Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 29, 2020 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2020 | |
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 One South | |
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 | |
Trading Symbol | MSEX | |
Name of Exchange on which Security is Registered | NASDAQ | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
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 Common Stock, Shares Outstanding | 17,469,410 | |
Entity Interactive Data Current | Yes | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2020 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||||
Operating Revenues | $ 39,920 | $ 37,769 | $ 106,965 | $ 101,859 |
Operating Expenses: | ||||
Operations and Maintenance | 17,949 | 17,669 | 52,761 | 50,569 |
Depreciation | 4,721 | 4,246 | 13,798 | 12,415 |
Other Taxes | 4,073 | 3,871 | 11,318 | 10,913 |
Total Operating Expenses | 26,743 | 25,786 | 77,877 | 73,897 |
Operating Income | 13,177 | 11,983 | 29,088 | 27,962 |
Other Income (Expense): | ||||
Allowance for Funds Used During Construction | 953 | 871 | 2,871 | 2,030 |
Other Income (Expense), net | 444 | (4) | 1,164 | (142) |
Total Other Income, net | 1,397 | 867 | 4,035 | 1,888 |
Interest Charges | 1,906 | 1,996 | 5,521 | 4,984 |
Income before Income Taxes | 12,668 | 10,854 | 27,602 | 24,866 |
Income Taxes | (69) | (265) | (2,516) | (952) |
Net Income | 12,737 | 11,119 | 30,118 | 25,818 |
Preferred Stock Dividend Requirements | 30 | 30 | 90 | 102 |
Earnings Applicable to Common Stock | $ 12,707 | $ 11,089 | $ 30,028 | $ 25,716 |
Earnings per share of Common Stock: | ||||
Basic | $ 0.73 | $ 0.67 | $ 1.72 | $ 1.56 |
Diluted | $ 0.72 | $ 0.66 | $ 1.71 | $ 1.55 |
Average Number of Common Shares Outstanding : | ||||
Basic | 17,466 | 16,610 | 17,455 | 16,520 |
Diluted | 17,581 | 16,757 | 17,570 | 16,673 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
UTILITY PLANT: | ||
Water Production | $ 165,010 | $ 160,870 |
Transmission and Distribution | 625,746 | 556,517 |
General | 83,606 | 83,043 |
Construction Work in Progress | 73,340 | 75,520 |
TOTAL | 947,702 | 875,950 |
Less Accumulated Depreciation | 181,661 | 170,220 |
UTILITY PLANT - NET | 766,041 | 705,730 |
CURRENT ASSETS: | ||
Cash and Cash Equivalents | 5,346 | 2,230 |
Accounts Receivable, net | 15,567 | 11,908 |
Unbilled Revenues | 8,823 | 7,183 |
Materials and Supplies (at average cost) | 4,762 | 5,445 |
Prepayments | 3,369 | 2,367 |
TOTAL CURRENT ASSETS | 37,867 | 29,133 |
DEFERRED CHARGES AND OTHER ASSETS: | ||
Operating Lease Right of Use Asset | 5,390 | 5,944 |
Preliminary Survey and Investigation Charges | 3,307 | 2,054 |
Regulatory Assets | 112,176 | 110,479 |
Restricted Cash | 22,841 | 44,269 |
Non-utility Assets - Net | 10,845 | 10,370 |
Other | 1,367 | 1,899 |
TOTAL DEFERRED CHARGES AND OTHER ASSETS | 155,926 | 175,015 |
TOTAL ASSETS | 959,834 | 909,878 |
CAPITALIZATION: | ||
Common Stock, No Par Value | 216,866 | 215,125 |
Retained Earnings | 125,240 | 108,667 |
TOTAL COMMON EQUITY | 342,106 | 323,792 |
Preferred Stock | 2,084 | 2,084 |
Long-term Debt | 234,489 | 230,777 |
TOTAL CAPITALIZATION | 578,679 | 556,653 |
CURRENT LIABILITIES: | ||
Current Portion of Long-term Debt | 7,239 | 7,178 |
Notes Payable | 36,500 | 20,000 |
Accounts Payable | 24,860 | 23,306 |
Accrued Taxes | 10,642 | 7,635 |
Accrued Interest | 1,937 | 2,031 |
Unearned Revenues and Advanced Service Fees | 1,311 | 1,211 |
Other | 2,865 | 3,620 |
TOTAL CURRENT LIABILITIES | 85,354 | 64,981 |
COMMITMENTS AND CONTINGENT LIABILITIES (Note 7) | ||
DEFERRED CREDITS AND OTHER LIABILITIES: | ||
Customer Advances for Construction | 25,100 | 23,905 |
Lease Obligations | 5,214 | 5,732 |
Accumulated Deferred Income Taxes | 58,970 | 54,408 |
Employee Benefit Plans | 33,310 | 34,671 |
Regulatory Liabilities | 62,979 | 69,152 |
Other | 2,432 | 2,546 |
TOTAL DEFERRED CREDITS AND OTHER LIABILITIES | 188,005 | 190,414 |
CONTRIBUTIONS IN AID OF CONSTRUCTION | 107,796 | 97,830 |
TOTAL CAPITALIZATION AND LIABILITIES | $ 959,834 | $ 909,878 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net Income | $ 30,118 | $ 25,818 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||
Depreciation and Amortization | 15,595 | 12,858 |
Provision for Deferred Income Taxes | (10,991) | (8,379) |
Equity Portion of Allowance for Funds Used During Construction (AFUDC) | (1,789) | (1,330) |
Cash Surrender Value of Life Insurance | (166) | (187) |
Stock Compensation Expense | 820 | 409 |
Changes in Assets and Liabilities: | ||
Accounts Receivable | (3,659) | (1,645) |
Unbilled Revenues | (1,640) | (2,124) |
Materials and Supplies | 683 | 252 |
Prepayments | (1,002) | (933) |
Accounts Payable | 1,554 | 853 |
Accrued Taxes | 3,007 | (2,098) |
Accrued Interest | (94) | (490) |
Employee Benefit Plans | 1,234 | (640) |
Unearned Revenue & Advanced Service Fees | 100 | 12 |
Other Assets and Liabilities | 3,520 | 972 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 37,290 | 23,348 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Utility Plant Expenditures, Including AFUDC of $1,082 in 2020 and $700 in 2019 | (70,785) | (61,220) |
NET CASH USED IN INVESTING ACTIVITIES | (70,785) | (61,220) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Redemption of Long-term Debt | (6,391) | (6,315) |
Proceeds from Issuance of Long-term Debt | 10,319 | 82,446 |
Net Short-term Bank Borrowings | 16,500 | 10,000 |
Deferred Debt Issuance Expense | (41) | (754) |
Common Stock Issuance Expense | (37) | (22) |
Proceeds from Issuance of Common Stock | 921 | 12,449 |
Payment of Common Dividends | (13,418) | (11,893) |
Payment of Preferred Dividends | (90) | (102) |
Construction Advances and Contributions-Net | 7,420 | 3,480 |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 15,183 | 89,289 |
NET CHANGES IN CASH AND CASH EQUIVALENTS | (18,312) | 51,417 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF PERIOD | 46,499 | 5,661 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD | 28,187 | 57,078 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITY: | ||
Utility Plant received as Construction Advances and Contributions | 3,747 | 5,375 |
Long-term Debt Deobligation | 130 | |
Cash Paid During the Year for: | ||
Interest | 5,834 | 5,929 |
Interest Capitalized | 1,082 | 700 |
Income Taxes | $ 1,783 | $ 6,752 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Cash Flows [Abstract] | ||
Allowance for funds used during construction | $ 1,082 | $ 700 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CAPITAL STOCK AND LONG-TERM DEBT (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Common Stock, No Par Value | $ 216,866 | $ 215,125 |
Retained Earnings | 125,240 | 108,667 |
TOTAL COMMON EQUITY | 342,106 | 323,792 |
TOTAL PREFERRED STOCK | 2,084 | 2,084 |
SUBTOTAL LONG-TERM DEBT | 238,326 | 234,397 |
Add: Premium on Issuance of Long-term Debt | 7,766 | 8,064 |
Less: Unamortized Debt Expense | (4,364) | (4,506) |
Less: Current Portion of Long-term Debt | (7,239) | (7,178) |
TOTAL LONG-TERM DEBT | 234,489 | 230,777 |
Amortizing Secured Note, due December 20, 2021 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 415 | 643 |
Amortizing Secured Note, due May 19, 2028 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 3,220 | 3,535 |
Amortizing Secured Note, due August 25, 2030 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 2,777 | 2,987 |
Amortizing Secured Note, due September 19, 2031 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 3,057 | 3,267 |
State Revolving Trust Note, due December 31, 2022 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 147 | 175 |
State Revolving Trust Note, due May 1, 2025 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 1,288 | 1,405 |
State Revolving Trust Note, due March 1, 2026 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 266 | 309 |
State Revolving Trust Note, due January 25, 2027 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 307 | 349 |
State Revolving Trust Note, due December 1, 2026 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 419 | 446 |
State Revolving Trust Bond 4.00% to 5.00%, due August 1, 2021 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 4 | 60 |
State Revolving Trust Bond 0.00%, due August 1, 2021 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 11 | 50 |
State Revolving Trust Note, due July 1, 2028 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 203 | 214 |
State Revolving Trust Note, due January 1, 2028 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 66 | 69 |
State Revolving Trust Note, due August 1, 2031 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 793 | 851 |
Amortizing Secured Note, due April 20, 2029 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 2,994 | 3,255 |
Amortizing Secured Note 7.05%, due January 20, 2030 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 2,333 | 2,521 |
Amortizing Secured Note 5.69%, due January 20, 2030 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 4,786 | 5,171 |
Amortizing Secured Note, due April 20, 2040 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 8,617 | 8,946 |
Amortizing Secured Note, due April 20, 2040 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 3,197 | 3,320 |
State Revolving Trust Note, due July 1, 2031 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 1,765 | 1,829 |
State Revolving Trust Note, due February 1, 2036 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 960 | 1,013 |
State Revolving Trust Note, due November 1, 2038 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 1,579 | 1,309 |
State Revolving Trust Note, due November 30, 2030 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 919 | 955 |
Construction Loans [Member] | ||
SUBTOTAL LONG-TERM DEBT | 50,536 | 40,467 |
First Mortgage Bonds - Series BB [Member] | ||
SUBTOTAL LONG-TERM DEBT | 119 | 241 |
First Mortgage Bonds - Series CC [Member] | ||
SUBTOTAL LONG-TERM DEBT | 164 | 331 |
First Mortgage Bonds - Series EE [Member] | ||
SUBTOTAL LONG-TERM DEBT | 1,036 | 1,456 |
First Mortgage Bonds - Series FF [Member] | ||
SUBTOTAL LONG-TERM DEBT | 1,870 | 2,440 |
First Mortgage Bonds - Series GG [Member] | ||
SUBTOTAL LONG-TERM DEBT | 542 | 632 |
First Mortgage Bonds - Series HH [Member] | ||
SUBTOTAL LONG-TERM DEBT | 620 | 710 |
First Mortgage Bonds - Series II [Member] | ||
SUBTOTAL LONG-TERM DEBT | 338 | 429 |
First Mortgage Bonds - Series JJ [Member] | ||
SUBTOTAL LONG-TERM DEBT | 500 | 588 |
First Mortgage Bonds - Series KK [Member] | ||
SUBTOTAL LONG-TERM DEBT | 719 | 807 |
First Mortgage Bonds - Series LL [Member] | ||
SUBTOTAL LONG-TERM DEBT | 846 | 928 |
First Mortgage Bonds - Series MM [Member] | ||
SUBTOTAL LONG-TERM DEBT | 937 | 1,037 |
First Mortgage Bonds - Series NN [Member] | ||
SUBTOTAL LONG-TERM DEBT | 1,105 | 1,190 |
First Mortgage Bonds - Series OO [Member] | ||
SUBTOTAL LONG-TERM DEBT | 1,655 | 1,806 |
First Mortgage Bonds - Series PP [Member] | ||
SUBTOTAL LONG-TERM DEBT | 600 | 660 |
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 | 1,806 | 1,957 |
First Mortgage Bonds - Series UU [Member] | ||
SUBTOTAL LONG-TERM DEBT | 705 | 755 |
First Mortgage Bonds - Series VV [Member] | ||
SUBTOTAL LONG-TERM DEBT | 1,861 | 2,004 |
First Mortgage Bonds - Series WW [Member] | ||
SUBTOTAL LONG-TERM DEBT | 715 | 755 |
First Mortgage Bonds - Series XX [Member] | ||
SUBTOTAL LONG-TERM DEBT | 10,247 | 10,627 |
First Mortgage Bonds - Series YY [Member] | ||
SUBTOTAL LONG-TERM DEBT | 3,710 | 3,785 |
0.00%, Series 2018A, due August 1, 2047 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 6,247 | 6,678 |
3.00%-5.00%, Series 2018B, due August 1, 2047 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 2,210 | 2,320 |
4.00%, Series 2019A, due August 1, 2059 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 32,500 | 32,500 |
5.00%, Series 2019B, due August 1, 2059 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 21,200 | 21,200 |
Convertible Preferred Stock $7.00 Series [Member] | ||
TOTAL PREFERRED STOCK | 1,005 | 1,005 |
Nonredeemable Preferred Stock $7.00 Series [Member] | ||
TOTAL PREFERRED STOCK | 79 | 79 |
Nonredeemable Preferred Stock $4.75 Series [Member] | ||
TOTAL PREFERRED STOCK | $ 1,000 | $ 1,000 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CAPITAL STOCK AND LONG-TERM DEBT (Unaudited) (Parenthetical) - shares shares in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Common Stock, Shares Authorized | 40,000 | 40,000 |
Common Stock, Shares Outstanding | 17,469 | 17,434 |
Preferred Stock, Shares Authorized | 120 | 120 |
Preferred Stock, Shares Outstanding | 20 | 20 |
Convertible Preferred Stock $7.00 Series [Member] | ||
Preferred Stock, Shares Outstanding | 10 | 10 |
Nonredeemable Preferred Stock $7.00 Series [Member] | ||
Preferred Stock, Shares Outstanding | 1 | 1 |
Nonredeemable Preferred Stock $4.75 Series [Member] | ||
Preferred Stock, Shares Outstanding | 10 | 10 |
Amortizing Secured Note, due December 20, 2021 [Member] | ||
Interest rate | 8.05% | |
Due date of debt | Dec. 20, 2021 | |
Amortizing Secured Note, due May 19, 2028 [Member] | ||
Interest rate | 6.25% | |
Due date of debt | May 19, 2028 | |
Amortizing Secured Note, due August 25, 2030 [Member] | ||
Interest rate | 6.44% | |
Due date of debt | Aug. 25, 2030 | |
Amortizing Secured Note, due September 19, 2031 [Member] | ||
Interest rate | 6.46% | |
Due date of debt | Sep. 19, 2031 | |
State Revolving Trust Note, due December 31, 2022 [Member] | ||
Interest rate | 4.22% | |
Due date of debt | Dec. 31, 2022 | |
State Revolving Trust Note, due May 1, 2025 [Member] | ||
Interest rate | 3.60% | |
Due date of debt | May 1, 2025 | |
State Revolving Trust Note, due March 1, 2026 [Member] | ||
Interest rate | 3.30% | |
Due date of debt | Mar. 1, 2026 | |
State Revolving Trust Note, due January 25, 2027 [Member] | ||
Interest rate | 3.49% | |
Due date of debt | Jan. 25, 2027 | |
State Revolving Trust Note, due December 1, 2026 [Member] | ||
Interest rate | 4.03% | |
Due date of debt | Dec. 1, 2026 | |
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 Fund Bond 0.00%, due August 1, 2021 [Member] | ||
Interest rate | 0.00% | |
Due date of debt | Aug. 1, 2021 | |
State Revolving Trust Note, due July 1, 2028 [Member] | ||
Interest rate | 3.64% | |
Due date of debt | Jul. 1, 2028 | |
State Revolving Trust Note, due January 1, 2028 [Member] | ||
Interest rate | 3.64% | |
Due date of debt | Jan. 1, 2028 | |
State Revolving Trust Note, due August 1, 2031 [Member] | ||
Interest rate | 3.45% | |
Due date of debt | Aug. 1, 2031 | |
Amortizing Secured Note, due April 20, 2029 [Member] | ||
Interest rate | 6.59% | |
Due date of debt | Apr. 20, 2029 | |
Amortizing Secured Note 7.05%, due January 20, 2030 [Member] | ||
Interest rate | 7.05% | |
Due date of debt | Jan. 20, 2030 | |
Amortizing Secured Note 5.69%, due January 20, 2030 [Member] | ||
Interest rate | 5.69% | |
Due date of debt | Jan. 20, 2030 | |
Amortizing Secured Note, due April 20, 2040 [Member] | ||
Interest rate | 4.45% | |
Due date of debt | Apr. 20, 2040 | |
Amortizing Secured Note, due April 20, 2040 [Member] | ||
Interest rate | 4.47% | |
Due date of debt | Apr. 20, 2040 | |
State Revolving Trust Note, due July 1, 2031 [Member] | ||
Interest rate | 3.75% | |
Due date of debt | Jul. 1, 2031 | |
State Revolving Trust Note, due February 1, 2036 [Member] | ||
Interest rate | 2.00% | |
Due date of debt | Feb. 1, 2036 | |
State Revolving Trust Note, due November 1, 2038 [Member] | ||
Interest rate | 2.00% | |
Due date of debt | Nov. 1, 2038 | |
State Revolving Trust Note, due November 30, 2030 [Member] | ||
Interest rate | 3.75% | |
Due date of debt | Nov. 30, 2030 | |
First Mortgage Bonds - Series BB [Member] | ||
Interest rate | 0.00% | |
Due date of debt | Aug. 1, 2021 | |
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] | ||
Interest rate | 0.00% | |
Due date of debt | Aug. 1, 2023 | |
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] | ||
Interest rate | 0.00% | |
Due date of debt | Aug. 1, 2026 | |
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] | ||
Interest rate | 0.00% | |
Due date of debt | Aug. 1, 2024 | |
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] | ||
Interest rate | 0.00% | |
Due date of debt | Aug. 1, 2028 | |
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] | ||
Interest rate | 0.00% | |
Due date of debt | Aug. 1, 2030 | |
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] | ||
Interest rate | 0.00% | |
Due date of debt | Aug. 1, 2031 | |
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] | ||
Interest rate | 5.00% | |
Due date of debt | Oct. 1, 2023 | |
First Mortgage Bonds - Series RR [Member] | ||
Interest rate | 3.80% | |
Due date of debt | Oct. 1, 2038 | |
First Mortgage Bonds - Series SS [Member] | ||
Interest rate | 4.25% | |
Due date of debt | Oct. 1, 2047 | |
First Mortgage Bonds - Series TT [Member] | ||
Interest rate | 0.00% | |
Due date of debt | Aug. 1, 2032 | |
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] | ||
Interest rate | 0.00% | |
Due date of debt | Aug. 1, 2033 | |
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] | ||
Interest rate | 0.00% | |
Due date of debt | Aug. 1, 2047 | |
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% | |
0.00%, Series 2018A, due August 1, 2047 [Member] | ||
Interest rate | 0.00% | |
Due date of debt | Aug. 1, 2047 | |
3.00%-5.00%, Series 2018B, due August 1, 2047 [Member] | ||
Due date of debt | Aug. 1, 2047 | |
3.00%-5.00%, Series 2018B, due August 1, 2047 [Member] | Minimum [Member] | ||
Interest rate | 3.00% | |
3.00%-5.00%, Series 2018B, due August 1, 2047 [Member] | Maximum [Member] | ||
Interest rate | 5.00% | |
4.00%, Series 2019A, due August 1, 2059 [Member] | ||
Interest rate | 4.00% | |
Due date of debt | Aug. 1, 2059 | |
5.00%, Series 2019B, due August 1, 2059 [Member] | ||
Interest rate | 5.00% | |
Due date of debt | Aug. 1, 2059 | |
Construction Loans [Member] | ||
Interest rate | 0.00% |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Retained Earnings [Member] | Total |
Balance at Dec. 31, 2018 | $ 157,354 | $ 91,433 | $ 248,787 |
Balance, shares at Dec. 31, 2018 | 16,403,000 | ||
Net Income | 25,818 | 25,818 | |
Dividend Reinvestment & Common Stock Purchase Plan | $ 12,449 | $ 12,449 | |
Dividend Reinvestment & Common Stock Purchase Plan, shares | 222,000 | 221,558 | |
Restricted Stock Award, Net - Employees | $ 679 | $ 679 | |
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 | ||
Cash Dividends on Common Stock | (11,893) | (11,893) | |
Cash Dividends on Preferred Stock | (102) | (102) | |
Common Stock Expenses | (23) | (23) | |
Balance at Sep. 30, 2019 | $ 170,562 | 105,233 | 275,795 |
Balance, shares at Sep. 30, 2019 | 16,670,000 | ||
Balance at Jun. 30, 2019 | $ 165,138 | 98,146 | 263,284 |
Balance, shares at Jun. 30, 2019 | 16,554,000 | ||
Net Income | 11,119 | 11,119 | |
Dividend Reinvestment & Common Stock Purchase Plan | $ 5,368 | 5,368 | |
Dividend Reinvestment & Common Stock Purchase Plan, shares | 92,000 | ||
Restricted Stock Award, Net - Employees | $ 172 | 172 | |
Restricted Stock Award, Net - Employees, shares | 1,000 | ||
Shares Forefeited | $ (466) | (466) | |
Shares Forfeited, shares | (18,000) | ||
Conversion of Convertible Preferred Stock | $ 350 | 350 | |
Conversion of Convertible Preferred Stock, shares | 41,000 | ||
Cash Dividends on Common Stock | (3,987) | (3,987) | |
Cash Dividends on Preferred Stock | (30) | (30) | |
Common Stock Expenses | (15) | (15) | |
Balance at Sep. 30, 2019 | $ 170,562 | 105,233 | 275,795 |
Balance, shares at Sep. 30, 2019 | 16,670,000 | ||
Balance at Dec. 31, 2019 | $ 215,125 | 108,667 | 323,792 |
Balance, shares at Dec. 31, 2019 | 17,434,000 | ||
Net Income | 30,118 | 30,118 | |
Dividend Reinvestment & Common Stock Purchase Plan | $ 921 | $ 921 | |
Dividend Reinvestment & Common Stock Purchase Plan, shares | 14,000 | 14,223 | |
Restricted Stock Award, Net - Employees | $ 575 | $ 575 | |
Restricted Stock Award, Net - Employees, shares | 17,000 | ||
Restricted Stock Award - Board of Directors | $ 245 | 245 | |
Restricted Stock Award - Board of Directors, shares | 4,000 | ||
Cash Dividends on Common Stock | (13,418) | (13,418) | |
Cash Dividends on Preferred Stock | (90) | (90) | |
Common Stock Expenses | (37) | (37) | |
Balance at Sep. 30, 2020 | $ 216,866 | 125,240 | 342,106 |
Balance, shares at Sep. 30, 2020 | 17,469,000 | ||
Balance at Jun. 30, 2020 | $ 216,365 | 117,008 | 333,373 |
Balance, shares at Jun. 30, 2020 | 17,464,000 | ||
Net Income | 12,737 | 12,737 | |
Dividend Reinvestment & Common Stock Purchase Plan | $ 313 | 313 | |
Dividend Reinvestment & Common Stock Purchase Plan, shares | 5,000 | ||
Restricted Stock Award, Net - Employees | $ 188 | 188 | |
Cash Dividends on Common Stock | (4,475) | (4,475) | |
Cash Dividends on Preferred Stock | (30) | (30) | |
Balance at Sep. 30, 2020 | $ 216,866 | $ 125,240 | $ 342,106 |
Balance, shares at Sep. 30, 2020 | 17,469,000 |
CONDENSED CONSOLIDATED STATEM_7
CONDENSED CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends paid, per share | $ 0.2563 | $ 0.2400 | $ 0.7688 | $ 0.7200 |
Conversion price | $ 8 | $ 8 |
Basis of Presentation and Recen
Basis of Presentation and Recent Developments | 9 Months Ended |
Sep. 30, 2020 | |
Basis of Presentation and Recent Developments [Abstract] | |
Basis of Presentation and Recent Developments | Note 1 – Basis of Presentation and Recent Developments Middlesex Water Company (Middlesex or the Company) is the parent company and sole shareholder of Tidewater Utilities, Inc. (Tidewater), Tidewater Environmental Services, Inc. (TESI), Pinelands Water Company (Pinelands Water) and Pinelands Wastewater Company (Pinelands Wastewater) (collectively, Pinelands), Utility Service Affiliates, Inc. (USA), Utility Service Affiliates (Perth Amboy) Inc. (USA-PA), and Twin Lakes Utilities, Inc. (Twin Lakes). Southern Shores Water Company, LLC (Southern Shores) and White Marsh Environmental Systems, Inc. (White Marsh) are wholly-owned subsidiaries of Tidewater. The financial statements for Middlesex and its wholly-owned subsidiaries are reported on a consolidated basis. All significant intercompany accounts and transactions have been eliminated. The consolidated notes within the 2019 Annual Report on Form 10-K (the 2019 Form 10-K) are applicable to these financial statements and, in the opinion of the Company, the accompanying unaudited condensed consolidated financial statements contain all adjustments necessary (including normal recurring accruals) to present fairly the financial position as of September 30, 2020, the results of operations for the three month and nine month periods ended September 30, 2020 and 2019 and cash flows for the nine month periods ended September 30, 2020 and 2019. Information included in the Condensed Consolidated Balance Sheet as of December 31, 2019, has been derived from the Company’s audited financial statements for the year ended December 31, 2019 included in the 2019 Form 10-K. Recent Developments Novel Coronavirus (COVID-19) The New Jersey Board of Public Utilities (NJBPU) and the Delaware Public Service Commission (DEPSC) have allowed for potential future recovery of COVID-19 related incremental costs through customer rates by the regulated utilities under their respective jurisdictions. Neither jurisdiction has yet to establish a timetable or definitive method for formally providing for cost recovery. We will continue to monitor the COVID-19 situation and evaluate its impact on the Company’s business, results of operations, financial condition and liquidity. Contract Operations – Recently Adopted Accounting Guidance Credit Losses on Financial Instruments - Expected credit losses on accounts receivable and unbilled revenues are based on historical write-offs combined with an evaluation of current conditions and reasonable and supportable forecasts. Customer accounts are written off when collection efforts have been exhausted. There are no other new adopted or proposed accounting guidance that the Company is aware of that could have a material impact on the Company’s financial statements. |
Rate and Regulatory Matters
Rate and Regulatory Matters | 9 Months Ended |
Sep. 30, 2020 | |
Regulated Operations [Abstract] | |
Rate and Regulatory Matters | Note 2 Rate and Regulatory Matters Middlesex – Tidewater - Southern Shores - Twin Lakes - COVID-19 - Note 1- Basis of Presentation and Recent Developments, Recent Developments |
Capitalization
Capitalization | 9 Months Ended |
Sep. 30, 2020 | |
CAPITALIZATION: | |
Capitalization | Note 3 – Capitalization Common Stock - Long-term Debt - 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 the New Jersey SRF program as follows: 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 in Edison, New Jersey and interconnect with our distribution system. Middlesex closed on a $43.5 million NJIB interest-free construction loan in August 2018. Through September 30, 2020, Middlesex has drawn a total of $41.9 million and expects to continue to draw down on this construction loan through the fourth 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 unlined water distribution mains in the Middlesex system. Middlesex closed on an $8.7 million NJIB construction loan in September 2018 and completed withdrawal of the proceeds in October 2019. 7 Index The Company expects that the large-diameter transmission pipeline and the 2018 RENEW construction loans will be included in the NJIB May 2021 long-term debt financing program. 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 amended regulations, the principal balance having a stated interest rate of zero percent (0%) is 25% of the loan balance with the remaining 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 unless the terms are further amended to become more favorable to the Company. In August 2019, Middlesex priced and closed on a New Jersey Economic Development Authority (NJEDA) debt financing transaction of $53.7 million by issuing First Mortgage Bonds (FMB) 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, are held in escrow by a bond trustee and are drawn down by requisition for the qualifying projects. Through September 30, 2020, Middlesex has drawn a total of $38.1 million and currently expects to draw the remaining $22.7 million of proceeds, currently included in Restricted Cash, through the second quarter of 2021. In May 2020, Middlesex received approval from the NJBPU to borrow up to $100 million, in one or more private placement transactions to help fund Middlesex’s multi-year capital construction program. Middlesex expects to close on a $40.0 million loan on or about November 18, 2020. Middlesex will issue a FMB with a payment maturity date of November 2050 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 and completed withdrawal of the proceeds in April 2020. Fair Value of Financial Instruments - (In Thousands) September 30, 2020 December 31, 2019 Carrying Fair Carrying Fair Amount Value Amount Value Bonds $ 147,681 $ 158,579 $ 151,361 $ 160,772 8 Index For other long-term debt for which there was 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 noted as “Amortizing Secured Note”, “State Revolving Trust Note” and “Construction Loans” on the Condensed Consolidated Statements of Capital Stock and Long-Term Debt). The carrying amount of these instruments was $90.9 million and $83.0 million at September 30, 2020 and December 31, 2019, respectively. Customer advances for construction have carrying amounts of $25.1 million and $23.9 million as of September 30, 2020 and December 31, 2019, 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. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 4 – Earnings Per Share Basic earnings per share (EPS) are computed on the basis of the weighted average number of shares outstanding during the period presented. Diluted EPS assumes the conversion of the Convertible Preferred Stock $7.00 Series in 2020 and the Convertible Preferred Stock $7.00 Series and the Convertible Preferred Stock $8.00 Series in 2019. (In Thousands Except per Share Amounts) Three Months Ended September 30, 2020 2019 Basic: Income Shares Income Shares Net Income $ 12,737 17,466 $ 11,119 16,610 Preferred Dividend (30 ) (30 ) Earnings Applicable to Common Stock $ 12,707 17,466 $ 11,089 16,610 Basic EPS $ 0.73 $ 0.67 Diluted: Earnings Applicable to Common Stock $ 12,707 17,466 $ 11,089 16,610 $7.00 Series Preferred Dividend 17 115 17 115 $8.00 Series Preferred Dividend — — — 32 Adjusted Earnings Applicable to Common Stock $ 12,724 17,581 $ 11,106 16,757 Diluted EPS $ 0.72 $ 0.66 9 Index (In Thousands Except per Share Amounts) Nine Months Ended September 30, 2020 2019 Basic: Income Shares Income Shares Net Income $ 30,118 17,455 $ 25,818 16,520 Preferred Dividend (90 ) (102 ) Earnings Applicable to Common Stock $ 30,028 17,455 $ 25,716 16,520 Basic EPS $ 1.72 $ 1.56 Diluted: Earnings Applicable to Common Stock $ 30,028 17,455 $ 25,716 16,520 $7.00 Series Preferred Dividend 50 115 50 115 $8.00 Series Preferred Dividend — — 12 38 Adjusted Earnings Applicable to Common Stock $ 30,078 17,570 $ 25,778 16,673 Diluted EPS $ 1.71 $ 1.55 |
Business Segment Data
Business Segment Data | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Business Segment Data | Note 5 – 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 New Jersey, Delaware and Pennsylvania with respect to utility services 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. 10 Index (In Thousands) Three Months Ended Nine Months Ended September 30, September 30, Operations by Segments: 2020 2019 2020 2019 Revenues: Regulated $ 37,040 $ 35,000 $ 98,266 $ 93,342 Non – Regulated 3,204 3,020 9,345 9,032 Inter-segment Elimination (324 ) (251 ) (646 ) (515 ) Consolidated Revenues $ 39,920 $ 37,769 $ 106,965 $ 101,859 Operating Income: Regulated $ 12,119 $ 11,001 $ 26,598 $ 24,937 Non – Regulated 1,058 982 2,490 3,025 Consolidated Operating Income $ 13,177 $ 11,983 $ 29,088 $ 27,962 Net Income: Regulated $ 11,993 $ 10,409 $ 28,364 $ 23,700 Non – Regulated 744 710 1,754 2,118 Consolidated Net Income $ 12,737 $ 11,119 $ 30,118 $ 25,818 Capital Expenditures: Regulated $ 25,266 $ 25,437 $ 70,398 $ 60,998 Non – Regulated 101 85 387 222 Total Capital Expenditures $ 25,367 $ 25,522 $ 70,785 $ 61,220 As of As of September 30, December 31, 2020 2019 Assets: Regulated $ 959,494 $ 910,081 Non – Regulated 10,104 9,686 Inter-segment Elimination (9,764 ) (9,889 ) Consolidated Assets $ 959,834 $ 909,878 |
Short-term Borrowings
Short-term Borrowings | 9 Months Ended |
Sep. 30, 2020 | |
Short-term Debt [Abstract] | |
Short-term Borrowings | Note 6 – Short-term Borrowings The Company maintains lines of credit aggregating $140.0 million. (Millions) As of September 30, 2020 Line of Credit Renewal Date Outstanding Available Maximum Credit Type Bank of America $ 2.0 $ 58.0 $ 60.0 Uncommitted December 17, 2020 PNC Bank 27.0 41.0 68.0 Committed January 31, 2022 CoBank 7.5 4.5 12.0 Committed November 30, 2023 $ 36.5 $ 103.5 $ 140.0 The interest rates for borrowings under the lines of credit are set using the London InterBank Offered Rate (LIBOR) and adding a credit spread, which varies by financial institution. There is no requirement for a compensating balance under any of the established lines of credit. The Bank of America line of credit is renewed on an annual basis prior to its expiration. The weighted average interest rate on the outstanding borrowings at September 30, 2020 under these credit lines is 1.18%. The weighted average daily amounts of borrowings outstanding under the Company’s credit lines and the weighted average interest rates on those amounts were as follows: (In Thousands) Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Average Daily Amounts Outstanding $ 35,576 $ 58,259 $ 31,372 $ 56,881 Weighted Average Interest Rates 1.24 % 3.26 % 1.63 % 3.45 % The maturity dates for the $36.5 million of borrowings outstanding as of September 30, 2020 are in October 2020 through December 2020 and are renewable at the discretion of the Company. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Note 7 – Commitments and Contingent Liabilities Water Supply - Middlesex also has an agreement with a non-affiliated NJBPU-regulated water utility for the purchase of treated water. This agreement, which expires February 28, 2026, provides for the minimum purchase of 3.0 mgd of treated water with provisions for additional purchases if needed. Tidewater contracts with the City of Dover, Delaware to purchase 15.0 million gallons of treated water annually. Purchased water costs are shown below: (In Thousands) Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Treated $ 933 $ 818 $ 2,657 $ 2,415 Untreated 878 878 2,530 2,521 Total Costs $ 1,811 $ 1,696 $ 5,187 $ 4,936 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 potentially 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 $1.3 million and $1.4 million as of September 30, 2020 and December 31, 2019, respectively. In November 2019, Middlesex was notified that the County terminated its Agreement with AWM. AWM had initiated legal action against the County in the Superior Court of New Jersey, Monmouth County that in part contests the County’s exercise of this termination. The County filed a counter-claim against NSU and has brought Middlesex into the suit as a third-party defendant. We continue to monitor this litigation; however, given the cancellation of the underlying operating contract by the County, we do not anticipate the ultimate outcome will have a material impact on the Company’s results of operations or financial condition. 12 Index 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 financing 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 impact 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 were $0.2 million for each of the three months ended September 30, 2020 and 2019, respectively, and $0.6 million and $0.5 million for the nine months ended September 30, 2020 and 2019, respectively. Information related to operating lease ROU assets and lease liabilities is as follows: (In Millions) As of September 30, 2020 As of December 31, 2019 ROU Asset at Lease Inception $ 7.3 $ 7.3 Accumulated Amortization (1.9 ) (1.4 ) Current ROU Asset $ 5.4 $ 5.9 The Company’s future minimum operating lease commitments are as follows: (In Millions) September 30, 2020 2020 $ 0.2 2021 0.8 2022 0.8 2023 0.8 2024 0.8 Thereafter 4.4 Total Lease Payments $ 7.8 Imputed Interest (1.8 ) Present Value of Lease Payments 6.0 Less Current Portion* (0.8 ) Non-Current Lease Liability $ 5.2 *Included in Other Current Liabilities Construction - Note 1- Basis of Presentation and Recent Developments, Recent Developments Contingencies - Change in Control Agreements - |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2020 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Note 8 – Employee Benefit Plans Pension Benefits Other Postretirement Benefits - 13 Index The following tables set forth information relating to the Company’s periodic costs for its employee retirement benefit plans: (In Thousands) Pension Benefits Other Benefits Three Months Ended September 30, 2020 2019 2020 2019 Service Cost $ 609 $ 543 $ 248 $ 210 Interest Cost 775 857 425 496 Expected Return on Assets (1,409 ) (1,173 ) (721 ) (613 ) Amortization of Unrecognized Losses 515 404 338 330 Net Periodic Benefit Cost* $ 490 $ 631 $ 290 $ 423 (In Thousands) Pension Benefits Other Benefits Nine Months Ended September 30, 2020 2019 2020 2019 Service Cost $ 1,826 $ 1,628 $ 745 $ 630 Interest Cost 2,324 2,570 1,274 1,488 Expected Return on Assets (4,226 ) (3,520 ) (2,163 ) (1,838 ) Amortization of Unrecognized Losses 1,544 1,213 1,014 989 Net Periodic Benefit Cost* $ 1,468 $ 1,891 $ 870 $ 1,269 *Service cost is included in Operations and Maintenance expense on Consolidated Statements of Income; all other amounts are included in Other Income/Expense, net. |
Revenue Recognition from Contra
Revenue Recognition from Contracts with Customers | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition from Contracts with Customers | Note 9 – Revenue Recognition from Contracts with Customers The Company’s revenues are primarily generated from regulated tariff-based sales of water and wastewater services to residential, industrial, commercial, fire protection and wholesale customers, as well as non-regulated operation and maintenance contracts for services on water and wastewater systems owned by others. Revenue from contracts with customers is recognized when control of a promised good or service is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. 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 and 30 days after the invoice date. The Company recognizes revenue as the water and wastewater services are delivered to customers and 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 of service provided to Tidewater customers and are recognized as service is provided. Non-regulated service contract revenues consist of base service fees, as well as fees for additional billable services provided to customers, 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 June 2030 and thus contain remaining performance obligations for which the Company expects to recognize revenue in the future. These contracts also contain termination provisions. Substantially all operating revenues and accounts receivable are from contracts with customers. The Company records an 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. 14 Index The Company’s operating revenues are comprised of the following: (In Thousands) Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Regulated Tariff Sales Residential $ 22,340 $ 20,693 $ 58,475 $ 54,453 Commercial 4,660 4,487 11,678 11,539 Industrial 2,629 2,723 6,885 7,242 Fire Protection 3,129 3,100 9,235 9,211 Wholesale 4,028 3,813 11,553 10,582 Non-Regulated Contract Operations 3,100 2,919 9,034 8,729 Total Revenue from Contracts with Customers $ 39,886 $ 37,735 $ 106,860 $ 101,756 Other Regulated Revenues 255 184 441 315 Other Non-Regulated Revenues 104 101 311 303 Inter-segment Elimination (325 ) (251 ) (647 ) (515 ) Total Revenue $ 39,920 $ 37,769 $ 106,965 $ 101,859 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 10 – Income Taxes As part of its 2014 Federal income tax return, the Company adopted the final Internal Revenue Service (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 2019, the Company paid $2.7 million in connection with the conclusion and closing of the 2014-2017 tax return audits and $0.1 million in interest in connection with the conclusion and closing of the 2014 and 2015 tax return audits. As of September 30, 2020, the Company has reduced its income tax reserve provision and interest expense liability to $0.5 million and $0.2 million, respectively. |
Capitalization (Tables)
Capitalization (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
CAPITALIZATION: | |
Schedule of carrying amount and fair value of bonds | Fair Value of Financial Instruments - (In Thousands) September 30, 2020 December 31, 2019 Carrying Fair Carrying Fair Amount Value Amount Value Bonds $ 147,681 $ 158,579 $ 151,361 $ 160,772 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | Basic earnings per share (EPS) are computed on the basis of the weighted average number of shares outstanding during the period presented. Diluted EPS assumes the conversion of the Convertible Preferred Stock $7.00 Series in 2020 and the Convertible Preferred Stock $7.00 Series and the Convertible Preferred Stock $8.00 Series in 2019. (In Thousands Except per Share Amounts) Three Months Ended September 30, 2020 2019 Basic: Income Shares Income Shares Net Income $ 12,737 17,466 $ 11,119 16,610 Preferred Dividend (30 ) (30 ) Earnings Applicable to Common Stock $ 12,707 17,466 $ 11,089 16,610 Basic EPS $ 0.73 $ 0.67 Diluted: Earnings Applicable to Common Stock $ 12,707 17,466 $ 11,089 16,610 $7.00 Series Preferred Dividend 17 115 17 115 $8.00 Series Preferred Dividend — — — 32 Adjusted Earnings Applicable to Common Stock $ 12,724 17,581 $ 11,106 16,757 Diluted EPS $ 0.72 $ 0.66 9 Index (In Thousands Except per Share Amounts) Nine Months Ended September 30, 2020 2019 Basic: Income Shares Income Shares Net Income $ 30,118 17,455 $ 25,818 16,520 Preferred Dividend (90 ) (102 ) Earnings Applicable to Common Stock $ 30,028 17,455 $ 25,716 16,520 Basic EPS $ 1.72 $ 1.56 Diluted: Earnings Applicable to Common Stock $ 30,028 17,455 $ 25,716 16,520 $7.00 Series Preferred Dividend 50 115 50 115 $8.00 Series Preferred Dividend — — 12 38 Adjusted Earnings Applicable to Common Stock $ 30,078 17,570 $ 25,778 16,673 Diluted EPS $ 1.71 $ 1.55 |
Business Segment Data (Tables)
Business Segment Data (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information, by segment | 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 New Jersey, Delaware and Pennsylvania with respect to utility services 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. 10 Index (In Thousands) Three Months Ended Nine Months Ended September 30, September 30, Operations by Segments: 2020 2019 2020 2019 Revenues: Regulated $ 37,040 $ 35,000 $ 98,266 $ 93,342 Non – Regulated 3,204 3,020 9,345 9,032 Inter-segment Elimination (324 ) (251 ) (646 ) (515 ) Consolidated Revenues $ 39,920 $ 37,769 $ 106,965 $ 101,859 Operating Income: Regulated $ 12,119 $ 11,001 $ 26,598 $ 24,937 Non – Regulated 1,058 982 2,490 3,025 Consolidated Operating Income $ 13,177 $ 11,983 $ 29,088 $ 27,962 Net Income: Regulated $ 11,993 $ 10,409 $ 28,364 $ 23,700 Non – Regulated 744 710 1,754 2,118 Consolidated Net Income $ 12,737 $ 11,119 $ 30,118 $ 25,818 Capital Expenditures: Regulated $ 25,266 $ 25,437 $ 70,398 $ 60,998 Non – Regulated 101 85 387 222 Total Capital Expenditures $ 25,367 $ 25,522 $ 70,785 $ 61,220 As of As of September 30, December 31, 2020 2019 Assets: Regulated $ 959,494 $ 910,081 Non – Regulated 10,104 9,686 Inter-segment Elimination (9,764 ) (9,889 ) Consolidated Assets $ 959,834 $ 909,878 |
Short-Term Borrowings (Tables)
Short-Term Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Short-term Debt [Abstract] | |
Schedule of Line of Credit | The Company maintains lines of credit aggregating $140.0 million. (Millions) As of September 30, 2020 Line of Credit Renewal Date Outstanding Available Maximum Credit Type Bank of America $ 2.0 $ 58.0 $ 60.0 Uncommitted December 17, 2020 PNC Bank 27.0 41.0 68.0 Committed January 31, 2022 CoBank 7.5 4.5 12.0 Committed November 30, 2023 $ 36.5 $ 103.5 $ 140.0 |
Schedule of Weighted Average Daily Amounts of Borrowings Outstanding | The weighted average daily amounts of borrowings outstanding under the Company’s credit lines and the weighted average interest rates on those amounts were as follows: (In Thousands) Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Average Daily Amounts Outstanding $ 35,576 $ 58,259 $ 31,372 $ 56,881 Weighted Average Interest Rates 1.24 % 3.26 % 1.63 % 3.45 % |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of purchased water cost | Purchased water costs are shown below: (In Thousands) Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Treated $ 933 $ 818 $ 2,657 $ 2,415 Untreated 878 878 2,530 2,521 Total Costs $ 1,811 $ 1,696 $ 5,187 $ 4,936 |
Schedule of operating lease ROU assets and lease liabilities | Information related to operating lease ROU assets and lease liabilities is as follows: (In Millions) As of September 30, 2020 As of December 31, 2019 ROU Asset at Lease Inception $ 7.3 $ 7.3 Accumulated Amortization (1.9 ) (1.4 ) Current ROU Asset $ 5.4 $ 5.9 |
Schedule of future minimum operating lease | The Company’s future minimum operating lease commitments are as follows: (In Millions) September 30, 2020 2020 $ 0.2 2021 0.8 2022 0.8 2023 0.8 2024 0.8 Thereafter 4.4 Total Lease Payments $ 7.8 Imputed Interest (1.8 ) Present Value of Lease Payments 6.0 Less Current Portion* (0.8 ) Non-Current Lease Liability $ 5.2 *Included in Other Current Liabilities |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of periodic costs for employee retirement benefit plan | The following tables set forth information relating to the Company’s periodic costs for its employee retirement benefit plans: (In Thousands) Pension Benefits Other Benefits Three Months Ended September 30, 2020 2019 2020 2019 Service Cost $ 609 $ 543 $ 248 $ 210 Interest Cost 775 857 425 496 Expected Return on Assets (1,409 ) (1,173 ) (721 ) (613 ) Amortization of Unrecognized Losses 515 404 338 330 Net Periodic Benefit Cost* $ 490 $ 631 $ 290 $ 423 (In Thousands) Pension Benefits Other Benefits Nine Months Ended September 30, 2020 2019 2020 2019 Service Cost $ 1,826 $ 1,628 $ 745 $ 630 Interest Cost 2,324 2,570 1,274 1,488 Expected Return on Assets (4,226 ) (3,520 ) (2,163 ) (1,838 ) Amortization of Unrecognized Losses 1,544 1,213 1,014 989 Net Periodic Benefit Cost* $ 1,468 $ 1,891 $ 870 $ 1,269 |
Revenue Recognition from Cont_2
Revenue Recognition from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Operating Revenue | The Company’s operating revenues are comprised of the following: (In Thousands) Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Regulated Tariff Sales Residential $ 22,340 $ 20,693 $ 58,475 $ 54,453 Commercial 4,660 4,487 11,678 11,539 Industrial 2,629 2,723 6,885 7,242 Fire Protection 3,129 3,100 9,235 9,211 Wholesale 4,028 3,813 11,553 10,582 Non-Regulated Contract Operations 3,100 2,919 9,034 8,729 Total Revenue from Contracts with Customers $ 39,886 $ 37,735 $ 106,860 $ 101,756 Other Regulated Revenues 255 184 441 315 Other Non-Regulated Revenues 104 101 311 303 Inter-segment Elimination (325 ) (251 ) (647 ) (515 ) Total Revenue $ 39,920 $ 37,769 $ 106,965 $ 101,859 |
Basis of Presentation and Rec_2
Basis of Presentation and Recent Developments (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Basis of Presentation and Recent Developments [Abstract] | |
Contract operations amount | $ 8.3 |
Contract operations period | 10 years |
Rate and Regulatory Matters (De
Rate and Regulatory Matters (Details) - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended | 12 Months Ended |
Jul. 31, 2019 | Sep. 30, 2020 | Dec. 31, 2019 | |
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 | $ 0.5 | ||
New Jersey Board Of Public Utilities [Member] | Middlesex [Member] | |||
Regulatory Liabilities [Line Items] | |||
Approved increase in annual operating revenues | $ 0.6 | ||
Pennsylvania Public Utilities Commissio [Member] | Twin Lakes [Member] | |||
Regulatory Liabilities [Line Items] | |||
Approved increase in annual operating revenues | $ 0.2 | $ 0.1 |
Capitalization (Narrative) (Det
Capitalization (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||
Aug. 31, 2019 | Jan. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Apr. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Mar. 31, 2018 | |
Schedule of Capitalization [Line Items] | |||||||||||||
Issuance of shares under the DRP, shares | 14,223 | 221,558 | |||||||||||
Issuance of shares under the DRP | $ 313 | $ 5,368 | $ 921 | $ 12,449 | |||||||||
Common stock granted and issued under plan | 200,000 | ||||||||||||
Percentage of offering shares on discount to participants | 5.00% | ||||||||||||
Other long term debt | 90,900 | 90,900 | $ 83,000 | ||||||||||
Customer advances | 25,100 | 25,100 | $ 23,905 | ||||||||||
Amount drawn | 10,319 | $ 82,446 | |||||||||||
Middlesex [Member] | |||||||||||||
Schedule of Capitalization [Line Items] | |||||||||||||
Maximum borrowing capacity, construction loan | 41,900 | 41,900 | |||||||||||
Proceeds from private placement | 40,000 | ||||||||||||
Middlesex [Member] | New Jersey Board Of Public Utilities [Member] | |||||||||||||
Schedule of Capitalization [Line Items] | |||||||||||||
Maximum borrowing amount | $ 100,000 | $ 100,000 | |||||||||||
FMB [Member] | |||||||||||||
Schedule of Capitalization [Line Items] | |||||||||||||
Percentage of principal with stated interest rate | 2.90% | ||||||||||||
Debt Instrument Maturity Date | Nov. 30, 2050 | ||||||||||||
New Jersey Infrastructure Bank [Member] | |||||||||||||
Schedule of Capitalization [Line Items] | |||||||||||||
Maximum borrowing capacity, construction loan | $ 43,500 | ||||||||||||
Interest rate | 0.00% | 0.00% | |||||||||||
Percentage of principal with stated interest rate | 75.00% | ||||||||||||
Percentage of principal with market interest rate | 25.00% | ||||||||||||
First Mortgage Bonds [Member] | |||||||||||||
Schedule of Capitalization [Line Items] | |||||||||||||
Proceeds from issuance premium | $ 7,100 | ||||||||||||
New Jersey NJIB Program [Member] | |||||||||||||
Schedule of Capitalization [Line Items] | |||||||||||||
Maximum borrowing capacity, construction loan | $ 8,700 | ||||||||||||
Delaware State Revolving Fund [Member] | |||||||||||||
Schedule of Capitalization [Line Items] | |||||||||||||
Maximum borrowing amount | $ 10,000 | $ 900 | |||||||||||
Maximum borrowing capacity, construction loan | $ 1,700 | ||||||||||||
Series 2018A [Member] | |||||||||||||
Schedule of Capitalization [Line Items] | |||||||||||||
Interest rate | 0.00% | ||||||||||||
Series 2019A [Member] | |||||||||||||
Schedule of Capitalization [Line Items] | |||||||||||||
Maximum borrowing capacity, construction loan | $ 32,500 | ||||||||||||
Interest rate | 4.00% | ||||||||||||
Series 2019B [Member] | |||||||||||||
Schedule of Capitalization [Line Items] | |||||||||||||
Maximum borrowing capacity, construction loan | $ 21,200 | ||||||||||||
Interest rate | 5.00% | ||||||||||||
First Mortgage Bonds [Member] | |||||||||||||
Schedule of Capitalization [Line Items] | |||||||||||||
Maximum borrowing capacity, construction loan | $ 53,700 | $ 60,800 | $ 60,800 | ||||||||||
Amount drawn | 38,100 | ||||||||||||
Amount of drawn expected remaining | $ 22,700 |
Capitalization (Schedule of Car
Capitalization (Schedule of Carrying Amount and Fair Value of Bonds) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
First Mortgage Bonds | $ 147,681 | $ 151,361 |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
First Mortgage Bonds | $ 158,579 | $ 160,772 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Basic: | ||||
Net Income | $ 12,737 | $ 11,119 | $ 30,118 | $ 25,818 |
Preferred Dividend | (30) | (30) | (90) | (102) |
Earnings Applicable to Common Stock | $ 12,707 | $ 11,089 | $ 30,028 | $ 25,716 |
Basic EPS | $ 0.73 | $ 0.67 | $ 1.72 | $ 1.56 |
Weighted average number of basic shares outstanding | 17,466 | 16,610 | 17,455 | 16,520 |
Diluted: | ||||
Adjusted Earnings Applicable to Common Stock | $ 12,724 | $ 11,106 | $ 30,078 | $ 25,778 |
Diluted EPS | $ 0.72 | $ 0.66 | $ 1.71 | $ 1.55 |
Weighted average number of diluted shares outstanding | 17,581 | 16,757 | 17,570 | 16,673 |
Convertible Preferred Stock $7.00 Series [Member] | ||||
Diluted: | ||||
Preferred Dividend | $ 17 | $ 17 | $ 50 | $ 50 |
Common Shares Attributable to Dilutive Effect of Conversion of Preferred Stock (in shares) | 115 | 115 | 115 | 115 |
Convertible Preferred Stock $8.00 Series [Member] | ||||
Diluted: | ||||
Preferred Dividend | $ 12 | |||
Common Shares Attributable to Dilutive Effect of Conversion of Preferred Stock (in shares) | 32 | 38 |
Business Segment Data (Details)
Business Segment Data (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of Reportable Segments | 2 | ||||
Operating Revenues | $ 39,920 | $ 37,769 | $ 106,965 | $ 101,859 | |
Operating Income | 13,177 | 11,983 | 29,088 | 27,962 | |
Net Income | 12,737 | 11,119 | 30,118 | 25,818 | |
Capital Expenditures | 25,367 | 25,522 | 70,785 | 61,220 | |
Assets | 959,834 | 959,834 | $ 909,878 | ||
Regulated [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating Revenues | 37,040 | 35,000 | 98,266 | 93,342 | |
Operating Income | 12,119 | 11,001 | 26,598 | 24,937 | |
Net Income | 11,993 | 10,409 | 28,364 | 23,700 | |
Capital Expenditures | 25,266 | 25,437 | 70,398 | 60,998 | |
Assets | 959,494 | 959,494 | 910,081 | ||
Non - Regulated [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating Revenues | 3,204 | 3,020 | 9,345 | 9,032 | |
Operating Income | 1,058 | 982 | 2,490 | 3,025 | |
Net Income | 744 | 710 | 1,754 | 2,118 | |
Capital Expenditures | 101 | 85 | 387 | 222 | |
Assets | 10,104 | 10,104 | 9,686 | ||
Inter-segment Elimination [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating Revenues | (324) | $ (251) | (646) | $ (515) | |
Assets | $ (9,764) | $ (9,764) | $ (9,889) |
Short-term Borrowings (Narrativ
Short-term Borrowings (Narrative) (Details) | Sep. 30, 2020 |
Line of Credit Facility [Line Items] | |
Weighted average interest rate on outstanding borrowings | 1.18% |
Short-term Borrowings (Schedule
Short-term Borrowings (Schedule of Line of Credit) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Line of Credit Facility [Line Items] | |
Outstanding | $ 36.5 |
Available | 103.5 |
Maximum | 140 |
Bank of America [Member] | |
Line of Credit Facility [Line Items] | |
Outstanding | 2 |
Available | 58 |
Maximum | $ 60 |
Credit Type | Uncommitted |
Renewal Date | Dec. 17, 2020 |
PNC Bank [Member] | |
Line of Credit Facility [Line Items] | |
Outstanding | $ 27 |
Available | 41 |
Maximum | $ 68 |
Credit Type | Committed |
Renewal Date | Jan. 31, 2022 |
CoBank [Member] | |
Line of Credit Facility [Line Items] | |
Outstanding | $ 7.5 |
Available | 4.5 |
Maximum | $ 12 |
Credit Type | Committed |
Renewal Date | Nov. 30, 2023 |
Short-term Borrowings (Schedu_2
Short-term Borrowings (Schedule of Weighted Average Daily Amounts of Borrowings Outstanding) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Short-term Debt [Abstract] | ||||
Average Daily Amounts Outstanding | $ 35,576 | $ 58,259 | $ 31,372 | $ 56,881 |
Weighted Average Interest Rates | 1.24% | 3.26% | 1.63% | 3.45% |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities (Narrative) (Details) gal in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)gal | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||||
Guaranty liabilty for AWM's performance | $ 1.3 | $ 1.3 | $ 1.4 | ||
Budgeted construction cost for construction program, 2020 | 113 | ||||
Contractual construction agreements | 41 | ||||
Rental expenses under operating leases | $ 0.2 | $ 0.2 | $ 0.6 | $ 0.5 | |
Estimated incremental borrowing rate | 4.03% | 4.03% | |||
NJ Water Supply Authority [Member] | |||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||||
Purchase commitment expiration date of contract | Nov. 30, 2023 | ||||
Water purchase per commitment | gal | 27 | ||||
Regulated Water Authority [Member] | |||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||||
Purchase commitment expiration date of contract | Feb. 28, 2026 | ||||
Water purchase per commitment | gal | 3 | ||||
City of Dover [Member] | |||||
Purchase Commitment, Excluding Long-term Commitment [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 Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Purchased Water | ||||
Treated | $ 933 | $ 818 | $ 2,657 | $ 2,415 |
Untreated | 878 | 878 | 2,530 | 2,521 |
Total Costs | $ 1,811 | $ 1,696 | $ 5,187 | $ 4,936 |
Commitments and Contingent Li_5
Commitments and Contingent Liabilities (Schedule of Operating Lease ROU Assets and Lease Liabilities) (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Commitments and Contingencies Disclosure [Abstract] | ||
ROU Asset at Lease Inception | $ 7.3 | $ 7.3 |
Accumulated Amortization | (1.9) | (1.4) |
Current ROU Asset | $ 5.4 | $ 5.9 |
Commitments and Contingent Li_6
Commitments and Contingent Liabilities (Schedule of Future Minimum Operating Lease) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | |
Minimum Lease Payments, Sale Leaseback Transactions, Fiscal Year Maturity [Abstract] | |||
2020 | $ 200 | ||
2021 | 800 | ||
2022 | 800 | ||
2023 | 800 | ||
2024 | 800 | ||
Thereafter | 4,400 | ||
Total Lease Payments | 7,800 | ||
Imputed Interest | (1,800) | ||
Present Value of Lease Payments | 6,000 | ||
Less Current Portion | [1] | (800) | |
Non-Current Lease Liability | $ 5,214 | $ 5,732 | |
[1] | Included in Other Current Liabilities |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Annual benefits paid to retired participants | $ 0.4 | |||
Pension Benefit Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Benfit plan, cash contributions | $ 1.3 | $ 2.3 | ||
Expected cash contributions | $ 3 | 3 | ||
Other Benefits Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Benfit plan, cash contributions | $ 0.3 | $ 0.2 | $ 0.3 | $ 0.6 |
Employee Benefit Plans (Schedul
Employee Benefit Plans (Schedule of Benefits Plans) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Pension Benefit Plan [Member] | |||||
Periodic costs for employee retirement benefit plans | |||||
Service Cost | $ 609 | $ 543 | $ 1,826 | $ 1,628 | |
Interest Cost | 775 | 857 | 2,324 | 2,570 | |
Expected Return on Assets | (1,409) | (1,173) | (4,226) | (3,520) | |
Amortization of Unrecognized Losses | 515 | 404 | 1,544 | 1,213 | |
Net Periodic Benefit Cost | [1] | 490 | 631 | 1,468 | 1,891 |
Other Benefits Plan [Member] | |||||
Periodic costs for employee retirement benefit plans | |||||
Service Cost | 248 | 210 | 745 | 630 | |
Interest Cost | 425 | 496 | 1,274 | 1,488 | |
Expected Return on Assets | (721) | (613) | (2,163) | (1,838) | |
Amortization of Unrecognized Losses | 338 | 330 | 1,014 | 989 | |
Net Periodic Benefit Cost | [1] | $ 290 | $ 423 | $ 870 | $ 1,269 |
[1] | Service cost is included in Operations and Maintenance expense on Consolidated Statements of Income; all other amounts are included in Other Income/Expense, net. |
Revenue Recognition from Cont_3
Revenue Recognition from Contracts with Customers (Schedule of Operating Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Regulated Tariff Sales | ||||
Residential | $ 22,340 | $ 20,693 | $ 58,475 | $ 54,453 |
Commercial | 4,660 | 4,487 | 11,678 | 11,539 |
Industrial | 2,629 | 2,723 | 6,885 | 7,242 |
Fire Protection | 3,129 | 3,100 | 9,235 | 9,211 |
Wholesale | 4,028 | 3,813 | 11,553 | 10,582 |
Non-Regulated Contract Operations | 3,100 | 2,919 | 9,034 | 8,729 |
Total Revenue from Contracts with Customers | 39,886 | 37,735 | 106,860 | 101,756 |
Other Regulated Revenues | 255 | 184 | 441 | 315 |
Other Non-Regulated Revenues | 104 | 101 | 311 | 303 |
Inter-segment Elimination | (325) | (251) | (647) | (515) |
Total Revenue | $ 39,920 | $ 37,769 | $ 106,965 | $ 101,859 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2015 | |
Operating Loss Carryforwards [Line Items] | |||||||
Income taxes Paid | $ (69) | $ (265) | $ (2,516) | $ (952) | |||
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 | ||||||
Redused reserve provision | 500 | 500 | $ 4,100 | ||||
Interest expense liability | $ 200 | $ 200 | |||||
Tax Year 2014-2017 [Member] | |||||||
Operating Loss Carryforwards [Line Items] | |||||||
Income taxes Paid | 2,700 | ||||||
Tax Year 2015 [Member] | |||||||
Operating Loss Carryforwards [Line Items] | |||||||
Interest expense | $ 100 |