Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 27, 2020 | Jun. 28, 2019 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Entity File Number | 0-422 | ||
Entity Registrant Name | MIDDLESEX WATER COMPANY | ||
Entity Incorporation State Country Code | NJ | ||
Entity Central Index Key | 0000066004 | ||
Entity Tax Identification Number | 22-1114430 | ||
Entity Address, Address Line One | 485C Route 1 South | ||
Entity Address, Address Line Two | Suite 400 | ||
Entity Address, City or Town | Iselin | ||
Entity Address, State or Province | NJ | ||
Entity Address, Postal Zip Code | 08830 | ||
City Area Code | 732 | ||
Local Phone Number | 634-1500 | ||
Title of 12(b) Security | Common Stock, No Par Value | ||
Trading Symbol | MSEX | ||
Name of Exchange on which Security is Registered | NASDAQ | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity a Well-known Seasoned Issuer | Yes | ||
Entity a Voluntary Filer | No | ||
Entity Reporting Status Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Public Float | $ 941,981,504 | ||
Entity Common Stock, Shares Outstanding | 17,435,830 | ||
Entity Interactive Data Current | Yes | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2019 | ||
Documents Incorporated By Reference Text Block | Proxy Statement to be filed in connection with the Registrant’s Annual Meeting of Stockholders to be held on May 19, 2020, which will be filed with the Securities and Exchange Commission within 120 days of the end of our 2019 fiscal year, is incorporated by reference into Part III of this Annual Report on Form 10-K to the extent described herein. |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Operating Revenues | $ 134,598 | $ 138,077 | $ 130,775 |
Operating Expenses: | |||
Operations and Maintenance | 67,980 | 71,570 | 65,490 |
Depreciation | 16,716 | 15,037 | 13,922 |
Other Taxes | 14,382 | 14,328 | 13,565 |
Total Operating Expenses | 99,078 | 100,935 | 92,977 |
Operating Income | 35,520 | 37,142 | 37,798 |
Other Income (Expense): | |||
Allowance for Funds Used During Construction | 3,146 | 1,362 | 702 |
Other Income (Expense), net | (654) | 1,630 | 915 |
Total Other Income, net | 2,492 | 2,992 | 1,617 |
Interest Charges | 7,264 | 6,758 | 5,506 |
Income before Income Taxes | 30,748 | 33,376 | 33,909 |
Income Taxes | (3,140) | 924 | 11,100 |
Net Income | 33,888 | 32,452 | 22,809 |
Preferred Stock Dividend Requirements | 132 | 144 | 144 |
Earnings Applicable to Common Stock | $ 33,756 | $ 32,308 | $ 22,665 |
Earnings per share of Common Stock: | |||
Basic | $ 2.02 | $ 1.97 | $ 1.39 |
Diluted | $ 2.01 | $ 1.96 | $ 1.38 |
Average Number of Common Shares Outstanding : | |||
Basic | 16,685 | 16,384 | 16,330 |
Diluted | 16,829 | 16,540 | 16,486 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
UTILITY PLANT: | ||
Water Production | $ 160,870 | $ 156,423 |
Transmission and Distribution | 556,517 | 512,202 |
General | 83,043 | 74,371 |
Construction Work in Progress | 75,520 | 32,878 |
TOTAL | 875,950 | 775,874 |
Less Accumulated Depreciation | 170,220 | 157,387 |
UTILITY PLANT - NET | 705,730 | 618,487 |
CURRENT ASSETS: | ||
Cash and Cash Equivalents | 2,230 | 3,705 |
Accounts Receivable, net | 11,908 | 11,762 |
Unbilled Revenues | 7,183 | 7,293 |
Materials and Supplies (at average cost) | 5,445 | 5,411 |
Prepayments | 2,367 | 2,644 |
TOTAL CURRENT ASSETS | 29,133 | 30,815 |
Operating Lease Right of Use Asset | 5,944 | |
Preliminary Survey and Investigation Charges | 2,054 | 5,254 |
Regulatory Assets | 110,479 | 99,236 |
Restricted Cash | 44,269 | 1,956 |
Non-utility Assets - Net | 10,370 | 9,989 |
Other | 1,899 | 2,093 |
TOTAL DEFERRED CHARGES AND OTHER ASSETS | 175,015 | 118,528 |
TOTAL ASSETS | 909,878 | 767,830 |
CAPITALIZATION: | ||
Common Stock, No Par Value | 215,125 | 157,354 |
Retained Earnings | 108,667 | 91,433 |
TOTAL COMMON EQUITY | 323,792 | 248,787 |
Preferred Stock | 2,084 | 2,433 |
Long-term Debt | 230,777 | 152,851 |
TOTAL CAPITALIZATION | 556,653 | 404,071 |
CURRENT LIABILITIES: | ||
Current Portion of Long-term Debt | 7,178 | 7,343 |
Notes Payable | 20,000 | 48,500 |
Accounts Payable | 23,306 | 19,325 |
Accrued Taxes | 7,635 | 14,230 |
Accrued Interest | 2,031 | 1,289 |
Unearned Revenues and Advanced Service Fees | 1,211 | 1,036 |
Other | 3,620 | 2,640 |
TOTAL CURRENT LIABILITIES | 64,981 | 94,363 |
DEFERRED CREDITS AND OTHER LIABILITIES: | ||
Customer Advances for Construction | 23,905 | 22,572 |
Lease Obligations | 5,732 | |
Accumulated Deferred Income Taxes | 54,408 | 47,270 |
Employee Benefit Plans | 34,671 | 30,661 |
Regulatory Liabilities | 69,152 | 79,112 |
Other | 2,546 | 2,730 |
TOTAL DEFERRED CREDITS AND OTHER LIABILITIES | 190,414 | 182,345 |
CONTRIBUTIONS IN AID OF CONSTRUCTION | 97,830 | 87,051 |
TOTAL CAPITALIZATION AND LIABILITIES | $ 909,878 | $ 767,830 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net Income | $ 33,888 | $ 32,452 | $ 22,809 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | |||
Depreciation and Amortization | 17,232 | 15,780 | 14,846 |
Provision for Deferred Income Taxes and ITC | (11,719) | (8,724) | 7,944 |
Equity Portion of AFUDC | (1,997) | (919) | (481) |
Cash Surrender Value of Life Insurance | (252) | 27 | (209) |
Stock Compensation Expense | 637 | 1,084 | 840 |
Changes in Assets and Liabilities: | |||
Accounts Receivable | (146) | (977) | (656) |
Unbilled Revenues | 110 | (294) | (409) |
Materials & Supplies | (34) | 1,293 | (24) |
Prepayments | 277 | (236) | (384) |
Accounts Payable | 3,981 | 5,396 | 1,586 |
Accrued Taxes | (6,595) | 2,812 | (967) |
Accrued Interest | 742 | 196 | 9 |
Employee Benefit Plans | (1,112) | (2,114) | (1,920) |
Unearned Revenue & Advanced Service Fees | 175 | 85 | 28 |
Other Assets and Liabilities | 866 | 2,589 | (169) |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 36,053 | 45,864 | 42,843 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Utility Plant Expenditures, Including AFUDC of $1,149 in 2019, $443 in 2018 and $221 in 2017 | (89,125) | (72,094) | (50,301) |
NET CASH USED IN INVESTING ACTIVITIES | (89,125) | (72,094) | (50,301) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Redemption of Long-term Debt | (7,343) | (7,024) | (6,159) |
Proceeds from Issuance of Long-term Debt | 78,967 | 22,076 | 11,523 |
Proceeds from Premium Issuance of Long-term Debt | 7,083 | ||
Net Short-term Bank Borrowings | (28,500) | 20,500 | 16,000 |
Deferred Debt Issuance Expense | (769) | (880) | (230) |
Common Stock Issuance Expense | (357) | ||
Proceeds from Issuance of Common Stock | 56,784 | 1,150 | 1,234 |
Payment of Common Dividends | (16,165) | (14,930) | (14,002) |
Payment of Preferred Dividends | (132) | (144) | (144) |
Construction Advances and Contributions-Net | 4,342 | 4,746 | 1,315 |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 93,910 | 25,494 | 9,537 |
NET CHANGES IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 40,838 | (736) | 2,079 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF PERIOD | 5,661 | 6,397 | 4,318 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD | 46,499 | 5,661 | 6,397 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITY: | |||
Utility Plant received as Construction Advances and Contributions | 7,770 | 3,835 | 3,778 |
Long-term Debt Deobligation | 130 | ||
Cash Paid During the Year for: | |||
Interest | 6,938 | 6,113 | 5,616 |
Interest Capitalized | 1,149 | 443 | 221 |
Income Taxes | $ 10,339 | $ 4,689 | $ 2,754 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Cash Flows [Abstract] | |||
Allowance for funds used during construction | $ 1,149 | $ 443 | $ 221 |
CONSOLIDATED STATEMENTS OF CAPI
CONSOLIDATED STATEMENTS OF CAPITAL STOCK AND LONG-TERM DEBT - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Common Stock, No Par Value | $ 215,125 | $ 157,354 |
Retained Earnings | 108,667 | 91,433 |
TOTAL COMMON EQUITY | 323,792 | 248,787 |
TOTAL PREFERRED STOCK | 2,084 | 2,433 |
SUBTOTAL LONG-TERM DEBT | 234,397 | 162,904 |
Add: Premium on Issuance of Long-term Debt | 8,064 | 1,259 |
Less: Unamortized Debt Expense | (4,506) | (3,969) |
Less: Current Portion of Long-term Debt | (7,178) | (7,343) |
TOTAL LONG-TERM DEBT | 230,777 | 152,851 |
Convertible Preferred Stock $7.00 Series | ||
SUBTOTAL LONG-TERM DEBT | 1,005 | 1,005 |
Convertible Preferred Stock $8.00 Series [Member] | ||
SUBTOTAL LONG-TERM DEBT | 349 | |
Nonredeemable Preferred Stock $7.00 Series | ||
SUBTOTAL LONG-TERM DEBT | 79 | 79 |
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 | 643 | 924 |
Amortizing Secured Note, due May 19, 2028 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 3,535 | 3,955 |
Amortizing Secured Note, due August 25, 2030 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 2,987 | 3,267 |
Amortizing Secured Note, due September 19, 2031 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 3,267 | 3,547 |
State Revolving Trust Note, due December 31, 2022 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 175 | 228 |
State Revolving Trust Note, due May 1, 2025 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 1,405 | 1,632 |
State Revolving Trust Note, due March 1, 2026 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 309 | 351 |
State Revolving Trust Note2 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 349 | 389 |
State Revolving Trust Note, due December 1, 2026 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 446 | 501 |
State Revolving Trust Bond 4.00% to 5.00%, due August 1, 2021 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 60 | 111 |
State Revolving Trust Bond 0.00%, due August 1, 2021 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 50 | 88 |
State Revolving Trust Note, due July 1, 2028 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 214 | 235 |
State Revolving Trust Note, due January 1, 2028 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 69 | 77 |
State Revolving Trust Note, due August 1, 2031 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 851 | 907 |
Amortizing Secured Note, due April 20, 2029 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 3,255 | 3,604 |
Amortizing Secured Note 7.05%, due January 20, 2030 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 2,521 | 2,771 |
Amortizing Secured Note 5.69%, due January 20, 2030 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 5,171 | 5,684 |
4.45%, Amortizing Secured Note, due April 20, 2040 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 8,946 | 9,387 |
4.47%, Amortizing Secured Note, due April 20, 2040 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 3,320 | 3,483 |
State Revolving Trust Note, due July 1, 2031 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 1,829 | 1,954 |
State Revolving Trust Note, due February 1, 2036 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 1,013 | 1,064 |
State Revolving Trust Note, due November 1, 2038 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 1,309 | |
State Revolving Trust Note, due November 30, 2030 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 955 | 1,024 |
Construction Loans [Member] | ||
SUBTOTAL LONG-TERM DEBT | 40,467 | 16,509 |
First Mortgage Bonds - Series Z [Member] | ||
SUBTOTAL LONG-TERM DEBT | 113 | |
First Mortgage Bonds - Series AA [Member] | ||
SUBTOTAL LONG-TERM DEBT | 155 | |
First Mortgage Bonds - Series BB [Member] | ||
SUBTOTAL LONG-TERM DEBT | 241 | 362 |
First Mortgage Bonds - Series CC [Member] | ||
SUBTOTAL LONG-TERM DEBT | 331 | 489 |
First Mortgage Bonds - Series EE [Member] | ||
SUBTOTAL LONG-TERM DEBT | 1,456 | 1,876 |
First Mortgage Bonds - Series FF [Member] | ||
SUBTOTAL LONG-TERM DEBT | 2,440 | 2,980 |
First Mortgage Bonds - Series GG [Member] | ||
SUBTOTAL LONG-TERM DEBT | 632 | 723 |
First Mortgage Bonds - Series HH [Member] | ||
SUBTOTAL LONG-TERM DEBT | 710 | 795 |
First Mortgage Bonds - Series II [Member] | ||
SUBTOTAL LONG-TERM DEBT | 429 | 520 |
First Mortgage Bonds - Series JJ [Member] | ||
SUBTOTAL LONG-TERM DEBT | 588 | 671 |
First Mortgage Bonds - Series KK [Member] | ||
SUBTOTAL LONG-TERM DEBT | 807 | 898 |
First Mortgage Bonds - Series LL [Member] | ||
SUBTOTAL LONG-TERM DEBT | 928 | 1,010 |
First Mortgage Bonds - Series MM [Member] | ||
SUBTOTAL LONG-TERM DEBT | 1,037 | 1,137 |
First Mortgage Bonds - Series NN [Member] | ||
SUBTOTAL LONG-TERM DEBT | 1,190 | 1,415 |
First Mortgage Bonds - Series OO [Member] | ||
SUBTOTAL LONG-TERM DEBT | 1,806 | 1,956 |
First Mortgage Bonds - Series PP [Member] | ||
SUBTOTAL LONG-TERM DEBT | 660 | 700 |
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 | 1,957 | 2,107 |
First Mortgage Bonds - Series UU [Member] | ||
SUBTOTAL LONG-TERM DEBT | 755 | 800 |
First Mortgage Bonds - Series VV [Member] | ||
SUBTOTAL LONG-TERM DEBT | 2,004 | 2,147 |
First Mortgage Bonds - Series WW [Member] | ||
SUBTOTAL LONG-TERM DEBT | 755 | 795 |
First Mortgage Bonds - Series XX [Member] | ||
SUBTOTAL LONG-TERM DEBT | 10,627 | 11,006 |
First Mortgage Bonds - Series YY [Member] | ||
SUBTOTAL LONG-TERM DEBT | 3,785 | 3,860 |
First Mortgage Bonds - Series 2018A [Member] | ||
SUBTOTAL LONG-TERM DEBT | 6,678 | 6,917 |
First Mortgage Bonds - Series 2018B [Member] | ||
SUBTOTAL LONG-TERM DEBT | 2,320 | 2,365 |
First Mortgage Bonds - Series 2019A [Member] | ||
SUBTOTAL LONG-TERM DEBT | 32,500 | |
First Mortgage Bonds - Series 2019B [Member] | ||
SUBTOTAL LONG-TERM DEBT | $ 21,200 |
CONSOLIDATED STATEMENTS OF CA_3
CONSOLIDATED STATEMENTS OF CAPITAL STOCK AND LONG-TERM DEBT (Parenthetical) - shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Common Stock, Shares Authorized | 40,000 | 40,000 |
Common Stock, Shares Outstanding | 17,434 | 16,403 |
Preferred Stock, Shares Authorized | 120 | 120 |
Preferred Stock, Shares Outstanding | 20 | 23 |
Convertible Preferred Stock $7.00 Series | ||
Common Stock, Shares Outstanding | 10 | 10 |
Convertible Preferred Stock $8.00 Series [Member] | ||
Common Stock, Shares Outstanding | 0 | 3 |
Nonredeemable Preferred Stock $7.00 Series | ||
Common Stock, Shares Outstanding | 1 | 1 |
Nonredeemable Preferred Stock $4.75 Series [Member] | ||
Common Stock, Shares Outstanding | 10 | 10 |
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 1, 2038 [Member] | ||
Due date of debt | Feb. 1, 2038 | |
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 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% | |
First Mortgage Bonds - Series 2018A [Member] | ||
Due date of debt | Aug. 1, 2047 | |
Interest rate | 0.00% | |
First Mortgage Bonds - Series 2018B [Member] | ||
Due date of debt | Aug. 1, 2047 | |
First Mortgage Bonds - Series 2018B [Member] | Minimum [Member] | ||
Interest rate | 3.00% | |
First Mortgage Bonds - Series 2018B [Member] | Maximum [Member] | ||
Interest rate | 5.00% | |
First Mortgage Bonds - Series 2019A [Member] | ||
Due date of debt | Aug. 1, 2059 | |
Interest rate | 4.00% | |
First Mortgage Bonds - Series 2019B [Member] | ||
Due date of debt | Aug. 1, 2059 | |
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, 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 Forefeited | $ (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 | ||
Net Income | 32,452 | 32,452 | |
Dividend Reinvestment & Common Stock Purchase Plan | $ 1,150 | 1,150 | |
Dividend Reinvestment & Common Stock Purchase Plan, shares | 27,000 | ||
Restricted Stock Award, Net - Employees | $ 975 | 975 | |
Restricted Stock Award, Net - Employees, shares | 22,000 | ||
Stock Award - Board Of Directors | $ 147 | 147 | |
Stock Award - Board Of Directors, shares | 4,000 | ||
Shares Forefeited | $ (38) | (38) | |
Shares Forfeited, shares | (2,000) | ||
Cash Dividends on Common Stock | (14,930) | (14,930) | |
Cash Dividends on Preferred Stock | (144) | (144) | |
Balance at Dec. 31, 2018 | $ 157,354 | 91,433 | 248,787 |
Balance, shares at Dec. 31, 2018 | 16,403,000 | ||
Net Income | 33,888 | 33,888 | |
Dividend Reinvestment & Common Stock Purchase Plan | $ 12,738 | 12,738 | |
Dividend Reinvestment & Common Stock Purchase Plan, shares | 226,000 | ||
Restricted Stock Award, Net - Employees | $ 907 | 907 | |
Restricted Stock Award, Net - Employees, shares | 18,000 | ||
Stock Award - Board Of Directors | $ 196 | 196 | |
Stock Award - Board Of Directors, shares | 4,000 | ||
Shares Forefeited | $ (466) | (466) | |
Shares Forfeited, shares | (18,000) | ||
Conversion of Convertible Preferred Stock | $ 350 | 350 | |
Conversion of Convertible Preferred Stock, shares | 41,000 | ||
Issuance of Common Stock | $ 44,046 | 44,046 | |
Issuance of Common Stock, shares | 760,000 | ||
Cash Dividends on Common Stock | (16,165) | (16,165) | |
Cash Dividends on Preferred Stock | (132) | (132) | |
Common Stock Expenses | (357) | (357) | |
Balance at Dec. 31, 2019 | $ 215,125 | $ 108,667 | $ 323,792 |
Balance, shares at Dec. 31, 2019 | 17,434,000 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDERS' EQUITY (Parenthetical) | 12 Months Ended |
Dec. 31, 2019$ / shares | |
Statement of Stockholders' Equity [Abstract] | |
Cash dividends paid, per share | $ 0.976 |
Conversion price | $ 8 |
Organization, Summary of Signif
Organization, Summary of Significant Accounting Policies and Recent Developments | 12 Months Ended |
Dec. 31, 2019 | |
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 42 Index (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 42 years. (h) Preliminary Survey and Investigation (PS&I) Costs – (i) Customers’ Advances for Construction (CAC) – Contributions in Aid of Construction (CIAC) 43 Index 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) 2019 2018 2017 Middlesex 6.50% 6.50% 6.73% Tidewater 7.92% 7.92% 7.92% (k) Accounts Receivable (l) Revenues The Company’s regulated revenue from contracts with customers is derived from tariff-based sales that result from the obligation to provide water and wastewater services to residential, industrial, commercial, fire-protection and wholesale customers. The Company’s residential customers are billed quarterly while most of the Company’s industrial, commercial, fire-protection and wholesale customers are billed monthly. Payments by customers are due between 15 to 30 days after the invoice date. The Company recognizes revenue as the water and wastewater services are delivered to customers as well as records unbilled revenues estimated from the last meter reading date to the end of the accounting period utilizing factors such as historical customer data, regional weather indicators and general economic conditions in its service territories. Unearned Revenues and Advance Service Fees include fixed service charge billings in advance to Tidewater customers that are recognized as service is provided to the customer. Non-regulated service contract revenues consist of base service fees as well as fees for additional billable services provided to customers. Fees are billed monthly and are due within 30 days after the invoice date. The Company considers the amounts billed to represent the value of these services provided to customers. These contracts expire at various times through December 2028 and thus contain remaining performance obligations for which the Company expects to recognize revenue in the future. These contracts also contain customary termination provisions. Almost all of the amounts included in operating revenues and accounts receivable are from contracts with customers. The Company records its allowance for doubtful accounts based on historical write-offs combined with an evaluation of current economic conditions within its service territories. The Company’s contracts do not contain any significant financing components. 44 Index The Company’s operating revenues are comprised of the following: (In Thousands) Years Ended December 31, 2019 2018 2017 Regulated Tariff Sales Residential $ 71,487 $ 69,785 $ 66,483 Commercial 15,198 14,844 13,956 Industrial 9,390 10,183 9,321 Fire Protection 12,291 12,099 11,812 Wholesale 14,319 14,655 13,553 Non-Regulated Contract Operations 11,773 16,374 15,508 Total Revenue from Contracts with Customers $ 134,458 $ 137,940 $ 130,633 Other Regulated Revenues 393 335 329 Other Non-Regulated Revenues 404 404 404 Inter-segment Elimination (657 ) (602 ) (591 ) Total Revenue $ 134,598 $ 138,077 $ 130,775 (m) Unamortized Debt Expense and Premiums on Long-Term Debt (n) Income Taxes Income Taxes (o) Cash and Cash Equivalents (p) Restricted Cash (q) Use of Estimates (r) Recent Accounting Pronouncements Revenue Recognition Revenues Recognition and Measurement of Financial Assets and FinancialLiabilities 45 Index estimate fair value or a description of the changes in the methods and assumptions used to estimate fair value, and (iv) requires disclosure of the fair value of financial assets and liabilities measured at amortized cost at the amount that would be received to sell the asset or paid to transfer the liability. The guidance became effective January 1, 2018 and did not have a material impact on the Company’s financial statements. Statement of Cash Flows - Restricted Cash - Employee Benefit Plans-Net Periodic Benefit Cost – Leases - Leases Note 4 – Commitments and Contingent Liabilities 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 consolidated financial statements. |
Rate and Regulatory Matters
Rate and Regulatory Matters | 12 Months Ended |
Dec. 31, 2019 | |
Regulated Operations [Abstract] | |
Rate and Regulatory Matters | Note 2 - Rate and Regulatory Matters Rate Matters Middlesex In December 2018, the NJBPU approved Middlesex’s petition to establish its PWAC tariff rate to recover additional annual costs of less than $0.1 million, primarily for the purchase of treated water from a non-affiliated water utility. The PWAC tariff rate became effective on January 1, 2019. In March 2018, Middlesex’s petition to the NJBPU seeking permission to increase its base water rates was concluded, based on a negotiated settlement, resulting in an increase in annual operating revenues of $5.5 million. The approved base water rates were designed to recover increased operating costs as well as a return on invested capital in rate base of $245.5 million, based on an authorized return on common equity of 9.6%. As part of the settlement, Middlesex received approval for regulatory accounting treatment of accumulated deferred income tax benefits associated with required adoption of tangible property regulations issued by the Internal Revenue Service. The settlement agreement allowed for a four-year amortization period for $28.7 million of deferred income tax benefits as well as immediate and prospective recognition of the tangible property regulations’ tax benefits in future years. The rate increase became effective April 1, 2018. Tidewater - In November 2019, Tidewater completed a $1.8 million DEPSC-approved purchase of the water utility assets of J.H. Wilkerson and Son, Inc. and transfer of the Certificate of Public Convenience and Necessity in order for Tidewater to serve the approximate 1,000 customers currently connected to eight community water systems located mostly in eastern Sussex County, Delaware. The DEPSC also authorized Tidewater to maintain the existing customer rates. Effective March 1, 2019, Tidewater received approval from the DEPSC to reduce its rates to reflect the lower corporate income tax rate enacted by the Tax Cuts and Jobs Act of 2017 (the Tax Act), resulting in a 3.35% rate decrease for certain customer classes. Pinelands - Southern Shores - 47 Index 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 2018 2017 Recovery Periods Retirement Benefits $ 44,281 $ 39,158 Various Income Taxes 60,151 55,232 Various Rate Cases, Tank Painting, and Other 6,047 4,846 2-10 years Total $ 110,479 $ 99,236 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. In December 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 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. As of December 31, 2019 and December 31, 2018, the Company has recorded regulatory liabilities of $31.5 million and $31.7 million, respectively for excess income taxes collected through rates due to the lower income tax rate under the Tax Act. These regulatory liabilities are overwhelmingly related to utility plant depreciation deduction timing differences, which are subject to Internal Revenue Service (IRS) normalization rules. The IRS rules limit how quickly the excess taxes attributable to accelerated taxes can be returned to customers. The conclusion of Middlesex’s and Pinelands’ base rate cases and the resulting rates implemented in April 2018 and November 2019, respectively, reflect the impact of the Tax Act on their revenue requirements. In February 2019, Tidewater received approval from the DEPSC to reduce its rates to reflect the lower corporate income tax rate enacted by the Tax Act (see Rate Matters-Tidewater As part of Middlesex’s March 2018 base water rate settlement with the NJBPU, Middlesex received approval for regulatory accounting treatment of accumulated deferred income tax benefits associated with the adoption of tangible property regulations issued by the IRS (see Rate Matters-Middlesex 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, 2019 and 2018, the Company has approximately $13.4 million and $12.8 million, respectively, of expected costs of removal recovered currently in rates in excess of actual costs incurred as regulatory liabilities. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 2018 2017 Income Tax at Statutory Rate $ 6,457 $ 7,009 $ 11,868 Tax Effect of: Utility Plant Related (802 ) 422 (1,016 ) Tangible Property Repairs (10,156 ) (7,763 ) — State Income Taxes – Net 1,173 1,207 895 Tax Act — — (610 ) Other 188 49 (37 ) Total Income Tax Expense $ (3,140 ) $ 924 $ 11,100 Income tax expense is comprised of the following: (Thousands of Dollars) Years Ended December 31, 2019 2018 2017 Current: Federal $ (3,822 ) $ (188 ) $ 2,090 State 2,246 2,073 1,066 Deferred: Federal (726 ) (338 ) 7,713 State (761 ) (545 ) 310 Investment Tax Credits (77 ) (78 ) (79 ) Total Income Tax Expense $ (3,140 ) $ 924 $ 11,100 As part of Middlesex’s March 2018 base water rate settlement with the NJBPU, Middlesex received approval for regulatory accounting treatment of accumulated deferred income tax benefits associated with the adoption of tangible property regulations issued by the IRS as well as immediate recognition of current year tangible property regulations tax benefits (see Note 2 – Rate and Regulatory Matters 49 Index 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, 2019 2018 Utility Plant Related $ 50,608 $ 44,777 Customer Advances (3,661 ) (3,702 ) Employee Benefits 6,543 5,490 Investment Tax Credits (ITC) 519 596 Other 399 109 Total Deferred Tax Liability and ITC $ 54,408 $ 47,270 As part of its 2014 Federal income tax return, the Company adopted the final IRS tangible property regulations and changed its accounting method for the tax treatment of expenditures that qualified as deductible repairs. 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 the tax refunds. A reserve provision against refunded taxes of $2.3 million was recorded in 2015 at the time of filing its change in accounting method based on a possible challenge by the IRS during an audit examination. The Company’s 2014 federal income tax return was subsequently selected for examination by the IRS. In 2018, the Company increased its income tax reserve provision to $4.1 million. During the first quarter of 2019, the Company agreed to certain modifications of its accounting method for expenditures that qualify as deductible repairs and the IRS concluded its audit of the Company’s 2014 federal income tax return. The modifications also impacted the Company’s filed 2015, 2016 and 2017 federal income tax returns. In March 2019 and June 2019, the Company paid $0.8 million in income taxes and $0.1 million in interest, respectively, in connection with the conclusion and closing of the 2014 and 2015 tax return audits. In October 2019, the Company paid $1.9 million in income taxes in connection with the conclusion and closing of the 2016 and 2017 tax return audits. As of December 31, 2019, the Company has reduced its income tax reserve provision and interest expense liability to $0.5 million and $0.1 million, respectively. The statutory review periods for federal income tax returns for the years prior to 2016 have been closed. 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, 2019 | |
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 water utility regulated by the NJBPU 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. 50 Index Purchased water costs are shown below: (Millions of Dollars) Years Ended December 31, 2019 2018 2017 Untreated $ 3.4 $ 3.6 $ 2.8 Treated 3.2 3.2 3.3 Total Costs $ 6.6 $ 6.8 $ 6.1 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. The liability and asset for the guaranty are included in Other Non-Current Liabilities and Other Non-Current Assets on the balance sheet and are approximately $1.4 million and $1.5 million as of December 31, 2019 and 2018, respectively. In November 2019, Middlesex was first notified that the County terminated its Agreement with AWM. AWM has filed a lawsuit against the County in the Superior Court of New Jersey, Monmouth County that in part contests the County’s exercise of this termination. Middlesex is examining the current status of its performance guaranty in light of these developments and continues to monitor this litigation for its implications on the future need to continue with the guaranty. Leases - The Company has entered into an operating lease of office space for administrative purposes, expiring in 2030. The Company has not entered into any finance leases. The exercise of a lease renewal option for the Company’s administrative offices is solely at the discretion of the Company. The right-of-use (ROU) asset recorded represents the Company’s right to use an underlying asset for the lease term and lease liability represents the Company’s obligation to make lease payments arising from the lease. Lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company’s operating lease does not provide an implicit discount rate and as such the Company used an estimated incremental borrowing rate (4.03%) based on the information available at commencement date in determining the present value of lease payments. Given the impacts of accounting for regulated operations, and the resulting recognition of expense at the amounts recovered in customer rates, expenditures for operating leases are consistent with lease expense and was $0.7 million, $0.5 million and $0.1 million for the years ended December 31, 2019, 2018 and 2017, respectively. 51 Index Information related to operating lease ROU assets and lease liabilities is as follows: (In Millions) December 31, 2019 ROU Asset at Least Inception $ 7.3 Accumulated Amortization (1.4 ) Current ROU Asset $ 5.9 The Company’s future minimum operating lease commitments as of December 31, 2019 are as follows: (In Millions) December 31, 2019 2020 0.8 2021 0.8 2022 0.8 2023 0.8 2024 0.8 Thereafter 4.4 Total Lease Payments $ 8.4 Imputed Interest (2.0 ) Present Value of Lease Payments 6.4 Less Current Portion* (0.7 ) Non-Current Lease Liability $ 5.7 * Included in Other Current Liabilities Construction Contingencies Change in Control Agreements |
Short-term Borrowings
Short-term Borrowings | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 and 2018 is summarized below: (Millions of Dollars) 2019 2018 Established Lines at Year-End $ 140.0 $ 92.0 Maximum Amount Outstanding 59.4 48.5 Average Outstanding 52.4 37.3 Notes Payable at Year-End 20.0 48.5 Weighted Average Interest Rate 3.33 % 3.17 % Weighted Average Interest Rate at Year-End 2.86 % 3.57 % The maturity dates for the Notes Payable as of December 31, 2019 are in January 2020 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, 2019 | |
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 In November 2019, the Company sold and issued 0.8 million shares of common stock in a public offering priced at $60.50 per share. The net proceeds of $43.7 million were used for general corporate purposes including repayment of a portion of the Company’s short-term debt. The Company issues shares of its common stock in connection with its Middlesex Water Company Investment Plan (the Investment Plan), a direct share purchase and dividend reinvestment plan for the Company’s common stock. Since the inception of the Investment Plan and its predecessor plan, the Company has periodically replenished the level of authorized shares in the plans. Currently, there remains 0.4 million shares registered with the SEC for the Investment Plan and available for potential issuance to participants. In January 2019, the Company activated a limited share purchase discount feature of the Investment Plan. Investment Plan participants were invited to purchase shares directly as well as reinvest their common stock dividends at a 5% discount. In August 2019, the 0.2 million share purchase limit was reached and the discount offer terminated. The Company raised approximately $12.7 million through the issuance of over 0.2 million shares under the Investment Plan during 2019. 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, 2019, 2018 and 2017, 3,521, 4,004, and 3,976 shares, respectively, of Middlesex common stock were granted and issued to the Company’s outside directors under the Outside Director Stock Compensation Plan and 56,643 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. 53 Index Preferred Stock At December 31, 2019 and 2018, 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. In 2019, all remaining outstanding no par $8.00 Series Cumulative and Convertible Preferred Stock (3,000 shares or approximately $0.3 million) were converted into 41,142 shares of common stock. 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 interest rate on the Company’s current 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 NJIB generally schedules its long-term debt financings in May and November. Middlesex currently has two projects that are in the construction loan phase of New Jersey SRF program: 1) In April 2018, the NJBPU approved Middlesex’s request to participate in the NJIB loan program to fund the construction of a large-diameter transmission pipeline from the Carl J. Olsen water treatment plant and interconnect with our distribution system. Middlesex closed on a $43.5 million NJIB interest-free construction loan in August 2018. Through December 31, 2019, Middlesex has drawn a total of $31.8 million and expects to draw down the remaining proceeds through the first quarter of 2020. 2) In March 2018, the NJBPU approved Middlesex’s request to participate in the NJIB loan program to fund the 2018 RENEW Program, which is an ongoing initiative to eliminate all unlined water distribution mains in the Middlesex system. Middlesex closed on an $8.7 million NJIB construction loan in September 2018 and completed drawing on the proceeds in October 2019. The Company expects that the large-diameter transmission pipeline and the 2018 RENEW construction loans will be included in the NJIB May 2020 long-term debt financing program. 54 Index In September 2018, the NJIB announced changes to the SRF program for project funding priority ranking, the proportions of interest free loans and market interest rate loans and overall loan limits on interest free loan balances to investor-owned water utilities. These changes affect SRF projects for which the construction loan closes after September 2018. Under the new guidelines, the principal balance having a stated interest rate of zero percent (0%) is 25% of the loan balance with the remaining portion of 75% having a market based interest rate. This is limited to the first $10.0 million of the loan. Loan amounts above $10.0 million do not participate in the 0% rate program, but do participate at the market based interest rate. As a result of all these changes, the Company’s future capital funding plan does not include participating in the NJIB SRF program. In order to help ensure adherence to its comprehensive financing plan, Middlesex received approval from the NJBPU in February 2019 to issue and sell up to $140 million of First Mortgage Bonds (FMB) through the New Jersey Economic Development Authority (NJEDA) in one or more transactions through December 31, 2022. Because the interest paid to the bondholders is exempt from federal and New Jersey income taxes, the interest rate on debt issued through the NJEDA is generally lower than otherwise achievable in the traditional taxable corporate bond market. However, the interest received by the bondholder is subject to the Alternative Minimum Tax. In August 2019, Middlesex priced and closed on an NJEDA debt financing transaction of $53.7 million by issuing FMBs designated as Series 2019A ($32.5 million at coupon interest rate of 4.0%) and Series 2019B ($21.2 million at coupon interest rate of 5.0%). The proceeds, including an issuance premium of $7.1 million, are being used to finance several projects under the Water For Tomorrow capital program initiated by the Company to upgrade and replace aging water utility infrastructure. The total proceeds of $60.8 million, initially recorded as Restricted Cash on the balance sheet, is held in escrow by a bond trustee and are drawn down by requisition for the qualifying projects. Through December 31, 2019, Middlesex has drawn a total of $17.3 million and currently expects to draw the remaining $43.8 million of proceeds, currently included in Restricted Cash, through the third quarter of 2021. In May 2018, Middlesex repaid its RENEW 2017 interest-free construction loan by issuing to the NJIB FMBs in the amount of $9.5 million designated as Series 2018A ($7.1 million) and Series 2018B ($2.4 million). The interest rate on the Series 2018A bond is zero and the interest rate on the Series 2018B bond ranges between 3.0% and 5.0%. The final maturity date for both bonds is August 1, 2047, with scheduled debt service payments over the life of the loans. In March 2018, the DEPSC approved Tidewater’s request to borrow up to $0.9 million under the Delaware SRF program to fund the replacement of an entire water distribution system of a small Delaware community. Tidewater closed on the SRF loan in May 2018. In April 2019, Tidewater received approval from the DEPSC to increase the borrowing to $1.7 million based on revised project cost estimates. Tidewater closed on the additional SRF loan in October 2019. Through December 31, 2019, Tidewater has drawn a total of $1.3 million and expects to draw down the remaining proceeds through the first quarter of 2020. Bond Series QQ, RR, SS, 2019A and 2019B are term bonds with single maturity dates subsequent to 2024. Principal repayments for all series of the Company’s long-term debt except for Bond Series BB, CC, EE, FF and II extend beyond 2024. 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 2020 $ 7.2 2021 $ 7.2 2022 $ 6.7 2023 $ 6.2 2024 $ 6.0 * Included in Other Current Liabilities 55 Index The weighted average interest rate on all long-term debt at December 31, 2019 and 2018 was 3.17% and 3.30%, respectively. Except for the Amortizing Secured Notes ($33.6 million), all of the Company’s outstanding long-term debt has been issued through the NJEDA ($109.1 million), the NJIB SRF program ($82.7 million) and the Delaware SRF program ($8.9 million). In 2019, the NJIB de-obligated principal payments of $0.1 million on Series NN of the Company’s FMBs. 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 years ended December 31, 2019, 2018 and 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 (fully converted into common stock in September 2019). (In Thousands, Except Per Share Amounts) 2019 2018 2017 Basic: Income Shares Income Shares Income Shares Net Income $ 33,888 16,685 $ 32,452 16,384 $ 22,809 16,330 Preferred Dividend (132 ) (144 ) (144 ) Earnings Applicable to Common Stock $ 33,756 16,685 $ 32,308 16,384 $ 22,665 16,330 Basic EPS $ 2.02 $ 1.97 $ 1.39 Diluted: Earnings Applicable to Common Stock $ 33,756 16,685 $ 32,308 16,384 $ 22,665 16,330 $7.00 Series Dividend 67 115 67 115 67 115 $8.00 Series Dividend 12 29 24 41 24 41 Adjusted Earnings Applicable to Common Stock $ 33,835 16,829 $ 32,399 16,540 $ 22,756 16,486 Diluted EPS $ 2.01 $ 1.96 $ 1.38 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, 2019 2018 Carrying Fair Carrying Fair Amount Value Amount Value Bonds $ 151,361 $ 160,772 $ 101,411 $ 102,789 56 Index 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 Consolidated Statements of Capital Stock and Long-Term Debt. The carrying amount of these instruments was $83.0 million and $61.5 million at December 31, 2019 and 2018, respectively. Customer advances for construction have carrying amounts of $23.9 million and $22.6 million at December 31, 2019 and 2018, 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, 2019 | |
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 31st of the year to which the contribution relates. The Company maintains an unfunded supplemental plan for a limited number of its executive officers. The Accumulated Benefit Obligation for the Company’s Pension Plan at December 31, 2019 and 2018 was $87.6 million and $73.1 million, respectively. 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 57 Index 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 2019 and 2018. ( Thousands of Dollars) Pension Plan Other Benefits Plan December 31, 2019 2018 2019 2018 Change in Projected Benefit Obligation: Beginning Balance $ 83,927 $ 88,013 $ 48,474 $ 54,345 Service Cost 2,171 2,426 839 1,135 Interest Cost 3,426 3,061 1,984 1,898 Actuarial (Gain) Loss 14,188 (7,018 ) 4,671 (8,160 ) Benefits Paid (2,821 ) (2,555 ) (802 ) (744 ) Ending Balance $ 100,891 $ 83,927 $ 55,166 $ 48,474 ( Thousands of Dollars) Pension Plan Other Benefits Plan December 31, 2019 2018 2019 2018 Change in Fair Value of Plan Assets: Beginning Balance $ 66,771 $ 69,215 $ 34,622 $ 36,083 Actual Return on Plan Assets 12,753 (3,524 ) 5,192 (2,161 ) Employer Contributions 3,677 3,635 1,601 1,444 Benefits Paid (2,821 ) (2,555 ) (802 ) (744 ) Ending Balance $ 80,380 $ 66,771 $ 40,613 $ 34,622 Funded Status $ (20,511 ) $ (17,156 ) $ (14,553 ) $ (13,852 ) 58 Index ( Thousands of Dollars) Pension Plan Other Benefits Plan December 31, 2019 2018 2019 2018 Amounts Recognized in the Consolidated Balance Sheets consist of : Current Liability 393 347 — — Noncurrent Liability 20,118 16,809 14,553 13,852 Net Liability Recognized $ 20,511 $ 17,156 $ 14,553 $ 13,852 (Thousands of Dollars) Pension Plan Other Benefits Plan Years Ended December 31, 2019 2018 2017 2019 2018 2017 Components of Net Periodic Benefit Cost Service Cost $ 2,171 $ 2,426 $ 2,399 $ 839 $ 1,135 $ 1,089 Interest Cost 3,426 3,061 3,143 1,984 1,898 1,964 Expected Return on Plan Assets (4,694 ) (4,871 ) (4,489 ) (2,451 ) (2,550 ) (2,406 ) Amortization of Net Actuarial Loss 1,618 1,658 1,566 1,319 1,787 1,781 Amortization of Prior Service Credit — — — — (1,607 ) (1,728 ) Net Periodic Benefit Cost* $ 2,521 $ 2,274 $ 2,619 $ 1,691 $ 663 $ 700 *Service cost is included in Operations and Maintenance expense on the consolidated statements of income; all other amounts are included in Other Income (Expense), net. Amounts that are expected to be amortized from Regulatory Assets into Net Periodic Benefit Cost in 2020 are as follows: (Thousands of Dollars) Pension Plan Other Benefits Plan Actuarial Loss $ 2,059 $ 1,351 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, 2019, 2018 and 2017, respectively, are as follows: Pension Plan Other Benefits Plan Pension Plan Other Benefits Plan 2019 2018 2017 2019 2018 2017 Weighted Average Assumptions: Expected Return on Plan Assets 7.00 % 7.00 % 7.50 % 7.00 % 7.00 % 7.50 % Discount Rate for: Benefit Obligation 3.12 % 4.15 % 3.53 % 3.12 % 4.15 % 3.53 % Benefit Cost 4.15 % 3.53 % 4.06 % 4.15 % 3.53 % 4.06 % 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 (Pri-2012) (Mortality Improvement Scale MP2019 for the 2019 valuation). For the 2019 valuation, costs and obligations for our Other Benefits Plan assumed an 8.0% annual rate of increase in the per capita cost of covered healthcare benefits in 2020 with the annual rate of increase declining 1.0% per year for 2021-2022 and 0.5% per year for 2023-2024, resulting in an annual rate of increase in the per capita cost of covered healthcare benefits of 5% by year 2024. 59 Index 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 $ 545 $ (424 ) Effect on Projected Benefit Obligation $ 9,036 $ (7,143 ) The following benefit payments, which reflect expected future service, are expected to be paid: (Thousands of Dollars) Year Pension Plan Other Benefits Plan 2020 $ 3,152 $ 1,426 2021 3,144 1,639 2022 3,309 1,916 2023 3,720 2,006 2024 4,652 2,089 2025-2029 26,501 11,652 Totals $ 44,478 $ 20,728 Benefit Plans Assets The allocation of plan assets at December 31, 2019 and 2018 by asset category is as follows: Pension Plan Other Benefits Plan Asset Category 2019 2018 Target 2019 2018 Target Equity Securities 61.5 % 59.5 % 55 % 60.0 % 54.7 % 43 % Debt Securities 36.5 % 36.5 % 38 % 33.0 % 37.3 % 50 % Cash 0.5 % 1.6 % 2 % 7.0 % 8.0 % 2 % Real Estate/Commodities 1.5 % 2.4 % 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 $1.2 million (1.6% of total Pension Plan assets) and $1.0 million (1.6% of total Pension Plan assets) as of December 31, 2019 and 2018, respectively. 60 Index 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, 2019 Level 1 Level 2 Level 3 Total Mutual Funds $ 69,565 $ — $ — $ 69,565 Money Market Funds 397 — — 397 Common Equity Securities 10,418 — — 10,418 Total Investments $ 80,380 $ — $ — $ 80,380 (Thousands of Dollars) As of December 31, 2018 Level 1 Level 2 Level 3 Total Mutual Funds $ 57,014 $ — $ — $ 57,014 Money Market Funds 1,074 — — 1,074 Common Equity Securities 8,683 — — 8,683 Total Investments $ 66,771 $ — $ — $ 66,771 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, 2019 Level 1 Level 2 Level 3 Total Mutual Funds $ 24,361 $ — $ — $ 24,361 Money Market Funds 2,859 — — 2,859 Agency/US/State/Municipal Debt — 13,393 — 13,393 Total Investments $ 27,220 $ 13,393 $ — $ 40,613 61 Index (Thousands of Dollars) As of December 31, 2018 Level 1 Level 2 Level 3 Total Mutual Funds $ 18,924 $ — $ — $ 18,924 Money Market Funds 2,769 — — 2,769 Agency/US/State/Municipal Debt — 12,929 — 12,929 Total Investments $ 21,693 $ 12,929 $ — $ 34,622 Benefit Plans Contributions For the Pension Plan, Middlesex made total cash contributions of $3.7 million in 2019 and expects to make approximately $3.4 million of cash contributions in 2020. For the Other Benefits Plan, Middlesex made total cash contributions of $1.6 million in 2019 and expects to make approximately $1.6 million of cash contributions in 2020. 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 $0.7 million, $0.6 million and $0.6 million for the years ended December 31, 2019, 2018 and 2017, respectively. For those employees hired after March 31, 2007, and still actively employed on December 31, 2019, the Company approved, and will fund, a discretionary contribution of $0.7 million which was based on 5.0% of eligible 2019 compensation. For the years ended December 31, 2018 and 2017, the Company made discretionary contributions of $0.6 million and $0.5 million, respectively, for qualifying employees. Stock-Based Compensation The Company has a stock compensation plan for certain management employees (the 2018 Restricted Stock Plan). Shares issued in connection with the 2018 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 2018 Restricted Stock Plan is 0.3 million shares, of which approximately 94% remain available for award. The Company recognizes compensation expense at fair value for the 2018 Restricted Stock Plan awards in accordance with ASC 718, Compensation – Stock Compensation 62 Index The following table presents information on the 2018 Restricted Stock Plan: Shares (thousands) Unearned Compensation (thousands) Weighted Average Grant Price Balance, January 1, 2017 132 $ 1,764 Granted 22 799 $ 36.95 Vested (20 ) — Forfeited (2 ) (54 ) Amortization of Compensation Expense — (724 ) Balance, December 31, 2017 132 $ 1,785 Granted 22 827 $ 36.53 Vested (27 ) — Forfeited (2 ) (18 ) Amortization of Compensation Expense — (956 ) Balance, December 31, 2018 125 $ 1,638 Granted 18 975 $ 55.99 Vested (28 ) — Forfeited (18 ) — Amortization of Compensation Expense — (907 ) Balance, December 31, 2019 97 $ 1,706 The fair value of vested restricted shares was $1.7 million and $1.3 million as of December 31, 2019 and 2018, respectively. |
Business Segment Data
Business Segment Data | 12 Months Ended |
Dec. 31, 2019 | |
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. 63 Index (Thousands of Dollars) Years Ended December 31, Operations by Segments: 2019 2018 2017 Revenues: Regulated $ 123,078 $ 121,901 $ 115,454 Non – Regulated 12,177 16,778 15,912 Inter-segment Elimination (657 ) (602 ) (591 ) Consolidated Revenues $ 134,598 $ 138,077 $ 130,775 Operating Income: Regulated $ 31,805 $ 34,127 $ 35,130 Non – Regulated 3,715 3,015 2,668 Consolidated Operating Income $ 35,520 $ 37,142 $ 37,798 Depreciation: Regulated $ 16,481 $ 14,846 $ 13,732 Non – Regulated 235 191 190 Consolidated Depreciation $ 16,716 $ 15,037 $ 13,922 Other Income (Expense), Net: Regulated $ 3,018 $ 3,284 $ 2,020 Non – Regulated (253 ) 119 64 Inter-segment Elimination (273 ) (411 ) (467 ) Consolidated Other Income (Expense), Net $ 2,492 $ 2,992 $ 1,617 Interest Charges: Regulated $ 7,456 $ 7,060 $ 5,855 Non – Regulated 81 109 118 Inter-segment Elimination (273 ) (411 ) (467 ) Consolidated Interest Charges $ 7,264 $ 6,758 $ 5,506 Income Taxes: Regulated $ (4,317 ) $ (54 ) $ 9,848 Non – Regulated 1,177 978 1,252 Consolidated Income Taxes $ (3,140 ) $ 924 $ 11,100 Net Income: Regulated $ 31,602 $ 30,405 $ 21,447 Non – Regulated 2,286 2,047 1,362 Consolidated Net Income $ 33,888 $ 32,452 $ 22,809 Capital Expenditures: Regulated $ 88,858 $ 71,493 $ 50,078 Non – Regulated 267 601 223 Total Capital Expenditures $ 89,125 $ 72,094 $ 50,301 (Thousands of Dollars) As of As of December 31, 2019 December 31, 2018 Assets: Regulated $ 910,081 $ 764,749 Non – Regulated 9,686 8,994 Inter-segment Elimination (9,889 ) (5,913 ) Consolidated Assets $ 909,878 $ 767,830 |
Quarterly Data - Unaudited
Quarterly Data - Unaudited | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Data - Unaudited | Note 9 - Quarterly Data - Unaudited Financial information for each quarter of 2019 and 2018 is as follows: (Thousands of Dollars, Except per Share Data) 2019 1 st 2 nd 3 rd 4 th Total Operating Revenues $ 30,698 $ 33,393 $ 37,769 $ 32,738 $ 134,598 Operating Income 7,028 8,950 11,983 7,559 35,520 Net Income 6,552 8,146 11,119 8,071 33,888 Basic Earnings per Share $ 0.40 $ 0.49 $ 0.67 $ 0.46 $ 2.02 Diluted Earnings per Share $ 0.39 $ 0.49 $ 0.67 $ 0.46 $ 2.01 Common Dividend Per Share $ 0.2400 $ 0.2400 $ 0.2400 $ 0.2563 $ 0.9763 High/Low Common Stock Price $ 60.48/$51.02 $ 63.68/$52.51 $ 66.10/$55.30 $ 67.69/$58.75 2018 1 st 2 nd 3 rd 4 th Total Operating Revenues $ 31,177 $ 34,919 $ 38,713 $ 33,268 $ 138,077 Operating Income 6,350 10,721 12,918 7,153 37,142 Net Income 4,494 8,675 12,290 6,993 32,452 Basic Earnings per Share $ 0.27 $ 0.52 $ 0.75 $ 0.43 $ 1.97 Diluted Earnings per Share $ 0.27 $ 0.52 $ 0.74 $ 0.43 $ 1.96 Common Dividend Per Share $ 0.2238 $ 0.2238 $ 0.2238 $ 0.2400 $ 0.9114 High/Low Common Stock Price $ 41.45/$33.96 $ 45.24/$34.74 $ 49.00/$41.77 $ 60.31/$43.12 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 slightly from previous filings due to the effects of rounding. |
Organization, Summary of Sign_2
Organization, Summary of Significant Accounting Policies and Recent Developments (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
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 42 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) 43 Index 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) 2019 2018 2017 Middlesex 6.50% 6.50% 6.73% Tidewater 7.92% 7.92% 7.92% |
Accounts Receivable | (k) Accounts Receivable |
Revenues | (l) Revenues The Company’s regulated revenue from contracts with customers is derived from tariff-based sales that result from the obligation to provide water and wastewater services to residential, industrial, commercial, fire-protection and wholesale customers. The Company’s residential customers are billed quarterly while most of the Company’s industrial, commercial, fire-protection and wholesale customers are billed monthly. Payments by customers are due between 15 to 30 days after the invoice date. The Company recognizes revenue as the water and wastewater services are delivered to customers as well as records unbilled revenues estimated from the last meter reading date to the end of the accounting period utilizing factors such as historical customer data, regional weather indicators and general economic conditions in its service territories. Unearned Revenues and Advance Service Fees include fixed service charge billings in advance to Tidewater customers that are recognized as service is provided to the customer. Non-regulated service contract revenues consist of base service fees as well as fees for additional billable services provided to customers. Fees are billed monthly and are due within 30 days after the invoice date. The Company considers the amounts billed to represent the value of these services provided to customers. These contracts expire at various times through December 2028 and thus contain remaining performance obligations for which the Company expects to recognize revenue in the future. These contracts also contain customary termination provisions. Almost all of the amounts included in operating revenues and accounts receivable are from contracts with customers. The Company records its allowance for doubtful accounts based on historical write-offs combined with an evaluation of current economic conditions within its service territories. The Company’s contracts do not contain any significant financing components. 44 Index The Company’s operating revenues are comprised of the following: (In Thousands) Years Ended December 31, 2019 2018 2017 Regulated Tariff Sales Residential $ 71,487 $ 69,785 $ 66,483 Commercial 15,198 14,844 13,956 Industrial 9,390 10,183 9,321 Fire Protection 12,291 12,099 11,812 Wholesale 14,319 14,655 13,553 Non-Regulated Contract Operations 11,773 16,374 15,508 Total Revenue from Contracts with Customers $ 134,458 $ 137,940 $ 130,633 Other Regulated Revenues 393 335 329 Other Non-Regulated Revenues 404 404 404 Inter-segment Elimination (657 ) (602 ) (591 ) Total Revenue $ 134,598 $ 138,077 $ 130,775 |
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 |
Cash and Cash Equivalents | (o) Cash and Cash Equivalents |
Restricted Cash | (p) Restricted Cash |
Use of Estimates | (q) Use of Estimates |
Recent Accounting Pronouncements | (r) Recent Accounting Pronouncements Revenue Recognition Revenues Recognition and Measurement of Financial Assets and FinancialLiabilities 45 Index estimate fair value or a description of the changes in the methods and assumptions used to estimate fair value, and (iv) requires disclosure of the fair value of financial assets and liabilities measured at amortized cost at the amount that would be received to sell the asset or paid to transfer the liability. The guidance became effective January 1, 2018 and did not have a material impact on the Company’s financial statements. Statement of Cash Flows - Restricted Cash - Employee Benefit Plans-Net Periodic Benefit Cost – Leases - Leases Note 4 – Commitments and Contingent Liabilities 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 consolidated financial statements. |
Organization, Summary of Sign_3
Organization, Summary of Significant Accounting Policies and Recent Developments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization Summary Of Significant Accounting Policies And Recent Developments [Abstract] | |
Range of depreciation rates | 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 | 2019 2018 2017 Middlesex 6.50% 6.50% 6.73% Tidewater 7.92% 7.92% 7.92% |
Schedule of Operating Revenues | (In Thousands) Years Ended December 31, 2019 2018 2017 Regulated Tariff Sales Residential $ 71,487 $ 69,785 $ 66,483 Commercial 15,198 14,844 13,956 Industrial 9,390 10,183 9,321 Fire Protection 12,291 12,099 11,812 Wholesale 14,319 14,655 13,553 Non-Regulated Contract Operations 11,773 16,374 15,508 Total Revenue from Contracts with Customers $ 134,458 $ 137,940 $ 130,633 Other Regulated Revenues 393 335 329 Other Non-Regulated Revenues 404 404 404 Inter-segment Elimination (657 ) (602 ) (591 ) Total Revenue $ 134,598 $ 138,077 $ 130,775 |
Rate and Regulatory Matters (Ta
Rate and Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 2018 2017 Recovery Periods Retirement Benefits $ 44,281 $ 39,158 Various Income Taxes 60,151 55,232 Various Rate Cases, Tank Painting, and Other 6,047 4,846 2-10 years Total $ 110,479 $ 99,236 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 2018 2017 Income Tax at Statutory Rate $ 6,457 $ 7,009 $ 11,868 Tax Effect of: Utility Plant Related (802 ) 422 (1,016 ) Tangible Property Repairs (10,156 ) (7,763 ) — State Income Taxes – Net 1,173 1,207 895 Tax Act — — (610 ) Other 188 49 (37 ) Total Income Tax Expense $ (3,140 ) $ 924 $ 11,100 |
Income tax expense | Income tax expense is comprised of the following: (Thousands of Dollars) Years Ended December 31, 2019 2018 2017 Current: Federal $ (3,822 ) $ (188 ) $ 2,090 State 2,246 2,073 1,066 Deferred: Federal (726 ) (338 ) 7,713 State (761 ) (545 ) 310 Investment Tax Credits (77 ) (78 ) (79 ) Total Income Tax Expense $ (3,140 ) $ 924 $ 11,100 |
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, 2019 2018 Utility Plant Related $ 50,608 $ 44,777 Customer Advances (3,661 ) (3,702 ) Employee Benefits 6,543 5,490 Investment Tax Credits (ITC) 519 596 Other 399 109 Total Deferred Tax Liability and ITC $ 54,408 $ 47,270 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of water cost purchased | Purchased water costs are shown below: (Millions of Dollars) Years Ended December 31, 2019 2018 2017 Untreated $ 3.4 $ 3.6 $ 2.8 Treated 3.2 3.2 3.3 Total Costs $ 6.6 $ 6.8 $ 6.1 |
Schedule of operating lease ROU assets and lease liabilities | Information related to operating lease ROU assets and lease liabilities is as follows: (In Millions) December 31, 2019 ROU Asset at Least Inception $ 7.3 Accumulated Amortization (1.4 ) Current ROU Asset $ 5.9 |
Schedule of future minimum operating lease | The Company’s future minimum operating lease commitments as of December 31, 2019 are as follows: (In Millions) December 31, 2019 2020 0.8 2021 0.8 2022 0.8 2023 0.8 2024 0.8 Thereafter 4.4 Total Lease Payments $ 8.4 Imputed Interest (2.0 ) Present Value of Lease Payments 6.4 Less Current Portion* (0.7 ) Non-Current Lease Liability $ 5.7 * Included in Other Current Liabilities |
Short-Term Borrowings (Tables)
Short-Term Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 and 2018 is summarized below: (Millions of Dollars) 2019 2018 Established Lines at Year-End $ 140.0 $ 92.0 Maximum Amount Outstanding 59.4 48.5 Average Outstanding 52.4 37.3 Notes Payable at Year-End 20.0 48.5 Weighted Average Interest Rate 3.33 % 3.17 % Weighted Average Interest Rate at Year-End 2.86 % 3.57 % |
Capitalization (Tables)
Capitalization (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
CAPITALIZATION: | |
Schedule of maturities of long term debt | Bond Series QQ, RR, SS, 2019A and 2019B are term bonds with single maturity dates subsequent to 2024. Principal repayments for all series of the Company’s long-term debt except for Bond Series BB, CC, EE, FF and II extend beyond 2024. 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 2020 $ 7.2 2021 $ 7.2 2022 $ 6.7 2023 $ 6.2 2024 $ 6.0 * Included in Other Current Liabilities |
Schedule of earnings per share | The following table presents the calculation of basic and diluted earnings per share (EPS) for the years ended December 31, 2019, 2018 and 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 (fully converted into common stock in September 2019). (In Thousands, Except Per Share Amounts) 2019 2018 2017 Basic: Income Shares Income Shares Income Shares Net Income $ 33,888 16,685 $ 32,452 16,384 $ 22,809 16,330 Preferred Dividend (132 ) (144 ) (144 ) Earnings Applicable to Common Stock $ 33,756 16,685 $ 32,308 16,384 $ 22,665 16,330 Basic EPS $ 2.02 $ 1.97 $ 1.39 Diluted: Earnings Applicable to Common Stock $ 33,756 16,685 $ 32,308 16,384 $ 22,665 16,330 $7.00 Series Dividend 67 115 67 115 67 115 $8.00 Series Dividend 12 29 24 41 24 41 Adjusted Earnings Applicable to Common Stock $ 33,835 16,829 $ 32,399 16,540 $ 22,756 16,486 Diluted EPS $ 2.01 $ 1.96 $ 1.38 |
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, 2019 2018 Carrying Fair Carrying Fair Amount Value Amount Value Bonds $ 151,361 $ 160,772 $ 101,411 $ 102,789 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 2019 and 2018. ( Thousands of Dollars) Pension Plan Other Benefits Plan December 31, 2019 2018 2019 2018 Change in Projected Benefit Obligation: Beginning Balance $ 83,927 $ 88,013 $ 48,474 $ 54,345 Service Cost 2,171 2,426 839 1,135 Interest Cost 3,426 3,061 1,984 1,898 Actuarial (Gain) Loss 14,188 (7,018 ) 4,671 (8,160 ) Benefits Paid (2,821 ) (2,555 ) (802 ) (744 ) Ending Balance $ 100,891 $ 83,927 $ 55,166 $ 48,474 ( Thousands of Dollars) Pension Plan Other Benefits Plan December 31, 2019 2018 2019 2018 Change in Fair Value of Plan Assets: Beginning Balance $ 66,771 $ 69,215 $ 34,622 $ 36,083 Actual Return on Plan Assets 12,753 (3,524 ) 5,192 (2,161 ) Employer Contributions 3,677 3,635 1,601 1,444 Benefits Paid (2,821 ) (2,555 ) (802 ) (744 ) Ending Balance $ 80,380 $ 66,771 $ 40,613 $ 34,622 Funded Status $ (20,511 ) $ (17,156 ) $ (14,553 ) $ (13,852 ) |
Amounts recognized in balance sheet | ( Thousands of Dollars) Pension Plan Other Benefits Plan December 31, 2019 2018 2019 2018 Amounts Recognized in the Consolidated Balance Sheets consist of : Current Liability 393 347 — — Noncurrent Liability 20,118 16,809 14,553 13,852 Net Liability Recognized $ 20,511 $ 17,156 $ 14,553 $ 13,852 |
Components of net benefit cost | (Thousands of Dollars) Pension Plan Other Benefits Plan Years Ended December 31, 2019 2018 2017 2019 2018 2017 Components of Net Periodic Benefit Cost Service Cost $ 2,171 $ 2,426 $ 2,399 $ 839 $ 1,135 $ 1,089 Interest Cost 3,426 3,061 3,143 1,984 1,898 1,964 Expected Return on Plan Assets (4,694 ) (4,871 ) (4,489 ) (2,451 ) (2,550 ) (2,406 ) Amortization of Net Actuarial Loss 1,618 1,658 1,566 1,319 1,787 1,781 Amortization of Prior Service Credit — — — — (1,607 ) (1,728 ) Net Periodic Benefit Cost* $ 2,521 $ 2,274 $ 2,619 $ 1,691 $ 663 $ 700 *Service cost is included in Operations and Maintenance expense on the consolidated statements of income; all other amounts are included in Other Income (Expense), net. |
Amounts expected to be amortized from regulatory assets | Amounts that are expected to be amortized from Regulatory Assets into Net Periodic Benefit Cost in 2020 are as follows: (Thousands of Dollars) Pension Plan Other Benefits Plan Actuarial Loss $ 2,059 $ 1,351 |
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, 2019, 2018 and 2017, respectively, are as follows: Pension Plan Other Benefits Plan Pension Plan Other Benefits Plan 2019 2018 2017 2019 2018 2017 Weighted Average Assumptions: Expected Return on Plan Assets 7.00 % 7.00 % 7.50 % 7.00 % 7.00 % 7.50 % Discount Rate for: Benefit Obligation 3.12 % 4.15 % 3.53 % 3.12 % 4.15 % 3.53 % Benefit Cost 4.15 % 3.53 % 4.06 % 4.15 % 3.53 % 4.06 % 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 $ 545 $ (424 ) Effect on Projected Benefit Obligation $ 9,036 $ (7,143 ) |
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 2020 $ 3,152 $ 1,426 2021 3,144 1,639 2022 3,309 1,916 2023 3,720 2,006 2024 4,652 2,089 2025-2029 26,501 11,652 Totals $ 44,478 $ 20,728 |
Allocation of plan assets | The allocation of plan assets at December 31, 2019 and 2018 by asset category is as follows: Pension Plan Other Benefits Plan Asset Category 2019 2018 Target 2019 2018 Target Equity Securities 61.5 % 59.5 % 55 % 60.0 % 54.7 % 43 % Debt Securities 36.5 % 36.5 % 38 % 33.0 % 37.3 % 50 % Cash 0.5 % 1.6 % 2 % 7.0 % 8.0 % 2 % Real Estate/Commodities 1.5 % 2.4 % 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, 2019 Level 1 Level 2 Level 3 Total Mutual Funds $ 69,565 $ — $ — $ 69,565 Money Market Funds 397 — — 397 Common Equity Securities 10,418 — — 10,418 Total Investments $ 80,380 $ — $ — $ 80,380 (Thousands of Dollars) As of December 31, 2018 Level 1 Level 2 Level 3 Total Mutual Funds $ 57,014 $ — $ — $ 57,014 Money Market Funds 1,074 — — 1,074 Common Equity Securities 8,683 — — 8,683 Total Investments $ 66,771 $ — $ — $ 66,771 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, 2019 Level 1 Level 2 Level 3 Total Mutual Funds $ 24,361 $ — $ — $ 24,361 Money Market Funds 2,859 — — 2,859 Agency/US/State/Municipal Debt — 13,393 — 13,393 Total Investments $ 27,220 $ 13,393 $ — $ 40,613 61 Index (Thousands of Dollars) As of December 31, 2018 Level 1 Level 2 Level 3 Total Mutual Funds $ 18,924 $ — $ — $ 18,924 Money Market Funds 2,769 — — 2,769 Agency/US/State/Municipal Debt — 12,929 — 12,929 Total Investments $ 21,693 $ 12,929 $ — $ 34,622 |
Restricted stock plan | The following table presents information on the 2018 Restricted Stock Plan: Shares (thousands) Unearned Compensation (thousands) Weighted Average Grant Price Balance, January 1, 2017 132 $ 1,764 Granted 22 799 $ 36.95 Vested (20 ) — Forfeited (2 ) (54 ) Amortization of Compensation Expense — (724 ) Balance, December 31, 2017 132 $ 1,785 Granted 22 827 $ 36.53 Vested (27 ) — Forfeited (2 ) (18 ) Amortization of Compensation Expense — (956 ) Balance, December 31, 2018 125 $ 1,638 Granted 18 975 $ 55.99 Vested (28 ) — Forfeited (18 ) — Amortization of Compensation Expense — (907 ) Balance, December 31, 2019 97 $ 1,706 |
Business Segment Data (Tables)
Business Segment Data (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | (Thousands of Dollars) Years Ended December 31, Operations by Segments: 2019 2018 2017 Revenues: Regulated $ 123,078 $ 121,901 $ 115,454 Non – Regulated 12,177 16,778 15,912 Inter-segment Elimination (657 ) (602 ) (591 ) Consolidated Revenues $ 134,598 $ 138,077 $ 130,775 Operating Income: Regulated $ 31,805 $ 34,127 $ 35,130 Non – Regulated 3,715 3,015 2,668 Consolidated Operating Income $ 35,520 $ 37,142 $ 37,798 Depreciation: Regulated $ 16,481 $ 14,846 $ 13,732 Non – Regulated 235 191 190 Consolidated Depreciation $ 16,716 $ 15,037 $ 13,922 Other Income (Expense), Net: Regulated $ 3,018 $ 3,284 $ 2,020 Non – Regulated (253 ) 119 64 Inter-segment Elimination (273 ) (411 ) (467 ) Consolidated Other Income (Expense), Net $ 2,492 $ 2,992 $ 1,617 Interest Charges: Regulated $ 7,456 $ 7,060 $ 5,855 Non – Regulated 81 109 118 Inter-segment Elimination (273 ) (411 ) (467 ) Consolidated Interest Charges $ 7,264 $ 6,758 $ 5,506 Income Taxes: Regulated $ (4,317 ) $ (54 ) $ 9,848 Non – Regulated 1,177 978 1,252 Consolidated Income Taxes $ (3,140 ) $ 924 $ 11,100 Net Income: Regulated $ 31,602 $ 30,405 $ 21,447 Non – Regulated 2,286 2,047 1,362 Consolidated Net Income $ 33,888 $ 32,452 $ 22,809 Capital Expenditures: Regulated $ 88,858 $ 71,493 $ 50,078 Non – Regulated 267 601 223 Total Capital Expenditures $ 89,125 $ 72,094 $ 50,301 (Thousands of Dollars) As of As of December 31, 2019 December 31, 2018 Assets: Regulated $ 910,081 $ 764,749 Non – Regulated 9,686 8,994 Inter-segment Elimination (9,889 ) (5,913 ) Consolidated Assets $ 909,878 $ 767,830 |
Quarterly Data - Unaudited (Tab
Quarterly Data - Unaudited (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly financial information | Financial information for each quarter of 2019 and 2018 is as follows: (Thousands of Dollars, Except per Share Data) 2019 1 st 2 nd 3 rd 4 th Total Operating Revenues $ 30,698 $ 33,393 $ 37,769 $ 32,738 $ 134,598 Operating Income 7,028 8,950 11,983 7,559 35,520 Net Income 6,552 8,146 11,119 8,071 33,888 Basic Earnings per Share $ 0.40 $ 0.49 $ 0.67 $ 0.46 $ 2.02 Diluted Earnings per Share $ 0.39 $ 0.49 $ 0.67 $ 0.46 $ 2.01 Common Dividend Per Share $ 0.2400 $ 0.2400 $ 0.2400 $ 0.2563 $ 0.9763 High/Low Common Stock Price $ 60.48/$51.02 $ 63.68/$52.51 $ 66.10/$55.30 $ 67.69/$58.75 2018 1 st 2 nd 3 rd 4 th Total Operating Revenues $ 31,177 $ 34,919 $ 38,713 $ 33,268 $ 138,077 Operating Income 6,350 10,721 12,918 7,153 37,142 Net Income 4,494 8,675 12,290 6,993 32,452 Basic Earnings per Share $ 0.27 $ 0.52 $ 0.75 $ 0.43 $ 1.97 Diluted Earnings per Share $ 0.27 $ 0.52 $ 0.74 $ 0.43 $ 1.96 Common Dividend Per Share $ 0.2238 $ 0.2238 $ 0.2238 $ 0.2400 $ 0.9114 High/Low Common Stock Price $ 41.45/$33.96 $ 45.24/$34.74 $ 49.00/$41.77 $ 60.31/$43.12 |
Organization, Summary of Sign_4
Organization, Summary of Significant Accounting Policies and Recent Developments (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Organization, Summary Of Significant Accounting Policies And Recent Developments [Line Items] | |||
Percent voting interest | 50.00% | ||
Percent of operating revenues | 91.00% | ||
Percent of total assets | 99.00% | ||
Allowance for doubtful accounts | $ 1.4 | $ 1 | |
Bad debt expense | 1 | 0.8 | $ 0.5 |
Write-offs | 0.6 | $ 0.7 | 0.5 |
Operations and Maintenance expense and Other Income (Expense), net | $ 0.8 | ||
Right-of-use asset | 6.7 | ||
Lease liability | 7.1 | ||
Regulatory assets | $ 0.4 | ||
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 | 42 years |
Organization, Summary of Sign_5
Organization, Summary of Significant Accounting Policies and Recent Developments (Schedule of Depreciation Rates) (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
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 Sign_6
Organization, Summary of Significant Accounting Policies and Recent Developments (Schedule of AFUDC Rates) (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Middlesex [Member] | |||
Organization, Summary Of Significant Accounting Policies And Recent Developments [Line Items] | |||
Allowance for Funds Used During Construction Rates | 6.50% | 6.50% | 6.73% |
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% |
Organization, Summary of Sign_7
Organization, Summary of Significant Accounting Policies and Recent Developments (Schedule of Operating Revenues) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Regulated Tariff Sales | |||||||||||
Residential | $ 71,487 | $ 69,785 | $ 66,483 | ||||||||
Commercial | 15,198 | 14,844 | 13,956 | ||||||||
Industrial | 9,390 | 10,183 | 9,321 | ||||||||
Fire Protection | 12,291 | 12,099 | 11,812 | ||||||||
Wholesale | 14,319 | 14,655 | 13,553 | ||||||||
Non-Regulated Contract Operations | 11,773 | 16,374 | 15,508 | ||||||||
Total Revenue from Contracts with Customers | 134,458 | 137,940 | 130,633 | ||||||||
Other Regulated Revenues | 393 | 335 | 329 | ||||||||
Other Non-Regulated Revenues | 404 | 404 | 404 | ||||||||
Inter-segment Elimination | (657) | (602) | (591) | ||||||||
Total Revenue | $ 32,738 | $ 37,769 | $ 33,393 | $ 30,698 | $ 33,268 | $ 38,713 | $ 34,919 | $ 31,177 | $ 134,598 | $ 138,077 | $ 130,775 |
Rate and Regulatory Matters (Na
Rate and Regulatory Matters (Narrative) (Details) $ in Thousands | Mar. 01, 2019 | Nov. 30, 2019USD ($)Customer | Oct. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Regulatory Liabilities [Line Items] | |||||||
Regulatory Liability - Cost of Utility Plant Removal | $ 69,152 | $ 79,112 | |||||
Corporate tax rate | 3.35% | ||||||
Regulatory liabilities | 31,500 | 31,700 | |||||
Deferred income tax benefits | $ (11,719) | (8,724) | $ 7,944 | ||||
Maximum [Member] | |||||||
Regulatory Liabilities [Line Items] | |||||||
Corporate tax rate | 35.00% | ||||||
Minimum [Member] | |||||||
Regulatory Liabilities [Line Items] | |||||||
Corporate tax rate | 21.00% | ||||||
Pinelands Water Company [Member] | |||||||
Regulatory Liabilities [Line Items] | |||||||
Approved increase in annual operating revenues | $ 500 | ||||||
Pinelands Wastewater [Member] | |||||||
Regulatory Liabilities [Line Items] | |||||||
Approved increase in annual operating revenues | $ 500 | ||||||
Delaware Public Service Commission [Member] | |||||||
Regulatory Liabilities [Line Items] | |||||||
Percentage of consumer price index | 3.00% | ||||||
Maturity date | Dec. 31, 2029 | ||||||
Delaware Public Service Commission [Member] | Tidewater [Member] | |||||||
Regulatory Liabilities [Line Items] | |||||||
Approved increase in annual operating revenues | $ 500 | ||||||
Number of customers | Customer | 1,000 | ||||||
Purchase of the wastewater utility assets | $ 1,800 | ||||||
New Jersey Board Of Public Utilities [Member] | Middlesex [Member] | |||||||
Regulatory Liabilities [Line Items] | |||||||
Approved increase in annual operating revenues | $ 500 | $ 5,500 | |||||
Additional annual costs | 100 | ||||||
Base rate amount | $ 245,500 | ||||||
Return on equity | 9.60% | ||||||
Regulatory liabilities | 24,200 | $ 34,600 | |||||
Deferred income tax benefits | $ 28,700 | ||||||
Amortization period | 4 years | ||||||
New Jersey Board Of Public Utilities [Member] | Pinelands Water Company [Member] | |||||||
Regulatory Liabilities [Line Items] | |||||||
Approved increase in annual operating revenues | 500 | ||||||
New Jersey Board Of Public Utilities [Member] | Pinelands Wastewater [Member] | |||||||
Regulatory Liabilities [Line Items] | |||||||
Approved increase in annual operating revenues | 700 | ||||||
Pennsylvania Public Utilities Commissio [Member] | Twin Lakes [Member] | |||||||
Regulatory Liabilities [Line Items] | |||||||
Approved increase in annual operating revenues | $ 200 |
Rate and Regulatory Matters (Sc
Rate and Regulatory Matters (Schedule of Regulatory Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Regulatory Assets [Line Items] | ||
Regulatory Assets | $ 110,479 | $ 99,236 |
Retirement Benefits [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory Assets | $ 44,281 | $ 39,158 |
Remaining recovery period | Various | Various |
Income Taxes [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory Assets | $ 60,151 | $ 55,232 |
Remaining recovery period | Various | Various |
Rate Cases, Tank Painting, and Other [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory Assets | $ 6,047 | $ 4,846 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Income Tax at Statutory Rate | $ 6,457 | $ 7,009 | $ 11,868 |
Tax Effect of: | |||
Utility Plant Related | (802) | 422 | (1,016) |
Tangible Property Repairs | (10,156) | (7,763) | |
State Income Taxes - Net | 1,173 | 1,207 | 895 |
Tax Act | (610) | ||
Other | 188 | 49 | (37) |
Total Income Tax Expense | $ (3,140) | $ 924 | $ 11,100 |
Income Taxes (Schedule of Inc_2
Income Taxes (Schedule of Income Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | |||
Federal | $ (3,822) | $ (188) | $ 2,090 |
State | 2,246 | 2,073 | 1,066 |
Deferred: | |||
Federal | (726) | (338) | 7,713 |
State | (761) | (545) | 310 |
Investment Tax Credits | (77) | (78) | (79) |
Total Income Tax Expense | $ (3,140) | $ 924 | $ 11,100 |
Income Taxes (Schedule of Net D
Income Taxes (Schedule of Net Deferred Tax Liability) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Utility Plant Related | $ 50,608 | $ 44,777 |
Customer Advances | (3,661) | (3,702) |
Employee Benefits | 6,543 | 5,490 |
Investment Tax Credits (ITC) | 519 | 596 |
Other | 399 | 109 |
Total Deferred Tax Liability and ITC | $ 54,408 | $ 47,270 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Oct. 31, 2019 | Mar. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2015 | |
Operating Loss Carryforwards [Line Items] | |||||||
Income taxes Paid | $ (3,140) | $ 924 | $ 11,100 | ||||
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 | ||||||
Interest expense | 100 | ||||||
Increase reserve provision | $ 500 | $ 4,100 | |||||
Income taxes Paid | $ 800 | ||||||
Tax Year 2015 [Member] | |||||||
Operating Loss Carryforwards [Line Items] | |||||||
Income taxes Paid | $ 100 | ||||||
Tax Year 2016 [Member] | |||||||
Operating Loss Carryforwards [Line Items] | |||||||
Income taxes Paid | $ 1,900 | ||||||
Tax Year 2017 [Member] | |||||||
Operating Loss Carryforwards [Line Items] | |||||||
Income taxes Paid | $ 1,900 |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities (Narrative) (Details) $ in Thousands, gal in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)gal | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Commitment And Contingencies [Line Items] | |||
Guarant liabilty for AWM's performance | $ 1,400 | $ 1,500 | |
Budgeted construction cost for construction program, 2020 | 124,000 | ||
Budgeted construction cost for construction program, 2021 | 112,000 | ||
Budgeted construction cost for construction program, 2022 | 59,000 | ||
Rental expenses under operating leases | 700 | $ 500 | $ 1 |
Estimated obligation expend | $ 63,000 | ||
Estimated incremental borrowing rate | 4.03% | ||
Lease maturity date | 2030 | ||
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 | ||
Regulated Water Authority [Member] | |||
Commitment And Contingencies [Line Items] | |||
Purchase commitment expiration date of contract | Feb. 27, 2021 | ||
Water purchase per commitment | gal | 3 | ||
City of Dover [Member] | |||
Commitment And Contingencies [Line Items] | |||
Water purchase per commitment | gal | 15 |
Commitments and Contingent Li_4
Commitments and Contingent Liabilities (Schedule of Purchased Water Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Purchased Water | |||
Untreated | $ 3.4 | $ 3.6 | $ 2.8 |
Treated | 3.2 | 3.2 | 3.3 |
Total Costs | $ 6.6 | $ 6.8 | $ 6.1 |
Commitments and Contingent Li_5
Commitments and Contingent Liabilities (Schedule of Operating Lease ROU Assets and Lease Liabilities) (Details) $ in Millions | Dec. 31, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
ROU Asset at Lease Inception | $ 7.3 |
Accumulated Amortization | 1.4 |
Current ROU Asset | $ 5.9 |
Commitments and Contingent Li_6
Commitments and Contingent Liabilities (Schedule of Future Minimum Operating Lease) (Details) $ in Millions | Dec. 31, 2019USD ($) |
Minimum Lease Payments, Sale Leaseback Transactions, Fiscal Year Maturity [Abstract] | |
2020 | $ 0.8 |
2021 | 0.8 |
2022 | 0.8 |
2023 | 0.8 |
2024 | 0.8 |
Thereafter | 4.4 |
Total Lease Payments | 8.4 |
Imputed Interest | (2) |
Present Value of Lease Payments | 6.4 |
Less Current Portion | (0.7) |
Non-Current Lease Liability | $ 5.7 |
Short Term Borrowings (Details)
Short Term Borrowings (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Lines Of Credit Facility | ||
Established Lines at Year-End | $ 140 | $ 92 |
Maximum Amount Outstanding | 59.4 | 48.5 |
Average Outstanding | 52.4 | 37.3 |
Notes Payable at Year-End | $ 20 | $ 48.5 |
Weighted Average Interest Rate | 3.33% | 3.17% |
Weighted Average Interest Rate at Year-End | 2.86% | 3.57% |
Capitalization (Narrative) (Det
Capitalization (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||
Nov. 30, 2019 | May 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Aug. 31, 2019 | Apr. 30, 2019 | Sep. 30, 2018 | Aug. 31, 2018 | Mar. 31, 2018 | |
Schedule of Capitalization [Line Items] | ||||||||||
Issuance of Common Stock | $ 43,700 | |||||||||
Public offering, price per share | $ 60.50 | |||||||||
Issuance of Common Stock in a public offering, shares | 800,000 | |||||||||
Shares authorized | 40,000,000 | 40,000,000 | ||||||||
Issuance of shares under the DRP | $ 12,738 | $ 1,150 | $ 1,234 | |||||||
Additional Shares Authorized By SEC To Be Issued | 400,000 | |||||||||
Maximum number of shares authorized for grant | 100,000 | |||||||||
Preferred Stock, Shares Authorized | 120,000 | 120,000 | ||||||||
Preferred Stock, Shares Outstanding | 20,000 | 23,000 | ||||||||
Convertible preferred stock converted, value | $ 350 | |||||||||
Amount drawn | 78,967 | $ 22,076 | 11,523 | |||||||
Long-term debt | 234,397 | 162,904 | ||||||||
Proceeds from issuance of first mortgage bond | $ 9,500 | |||||||||
Deobligated principal payments | 130 | |||||||||
Other long term debt | 83,000 | 61,500 | ||||||||
Customer advances | $ 23,905 | $ 22,572 | ||||||||
All Long-term Debt [Member] | ||||||||||
Schedule of Capitalization [Line Items] | ||||||||||
Weighted average interest rate | 3.17% | 3.30% | ||||||||
First Mortgage Bonds - Series 2019A [Member] | ||||||||||
Schedule of Capitalization [Line Items] | ||||||||||
Long-term debt | $ 32,500 | |||||||||
Interest rate | 4.00% | |||||||||
Maturity date | Aug. 1, 2059 | |||||||||
First Mortgage Bonds - Series 2019B [Member] | ||||||||||
Schedule of Capitalization [Line Items] | ||||||||||
Long-term debt | $ 21,200 | |||||||||
Interest rate | 5.00% | |||||||||
Maturity date | Aug. 1, 2059 | |||||||||
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 | 3,000 | |||||||||
Convertible preferred stock converted, shares | 41,142 | |||||||||
Convertible preferred stock converted, value | $ 300 | |||||||||
Outside Director Stock Compensation Plan [Member] | ||||||||||
Schedule of Capitalization [Line Items] | ||||||||||
Authorized shares under plan | 56,643 | |||||||||
Common stock granted and issued under plan | 3,521 | 4,004 | 3,976 | |||||||
Maximum number of shares authorized for grant | 100,000 | |||||||||
Preferred Stock, Shares Outstanding | 100,000 | |||||||||
New Jersey Infrastructure Bank [Member] | ||||||||||
Schedule of Capitalization [Line Items] | ||||||||||
Maximum borrowing capacity, construction loan | $ 8,700 | $ 43,500 | ||||||||
Percentage of principal with stated interest rate | 75.00% | |||||||||
Percentage of principal with market interest rate | 25.00% | |||||||||
Long-term debt | $ 82,700 | |||||||||
Interest rate | 0.00% | |||||||||
Deobligated principal payments | $ 100 | |||||||||
Construction Loan [Member] | ||||||||||
Schedule of Capitalization [Line Items] | ||||||||||
Interest rate | 0.00% | |||||||||
New Jersey Economic Development Authority [Member] | ||||||||||
Schedule of Capitalization [Line Items] | ||||||||||
Proceeds from issuance of first mortgage bond | $ 140,000 | |||||||||
Maturity date | Dec. 31, 2022 | |||||||||
New Jersey Infrastructure Bank [Member] | ||||||||||
Schedule of Capitalization [Line Items] | ||||||||||
Amount drawn | $ 31,800 | |||||||||
First Mortgage Bonds [Member] | ||||||||||
Schedule of Capitalization [Line Items] | ||||||||||
Maximum borrowing capacity, construction loan | 60,800 | $ 53,700 | ||||||||
Amount drawn | 17,300 | |||||||||
Amount of drawn expected remaining | 43,800 | |||||||||
New Jersey Economic Development Authority [Member] | ||||||||||
Schedule of Capitalization [Line Items] | ||||||||||
Long-term debt | 109,100 | |||||||||
Delaware State Revolving Fund [Member] | ||||||||||
Schedule of Capitalization [Line Items] | ||||||||||
Maximum borrowing amount | $ 10,000 | $ 900 | ||||||||
Maximum borrowing capacity, construction loan | 1,300 | $ 1,700 | ||||||||
Series 2018A [Member] | ||||||||||
Schedule of Capitalization [Line Items] | ||||||||||
Proceeds from issuance of first mortgage bond | $ 7,100 | |||||||||
Interest rate | 0.00% | |||||||||
Maturity date | Aug. 1, 2047 | |||||||||
Series 2018A [Member] | Minimum [Member] | ||||||||||
Schedule of Capitalization [Line Items] | ||||||||||
Interest rate | 3.00% | |||||||||
Series 2018A [Member] | Maximum [Member] | ||||||||||
Schedule of Capitalization [Line Items] | ||||||||||
Interest rate | 5.00% | |||||||||
Series 2018B [Member] | ||||||||||
Schedule of Capitalization [Line Items] | ||||||||||
Proceeds from issuance of first mortgage bond | $ 2,400 | |||||||||
Maturity date | Aug. 1, 2047 | |||||||||
Amortizing Secured Notes [Member] | ||||||||||
Schedule of Capitalization [Line Items] | ||||||||||
Long-term debt | 33,600 | |||||||||
Series 2019A [Member] | ||||||||||
Schedule of Capitalization [Line Items] | ||||||||||
Interest rate | 4.00% | |||||||||
Dividend Reinvestment and Common Stock Purchase Plan [Member] | ||||||||||
Schedule of Capitalization [Line Items] | ||||||||||
Issuance of Common Stock | $ 12,700 | |||||||||
Dividend Reinvestment & Common Stock Purchase Plan, cumulative shares | 200,000 |
Capitalization (Schedule of Mat
Capitalization (Schedule of Maturities of Long-term Debt) (Details) $ in Millions | Dec. 31, 2019USD ($) |
CAPITALIZATION: | |
2020 | $ 7.2 |
2021 | 7.2 |
2022 | 6.7 |
2023 | 6.2 |
2024 | $ 6 |
Capitalization (Schedule of Ear
Capitalization (Schedule of Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Basic: | |||||||||||
Net Income | $ 8,071 | $ 11,119 | $ 8,146 | $ 6,552 | $ 6,993 | $ 12,290 | $ 8,675 | $ 4,494 | $ 33,888 | $ 32,452 | $ 22,809 |
Preferred Dividend | (132) | (144) | (144) | ||||||||
Earnings Applicable to Common Stock | $ 33,756 | $ 32,308 | $ 22,665 | ||||||||
Weighted-average number of basic shares outstanding, shares | 16,685 | 16,384 | 16,330 | ||||||||
Basic EPS | $ 0.46 | $ 0.67 | $ 0.49 | $ 0.40 | $ 0.43 | $ 0.75 | $ 0.52 | $ 0.27 | $ 2.02 | $ 1.97 | $ 1.39 |
Diluted: | |||||||||||
$7.00 Series Preferred Dividend | $ 67 | $ 67 | $ 67 | ||||||||
$8.00 Series Preferred Dividend | 24 | 24 | |||||||||
Adjusted Earnings Applicable to Common Stock | $ 33,835 | $ 32,399 | $ 22,756 | ||||||||
Incremental common shares attributable to $7.00 series preferred shares, shares | 115 | 115 | 115 | ||||||||
Incremental common shares attributable to $8.00 series preferred shares, shares | 29 | 41 | 41 | ||||||||
Weighted-average diluted shares outstanding, shares | 16,829 | 16,540 | 16,486 | ||||||||
Diluted EPS | $ 0.46 | $ 0.67 | $ 0.49 | $ 0.39 | $ 0.43 | $ 0.74 | $ 0.52 | $ 0.27 | $ 2.01 | $ 1.96 | $ 1.38 |
Capitalization (Schedule of Car
Capitalization (Schedule of Carrying Amount and Fair Value of Bonds) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Carrying amount [Member] | ||
Bonds | $ 151,361 | $ 101,411 |
Fair value [Member] | ||
Bonds | $ 160,772 | $ 102,789 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation | $ 87,600 | $ 73,100 | |
Increase (decrease) in annual rate per capita cost of covered healthcare benefits, next year | 8.00% | ||
Increase (decrease) in annual rate per capita cost of covered healthcare benefits, 2021-2022 | 1.00% | ||
Increase (decrease) in annual rate per capita cost of covered healthcare benefits, 2023-2024 | 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 | $ 7 | 6 | $ 6 |
Discretionary contributions | $ 700 | 600 | $ 500 |
Number of shares authorized for grant, unissued | 100,000 | ||
Fair value of vested restricted shares | $ 1,700 | $ 1,300 | |
Middlesex [Member] | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Common stock in plan, value | $ 1,200 | ||
Pension Benefit Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Allocation of plan assets | 100.00% | 100.00% | |
Benfit plan, Cash contributions | $ 3,700 | ||
Pension Benefit Plan [Member] | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Allocation of plan assets | 61.50% | 59.50% | |
Pension Benefit Plan [Member] | Scenario, Forecast [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benfit plan, Cash contributions | $ 3,400 | ||
Other Benefits Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Allocation of plan assets | 100.00% | 100.00% | |
Other Benefits Plan [Member] | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Allocation of plan assets | 60.00% | 54.70% |
Employee Benefit Plans (Schedul
Employee Benefit Plans (Schedule of Change in Projected Benefit Obligation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Benefit Plan [Member] | |||
Change in Projected Benefit Obligation: | |||
Beginning Balance | $ 83,927 | $ 88,013 | |
Service Cost | 2,171 | 2,426 | $ 2,399 |
Interest Cost | 3,426 | 3,061 | 3,143 |
Actuarial (Gain) Loss | 14,188 | (7,018) | |
Benefits Paid | (2,821) | (2,555) | |
Ending Balance | 100,891 | 83,927 | 88,013 |
Other Benefits Plan [Member] | |||
Change in Projected Benefit Obligation: | |||
Beginning Balance | 48,474 | 54,345 | |
Service Cost | 839 | 1,135 | 1,089 |
Interest Cost | 1,984 | 1,898 | 1,964 |
Actuarial (Gain) Loss | 4,671 | (8,160) | |
Benefits Paid | (802) | (744) | |
Ending Balance | $ 55,166 | $ 48,474 | $ 54,345 |
Employee Benefit Plans (Sched_2
Employee Benefit Plans (Schedule of Change in Fair Value of Plan Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Pension Benefit Plan [Member] | ||
Change in Fair Value of Plan Assets: | ||
Beginning Balance | $ 66,771 | $ 69,215 |
Actual Return on Plan Assets | 12,753 | (3,524) |
Employer Contributions | 3,677 | 3,635 |
Benefits Paid | (2,821) | (2,555) |
Ending Balance | 80,380 | 66,771 |
Funded Status | (20,511) | (17,156) |
Other Benefits Plan [Member] | ||
Change in Fair Value of Plan Assets: | ||
Beginning Balance | 34,622 | 36,083 |
Actual Return on Plan Assets | 5,192 | (2,161) |
Employer Contributions | 1,601 | 1,444 |
Benefits Paid | (802) | (744) |
Ending Balance | 40,613 | 34,622 |
Funded Status | $ (14,553) | $ (13,852) |
Employee Benefit Plans (Sched_3
Employee Benefit Plans (Schedule of Employee Benefit Plans Recognized in Balance Sheet) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Noncurrent Liability | $ 34,671 | $ 30,661 |
Pension Benefit Plan [Member] | ||
Current Liability | 393 | 347 |
Noncurrent Liability | 20,118 | 16,809 |
Net Liability Recognized | 20,511 | 17,156 |
Other Benefits Plan [Member] | ||
Current Liability | ||
Noncurrent Liability | 14,553 | 13,852 |
Net Liability Recognized | $ 14,553 | $ 13,852 |
Employee Benefit Plans (Sched_4
Employee Benefit Plans (Schedule of Periodic Costs For Employee Retirement Benefit Plans) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Pension Benefit Plan [Member] | ||||
Periodic costs for employee retirement benefit plans | ||||
Service Cost | $ 2,171 | $ 2,426 | $ 2,399 | |
Interest Cost | 3,426 | 3,061 | 3,143 | |
Expected Return on Plan Assets | (4,694) | (4,871) | (4,489) | |
Amortization of Net Actuarial Loss | 1,618 | 1,658 | 1,566 | |
Amortization of Prior Service Credit | ||||
Net Periodic Benefit Cost | [1] | 2,521 | 2,274 | 2,619 |
Other Benefits Plan [Member] | ||||
Periodic costs for employee retirement benefit plans | ||||
Service Cost | 839 | 1,135 | 1,089 | |
Interest Cost | 1,984 | 1,898 | 1,964 | |
Expected Return on Plan Assets | (2,451) | (2,550) | (2,406) | |
Amortization of Net Actuarial Loss | 1,319 | 1,787 | 1,781 | |
Amortization of Prior Service Credit | (1,607) | $ (1,728) | ||
Net Periodic Benefit Cost | [1] | $ 1,691 | $ 663 | |
[1] | Service cost is included in Operations and Maintenance expense on the consolidated statements of income; all other amounts are included in Other Income (Expense), net. |
Employee Benefit Plans (Sched_5
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, 2019USD ($) | |
Pension Benefit Plan [Member] | |
Actuarial Loss | $ 2,059 |
Other Benefits Plan [Member] | |
Actuarial Loss | $ 1,351 |
Employee Benefit Plans (Sched_6
Employee Benefit Plans (Schedule of Discount and Compensation Rates) (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Benefit Plan [Member] | |||
Weighted Average Assumptions: | |||
Expected Return on Plan Assets | 7.00% | 7.00% | 7.50% |
Discount Rate for: | |||
Benefit Obligation | 3.12% | 4.15% | 3.53% |
Benefit Cost | 4.15% | 3.53% | 4.06% |
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 | 7.00% | 7.00% | 7.50% |
Discount Rate for: | |||
Benefit Obligation | 3.12% | 4.15% | 3.53% |
Benefit Cost | 4.15% | 3.53% | 4.06% |
Compensation Increase for: | |||
Benefit Obligation | 3.00% | 3.00% | 3.00% |
Benefit Cost | 3.00% | 3.00% | 3.00% |
Employee Benefit Plans (Sched_7
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, 2019USD ($) | |
Pension Benefit Plan [Member] | |
Effect on Current Year Service and Interest Cost - Increase | $ 545 |
Effect on Projected Benefit Obligation - Increase | 9,036 |
Other Benefits Plan [Member] | |
Effect on Current Year Service and Interest Cost - Decrease | (424) |
Effect on Projected Benefit Obligation - Decrease | $ (7,143) |
Employee Benefit Plans (Sched_8
Employee Benefit Plans (Schedule of Expected Benefit Payments) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Pension Benefit Plan [Member] | |
2020 | $ 3,152 |
2021 | 3,144 |
2022 | 3,309 |
2023 | 3,720 |
2024 | 4,652 |
2025-2029 | 26,501 |
Totals | 44,478 |
Other Benefits Plan [Member] | |
2020 | 1,426 |
2021 | 1,639 |
2022 | 1,916 |
2023 | 2,006 |
2024 | 2,089 |
2025-2029 | 11,652 |
Totals | $ 20,728 |
Employee Benefit Plans (Sched_9
Employee Benefit Plans (Schedule of Allocation of Plan Assets) (Details) | Dec. 31, 2019 | Dec. 31, 2018 |
Pension Benefit Plan [Member] | ||
Allocation of plan assets | 100.00% | 100.00% |
Pension Benefit Plan [Member] | Commodities [Member] | ||
Allocation of plan assets | 1.50% | 2.40% |
Target plan allocations | 5.00% | |
Pension Benefit Plan [Member] | Cash [Member] | ||
Allocation of plan assets | 0.50% | 1.60% |
Target plan allocations | 2.00% | |
Pension Benefit Plan [Member] | Debt Securities [Member] | ||
Allocation of plan assets | 36.50% | 36.50% |
Target plan allocations | 38.00% | |
Pension Benefit Plan [Member] | Equity Securities [Member] | ||
Allocation of plan assets | 61.50% | 59.50% |
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% |
Other Benefits Plan [Member] | Cash [Member] | ||
Allocation of plan assets | 7.00% | 8.00% |
Other Benefits Plan [Member] | Debt Securities [Member] | ||
Allocation of plan assets | 33.00% | 37.30% |
Other Benefits Plan [Member] | Equity Securities [Member] | ||
Allocation of plan assets | 60.00% | 54.70% |
Target plan allocations | 43.00% |
Employee Benefit Plans (Sche_10
Employee Benefit Plans (Schedule of Fair Value of Pension Plan Assets) (Details) - Pension Benefit Plan [Member] - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Fair value of plan assets | $ 80,380 | $ 66,771 | $ 69,215 |
Fair Value, Level 1 [Member] | |||
Fair value of plan assets | 80,380 | 66,771 | |
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 | 10,418 | 8,683 | |
Equity Securities [Member] | Fair Value, Level 3 [Member] | |||
Fair value of plan assets | |||
Mutual Funds [Member] | |||
Fair value of plan assets | 69,565 | 57,014 | |
Mutual Funds [Member] | Fair Value, Level 1 [Member] | |||
Fair value of plan assets | 69,565 | 57,014 | |
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 | 397 | 1,074 | |
Money Market Funds [Member] | Fair Value, Level 1 [Member] | |||
Fair value of plan assets | 397 | 1,074 | |
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 | 10,418 | 8,683 | |
Equity Securities [Member] | Fair Value, Level 2 [Member] | |||
Fair value of plan assets |
Employee Benefit Plans (Sche_11
Employee Benefit Plans (Schedule of Fair Value of Other Benefits Plan Assets) (Details) - Other Benefits Plan [Member] - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Fair value of plan assets | $ 40,613 | $ 34,622 | $ 36,083 |
Fair Value, Level 1 [Member] | |||
Fair value of plan assets | 27,220 | 21,693 | |
Fair Value, Level 2 [Member] | |||
Fair value of plan assets | 13,393 | 12,929 | |
Fair Value, Level 3 [Member] | |||
Fair value of plan assets | |||
Debt Securities [Member] | |||
Fair value of plan assets | 13,393 | 12,929 | |
Mutual Funds [Member] | |||
Fair value of plan assets | 24,361 | 18,924 | |
Mutual Funds [Member] | Fair Value, Level 1 [Member] | |||
Fair value of plan assets | 24,361 | 18,924 | |
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 | 2,859 | 2,769 | |
Money Market Funds [Member] | Fair Value, Level 1 [Member] | |||
Fair value of plan assets | 2,859 | 2,769 | |
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 | |||
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 | 13,393 | 12,929 | |
Debt Securities [Member] | Fair Value, Level 3 [Member] | |||
Fair value of plan assets |
Employee Benefit Plans (Sche_12
Employee Benefit Plans (Schedule of Restricted Stock Plan) (Details) - 2008 Restricted Stock Plan [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Shares | |||
Balance | 125 | 132 | 132 |
Granted | 18 | 22 | 22 |
Vested | (28) | (27) | (20) |
Forfeited | (18) | (2) | (2) |
Amortization of Compensation Expense | |||
Balance | 97 | 125 | 132 |
Unearned compensation | |||
Balance | $ 1,638 | $ 1,785 | $ 1,764 |
Granted | 975 | 827 | 799 |
Forfeited | (18) | (54) | |
Amortization of Compensation Expense | (907) | (956) | (724) |
Balance | $ 1,706 | $ 1,638 | $ 1,785 |
Weighted Average Grant Price | |||
Granted | $ 55.99 | $ 36.53 | $ 36.95 |
Business Segment Data (Details)
Business Segment Data (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Number of Reportable Segments | 2 | ||||||||||
Revenues | $ 32,738 | $ 37,769 | $ 33,393 | $ 30,698 | $ 33,268 | $ 38,713 | $ 34,919 | $ 31,177 | $ 134,598 | $ 138,077 | $ 130,775 |
Operating Income | 7,559 | 11,983 | 8,950 | 7,028 | 7,153 | 12,918 | 10,721 | 6,350 | 35,520 | 37,142 | 37,798 |
Depreciation | 16,716 | 15,037 | 13,922 | ||||||||
Other Income (Expense), Net | 2,492 | 2,992 | 1,617 | ||||||||
Interest Expense | 7,264 | 6,758 | 5,506 | ||||||||
Income Taxes | (3,140) | 924 | 11,100 | ||||||||
Net Income | 8,071 | $ 11,119 | $ 8,146 | $ 6,552 | 6,993 | $ 12,290 | $ 8,675 | $ 4,494 | 33,888 | 32,452 | 22,809 |
Capital Expenditures | 89,125 | 72,094 | 50,301 | ||||||||
Assets | 909,878 | 767,830 | 909,878 | 767,830 | |||||||
Inter-segment Elimination [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | (657) | (602) | (591) | ||||||||
Other Income (Expense), Net | (273) | (411) | (467) | ||||||||
Interest Expense | (273) | (411) | (467) | ||||||||
Assets | (9,889) | (5,913) | (9,889) | (5,913) | |||||||
Regulated [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 123,078 | 121,901 | 115,454 | ||||||||
Operating Income | 31,805 | 34,127 | 35,130 | ||||||||
Depreciation | 16,481 | 14,846 | 13,732 | ||||||||
Other Income (Expense), Net | 3,018 | 3,284 | 2,020 | ||||||||
Interest Expense | 7,456 | 7,060 | 5,855 | ||||||||
Income Taxes | (4,317) | (54) | 9,848 | ||||||||
Net Income | 31,602 | 30,405 | 21,447 | ||||||||
Capital Expenditures | 88,858 | 71,493 | 50,078 | ||||||||
Assets | 910,081 | 764,749 | 910,081 | 764,749 | |||||||
Non - Regulated [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 12,177 | 16,778 | 15,912 | ||||||||
Operating Income | 3,715 | 3,015 | 2,668 | ||||||||
Depreciation | 235 | 191 | 190 | ||||||||
Other Income (Expense), Net | (253) | 119 | 64 | ||||||||
Interest Expense | 81 | 109 | 118 | ||||||||
Income Taxes | 1,177 | 978 | 1,252 | ||||||||
Net Income | 2,286 | 2,047 | 1,362 | ||||||||
Capital Expenditures | 267 | 601 | $ 223 | ||||||||
Assets | $ 9,686 | $ 8,994 | $ 9,686 | $ 8,994 |
Quarterly Data - Unaudited (Det
Quarterly Data - Unaudited (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Operating Revenues | $ 32,738 | $ 37,769 | $ 33,393 | $ 30,698 | $ 33,268 | $ 38,713 | $ 34,919 | $ 31,177 | $ 134,598 | $ 138,077 | $ 130,775 |
Operating Income | 7,559 | 11,983 | 8,950 | 7,028 | 7,153 | 12,918 | 10,721 | 6,350 | 35,520 | 37,142 | 37,798 |
Net Income | $ 8,071 | $ 11,119 | $ 8,146 | $ 6,552 | $ 6,993 | $ 12,290 | $ 8,675 | $ 4,494 | $ 33,888 | $ 32,452 | $ 22,809 |
Basic Earnings per Share | $ 0.46 | $ 0.67 | $ 0.49 | $ 0.40 | $ 0.43 | $ 0.75 | $ 0.52 | $ 0.27 | $ 2.02 | $ 1.97 | $ 1.39 |
Diluted Earnings per Share | 0.46 | 0.67 | 0.49 | 0.39 | 0.43 | 0.74 | 0.52 | 0.27 | 2.01 | $ 1.96 | $ 1.38 |
Common divident per share | 0.2563 | 0.2400 | 0.2400 | 0.2400 | 0.2400 | 0.2238 | 0.2238 | 0.2238 | $ 0.976 | ||
High common stock price | 67.69 | 66.10 | 63.68 | 60.48 | 60.31 | 49 | 45.24 | 41.45 | |||
Low common stock price | $ 58.75 | $ 55.30 | $ 52.51 | $ 51.02 | $ 43.12 | $ 41.77 | $ 34.74 | $ 33.96 |