Middlesex Water Company (MSEX): Business Model Canvas [Dec-2025 Updated]

You're digging into the nuts and bolts of Middlesex Water Company (MSEX), and honestly, what you'll find is a textbook example of a regulated utility that thrives on predictable, infrastructure-led growth. As a seasoned analyst, I see their engine running on securing regulatory rate increases to fund massive capital spending-think $\mathbf{\$72 \text{ million}}$ in capital expenditures year-to-date in 2025-all while delivering $\mathbf{\$147.7 \text{ million}}$ in operating revenues through the first nine months of the year. This model is built for stability, which is why shareholders have seen $\mathbf{53}$ consecutive annual dividend hikes, but the real story is how they manage regulatory approvals and infrastructure acquisition to keep that engine turning. Dive into the full Business Model Canvas below to see the specific partnerships and activities that make this century-old utility tick.

Middlesex Water Company (MSEX) - Canvas Business Model: Key Partnerships

You're looking at the essential relationships Middlesex Water Company (MSEX) relies on to keep the water flowing and secure its long-term capital needs. These aren't just casual agreements; they are regulated necessities and major financing lifelines. Honestly, for a utility, these partnerships define the operational ceiling.

Regulatory Approvals and Oversight

Middlesex Water Company's regulated operations in New Jersey and Delaware require explicit approval from state bodies for rate adjustments and major capital expenditures. These commissions act as gatekeepers for revenue stability.

• New Jersey Board of Public Utilities (NJBPU): Regulates the principal New Jersey water utility system (Middlesex System).
• Delaware Public Service Commission (DEPSC): Oversees the Tidewater Utilities, Inc. system.

The need for capital investment directly drives regulatory interaction. For instance, Middlesex Water filed a petition with the NJBPU seeking new rates based on close to $100 million in recent investments. If approved in full by the NJBPU, this would result in a total annual revenue increase of $24.9 million.

The DEPSC also plays a crucial role; in July 2025, the DEPSC approved a settlement agreement in the general base rate application for the Tidewater System, with new rates becoming effective July 3, 2025.

Financing and Capital Investment Partners

Funding the massive infrastructure needs requires strong relationships with debt providers. Middlesex Water Company's current multi-year capital program, called Water for Tomorrow, projects spending of approximately $466 million through the year 2028. This requires a mix of operations, equity, and debt.

To fund portions of this, Middlesex Water Company sought approval in May 2025 to borrow up to an aggregate principal amount of $260.0 million. This financing is planned through one or more negotiated transactions, such as notes and/or first mortgage bonds, sourced from various institutions.

Here's a look at the planned funding sources and investment scale:

The company's investment pace is concrete; they invested approximately $51 million in water and wastewater utility infrastructure during the first half of 2025, which was about 55% of the planned $93 million annual capital budget for 2025.

Operational and Maintenance Contractors

Middlesex Water Company relies on external firms to execute specific maintenance and construction needs, especially for its regulated infrastructure upgrades.

• Engineering and Construction Firms: Engage these partners to execute major infrastructure projects, such as the upgrades supporting the Water for Tomorrow program, which includes replacing about 12 miles of cast iron water mains.
• Third-Party Vendors: Middlesex Water Company explicitly lists 'Water and Sewer Line Maintenance Programs (through a third party vendor)' as part of its comprehensive service offerings.

Municipal and Private Contract Operations Clients

The Non-Regulated segment involves operating and maintaining water and wastewater systems under contract for other entities. This provides diversification, though it saw some revenue softness recently.

Middlesex Water Company serves several wholesale and contract clients in New Jersey:

• Wholesale water service contracts include the City of Rahway, Townships of Edison and Marlboro, the Borough of Highland Park, and the Old Bridge Municipal Utilities Authority.
• Water treatment and pumping services are provided under contract to the Township of East Brunswick.

The revenue from these non-regulated businesses is sensitive to contract activity. For example, supplemental contract services revenue was lower by $0.2 million in the first quarter of 2025 and lower by $0.4 million in the second quarter of 2025 compared to the prior year periods. These clients rely on Middlesex Water Company for 'complete relief of responsibility for operations, maintenance and capital improvement' of their systems.

Finance: draft 13-week cash view by Friday.

Middlesex Water Company (MSEX) - Canvas Business Model: Key Activities

You're looking at the core engine of Middlesex Water Company (MSEX), the activities that drive its regulated utility model. This isn't about flashy product launches; it's about reliable, capital-intensive execution in a highly regulated space. The key here is managing physical assets and regulatory relationships simultaneously.

Operating and Maintaining Extensive Water/Wastewater Utility Infrastructure

Middlesex Water Company's primary activity is the day-to-day running of its regulated water and wastewater systems across New Jersey and Delaware. This involves the entire chain: collecting, treating, and distributing safe drinking water to its customer base. The company serves about 61,000 customers, primarily in central New Jersey. This operational scale requires constant upkeep to maintain service reliability for domestic, commercial, municipal, and fire protection needs.

The company's commitment to its physical plant is evident in its long-term track record. Middlesex Water Company has paid cash dividends continually since 1912 and has increased the dividend received by shareholders for 52 consecutive years. This longevity is only possible through rigorous maintenance activities.

Securing Regulatory Rate Increases

A critical, non-physical activity is securing the necessary revenue to fund infrastructure replacements and earn a fair return. You need regulatory approval to pass on prudent investment costs to the customer base. Middlesex Water Company achieved a $5.5 million annual revenue boost from a Delaware rate settlement, which the Delaware Public Service Commission (DEPSC) approved in July 2025. This settlement allows for a 9.5% Return on Equity (RoE) at a 53.50% common equity ratio.

Furthermore, the company filed a petition with the New Jersey Board of Public Utilities (NJBPU) seeking a total annual revenue increase of $24.9 million. If approved in full, this New Jersey rate case, which is driven by close to $100 million in investments, would mean an increase of approximately $14.13 per month for the average residential customer using 15,000 gallons per quarter.

Executing the Planned Annual Capital Investment Program

Middlesex Water Company is deep into a heavy infrastructure investment phase. The planned capital expenditure for 2025 totals $93 million. By the end of the first half of 2025, the company had already deployed approximately $51 million, representing about 55% of that 2025 budget. These investments are focused on resilience and replacement.

The overall strategy includes a $400 million utility infrastructure investment planned from 2025 through 2027. These activities are designed to fund specific projects, such as:

• Replacing approximately 12 miles of cast iron water mains.
• Upgrading water-treatment methods at purification facilities.
• Implementing Work and Asset Cloud Services for data management.
• Protecting treatment facilities with storm surge mitigation methods.

Acquiring Small, Contiguous Water and Wastewater Systems

Selective acquisition is a growth lever for Middlesex Water Company, often involving smaller systems needing professional management. In April 2025, Tidewater Utilities, Inc. (a subsidiary) successfully closed on the acquisition of the water utility assets of Ocean View for approximately $4.6 million. This acquisition brought about 900 customers in Sussex County, Delaware, under the Middlesex umbrella. The company's subsidiaries, like Tidewater Utilities, Inc., are set up to provide these total management solutions.

Ensuring Water Quality and Compliance with Environmental Standards

Compliance is non-negotiable; it's the foundation of the license to operate. Middlesex Water Company is committed to high standards of excellence in water and wastewater service delivery. The company confirmed it has complied with all amended requirements to the Water Quality Accountability Act. The infrastructure investments mentioned above directly support this activity, particularly the upgrades to treatment plants and the ongoing effort to eliminate lead and galvanized steel service lines by 2031 under the "Knocking Out Lead" initiative.

Here's a quick look at the key financial and operational metrics tied to these activities:

Finance: draft 13-week cash view by Friday.

Middlesex Water Company (MSEX) - Canvas Business Model: Key Resources

You're looking at the core assets Middlesex Water Company (MSEX) relies on to deliver water and wastewater services. These aren't just line items; they are the physical and regulatory foundations of the business.

Regulated utility franchises in New Jersey and Delaware

Middlesex Water Company holds the essential government-granted rights to operate. These franchises provide a predictable framework for cost recovery, which is key for a capital-intensive utility. The company operates regulated water utility and wastewater systems across these states.

The regulated business is the primary revenue driver, serving customers for domestic, commercial, municipal, industrial, and fire protection needs.

• Serves about 61,000 customers mostly in central New Jersey.
• Operations in Delaware are conducted via the wholly-owned subsidiary, Tidewater Utilities, Inc.
• The company also provides contract services for private water and wastewater systems in New Jersey and Delaware.

Extensive network of pipes, treatment plants, and pumping stations

The physical network is massive and requires constant capital infusion to maintain and upgrade. This infrastructure is the direct delivery mechanism for the value proposition. For example, the company cited replacing about 12 miles of cast iron water mains with priority given to those with repetitive failures.

Investment in this network is ongoing and significant. The company planned to invest approximately $93 million in infrastructure for 2025. From 2025 through 2027, Middlesex Water Company expects to invest a total of $387 million in infrastructure upgrades.

Strong balance sheet and access to capital for infrastructure investment

A utility needs a rock-solid balance sheet to finance multi-year infrastructure projects. Middlesex Water Company maintains an "A" Credit Rating from S&P, which speaks directly to its access to capital markets for funding. This financial strength underpins their ability to execute long-term plans. Here's a quick look at some key figures as of late 2025:

The company also raised $20.3 million year-to-date under its ATM (At-The-Market) program as of October 31, 2025. Still, the regulatory timing for cost recovery can affect short-term results.

Licensed and established professional operations staff

The human capital is evidenced by a long history of reliable service and financial stewardship. Middlesex Water Company has paid cash dividends continually since 1912 and has increased dividends for 52 consecutive years. This suggests a highly experienced and stable operational team. The current annual dividend rate is $1.44 per share, following a recent increase of 5.88%.

Water rights and sources (reservoirs, wells, bulk water purchase contracts)

Securing the raw material-water-is paramount. Middlesex Water Company draws from various sources, including surface water treatment plants. A significant resource commitment is being directed toward future compliance and quality. The company expects to invest $105 million between 2025 and 2027 to install treatment for Perfluoroalkyl substances (PFAS) at the Carl J. Olsen surface water treatment plant.

The company also relies on contracts for supply. In February 2025, the NJBPU approved a Purchased Water Adjustment Clause (PWAC) tariff rate reset to recover additional annual costs of $0.5 million, primarily for purchasing treated water from a non-affiliated utility regulated by the NJBPU, effective March 1, 2025. This contract mechanism is a key resource for managing supply costs between base rate cases.

Finance: draft 13-week cash view by Friday.

Middlesex Water Company (MSEX) - Canvas Business Model: Value Propositions

You're looking at the core value Middlesex Water Company (MSEX) delivers to its various stakeholders. It's a utility built on reliability, a long history, and a clear commitment to both infrastructure and shareholders.

Highly reliable, safe, and compliant water/wastewater service

Middlesex Water Company provides life-sustaining services, focusing on operational excellence to ensure customers receive safe and reliable water and wastewater service. This commitment is backed by significant capital deployment.

• Planned annual investment for 2025 was approximately $93 million.
• Approximately $72 million was invested in infrastructure upgrades through the first nine months of 2025.
• A specific RENEW program project in Woodbridge, New Jersey, involved a $10.3 million investment to replace 22,590 linear feet of water mains.
• The RENEW program itself marks its 30th year of operation.

Stability and peace of mind from a century-old utility

Established in 1897, Middlesex Water Company offers deep operational tenure, which translates directly into customer and investor confidence. This long history underpins the perception of essential, uninterrupted service.

The company serves more than half a million people in New Jersey and Delaware. Furthermore, its corporate credit rating is noted as "A" from S&P.

Financial relief for municipalities through system acquisition

Middlesex Water Company pursues selective and sustainable growth by acquiring smaller systems, bringing them under its management standards. This offers a path for smaller entities to offload utility management responsibilities.

Consistent, growing dividend for shareholders (53rd consecutive year of increases)

For investors, the primary value proposition is the unparalleled commitment to returning capital, placing Middlesex Water Company in an elite group of Dividend Kings. This streak is a direct reflection of the utility's predictable cash flows.

The company has paid cash dividends continually since 1912.

• The latest quarterly dividend declared was $0.36 per common share (as of October 2025).
• This represents a 5.88% increase from the prior $0.34 per share dividend.
• The resulting annual dividend rate increased to $1.44 per share from $1.36 per share.

Accelerated infrastructure upgrades via regulatory mechanisms (DSIC/RESIC)

Regulatory mechanisms allow Middlesex Water Company to recover prudently incurred capital investments faster than through general rate cases alone, which directly supports the infrastructure upgrade value proposition. In New Jersey, the combined DSIC and RESIC programs allow for semi-annual surcharge filings to recover up to $11.4 million or 7.5% of total annual revenues from the June 2025 base rate joint petition.

The company actively uses these mechanisms to recover costs associated with resiliency and environmental improvements.

To be fair, the Delaware system saw a constructive rate case outcome in July 2025, approving an annual operating revenue increase of $5.5 million. Anyway, the New Jersey regulated utilities also filed for an increase in annual base revenues by approximately $24.9 million, which is 19.3% of current revenues, to recover investments for environmental compliance and service reliability.

Middlesex Water Company (MSEX) - Canvas Business Model: Customer Relationships

You're managing a utility in a highly regulated space; the relationship with the customer is fundamentally one of essential service provision, not competitive sales. Middlesex Water Company operates under a long-term, non-contractual relationship typical of a regulated monopoly in its core New Jersey service area.

The direct interaction with the customer base centers on the mechanics of service delivery. Middlesex Water Company serves approximately 61,000 retail water customers throughout New Jersey. This customer base includes residential, commercial, and industrial users, plus fire protection services. The company also provides essential services under contract to other entities, such as wholesale water service to the City of Rahway, the Townships of Edison and Marlboro, the Borough of Highland Park, and the Old Bridge Municipal Utilities Authority, and water treatment and pumping services to East Brunswick. Furthermore, its subsidiary, Tidewater Utilities, Inc., serves approximately 350 customers in Kent County, Delaware, following a recent acquisition filing. This scale of service delivery necessitates direct customer service channels for billing inquiries, service interruptions, and water quality concerns.

The most significant, structured interaction with the customer base revolves around regulatory engagement to justify the rate base and capital recovery. Middlesex Water Company, along with Pinelands Water Company and Pinelands Wastewater Company, filed a joint petition with the New Jersey Board of Public Utilities (NJBPU) on June 30, 2025, seeking approval for new rates. This filing was driven by close to $100 million in prudently-incurred investments. The company is seeking a total annual revenue increase of approximately $24,919,160, which represents about a 19.31% increase above the annual level of present rate revenues for the test year ending October 31, 2025, utilizing a return on equity of 10.50%. Here's the quick math on the customer impact: if the full request is approved, the average residential customer using about 15,000 gallons of water per quarter would see an increase of approximately $14.13 per month, or $0.47 per day.

The relationship is also managed through transparency regarding major infrastructure investments, which are often communicated under the Water For Tomorrow® campaign. This ongoing effort enhances safety, reliability, and resiliency. A key part of this is the "Knocking Out Lead" initiative, which has a target date to eliminate utility and customer-owned lead and galvanized steel service lines by 2031. To manage the disruption from this work, Middlesex Water Company regularly coordinates water main replacement projects with municipal paving programs and other utility work, which eliminates the need for repaving and minimizes construction impact on customers. The company also works to address affordability by promoting the Low Income Household Water Assistance Program (LIHWAP) to customers facing payment difficulties.

The commitment to stability, which underpins customer trust in a monopoly, is evident in its dividend history. Middlesex Water Company has paid cash dividends continually since 1912 and has increased the dividends received by shareholders each calendar year for 52 consecutive years. For context on the business performance supporting this, the trailing 12-month revenue as of September 30, 2025, was $195M, and the diluted EPS for the nine months ended September 30, 2025, was $0.77.

The formal structure of the customer relationship is best seen by mapping the service base against the regulatory action taken to fund infrastructure improvements:

Community outreach is formalized, with Brian Hague joining in February 2025 as Vice President of Communications & Corporate Affairs to oversee community outreach initiatives. Employees support local communities through volunteer events such as Habitat for Humanity, Adopt a Highway Clean Up, and the Future City STEM program for middle school students. These actions help build stronger communities and serve as a trusted resource to local governments.

You should review the impact of the 19.31% requested revenue increase against customer communication plans for the next quarter. Finance: draft 13-week cash view by Friday.

Middlesex Water Company (MSEX) - Canvas Business Model: Channels

You're looking at how Middlesex Water Company gets its value proposition-safe, reliable water-to its customers and stakeholders. The primary channel is, naturally, the physical network. Middlesex Water Company owns and operates the pipes that deliver water to about 61,000 customers mostly in central New Jersey. This physical delivery system is constantly being reinforced; for the nine months ended September 30, 2025, the company invested $72 million in water and wastewater utility infrastructure, which was approximately 77% of the total planned 2025 capital budget. This investment focus includes replacing about 12 miles of cast iron water mains. The planned 2025 annual investment for this network was approximately $93 million.

Here's a quick look at the scale of the physical and customer base channel:

For customer interaction, billing, and general inquiries, Middlesex Water Company relies on established service points. While specific call center volume isn't public, the channel supports the 61,000 customer base. You can expect interactions through customer service centers and online portals for managing accounts. The company's success in growing its customer base is reflected in operating revenues increasing by $3.1 million in the Middlesex System for the first six months of 2025, driven by rate increases and customer growth. This growth is a direct measure of the channel's reach.

The Non-Regulated contract services division acts as a separate channel for service delivery to municipal and private clients, primarily for operation and maintenance. This segment's financial contribution shows some variability. For the nine months ended September 30, 2025, revenue from these non-regulated businesses saw a $0.3 million decrease compared to the same period in 2024. Similarly, for the first half of 2025, there was a $0.4 million decrease in supplemental contract services revenue year-over-year. This division definitely provides diversification, but its revenue stream is less predictable than the regulated utility side.

Communicating investment needs and securing cost recovery happens through formal regulatory channels. These filings are critical for justifying capital expenditures to the New Jersey Board of Public Utilities (NJBPU) and the Delaware Public Service Commission (DEPSC). For instance, the New Jersey regulated utilities filed a joint petition in June 2025 requesting an annual base revenue increase of approximately $24.9 million, or 19.3%, to recover close to $100 million in investments. Furthermore, Middlesex filed a third Distribution System Improvement Charge (DSIC) rate application expected to add $1.9 million in annual revenues starting June 2025, stacked on top of existing annual revenues of $1.1 million from prior DSIC filings. More recently, in October 2025, a fourth DSIC application was filed, seeking an additional $0.9 million in annual revenues, beyond the existing $2.3 million from earlier DSIC programs. In Delaware, a rate case settlement approved a $5.5 million annual operating revenue increase, effective July 3, 2025, based on a 9.5% authorized return on common equity. These regulatory actions are the formal channels for ensuring the utility can fund its physical network improvements. Finance: draft 13-week cash view by Friday.

Middlesex Water Company (MSEX) - Canvas Business Model: Customer Segments

You're looking at the core customer base for Middlesex Water Company (MSEX), which is fundamentally split between its regulated utility operations and its non-regulated contract services. Honestly, the regulated side is the engine, driving the vast majority of the financial results.

The regulated business serves a population base of over half a million people across New Jersey and Delaware, providing life-sustaining water service. The company is one of only eight remaining U.S. based publicly traded water utilities.

Regulated Residential Customers (largest segment, stable demand)

This is the bedrock of Middlesex Water Company's business. The search results confirm that the majority of the company's revenue is derived from the Regulated segment and from residential customers. While the exact number of residential accounts isn't explicitly stated, this segment provides the stable, predictable demand that underpins the utility model.

Regulated Commercial and Industrial Customers

These customers contribute significantly, especially when demand fluctuates. For instance, in the second quarter of 2024, Middlesex System revenues increased partly due to higher commercial and industrial billings. This segment's demand is more variable than residential, often tied to local economic activity and weather patterns affecting industrial processes.

Regulated Fire Protection Customers

Fire protection service is a mandated part of the regulated offering. This segment provides necessary infrastructure support but typically represents a smaller, fixed component of the overall revenue stream, usually covered through tariffed rates for the service availability.

Wholesale Customers (bulk water sales to other utilities)

While not explicitly detailed as a separate revenue line in the provided snippets, the regulated operations inherently involve bulk supply. In October 2024, Middlesex Water Company filed a petition to recover costs for purchasing treated water from a non-affiliated water utility regulated by the NJBPU, indicating inter-utility transactions exist. This suggests that selling bulk water to other entities, though perhaps minor compared to direct end-user sales, is part of the operational landscape.

Non-Regulated Municipal and Private System Owners (contract services)

This segment offers contract services for the operation of private, municipal, or county-owned water and wastewater systems. This is Middlesex Water Company's growth area outside of rate base expansion. Non-regulated revenues saw an increase of $0.7 million in 2024 due to higher supplemental contract services. However, for the first half of 2025, non-regulated revenues were $0.4 million lower compared to the same period in 2024. This segment also includes recent strategic moves, such as the expected April 2025 closing of the acquisition of Ocean View water utility assets in Delaware, which serves approximately 900 customers.

Here's a quick look at the revenue context for the regulated vs. non-regulated split, using the latest full-year and trailing twelve-month data available. What this estimate hides is the precise revenue split between residential and commercial/industrial within the regulated segment.

The customer base is geographically concentrated but diversified by use type:

• Serves customers in New Jersey and Delaware.
• Regulated services cover residential, commercial, industrial, and fire protection.
• Non-regulated services include contract operations for private and municipal systems.
• Acquired assets serving approximately 900 customers in Delaware in 2025.

Finance: draft 13-week cash view by Friday.

Middlesex Water Company (MSEX) - Canvas Business Model: Cost Structure

You're looking at the cost side of Middlesex Water Company (MSEX), and honestly, it's what you'd expect for a premier utility: heavy on the long-term assets. The cost structure is defintely capital-intensive, meaning a huge chunk of cash goes into keeping the pipes and treatment plants running and expanding.

The infrastructure investment is the bedrock of these costs. For the nine months ending September 30, 2025, Middlesex Water Company invested \$72 million in water and wastewater utility infrastructure. This represents approximately 77% of the planned \$93 million annual capital budget for 2025. This consistent, large-scale capital deployment is a primary cost driver, often funded by debt.

Fixed costs are substantial, driven by the sheer scale of the utility plant that needs to be maintained and accounted for over decades. Depreciation is a clear indicator here. For the nine months ended September 30, 2025, depreciation expense totaled \$20.171 million. This is a non-cash cost, but it reflects the massive asset base required to operate.

Operations and Maintenance (O&M) expenses, which capture many variable and semi-variable costs, were \$67.913 million for the same nine-month period in 2025. Within this, variable production costs fluctuate based on external factors. For instance, operating expenses for the third quarter ended September 30, 2025, were \$36.4 million, with increases partially driven by higher variable production costs linked to weather-driven lower water quality.

Here's a quick look at some of the key cost components for the nine months ended September 30, 2025, compared to the prior year:

Financing these massive capital projects means interest expense is a regular feature on the cost ledger. For the nine months ending September 30, 2025, interest charges amounted to \$10.535 million. This expense is directly tied to the long-term debt taken on to fund system resiliency and growth projects.

Labor costs represent another critical, relatively fixed component, necessary to ensure compliance and operational integrity. The need for licensed operational and technical staff drives these expenses. For example, the increase in operating expenses for the second quarter of 2025 was partly attributed to higher labor costs stemming from wage and employee headcount increases.

You can see the impact of these costs on quarterly performance:

• Operating expenses for Q3 2025 were \$36.4 million.
• Operating expenses for Q2 2025 were \$35.4 million.
• Operating expenses for Q1 2025 were \$32.7 million.
• Interest Charges for Q3 2025 were \$4.200 million.

Finance: draft 13-week cash view by Friday.

Middlesex Water Company (MSEX) - Canvas Business Model: Revenue Streams

Middlesex Water Company (MSEX) revenue streams are heavily weighted toward regulated utility services, which is typical for the sector. You see this in the primary revenue sources.

• Regulated Water Services revenue, the primary source, is approximately 88% of total revenue.
• Regulated Wastewater Services revenue accounts for approximately 11% of total revenue.

The company also captures revenue through regulatory mechanisms and non-regulated activities. Operating revenues for the first nine months of 2025 totaled $147.7 million.

Rate increases and surcharges are a key driver for revenue growth, especially in the regulated segments. For instance, the Delaware Public Service Commission order approved an increase in annual operating revenues by $5.5 million based on a prior filing, though a more recent Delaware rate surcharge is expected to add $0.9 million a year.

Here's a look at some of the key figures related to the revenue streams for the nine months ended September 30, 2025:

The non-Regulated Contract Services revenue stream saw a slight dip. Specifically, there was a $0.3 million decrease primarily due to lower supplemental contract services revenue in the non-regulated businesses for the nine months ending September 30, 2025. Still, rate increases and customer growth generally offset lower consumption driven by weather across the Middlesex System and the Tidewater System.

• The Delaware rate increase from the 2006 filing was for an overall increase of 38.6% in water rates for Tidewater Utilities, Inc.
• The Delaware rate increase was based on an authorized return on common equity of 9.5% and a common equity ratio of 53.50%.