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 September 30, 2021, the results of operations for the three month and nine month periods ended September 30, 2021 and 2020 and cash flows for the nine month periods ended September 30, 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.

Basis of Presentation and Recent Developments	9 Months Ended
Sep. 30, 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 September 30, 2021, the results of operations for the three month and nine month periods ended September 30, 2021 and 2020 and cash flows for the nine month periods ended September 30, 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 Sale of Subsidiary – On October 27, 2021, the Delaware Public Service Commission (DEPSC) approved a request by Middlesex to sell its entire interest in TESI, which is its regulated Delaware wastewater utility business. In August 2021, Middlesex entered into a definitive agreement with Artesian Wastewater Management, Inc. to sell 100% of the common stock of TESI for $6.4 million. The transaction is expected to be finalized prior to December 31, 2021. The Company will continue to own and operate its regulated water utilities in Delaware as well as its non-regulated operations and maintenance contract business. Regulatory Notice of Non Compliance - In October 2021, Middlesex issued a notice (Notice) to customers in New Jersey that in September 2021, the level of Perfluorooctanoic Acid (PFOA) in water from its Park Avenue Treatment Plant exceeded a new standard that went into effect in 2021 (New Jersey Standards) promulgated by the New Jersey Department of Environmental Protection (NJDEP). Neither the NJDEP nor Middlesex has characterized this exceedance as an acute health emergency. The New Jersey Standard for PFOA was developed based on a Health-based Maximum Contaminant Level (MCL) of 14 parts per trillion (ppt). Although the United States Environmental Protection Agency (USEPA) has not yet implemented an enforceable regulation relative to PFOA, the water distributed from the Park Avenue Treatment Plant does meet the USEPA’s current health advisory level of 70 parts per trillion (ppt) and would meet the NJDEP’s prior guidance level of 40 ppt. Construction of a facility to provide an enhanced treatment process at the Park Avenue Treatment Plant to comply with the New Jersey Standards related to poly- and perfluoro-alkyl substances, collectively referred to as PFAS, and which include PFOA, is expected to be completed in mid-2023. The Notice requires the Company to take any action necessary to bring the water into compliance with the MCL of 14 ppt for PFOA by September 7, 2022. The Company is performing hydraulic and other analyses to assess the operational feasibility of complying with the new standard before September 2022, the costs of which may be significant and may or may not be recoverable through the rate making process. While the Company believes it to be unlikely, the issuance of this Notice does not preclude the State of New Jersey or any of its agencies from initiating formal administrative and/or judicial enforcement action, including assessment of penalties of up to $25,000 per day per offense. Novel Coronavirus (COVID-19) - In March 2020, the United States declared the COVID-19 pandemic a national emergency, which was extended on February 24, 2021, and remains in effect. While the Company’s operations and capital construction program have not been materially disrupted to date from the pandemic, the COVID-19 impact on economic conditions nationally continues to be uncertain and could affect the Company’s results of operations, financial condition and liquidity in the future. In New Jersey and Delaware, where our operations are located, the declared COVID-19 State of Emergency Orders ended in June 2021 and July 2021, respectively. 6 Index The New Jersey Board of Public Utilities (NJBPU) and the 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 March 2020, 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. 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.

Sale of Subsidiary – On October 27, 2021, the Delaware Public Service Commission (DEPSC) approved a request by Middlesex to sell its entire interest in TESI, which is its regulated Delaware wastewater utility business. In August 2021, Middlesex entered into a definitive agreement with Artesian Wastewater Management, Inc. to sell 100% of the common stock of TESI for $6.4 million. The transaction is expected to be finalized prior to December 31, 2021. The Company will continue to own and operate its regulated water utilities in Delaware as well as its non-regulated operations and maintenance contract business.

Regulatory Notice of Non Compliance - In October 2021, Middlesex issued a notice (Notice) to customers in New Jersey that in September 2021, the level of Perfluorooctanoic Acid (PFOA) in water from its Park Avenue Treatment Plant exceeded a new standard that went into effect in 2021 (New Jersey Standards) promulgated by the New Jersey Department of Environmental Protection (NJDEP). Neither the NJDEP nor Middlesex has characterized this exceedance as an acute health emergency. The New Jersey Standard for PFOA was developed based on a Health-based Maximum Contaminant Level (MCL) of 14 parts per trillion (ppt). Although the United States Environmental Protection Agency (USEPA) has not yet implemented an enforceable regulation relative to PFOA, the water distributed from the Park Avenue Treatment Plant does meet the USEPA’s current health advisory level of 70 parts per trillion (ppt) and would meet the NJDEP’s prior guidance level of 40 ppt. Construction of a facility to provide an enhanced treatment process at the Park Avenue Treatment Plant to comply with the New Jersey Standards related to poly- and perfluoro-alkyl substances, collectively referred to as PFAS, and which include PFOA, is expected to be completed in mid-2023. The Notice requires the Company to take any action necessary to bring the water into compliance with the MCL of 14 ppt for PFOA by September 7, 2022. The Company is performing hydraulic and other analyses to assess the operational feasibility of complying with the new standard before September 2022, the costs of which may be significant and may or may not be recoverable through the rate making process. While the Company believes it to be unlikely, the issuance of this Notice does not preclude the State of New Jersey or any of its agencies from initiating formal administrative and/or judicial enforcement action, including assessment of penalties of up to $25,000 per day per offense.

Novel Coronavirus (COVID-19) - In March 2020, the United States declared the COVID-19 pandemic a national emergency, which was extended on February 24, 2021, and remains in effect. While the Company’s operations and capital construction program have not been materially disrupted to date from the pandemic, the COVID-19 impact on economic conditions nationally continues to be uncertain and could affect the Company’s results of operations, financial condition and liquidity in the future. In New Jersey and Delaware, where our operations are located, the declared COVID-19 State of Emergency Orders ended in June 2021 and July 2021, respectively.

Index

The New Jersey Board of Public Utilities (NJBPU) and the 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 March 2020, 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.

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.