Middlesex Water Company (Middlesex) was incorporated as a water utility company
in 1897 and owns and operates regulated water utility and wastewater systems
in New Jersey, Delaware and Pennsylvania. Middlesex also operates water and
wastewater systems under contract on behalf of municipal and private clients
in New Jersey and Delaware.
The terms “the Company, Middlesex Water Company and its subsidiaries,
including Tidewater Utilities, Inc. (Tidewater) and Tidewater’s wholly-owned
subsidiaries, Southern Shores Water Company, LLC (Southern Shores) and White
Marsh Environmental Systems, Inc. (White Marsh). The Company’s other subsidiaries
are Pinelands Water Company (Pinelands Water) and Pinelands Wastewater Company
(Pinelands Wastewater) (collectively, Pinelands), Utility Service Affiliates,
Inc. (USA), Utility Service Affiliates (Perth Amboy) Inc., (USA-PA), Tidewater
Environmental Services, Inc. (TESI) and Twin Lakes Utilities, Inc. (Twin Lakes).
The Company’s principal executive offices are located at 1500 Ronson Road,
Iselin, New Jersey 08830. Our telephone number is (732) 634-1500. Our internet
website address is http://www.middlesexwater.com. We make available, free of
charge through our internet website, reports and amendments filed or furnished
pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, after
such material is electronically filed with or furnished to the United States
Securities and Exchange Commission (the SEC).
Middlesex System
The Middlesex System in New Jersey provides water services to approximately
60,000 retail customers, primarily in eastern Middlesex County, New Jersey and
provides water under wholesale contracts to the City of Rahway, Townships of
Edison and Marlboro, the Borough of Highland Park and the Old Bridge Municipal
Utilities Authority. The Middlesex System treats, stores and distributes water
for residential, commercial, industrial and fire protection purposes. The Middlesex
System also provides water treatment and pumping services to the Township of
East Brunswick under contract.
The Middlesex System’s retail customers are located in an area of approximately
55 square miles in Woodbridge Township, the City of South Amboy, the Boroughs
of Metuchen and Carteret, portions of the Township of Edison and the Borough
of South Plainfield in Middlesex County and, to a minor extent, a portion of
the Township of Clark in Union County. Retail customers include a mix of residential
customers, large industrial concerns and commercial and light industrial facilities.
These customers are located in generally well-developed areas of central New
Jersey.
The contract customers of the Middlesex System comprise an area of approximately
110 square miles with a population of approximately 219,000. Contract sales
to Edison, Old Bridge, Marlboro and Rahway are supplemental to the existing
water systems of these customers. Middlesex is the sole source of water for
Highland Park and East Brunswick.
Middlesex provides water service to approximately 300 customers in Cumberland
County, New Jersey. This system is referred to as Bayview, and is not physically
interconnected with the Middlesex System.
Tidewater System
Tidewater, together with its wholly-owned subsidiary, Southern Shores, provides
water services to approximately 40,000 retail customers for residential, commercial
and fire protection purposes in over 375 separate communities in New Castle,
Kent and Sussex Counties, Delaware. White Marsh is a wholly-owned subsidiary
of Tidewater that is unregulated as to rates and operates 42 water and wastewater
systems under contracts that serve approximately 4,000 residential customers.
White Marsh owns two commercial properties that are leased to Tidewater as its
administrative office campus and its field operations center. The Tidewater
System produced approximately 27% of our 2014 consolidated operating revenues.
Utility Service Affiliates-Perth Amboy
USA-PA operates the City of Perth Amboy, New Jersey’s (Perth Amboy) water
and wastewater systems under a 20-year agreement, which expires in 2018. USA-PA
serves approximately 11,000 homes and businesses, most of which are served by
both the water and wastewater systems. Under the agreement, USA-PA receives
fixed fees, and may receive variable fees, based on customer revenue growth.
Fixed fee revenues increase over the term of the 20-year contract based upon
a schedule of rates.
In connection with the agreement with Perth Amboy, USA-PA entered into a 20-year
subcontract with a wastewater operating company for the operation and maintenance
of the Perth Amboy wastewater collection system. The subcontract provides for
the sharing of certain fixed and variable fees and operating expenses.
Pinelands System
Pinelands Water provides water services to approximately 2,500 residential customers
in Burlington County, New Jersey. Pinelands Water produced less than 1% of our
2014 consolidated operating revenues. Pinelands Water is not physically interconnected
with the Middlesex System.
Pinelands Wastewater provides wastewater services to approximately 2,500 residential
customers. Under contract, it also services one municipal wastewater system
in Burlington County, New Jersey with approximately 200 residential customers.
Pinelands Wastewater produced approximately 1% of our 2014 consolidated operating
revenues.
Utility Service Affiliates, Inc.
USA operates the Borough of Avalon, New Jersey’s (Avalon) water utility,
sewer utility and storm water system under a ten-year operations and maintenance
contract expiring in 2022. USA serves approximately 6,000 Avalon homes and businesses,
most of which are served by both the water and wastewater systems. In addition
to performing day to day operations, USA is responsible for billing, collections,
customer service, emergency responses and management of capital projects funded
by Avalon.
USA also provides unregulated water and wastewater services under contract with
several New Jersey municipalities.
Under a marketing agreement with HomeServe USA (HomeServe), USA offers residential
customers in New Jersey and Delaware a menu of water and wastewater related
home maintenance programs. HomeServe is a leading provider of such home maintenance
service programs. USA receives a service fee for the billing, cash collection
and other administrative matters associated with HomeServe’s service contracts.
The agreement expires in 2021.
TESI System
TESI provides wastewater services to approximately 3,300 residential retail
customers in Kent and Sussex Counties, Delaware. TESI produced approximately
2% of our 2014 consolidated operating revenues.
Twin Lakes provides water services to approximately 120 residential customers
in Shohola, Pennsylvania.
6.11%