Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 30, 2021 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2021 | |
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 | 17,478,462 | |
Entity Interactive Data Current | Yes | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2021 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
Operating Revenues | $ 32,541 | $ 31,769 |
Operating Expenses: | ||
Operations and Maintenance | 18,356 | 17,192 |
Depreciation | 4,832 | 4,448 |
Other Taxes | 3,719 | 3,602 |
Total Operating Expenses | 26,907 | 25,242 |
Operating Income | 5,634 | 6,527 |
Other Income (Expense): | ||
Allowance for Funds Used During Construction | 1,263 | 1,123 |
Other Income (Expense), net | 775 | 385 |
Total Other Income, net | 2,038 | 1,508 |
Interest Charges | 1,738 | 1,669 |
Income before Income Taxes | 5,934 | 6,366 |
Income Taxes | (973) | (1,302) |
Net Income | 6,907 | 7,668 |
Preferred Stock Dividend Requirements | 30 | 30 |
Earnings Applicable to Common Stock | $ 6,877 | $ 7,638 |
Earnings per share of Common Stock: | ||
Basic | $ 0.39 | $ 0.44 |
Diluted | $ 0.39 | $ 0.44 |
Average Number of Common Shares Outstanding: | ||
Basic | 17,476 | 17,437 |
Diluted | 17,591 | 17,552 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
UTILITY PLANT: | ||
Water Production | $ 173,375 | $ 168,080 |
Transmission and Distribution | 654,667 | 648,763 |
General | 85,990 | 85,056 |
Construction Work in Progress | 89,717 | 80,055 |
TOTAL | 1,003,749 | 981,954 |
Less Accumulated Depreciation | 188,565 | 185,356 |
UTILITY PLANT - NET | 815,184 | 796,598 |
CURRENT ASSETS: | ||
Cash and Cash Equivalents | 4,046 | 4,491 |
Accounts Receivable, net of allowance for doubtful accounts of $2,183 and $2,053, respectively | 12,709 | 14,569 |
Unbilled Revenues | 7,210 | 7,065 |
Materials and Supplies (at average cost) | 5,193 | 5,112 |
Prepayments | 2,222 | 2,886 |
TOTAL CURRENT ASSETS | 31,380 | 34,123 |
OTHER ASSETS: | ||
Operating Lease Right of Use Asset | 5,030 | 5,209 |
Preliminary Survey and Investigation Charges | 5,923 | 5,192 |
Regulatory Assets | 117,204 | 118,144 |
Restricted Cash | 163 | 5,913 |
Non-utility Assets - Net | 11,253 | 11,207 |
Other | 73 | 84 |
TOTAL OTHER ASSETS | 139,646 | 145,749 |
TOTAL ASSETS | 986,210 | 976,470 |
CAPITALIZATION: | ||
Common Stock, No Par Value | 217,976 | 217,451 |
Retained Earnings | 130,872 | 128,757 |
TOTAL COMMON EQUITY | 348,848 | 346,208 |
Preferred Stock | 2,084 | 2,084 |
Long-term Debt | 272,664 | 273,244 |
TOTAL CAPITALIZATION | 623,596 | 621,536 |
CURRENT LIABILITIES: | ||
Current Portion of Long-term Debt | 7,159 | 7,255 |
Notes Payable | 13,000 | 2,000 |
Accounts Payable | 24,414 | 30,443 |
Accrued Taxes | 14,025 | 10,138 |
Accrued Interest | 2,310 | 2,137 |
Unearned Revenues and Advanced Service Fees | 1,237 | 1,255 |
Other | 3,656 | 3,620 |
TOTAL CURRENT LIABILITIES | 65,801 | 56,848 |
COMMITMENTS AND CONTINGENT LIABILITIES (Note 7) | ||
OTHER LIABILITIES: | ||
Customer Advances for Construction | 23,290 | 23,404 |
Lease Obligations | 4,872 | 5,042 |
Accumulated Deferred Income Taxes | 61,474 | 61,297 |
Employee Benefit Plans | 33,672 | 34,426 |
Regulatory Liabilities | 58,565 | 60,792 |
Other | 1,163 | 1,135 |
TOTAL OTHER LIABILITIES | 183,036 | 186,096 |
CONTRIBUTIONS IN AID OF CONSTRUCTION | 113,777 | 111,990 |
TOTAL CAPITALIZATION AND LIABILITIES | $ 986,210 | $ 976,470 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Condensed Consolidated Balance Sheets Unaudited | ||
Allowance for doubtful accounts | $ 2,183 | $ 2,053 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net Income | $ 6,907 | $ 7,668 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||
Depreciation and Amortization | 6,296 | 5,108 |
Provision for Deferred Income Taxes and Investment Tax Credits | (2,359) | (3,430) |
Equity Portion of Allowance for Funds Used During Construction (AFUDC) | (732) | (694) |
Cash Surrender Value of Life Insurance | 27 | 205 |
Stock Compensation Expense | 203 | 162 |
Changes in Assets and Liabilities: | ||
Accounts Receivable | 1,860 | 1,085 |
Unbilled Revenues | (145) | 481 |
Materials & Supplies | (81) | 169 |
Prepayments | 664 | 577 |
Accounts Payable | (6,029) | 810 |
Accrued Taxes | 3,887 | 3,530 |
Accrued Interest | 173 | (1,169) |
Employee Benefit Plans | 95 | 450 |
Unearned Revenue & Advanced Service Fees | (18) | (1) |
Other Assets and Liabilities | (1,306) | 1,187 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 9,442 | 16,138 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Utility Plant Expenditures, Including AFUDC of $531 in 2021, $429 in 2020 | (22,033) | (25,147) |
NET CASH USED IN INVESTING ACTIVITIES | (22,033) | (25,147) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Redemption of Long-term Debt | (1,324) | (1,330) |
Proceeds from Issuance of Long-term Debt | 687 | 5,398 |
Net Short-term Bank Borrowings | 11,000 | 13,500 |
Deferred Debt Issuance Expense | (2) | (24) |
Common Stock Issuance Expense | (37) | |
Proceeds from Issuance of Common Stock | 322 | 313 |
Payment of Common Dividends | (4,762) | (4,468) |
Payment of Preferred Dividends | (30) | (30) |
Construction Advances and Contributions-Net | 505 | 2,489 |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 6,396 | 15,811 |
NET CHANGES IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (6,195) | 6,802 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF PERIOD | 10,404 | 46,499 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD | 4,209 | 53,301 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITY: | ||
Utility Plant received as Construction Advances and Contributions | 1,169 | 1,422 |
Cash Paid During the Year for: | ||
Interest | 1,726 | 3,022 |
Interest Capitalized | 531 | 429 |
Income Taxes | $ 2 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Cash Flows [Abstract] | ||
Allowance for funds used during construction | $ 531 | $ 429 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CAPITAL STOCK AND LONG-TERM DEBT (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Common Stock, No Par Value | $ 217,976 | $ 217,451 |
Retained Earnings | 130,872 | 128,757 |
TOTAL COMMON EQUITY | 348,848 | 346,208 |
TOTAL PREFERRED STOCK | 2,084 | 2,084 |
SUBTOTAL LONG-TERM DEBT | 276,605 | 277,241 |
Add: Premium on Issuance of Long-term Debt | 7,569 | 7,669 |
Less: Unamortized Debt Expense | (4,351) | (4,411) |
Less: Current Portion of Long-term Debt | (7,159) | (7,255) |
TOTAL LONG-TERM DEBT | 272,664 | 273,244 |
Amortizing Secured Note, due December 20, 2021 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 255 | 336 |
Amortizing Secured Note, due May 19, 2028 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 3,010 | 3,115 |
Amortizing Secured Note, due August 25, 2030 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 2,637 | 2,707 |
Amortizing Secured Note, due September 19, 2031 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 2,917 | 2,987 |
State Revolving Trust Note, due December 31, 2022 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 119 | 119 |
State Revolving Trust Note, due May 1, 2025 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 1,170 | 1,170 |
State Revolving Trust Note, due March 1, 2026 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 243 | 266 |
State Revolving Trust Note, due January 25, 2027 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 286 | 307 |
State Revolving Trust Note, due December 1, 2026 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 390 | 389 |
State Revolving Trust Bond 0.00%, due August 1, 2021 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 10 | 11 |
State Revolving Trust Note, due July 1, 2028 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 192 | 192 |
State Revolving Trust Note, due January 1, 2028 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 62 | 62 |
State Revolving Trust Note, due August 1, 2031 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 763 | 793 |
Amortizing Secured Note, due April 20, 2029 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 2,819 | 2,907 |
Amortizing Secured Note 7.05%, due January 20, 2030 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 2,208 | 2,271 |
Amortizing Secured Note 5.69%, due January 20, 2030 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 4,530 | 4,658 |
Amortizing Secured Note, due April 20, 2040 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 8,397 | 8,506 |
Amortizing Secured Note, due April 20, 2040 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 3,116 | 3,156 |
State Revolving Trust Note, due July 1, 2031 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 1,699 | 1,699 |
State Revolving Trust Note, due February 1, 2036 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 934 | 961 |
State Revolving Trust Note, due November 1, 2038 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 1,543 | 1,543 |
State Revolving Trust Note, due November 30, 2030 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 883 | 883 |
Construction Loans [Member] | ||
SUBTOTAL LONG-TERM DEBT | 51,223 | 50,536 |
First Mortgage Bonds - Series BB [Member] | ||
SUBTOTAL LONG-TERM DEBT | 116 | 119 |
First Mortgage Bonds - Series CC [Member] | ||
SUBTOTAL LONG-TERM DEBT | 164 | 164 |
First Mortgage Bonds - Series EE [Member] | ||
SUBTOTAL LONG-TERM DEBT | 996 | 1,036 |
First Mortgage Bonds - Series FF [Member] | ||
SUBTOTAL LONG-TERM DEBT | 1,870 | 1,870 |
First Mortgage Bonds - Series GG [Member] | ||
SUBTOTAL LONG-TERM DEBT | 531 | 541 |
First Mortgage Bonds - Series HH [Member] | ||
SUBTOTAL LONG-TERM DEBT | 620 | 620 |
First Mortgage Bonds - Series II [Member] | ||
SUBTOTAL LONG-TERM DEBT | 326 | 338 |
First Mortgage Bonds - Series JJ [Member] | ||
SUBTOTAL LONG-TERM DEBT | 500 | 500 |
First Mortgage Bonds - Series KK [Member] | ||
SUBTOTAL LONG-TERM DEBT | 704 | 719 |
First Mortgage Bonds - Series LL [Member] | ||
SUBTOTAL LONG-TERM DEBT | 846 | 846 |
First Mortgage Bonds - Series MM [Member] | ||
SUBTOTAL LONG-TERM DEBT | 903 | 937 |
First Mortgage Bonds - Series NN [Member] | ||
SUBTOTAL LONG-TERM DEBT | 1,105 | 1,105 |
First Mortgage Bonds - Series OO [Member] | ||
SUBTOTAL LONG-TERM DEBT | 1,605 | 1,656 |
First Mortgage Bonds - Series PP [Member] | ||
SUBTOTAL LONG-TERM DEBT | 600 | 600 |
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 | 1,756 | 1,806 |
First Mortgage Bonds - Series UU [Member] | ||
SUBTOTAL LONG-TERM DEBT | 705 | 705 |
First Mortgage Bonds - Series VV [Member] | ||
SUBTOTAL LONG-TERM DEBT | 1,813 | 1,861 |
First Mortgage Bonds - Series WW [Member] | ||
SUBTOTAL LONG-TERM DEBT | 715 | 715 |
First Mortgage Bonds - Series XX [Member] | ||
SUBTOTAL LONG-TERM DEBT | 10,121 | 10,247 |
First Mortgage Bonds - Series YY [Member] | ||
SUBTOTAL LONG-TERM DEBT | 3,710 | 3,710 |
0.00%, Series 2018A, due August 1, 2047 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 6,167 | 6,246 |
3.00%-5.00%, Series 2018B, due August 1, 2047 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 2,211 | 2,211 |
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 |
2.90%, Series 2020A, due November 18, 2050 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 40,000 | 40,000 |
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 | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Common Stock, Shares Authorized | 40,000 | 40,000 |
Common Stock, Shares Outstanding | 17,478 | 17,473 |
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 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 | |
2.90%, Series 2020A, due November 18, 2050 [Member] | ||
Interest rate | 2.90% | |
Due date of debt | Nov. 18, 2050 | |
Construction Loans [Member] | ||
Interest rate | 0.00% |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDERS' EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Retained Earnings [Member] | Total |
Balance at Dec. 31, 2019 | $ 215,125 | $ 108,667 | $ 323,792 |
Balance, shares at Dec. 31, 2019 | 17,434 | ||
Net Income | 7,668 | 7,668 | |
Dividend Reinvestment & Common Stock Purchase Plan | $ 313 | 313 | |
Dividend Reinvestment & Common Stock Purchase Plan, shares | 5 | ||
Restricted Stock Award, Net - Employees | $ 162 | 162 | |
Cash Dividends on Common Stock | (4,468) | (4,468) | |
Cash Dividends on Preferred Stock | (30) | (30) | |
Common Stock Expenses | (37) | (37) | |
Balance at Mar. 31, 2020 | $ 215,600 | 111,800 | 327,400 |
Balance, shares at Mar. 31, 2020 | 17,439 | ||
Balance at Dec. 31, 2020 | $ 217,451 | 128,757 | 346,208 |
Balance, shares at Dec. 31, 2020 | 17,473 | ||
Net Income | 6,907 | 6,907 | |
Dividend Reinvestment & Common Stock Purchase Plan | $ 322 | 322 | |
Dividend Reinvestment & Common Stock Purchase Plan, shares | 5 | ||
Restricted Stock Award, Net - Employees | $ 203 | 203 | |
Cash Dividends on Common Stock | (4,762) | (4,762) | |
Cash Dividends on Preferred Stock | (30) | (30) | |
Balance at Mar. 31, 2021 | $ 217,976 | $ 130,872 | $ 348,848 |
Balance, shares at Mar. 31, 2021 | 17,478 |
CONDENSED CONSOLIDATED STATEM_7
CONDENSED CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends paid, per share | $ 0.2725 | $ 0.2563 |
Basis of Presentation and Recen
Basis of Presentation and Recent Developments | 3 Months Ended |
Mar. 31, 2021 | |
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), and Utility Service Affiliates (Perth Amboy) Inc. (USA-PA). 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 2020 Annual Report on Form 10-K (the 2020 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 March 31, 2021 and the results of operations and cash flows for the three month periods ended March 31, 2021 and 2020. Information included in the Condensed Consolidated Balance Sheet as of December 31, 2020, has been derived from the Company’s December 31, 2020 audited financial statements included in the 2020 Form 10-K. Recent Developments Loan Agreement - Short Term Borrowings Middlesex Financing Petition – Novel Coronavirus (COVID-19) The NJBPU and the Delaware Public Service Commission (DEPSC) have approved the tracking of COVID-19 related incremental costs for potential recovery in customer rates in future rate proceedings. Neither jurisdiction has established a timetable or definitive formal procedures for seeking cost recovery. Since the issuance of the SEOs, the Company has increased its allowance for doubtful accounts for expected increases in accounts receivable write-offs due to the financial impact of COVID-19 on customers. We will continue to monitor the effects of COVID-19 and evaluate its impact on the Company’s business, results of operations, financial condition and liquidity. 6 Index Recent Accounting Guidance There is no 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 | 3 Months Ended |
Mar. 31, 2021 | |
Regulated Operations [Abstract] | |
Rate and Regulatory Matters | Note 2 Rate and Regulatory Matters Middlesex – Tidewater - In March 2021, Tidewater was notified by the DEPSC that it had determined Tidewater’s earned rate of return exceeded the rate of return authorized by the DEPSC. Consequently, Tidewater reset its DSIC rate to zero effective April 1, 2021 and is refunding customers, with interest, in the form of an account credit for DSIC revenue billed between April 1, 2020 and March 31, 2021. Accordingly, in March 2021, Tidewater recorded a $0.8 million reserve, net of tax, for such refunds. Tidewater expects to apply the account credits in the second quarter of 2021. Twin Lakes Utilities, Inc. (Twin Lakes) - Twin Lakes remains under the operation of a large PAPUC regulated investor-owned water utility as the receiver, which had been appointed by the PAPUC under an Order effective January 15, 2021. The receivership is to remain in place until the final outcome of the Section 529 proceeding. It is unknown at this time if the PAPUC will affirm or deny the Recommended Decision in whole, or in part. Separate from the disposition of this matter by the PAPUC, or any further litigation which may proceed beyond the PAPUC’s final decision, the financial results, total assets and financial obligations of Twin Lakes are not material to Middlesex. |
Capitalization
Capitalization | 3 Months Ended |
Mar. 31, 2021 | |
CAPITALIZATION: | |
Capitalization | Note 3 – Capitalization Common Stock - 7 Index Long-term Debt - Middlesex currently has two projects that are in the construction loan phase of the 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 4.5 mile 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 March 31, 2021, Middlesex has drawn a total of $42.6 million and expects to draw any remaining funding requests on this construction loan in the second quarter of 2021. 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. The Company anticipates that these two construction loans will be converted into long-term securitized loans by the NJIB during the fourth 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 through December 31, 2023 to help fund Middlesex’s multi-year capital construction program. In November 2020, Middlesex closed on a $40 million private placement loan with a payment maturity date of November 2050 As part of its ongoing comprehensive financing plan, Middlesex received approval from the NJBPU in February 2019 to issue and sell up to $140 million of FMBs 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 a 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, were 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 proceeds were initially recorded as Restricted Cash on the balance sheet and held in escrow by a bond trustee. Funds were drawn down by requisition for the qualifying projects as costs were incurred with the final requisition made in February 2021. 8 Index Fair Value of Financial Instruments - March 31, 2021 December 31, 2020 Carrying Fair Carrying Fair Amount Value Amount Value Bonds $ 147,209 $ 159,764 $ 147,667 $ 159,195 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”, “State Revolving Trust Bond”, “Construction Loans” and “Series 2020A” on the Condensed Consolidated Statements of Capital Stock and Long-Term Debt). The carrying amount of these instruments was $129.4 million and $129.6 million at March 31, 2021 and December 31, 2020, respectively. Customer advances for construction have carrying amounts of $23.3 million and $23.4 million at March 31, 2021 and 2020, 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 | 3 Months Ended |
Mar. 31, 2021 | |
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 Thousands Except per Share Amounts) Three Months Ended March 31, 2021 2020 Basic: Income Shares Income Shares Net Income $ 6,907 17,476 $ 7,668 17,437 Preferred Dividend (30 ) (30 ) Earnings Applicable to Common Stock $ 6,877 17,476 $ 7,638 17,437 Basic EPS $ 0.39 $ 0.44 Diluted: Earnings Applicable to Common Stock $ 6,877 17,476 $ 7,638 17,437 $7.00 Series Preferred Dividend 17 115 17 115 Adjusted Earnings Applicable to Common Stock $ 6,894 17,591 $ 7,655 17,552 Diluted EPS $ 0.39 $ 0.44 |
Business Segment Data
Business Segment Data | 3 Months Ended |
Mar. 31, 2021 | |
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 and Delaware. 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 and Delaware 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. (In Thousands) Three Months Ended March 31, Operations by Segments: 2021 2020 Revenues: Regulated $ 29,421 $ 28,937 Non – Regulated 3,257 2,961 Inter-segment Elimination (137 ) (129 ) Consolidated Revenues $ 32,541 $ 31,769 Operating Income: Regulated $ 4,716 $ 5,843 Non – Regulated 918 684 Consolidated Operating Income $ 5,634 $ 6,527 Net Income: Regulated $ 6,240 $ 7,181 Non – Regulated 667 487 Consolidated Net Income $ 6,907 $ 7,668 Capital Expenditures: Regulated $ 21,963 $ 24,968 Non – Regulated 70 179 Total Capital Expenditures $ 22,033 $ 25,147 As of As of March 31, December 31, 2021 2020 Assets: Regulated $ 1,004,405 $ 998,932 Non – Regulated 7,918 8,289 Inter-segment Elimination (26,113 ) (30,751 ) Consolidated Assets $ 986,210 $ 976,470 |
Short-term Borrowings
Short-term Borrowings | 3 Months Ended |
Mar. 31, 2021 | |
Short-term Debt [Abstract] | |
Short-term Borrowings | Note 6 – Short-term Borrowings The Company maintains lines of credit aggregating $110.0 million. (Millions) As of March 31, 2020 Outstanding Available Maximum Credit Type Renewal Date Bank of America $ - $ 30.0 $ 30.0 Uncommitted January 27, 2022 PNC Bank 10.0 58.0 68.0 Committed January 31, 2023 CoBank 3.0 9.0 12.0 Committed November 30, 2023 $ 13.0 $ 97.0 $ 110.0 The interest rate for borrowings under the lines of credit is 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. Each of the lines of credit includes a provision for a replacement benchmark for when LIBOR is fully phased-out and no longer available to set the interest rate on borrowings under these lines of credit. The weighted average interest rate on the outstanding borrowings at March 31, 2021 under these credit lines is 1.09%. The weighted average daily amounts of outstanding borrowings under the Company’s credit lines and the weighted average interest rates on those amounts were $8.0 million and $21.4 million at 1.12% and 2.58% for the three months ended March 31, 2021 and 2020, respectively. The maturity dates for the $13.0 million outstanding as of March 31, 2021 were in April 2021 and were extended at the discretion of the Company. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Note 7 – Commitments and Contingent Liabilities Water Supply - Middlesex has an agreement with a non-affiliated regulated water utility for the purchase of treated water. This agreement, which expires February 27, 2026, 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 15.0 million gallons of treated water annually. Purchased water costs are shown below: (In Thousands) Three Months Ended March 31, 2021 2020 Treated $ 877 $ 793 Untreated 861 870 Total Costs $ 1,738 $ 1,663 11 Index Guarantees - In November 2019, Middlesex was notified that the County terminated its Agreement with the Contractor. The Contractor had initiated legal action against the County that in part contests the County’s exercise of this termination. The County filed a counter-claim against the Contractor’s parent company 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 and the continuation of the litigation matter, we do not anticipate having to perform under the guaranty nor do we anticipate the ultimate outcome will have a material impact on the Company’s results of operations or financial condition. 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 were $0.2 million for each of the three months ended March 31, 2021 and 2020, respectively. Information related to operating lease ROU assets and lease liabilities is as follows: (In Millions) As of March 31, 2021 December 31, 2020 ROU Asset at Lease Inception $ 7.3 $ 7.3 Accumulated Amortization (2.3 ) (2.1 ) Current ROU Asset $ 5.0 $ 5.2 12 Index The Company’s future minimum operating lease commitments as of March 31, 2021 are as follows: (In Millions) 2021 $ 0.6 2022 0.8 2023 0.8 2024 0.8 2025 0.8 Thereafter 3.6 Total Lease Payments $ 7.4 Imputed Interest (1.8 ) Present Value of Lease Payments 5.6 Less Current Portion* (0.7 ) Non-Current Lease Liability $ 4.9 *Included in Other Current Liabilities Construction - Contingencies - Change in Control Agreements - |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Note 8 – Employee Benefit Plans Pension Benefits Other Postretirement Benefits - 13 Index The following table sets forth information relating to the Company’s periodic costs for its employee retirement benefit plans: (In Thousands) Pension Benefits Other Benefits Three Months Ended March 31, 2021 2020 2021 2020 Service Cost $ 674 $ 609 $ 229 $ 248 Interest Cost 677 775 309 425 Expected Return on Assets (1,556 ) (1,409 ) (786 ) (721 ) Amortization of Unrecognized Losses 717 515 132 338 Net Periodic Benefit Cost (Benefit)* $ 512 $ 490 $ (116 ) $ 290 *Service cost is included in Operations and Maintenance expense on the Condensed Consolidated Statements of Income; all other amounts are included in Other Income/Expense, net. |
Revenue Recognition from Contra
Revenue Recognition from Contracts with Customers | 3 Months Ended |
Mar. 31, 2021 | |
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 and 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 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 and 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 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. 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 June 2030 and contain remaining performance obligations for which the Company expects to recognize revenue in the future. These contracts also contain 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. 14 Index The Company’s operating revenues are comprised of the following: (In Thousands) Three Months Ended March 31, 2021 2020 Regulated Tariff Sales Residential $ 16,957 $ 16,681 Commercial 3,576 3,369 Industrial 2,177 2,081 Fire Protection 3,104 3,045 Wholesale 3,539 3,698 Non-Regulated Contract Operations 3,151 2,859 Total Revenue from Contracts with Customers $ 32,504 $ 31,733 Other Regulated Revenues 68 62 Other Non-Regulated Revenues 106 103 Inter-segment Elimination (137 ) (129 ) Total Revenue $ 32,541 $ 31,769 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 10 – Income Taxes The Company’s federal income tax returns for the tax years 2014 through 2017 were selected for examination by the Internal Revenue Service (IRS), which included the tax year in which the Company had adopted the final IRS tangible property regulations and changed its accounting method for the tax treatment of expenditures that qualified as deductible repairs. As a result of the audit examination, the Company agreed to certain modifications of its accounting method for expenditures that qualify as deductible repairs. In 2019, the Company paid $2.7 million in income taxes and $0.1 million in interest in connection with the conclusion of the 2014 through 2017 federal income tax return audits. As of March 31, 2021, 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) | 3 Months Ended |
Mar. 31, 2021 | |
CAPITALIZATION: | |
Schedule of carrying amount and fair value of bonds | Fair Value of Financial Instruments - March 31, 2021 December 31, 2020 Carrying Fair Carrying Fair Amount Value Amount Value Bonds $ 147,209 $ 159,764 $ 147,667 $ 159,195 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 Thousands Except per Share Amounts) Three Months Ended March 31, 2021 2020 Basic: Income Shares Income Shares Net Income $ 6,907 17,476 $ 7,668 17,437 Preferred Dividend (30 ) (30 ) Earnings Applicable to Common Stock $ 6,877 17,476 $ 7,638 17,437 Basic EPS $ 0.39 $ 0.44 Diluted: Earnings Applicable to Common Stock $ 6,877 17,476 $ 7,638 17,437 $7.00 Series Preferred Dividend 17 115 17 115 Adjusted Earnings Applicable to Common Stock $ 6,894 17,591 $ 7,655 17,552 Diluted EPS $ 0.39 $ 0.44 |
Business Segment Data (Tables)
Business Segment Data (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 and Delaware. 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 and Delaware 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. (In Thousands) Three Months Ended March 31, Operations by Segments: 2021 2020 Revenues: Regulated $ 29,421 $ 28,937 Non – Regulated 3,257 2,961 Inter-segment Elimination (137 ) (129 ) Consolidated Revenues $ 32,541 $ 31,769 Operating Income: Regulated $ 4,716 $ 5,843 Non – Regulated 918 684 Consolidated Operating Income $ 5,634 $ 6,527 Net Income: Regulated $ 6,240 $ 7,181 Non – Regulated 667 487 Consolidated Net Income $ 6,907 $ 7,668 Capital Expenditures: Regulated $ 21,963 $ 24,968 Non – Regulated 70 179 Total Capital Expenditures $ 22,033 $ 25,147 As of As of March 31, December 31, 2021 2020 Assets: Regulated $ 1,004,405 $ 998,932 Non – Regulated 7,918 8,289 Inter-segment Elimination (26,113 ) (30,751 ) Consolidated Assets $ 986,210 $ 976,470 |
Short-Term Borrowings (Tables)
Short-Term Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Short-term Debt [Abstract] | |
Schedule of Line of Credit | The Company maintains lines of credit aggregating $110.0 million. (Millions) As of March 31, 2020 Outstanding Available Maximum Credit Type Renewal Date Bank of America $ - $ 30.0 $ 30.0 Uncommitted January 27, 2022 PNC Bank 10.0 58.0 68.0 Committed January 31, 2023 CoBank 3.0 9.0 12.0 Committed November 30, 2023 $ 13.0 $ 97.0 $ 110.0 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of purchased water cost | Purchased water costs are shown below: (In Thousands) Three Months Ended March 31, 2021 2020 Treated $ 877 $ 793 Untreated 861 870 Total Costs $ 1,738 $ 1,663 |
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 March 31, 2021 December 31, 2020 ROU Asset at Lease Inception $ 7.3 $ 7.3 Accumulated Amortization (2.3 ) (2.1 ) Current ROU Asset $ 5.0 $ 5.2 |
Schedule of future minimum operating lease | The Company’s future minimum operating lease commitments as of March 31, 2021 are as follows: (In Millions) 2021 $ 0.6 2022 0.8 2023 0.8 2024 0.8 2025 0.8 Thereafter 3.6 Total Lease Payments $ 7.4 Imputed Interest (1.8 ) Present Value of Lease Payments 5.6 Less Current Portion* (0.7 ) Non-Current Lease Liability $ 4.9 *Included in Other Current Liabilities |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of periodic costs for employee retirement benefit plan | The following table sets forth information relating to the Company’s periodic costs for its employee retirement benefit plans: (In Thousands) Pension Benefits Other Benefits Three Months Ended March 31, 2021 2020 2021 2020 Service Cost $ 674 $ 609 $ 229 $ 248 Interest Cost 677 775 309 425 Expected Return on Assets (1,556 ) (1,409 ) (786 ) (721 ) Amortization of Unrecognized Losses 717 515 132 338 Net Periodic Benefit Cost (Benefit)* $ 512 $ 490 $ (116 ) $ 290 |
Revenue Recognition from Cont_2
Revenue Recognition from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021 2020 Regulated Tariff Sales Residential $ 16,957 $ 16,681 Commercial 3,576 3,369 Industrial 2,177 2,081 Fire Protection 3,104 3,045 Wholesale 3,539 3,698 Non-Regulated Contract Operations 3,151 2,859 Total Revenue from Contracts with Customers $ 32,504 $ 31,733 Other Regulated Revenues 68 62 Other Non-Regulated Revenues 106 103 Inter-segment Elimination (137 ) (129 ) Total Revenue $ 32,541 $ 31,769 |
Basis of Presentation and Rec_2
Basis of Presentation and Recent Developments (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended |
Feb. 28, 2021 | Mar. 31, 2021 | |
ACB (CoBank) [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Current | $ 20 | |
Debt instrument increase decrease for period net | $ 0.1 | |
Debt instrument term | 25 years | |
New Jersey Board Of Public Utilities [Member] | ||
Line of Credit Facility [Line Items] | ||
Repayments of first mortgage bond | $ 45.5 |
Rate and Regulatory Matters (De
Rate and Regulatory Matters (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Tidewater [Member] | ||
Regulatory Liabilities [Line Items] | ||
Proceeds from net of tax refunds | $ 0.8 | |
New Jersey Board Of Public Utilities [Member] | Middlesex [Member] | ||
Regulatory Liabilities [Line Items] | ||
Approved increase in annual operating revenues | 1.1 | |
Pennsylvania Public Utilities Commissio [Member] | Twin Lakes [Member] | ||
Regulatory Liabilities [Line Items] | ||
Escrow account | $ 1.7 | |
Delaware Public Service Commission Member | Tidewater [Member] | ||
Regulatory Liabilities [Line Items] | ||
Approved increase in annual operating revenues | $ 0.6 |
Capitalization (Narrative) (Det
Capitalization (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |||||||
Nov. 30, 2020 | Aug. 31, 2019 | Feb. 28, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | May 31, 2020 | Sep. 30, 2018 | Aug. 31, 2018 | |
Schedule of Capitalization [Line Items] | |||||||||
Other long term debt | $ 129.4 | $ 129.6 | |||||||
Customer advances for construction | $ 23.3 | $ 23.4 | |||||||
First Mortgage Bonds [Member] | |||||||||
Schedule of Capitalization [Line Items] | |||||||||
Maximum borrowing capacity, construction loan | $ 53.7 | ||||||||
Series 2019A [Member] | |||||||||
Schedule of Capitalization [Line Items] | |||||||||
Maximum borrowing capacity, construction loan | $ 32.5 | ||||||||
Interest rate | 4.00% | ||||||||
Series 2019B [Member] | |||||||||
Schedule of Capitalization [Line Items] | |||||||||
Maximum borrowing capacity, construction loan | $ 21.2 | ||||||||
Interest rate | 5.00% | ||||||||
New Jersey Economic Development Authority [Member] | |||||||||
Schedule of Capitalization [Line Items] | |||||||||
Debt Instrument Maturity Date | Dec. 31, 2022 | ||||||||
Proceeds from issuance of first mortgage bond | $ 140 | ||||||||
New Jersey NJIB Program [Member] | |||||||||
Schedule of Capitalization [Line Items] | |||||||||
Maximum borrowing capacity, construction loan | $ 8.7 | ||||||||
New Jersey Infrastructure Bank [Member] | |||||||||
Schedule of Capitalization [Line Items] | |||||||||
Maximum borrowing capacity, construction loan | $ 43.5 | ||||||||
Percentage of principal with stated interest rate | 0.00% | ||||||||
Percentage of principal with market interest rate | 0.00% | ||||||||
Middlesex [Member] | |||||||||
Schedule of Capitalization [Line Items] | |||||||||
Maximum borrowing amount | $ 42.6 | ||||||||
Proceeds from private placement | $ 40 | ||||||||
Middlesex [Member] | New Jersey Board Of Public Utilities [Member] | |||||||||
Schedule of Capitalization [Line Items] | |||||||||
Maximum borrowing amount | $ 100 | ||||||||
FMB [Member] | |||||||||
Schedule of Capitalization [Line Items] | |||||||||
Percentage of principal with stated interest rate | 2.90% | ||||||||
Debt Instrument Maturity Date | Nov. 30, 2050 | ||||||||
First Mortgage Bonds [Member] | |||||||||
Schedule of Capitalization [Line Items] | |||||||||
Proceeds from issuance premium | $ 7.1 | ||||||||
Middlesex Water Company Investment Plan [Member] | |||||||||
Schedule of Capitalization [Line Items] | |||||||||
Proceeds amount | $ 0.3 | $ 0.3 | |||||||
Issuance of common stock | 5,000 | 5,000 |
Capitalization (Schedule of Car
Capitalization (Schedule of Carrying Amount and Fair Value of Bonds) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
First Mortgage Bonds | $ 147,209 | $ 147,667 |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
First Mortgage Bonds | $ 159,764 | $ 159,195 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Basic: | ||
Net Income | $ 6,907 | $ 7,668 |
Preferred Dividend | (30) | (30) |
Earnings Applicable to Common Stock | $ 6,877 | $ 7,638 |
Basic EPS | $ 0.39 | $ 0.44 |
Weighted average number of basic shares outstanding | 17,476 | 17,437 |
Diluted: | ||
Adjusted Earnings Applicable to Common Stock | $ 6,894 | $ 7,655 |
Diluted EPS | $ 0.39 | $ 0.44 |
Weighted average number of diluted shares outstanding | 17,591 | 17,552 |
Convertible Preferred Stock $7.00 Series [Member] | ||
Diluted: | ||
Preferred Dividend | $ 17 | $ 17 |
Common Shares Attributable to Dilutive Effect of Conversion of Preferred Stock (in shares) | 115 | 115 |
Business Segment Data (Details)
Business Segment Data (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of Reportable Segments | 2 | ||
Operating Revenues | $ 32,541 | $ 31,769 | |
Operating Income | 5,634 | 6,527 | |
Net Income | 6,907 | 7,668 | |
Capital Expenditures | 22,033 | 25,147 | |
Assets | 986,210 | $ 976,470 | |
Regulated [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Revenues | 29,421 | 28,937 | |
Operating Income | 4,716 | 5,843 | |
Net Income | 6,240 | 7,181 | |
Capital Expenditures | 21,963 | 24,968 | |
Assets | 1,004,405 | 998,932 | |
Non - Regulated [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Revenues | 3,257 | 2,961 | |
Operating Income | 918 | 684 | |
Net Income | 667 | 487 | |
Capital Expenditures | 70 | 179 | |
Assets | 7,918 | 8,289 | |
Inter-segment Elimination [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Revenues | (137) | $ (129) | |
Assets | $ (26,113) | $ (30,751) |
Short-term Borrowings (Narrativ
Short-term Borrowings (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Line of Credit Facility [Line Items] | ||
Weighted average interest rate on outstanding borrowings | 1.09% | |
Average Daily Amounts Outstanding | $ 8 | $ 21.4 |
Weighted Average Interest Rates | 1.12% | 2.58% |
Short-term Borrowings (Schedule
Short-term Borrowings (Schedule of Line of Credit) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Line of Credit Facility [Line Items] | |
Outstanding | $ 13 |
Available | 97 |
Maximum | 110 |
Bank of America [Member] | |
Line of Credit Facility [Line Items] | |
Outstanding | |
Available | 30 |
Maximum | $ 30 |
Credit Type | Uncommitted |
Renewal Date | Jan. 27, 2022 |
PNC Bank [Member] | |
Line of Credit Facility [Line Items] | |
Outstanding | $ 10 |
Available | 58 |
Maximum | $ 68 |
Credit Type | Committed |
Renewal Date | Jan. 31, 2023 |
CoBank [Member] | |
Line of Credit Facility [Line Items] | |
Outstanding | $ 3 |
Available | 9 |
Maximum | $ 12 |
Credit Type | Committed |
Renewal Date | Nov. 30, 2023 |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities (Narrative) (Details) gal in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2021USD ($)gal | Mar. 31, 2020USD ($) | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||
Budgeted construction cost for construction program, 2020 | $ | $ 121 | |
Contractual construction agreements | $ | 17 | |
Rental expenses under operating leases | $ | $ 0.2 | $ 0.2 |
Estimated incremental borrowing rate | 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. 27, 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 | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Purchased Water | ||
Treated | $ 877 | $ 793 |
Untreated | 861 | 870 |
Total Costs | $ 1,738 | $ 1,663 |
Commitments and Contingent Li_5
Commitments and Contingent Liabilities (Schedule of Operating Lease ROU Assets and Lease Liabilities) (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Commitments and Contingencies Disclosure [Abstract] | ||
ROU Asset at Lease Inception | $ 7.3 | $ 7.3 |
Accumulated Amortization | (2.3) | (2.1) |
Current ROU Asset | $ 5 | $ 5.2 |
Commitments and Contingent Li_6
Commitments and Contingent Liabilities (Schedule of Future Minimum Operating Lease) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | |
Minimum Lease Payments, Sale Leaseback Transactions, Fiscal Year Maturity [Abstract] | |||
2021 | $ 600 | ||
2022 | 800 | ||
2023 | 800 | ||
2024 | 800 | ||
2025 | 800 | ||
Thereafter | 3,600 | ||
Total Lease Payments | 7,400 | ||
Imputed Interest | (1,800) | ||
Present Value of Lease Payments | 5,600 | ||
Less Current Portion | [1] | (700) | |
Non-Current Lease Liability | $ 4,872 | $ 5,042 | |
[1] | Included in Other Current Liabilities |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Annual benefits paid to retired participants | $ 0.4 | |
Other Benefits Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Benfit plan, cash contributions | 3.4 | $ 0.3 |
Pension Benefit Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Expected cash contributions | $ 0.8 |
Employee Benefit Plans (Schedul
Employee Benefit Plans (Schedule of Benefits Plans) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Pension Benefit Plan [Member] | |||
Periodic costs for employee retirement benefit plans | |||
Service Cost | $ 674 | $ 609 | |
Interest Cost | 677 | 775 | |
Expected Return on Assets | (1,556) | (1,409) | |
Amortization of Unrecognized Losses | 717 | 515 | |
Net Periodic Benefit Cost (Benefit) | [1] | 512 | 490 |
Other Benefits Plan [Member] | |||
Periodic costs for employee retirement benefit plans | |||
Service Cost | 229 | 248 | |
Interest Cost | 309 | 425 | |
Expected Return on Assets | (786) | (721) | |
Amortization of Unrecognized Losses | 132 | 338 | |
Net Periodic Benefit Cost (Benefit) | [1] | $ (116) | $ 290 |
[1] | Service cost is included in Operations and Maintenance expense on the Condensed 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 | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Regulated Tariff Sales | ||
Residential | $ 16,957 | $ 16,681 |
Commercial | 3,576 | 3,369 |
Industrial | 2,177 | 2,081 |
Fire Protection | 3,104 | 3,045 |
Wholesale | 3,539 | 3,698 |
Non-Regulated Contract Operations | 3,151 | 2,859 |
Total Revenue from Contracts with Customers | 32,504 | 31,733 |
Other Regulated Revenues | 68 | 62 |
Other Non-Regulated Revenues | 106 | 103 |
Inter-segment Elimination | (137) | (129) |
Total Revenue | $ 32,541 | $ 31,769 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Income tax paid | $ 2.7 | |
Interest paid | $ 0.1 | |
Reduce in income tax reserve provision | $ 0.5 | |
Interest expense liability | $ 0.2 |