Tidewater Utilities, Inc., a subsidiary of Middlesex Water Company (Nasdaq:MSEX), has filed for a rate adjustment with the Delaware Public Service Commission (PSC) for the first time in over a decade. The company has invested over $150 million in critical drinking water infrastructure improvements in the last ten years, which are not currently reflected in customer base rates.
The specific improvements include the construction of 1,000,000-gallon elevated water storage tanks in South Rehoboth and Millville, DE, enhanced treatment upgrades at several plant facilities, installation of interconnections for redundant capacity and storage, backup power generation at over 30 facilities, regulatorily required water main realignments, and additional hydrants for fire protection coverage.
Tidewater is seeking a total annual revenue increase of approximately $10.3 million. If approved in its entirety, the rate increase would result in an average residential customer with a usage of 5,000 gallons of water per month experiencing a monthly bill increase of about $13.97.
Bruce E. Patrick, President of Tidewater, emphasized the company's commitment to ensuring safe and reliable drinking water for its customers at a reasonable cost. He highlighted the significant increase in operating costs over the past decade and the necessity to upgrade the drinking water infrastructure to comply with regulatory requirements, maintain plant integrity, and protect facilities against climate impact and cybersecurity threats.
Tidewater Utilities, Inc. serves approximately 57,800 customers and 800 commercial establishments in 470 separate communities in New Castle, Kent, and Sussex County, DE. Celebrating its 60th year of service, the company is focused on providing high-quality water service for residential, commercial, and fire protection purposes.
The market has reacted to these announcements by moving the company's shares 0.5% to a price of $63.01. For more information, read the company's full 8-K submission here.
