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Rate and Regulatory Matters
6 Months Ended
Jun. 30, 2015
Rate and Regulatory Matters [Abstract]  
Rate and Regulatory Matters

Note 2 Rate and Regulatory Matters

 

Middlesex - In March 2015, Middlesex filed a petition with the New Jersey Board of Public Utilities (NJBPU) seeking permission to increase its base water rates by approximately $9.5 million per year.  The request was necessitated by declining consumption in its Commercial and Industrial class customers, increasing costs for active and retired employee benefits, capital infrastructure investments Middlesex has made, or has committed to make, and regulation-driven increases in other operations and maintenance costs.  In July 2015, a Stipulation of Settlement (the Settlement) between Middlesex and the intervening parties was approved in an initial decision by an Administrative Law Judge.  The Settlement recommends a $5.0 million increase in Middlesex's base water rates.  The Settlement must now be presented for consideration and approval by the NJBPU, which the Company expects will occur in the third quarter of 2015.  We cannot predict whether the NJBPU will ultimately approve, deny, or reduce the amount of the Settlement.  NJPBU approval of a base water rate increase would concurrently reset Middlesex's Distribution System Improvement Charge (DSIC) to zero. A DSIC is a rate-mechanism that allows water utilities to recover investments in, and generate a return on, qualifying capital improvements to their water distribution system made between base rate proceedings. The Middlesex DSIC has been in effect since May 12, 2015, and has generated less than $0.1 million of revenues to date.

 

Tidewater - Effective July 1, 2015, Tidewater's Delaware Public Service Commission-approved DSIC was increased from 0.31% to 0.37%. Total annual revenues under the Tidewater DSIC are expected to amount to approximately $0.1 million.