Middlesex Water Company reported significant financial growth in its third quarter and the first nine months of 2024, driven by increased operating revenues and strategic regulatory developments. For Q3 2024, operating revenues reached $55.1 million, a notable increase of $8.4 million from $46.7 million in Q3 2023. For the nine months ended September 30, 2024, revenues totaled $144.8 million, up from $127.7 million in the same period last year.
The company's operating income for Q3 2024 was $17.5 million, compared to $12.8 million in Q3 2023, while net income rose to $14.3 million from $10.0 million year-over-year. Earnings per share for Q3 2024 were $0.80, up from $0.56 in Q3 2023. For the nine-month period, net income increased to $35.5 million from $25.8 million in 2023, reflecting strong performance across both regulated and non-regulated segments.
The increase in revenues was attributed to several factors, including a base rate increase effective March 1, 2024, which contributed $12.9 million to Middlesex System revenues, alongside weather-driven demand and higher commercial and industrial customer billings. The Tidewater System also saw a revenue increase of $3.5 million due to customer growth and similar weather impacts.
Operating expenses for Q3 2024 totaled $37.6 million, up from $33.9 million in Q3 2023, primarily due to higher legal, financial, and regulatory costs, as well as increased labor and energy expenses. For the nine-month period, total operating expenses rose to $102.1 million from $96.7 million in 2023.
Strategically, Middlesex Water is responding to new regulatory requirements from the USEPA regarding Perfluoroalkyl Substances (PFAS), necessitating compliance measures by April 2029. The company is conducting preliminary engineering studies to meet these standards. Additionally, a settlement with 3M regarding PFAS contamination has provided $63.6 million in net proceeds, which are being utilized to mitigate customer rate increases and fund treatment upgrades.
Middlesex Water has also made significant capital investments to enhance infrastructure and service quality, with ongoing projects aimed at improving utility reliability. The company has filed for additional rate increases and recovery mechanisms to support these investments, including a second Distribution System Improvement Charge application expected to generate $1.1 million in annual revenues.
As of September 30, 2024, Middlesex Water's total assets stood at $1.23 billion, with total liabilities decreasing to $17.5 million from $42.8 million at the end of 2022. The company continues to maintain a robust financial position, with plans for further capital expenditures and potential stock offerings to support ongoing infrastructure investments.
About MIDDLESEX WATER CO
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