 2.60% | 2.70% |
Target plan allocations | 5.00% | |
Pension Benefit Plan [Member] | Cash [Member] | ||
Allocation of plan assets | 1.00% | 1.00% |
Target plan allocations | 2.00% | |
Pension Benefit Plan [Member] | Debt Securities [Member] | ||
Allocation of plan assets | 33.60% | 36.60% |
Target plan allocations | 38.00% | |
Pension Benefit Plan [Member] | Equity Securities [Member] | ||
Allocation of plan assets | 62.80% | 59.70% |
Target plan allocations | 55.00% | |
Other Benefits Plan [Member] | ||
Allocation of plan assets | 100.00% | 100.00% |
Other Benefits Plan [Member] | Commodities [Member] | ||
Allocation of plan assets | 0.00% | 0.00% |
Target plan allocations | 5.00% | |
Other Benefits Plan [Member] | Cash [Member] | ||
Allocation of plan assets | 9.40% | 2.60% |
Target plan allocations | 2.00% | |
Other Benefits Plan [Member] | Debt Securities [Member] | ||
Allocation of plan assets | 32.90% | 43.30% |
Target plan allocations | 50.00% | |
Other Benefits Plan [Member] | Equity Securities [Member] | ||
Allocation of plan assets | 57.70% | 54.10% |
Target plan allocations | 43.00% |
Employee Benefit Plans (Sched55
Employee Benefit Plans (Schedule of Fair Value of Pension Plan Assets) (Details) - Pension Benefit Plan [Member] - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Fair value of plan assets | $ 69,215 | $ 59,370 | $ 52,931 |
Fair Value, Level 1 [Member] | |||
Fair value of plan assets | 69,215 | 59,370 | |
Fair Value, Level 2 [Member] | |||
Fair value of plan assets | |||
Fair Value, Level 3 [Member] | |||
Fair value of plan assets | |||
Equity Securities [Member] | |||
Fair value of plan assets | 10,930 | 9,283 | |
Equity Securities [Member] | Fair Value, Level 2 [Member] | |||
Fair value of plan assets | |||
Equity Securities [Member] | Fair Value, Level 3 [Member] | |||
Fair value of plan assets | |||
Mutual Funds [Member] | |||
Fair value of plan assets | 57,608 | 49,439 | |
Mutual Funds [Member] | Fair Value, Level 1 [Member] | |||
Fair value of plan assets | 57,608 | 49,439 | |
Mutual Funds [Member] | Fair Value, Level 2 [Member] | |||
Fair value of plan assets | |||
Mutual Funds [Member] | Fair Value, Level 3 [Member] | |||
Fair value of plan assets | |||
Money Market Funds [Member] | |||
Fair value of plan assets | 677 | 648 | |
Money Market Funds [Member] | Fair Value, Level 1 [Member] | |||
Fair value of plan assets | 677 | 648 | |
Money Market Funds [Member] | Fair Value, Level 2 [Member] | |||
Fair value of plan assets | |||
Money Market Funds [Member] | Fair Value, Level 3 [Member] | |||
Fair value of plan assets | |||
Equity Securities [Member] | Fair Value, Level 1 [Member] | |||
Fair value of plan assets | 10,930 | $ 9,283 | |
Equity Securities [Member] | Fair Value, Level 2 [Member] | |||
Fair value of plan assets |
Employee Benefit Plans (Sched56
Employee Benefit Plans (Schedule of Fair Value of Other Benefits Plan Assets) (Details) - Other Benefits Plan [Member] - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Fair value of plan assets | $ 36,083 | $ 31,607 | $ 29,018 |
Fair Value, Level 1 [Member] | |||
Fair value of plan assets | 24,322 | 18,030 | |
Fair Value, Level 2 [Member] | |||
Fair value of plan assets | 11,761 | 13,577 | |
Fair Value, Level 3 [Member] | |||
Fair value of plan assets | |||
Debt Securities [Member] | |||
Fair value of plan assets | 13,577 | ||
Mutual Funds [Member] | |||
Fair value of plan assets | 20,819 | 17,096 | |
Mutual Funds [Member] | Fair Value, Level 1 [Member] | |||
Fair value of plan assets | 20,819 | 17,096 | |
Mutual Funds [Member] | Fair Value, Level 2 [Member] | |||
Fair value of plan assets | |||
Mutual Funds [Member] | Fair Value, Level 3 [Member] | |||
Fair value of plan assets | |||
Money Market Funds [Member] | |||
Fair value of plan assets | 3,388 | 826 | |
Money Market Funds [Member] | Fair Value, Level 1 [Member] | |||
Fair value of plan assets | 3,388 | 826 | |
Money Market Funds [Member] | Fair Value, Level 2 [Member] | |||
Fair value of plan assets | |||
Money Market Funds [Member] | Fair Value, Level 3 [Member] | |||
Fair value of plan assets | |||
Preferred Equity Securities [Member] | |||
Fair value of plan assets | 115 | 108 | |
Preferred Equity Securities [Member] | Fair Value, Level 1 [Member] | |||
Fair value of plan assets | 115 | 108 | |
Preferred Equity Securities [Member] | Fair Value, Level 2 [Member] | |||
Fair value of plan assets | |||
Preferred Equity Securities [Member] | Fair Value, Level 3 [Member] | |||
Fair value of plan assets | |||
Debt Securities [Member] | |||
Fair value of plan assets | 11,761 | ||
Debt Securities [Member] | Fair Value, Level 1 [Member] | |||
Fair value of plan assets | |||
Debt Securities [Member] | Fair Value, Level 2 [Member] | |||
Fair value of plan assets | 11,761 | 13,577 | |
Debt Securities [Member] | Fair Value, Level 3 [Member] | |||
Fair value of plan assets |
Employee Benefit Plans (Sched57
Employee Benefit Plans (Schedule of Restricted Stock Plan) (Details) - 2008 Restricted Stock Plan [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Shares | |||
Balance | 147,000 | 148,000 | 127,000 |
Granted | 22,000 | 24,000 | 33,000 |
Vested | (20,000) | (25,000) | (12,000) |
Forfeited | (2,000) | ||
Amortization of Compensation Expense | |||
Balance | 147,000 | 147,000 | 148,000 |
Unearned compensation | |||
Balance | $ 1,764 | $ 1,696 | $ 1,483 |
Granted | 799 | 750 | 741 |
Vested | |||
Forfeited | (54) | ||
Amortization of Compensation Expense | (724) | (682) | (528) |
Balance | $ 1,785 | $ 1,764 | $ 1,696 |
Weighted Average Grant Price | |||
Granted | $ 36.95 | $ 30.85 | $ 22.65 |
Business Segment Data (Details)
Business Segment Data (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Number of Reportable Segments | 2 | 2 | |||||||||
Revenues | $ 31,456 | $ 36,174 | $ 33,014 | $ 30,131 | $ 31,808 | $ 37,754 | $ 32,725 | $ 30,579 | $ 130,775 | $ 132,906 | $ 126,025 |
Operating Income | 8,471 | 12,806 | 9,563 | 7,780 | 7,846 | 14,156 | 10,328 | 8,302 | 38,620 | 40,632 | 35,840 |
Depreciation | 13,922 | 12,796 | 12,051 | ||||||||
Other Income (Expense), Net | 795 | (862) | 293 | ||||||||
Interest Expense | 5,506 | 5,293 | 5,554 | ||||||||
Income Taxes | 11,100 | 11,735 | 10,551 | ||||||||
Net Income | 5,345 | $ 7,642 | $ 5,381 | $ 4,441 | 3,220 | $ 8,813 | $ 5,919 | $ 4,790 | 22,809 | 22,742 | 20,028 |
Capital Expenditures | 50,301 | 47,375 | 25,773 | ||||||||
Assets | 661,140 | 620,161 | 661,140 | 620,161 | |||||||
Inter-segment Elimination [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | (591) | (499) | (460) | ||||||||
Other Income (Expense), Net | (467) | (333) | (346) | ||||||||
Interest Expense | (467) | (89) | (89) | ||||||||
Assets | (7,769) | (5,999) | (7,769) | (5,999) | |||||||
Regulated [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 115,454 | 118,017 | 111,247 | ||||||||
Operating Income | 35,952 | 38,201 | 33,603 | ||||||||
Depreciation | 13,732 | 12,606 | 11,874 | ||||||||
Other Income (Expense), Net | 1,198 | 779 | 619 | ||||||||
Interest Expense | 5,855 | 5,293 | 5,554 | ||||||||
Income Taxes | 9,848 | 11,091 | 9,522 | ||||||||
Net Income | 21,447 | 22,353 | 18,889 | ||||||||
Capital Expenditures | 50,078 | 47,189 | 25,706 | ||||||||
Assets | 661,816 | 619,915 | 661,816 | 619,915 | |||||||
Non - Regulated [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 15,912 | 15,388 | 15,238 | ||||||||
Operating Income | 2,668 | 2,431 | 2,237 | ||||||||
Depreciation | 190 | 190 | 177 | ||||||||
Other Income (Expense), Net | 64 | (1,308) | 20 | ||||||||
Interest Expense | 118 | 89 | 89 | ||||||||
Income Taxes | 1,252 | 644 | 1,029 | ||||||||
Net Income | 1,362 | 389 | 1,139 | ||||||||
Capital Expenditures | 223 | 186 | $ 67 | ||||||||
Assets | $ 7,093 | $ 6,245 | $ 7,093 | $ 6,245 |
Quarterly Operating Results -59
Quarterly Operating Results - Unaudited (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Operating Revenues | $ 31,456 | $ 36,174 | $ 33,014 | $ 30,131 | $ 31,808 | $ 37,754 | $ 32,725 | $ 30,579 | $ 130,775 | $ 132,906 | $ 126,025 |
Operating Income | 8,471 | 12,806 | 9,563 | 7,780 | 7,846 | 14,156 | 10,328 | 8,302 | 38,620 | 40,632 | 35,840 |
Net Income | $ 5,345 | $ 7,642 | $ 5,381 | $ 4,441 | $ 3,220 | $ 8,813 | $ 5,919 | $ 4,790 | $ 22,809 | $ 22,742 | $ 20,028 |
Basic Earnings per Share | $ 0.32 | $ 0.47 | $ 0.33 | $ 0.27 | $ 0.20 | $ 0.54 | $ 0.36 | $ 0.29 | $ 1.39 | $ 1.39 | $ 1.23 |
Diluted Earnings per Share | $ 0.32 | $ 0.46 | $ 0.33 | $ 0.27 | $ 0.19 | $ 0.54 | $ 0.36 | $ 0.29 | $ 1.38 | $ 1.38 | $ 1.22 |