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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2011	Jun. 30, 2012	Mar. 05, 2012
Document And Entity Information
Entity Registrant Name	MIDDLESEX WATER CO
Entity Central Index Key	0000066004
Document Type	10-K
Document Period End Date	Dec. 31, 2011
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float		$ 290,059,068
Entity Common Stock, Shares Outstanding			15,703,480
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2011

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2011	Dec. 31, 2010
UTILITY PLANT:
Water Production	$ 127,827	$ 118,919
Transmission and Distribution	326,629	308,468
General	47,519	44,368
Construction Work in Progress	12,575	11,715
TOTAL	514,550	483,470
Less Accumulated Depreciation	92,351	84,737
UTILITY PLANT - NET	422,199	398,733
CURRENT ASSETS:
Cash and Cash Equivalents	3,106	2,453
Accounts Receivable, net	11,280	11,963
Unbilled Revenues	4,842	4,752
Materials and Supplies (at average cost)	2,023	2,196
Prepayments	1,622	1,401
TOTAL CURRENT ASSETS	22,873	22,765
DEFERRED CHARGES AND OTHER ASSETS:
Unamortized Debt Expense	2,611	2,739
Preliminary Survey and Investigation Charges	5,179	7,023
Regulatory Assets	67,302	38,771
Operations and Developer Contracts Fees Receivable	5,300	4,589
Restricted Cash	3,260	7,056
Non-utility Assets - Net	8,182	7,122
Other	630	387
TOTAL DEFERRED CHARGES AND OTHER ASSETS	92,464	67,687
TOTAL ASSETS	537,536	489,185
CAPITALIZATION:
Common Stock, No Par Value	141,432	139,534
Retained Earnings	35,549	33,745
TOTAL COMMON EQUITY	176,981	173,279
Preferred Stock	3,353	3,362
Long-term Debt	132,167	133,844
TOTAL CAPITALIZATION	312,501	310,485
CURRENT LIABILITIES:
Current Portion of Long-term Debt	4,569	4,432
Notes Payable	24,250	17,000
Accounts Payable	5,706	6,403
Accrued Taxes	7,847	8,752
Accrued Interest	1,628	1,598
Unearned Revenues and Advanced Service Fees	734	864
Other	1,953	1,691
TOTAL CURRENT LIABILITIES	46,687	40,740
COMMITMENTS AND CONTINGENT LIABILITIES (Note 4)
DEFERRED CREDITS AND OTHER LIABILITIES:
Customer Advances for Construction	21,944	21,261
Accumulated Deferred Investment Tax Credits	1,146	1,225
Accumulated Deferred Income Taxes	37,022	29,691
Employee Benefit Plans	51,006	28,562
Regulatory Liability - Cost of Utility Plant Removal	8,029	7,369
Other	995	154
TOTAL DEFERRED CREDITS AND OTHER LIABILITIES	120,142	88,262
CONTRIBUTIONS IN AID OF CONSTRUCTION	58,206	49,698
TOTAL CAPITALIZATION AND LIABILITIES	$ 537,536	$ 489,185

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	12 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Consolidated Statements Of Income
Operating Revenues	$ 102,069	$ 102,735	$ 91,243
Operating Expenses:
Operations and Maintenance	56,634	55,481	52,348
Depreciation	9,746	9,244	8,559
Other Taxes	11,488	11,413	10,175
Total Operating Expenses	77,868	76,138	71,082
Operating Income	24,201	26,597	20,161
Other Income (Expense):
Allowance for Funds Used During Construction	821	970	1,001
Other Income	1,523	912	1,011
Other Expense	(195)	(438)	(286)
Total Other Income, net	2,149	1,444	1,726
Interest Charges	6,376	6,925	6,750
Income before Income Taxes	19,974	21,116	15,137
Income Taxes	6,527	6,786	5,160
Net Income	13,447	14,330	9,977
Preferred Stock Dividend Requirements	206	207	208
Earnings Applicable to Common Stock	$ 13,241	$ 14,123	$ 9,769
Earnings per share of Common Stock:
Basic	$ 0.85	$ 0.96	$ 0.73
Diluted	$ 0.84	$ 0.96	$ 0.72
Average Number of Common Shares Outstanding:
Basic	15,614,556	14,653,899	13,453,563
Diluted	15,877,126	14,916,469	13,716,133
Cash Dividends Paid per Common Share	$ 0.733	$ 0.723	$ 0.713

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$ 13,447	$ 14,330	$ 9,977
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Depreciation and Amortization	10,432	9,958	9,217
Provision for Deferred Income Taxes and Investment Tax Credits	2,098	630	5,522
Equity Portion of Allowance for Funds Used During Construction (AFUDC)	(523)	(611)	(580)
Cash Surrender Value of Life Insurance	(92)	104	(387)
Stock Compensation Expense	394	323	386
Changes in Assets and Liabilities:
Accounts Receivable	(28)	(2,222)	(1,112)
Unbilled Revenues	(90)	(328)	398
Materials & Supplies	173	(578)	(143)
Prepayments	(221)	(292)	372
Accounts Payable	(697)	2,055	(1,341)
Accrued Taxes	(905)	3,066	(2,096)
Accrued Interest	30	(263)	(192)
Employee Benefit Plans	(1,591)	(1,904)	(354)
Unearned Revenue & Advanced Service Fees	(130)	3	19
Other Assets and Liabilities	539	1,294	(1,180)
NET CASH PROVIDED BY OPERATING ACTIVITIES	22,836	25,565	18,506
CASH FLOWS FROM INVESTING ACTIVITIES:
Utility Plant Expenditures, Including AFUDC of $299 in 2011, $359 in 2010 and $421 in 2009	(23,562)	(29,604)	(20,128)
Restricted Cash	3,796	(1,790)	456
Investment in Joint Venture	(300)
NET CASH USED IN INVESTING ACTIVITIES	(20,066)	(31,394)	(19,672)
CASH FLOWS FROM FINANCING ACTIVITIES:
Redemption of Long-term Debt	(4,427)	(4,314)	(18,244)
Proceeds from Issuance of Long-term Debt	3,447	13,970	12,014
Net Short-term Bank Borrowings	7,250	(25,850)	16,973
Deferred Debt Issuance Expense	(37)	(25)	(116)
Common Stock Issuance Expense		(133)
Restricted Cash			(25)
Repurchase of Preferred Stock	(9)	(11)
Proceeds from Issuance of Common Stock	1,504	29,845	1,251
Payment of Common Dividends	(11,437)	(10,510)	(9,582)
Payment of Preferred Dividends	(206)	(207)	(208)
Construction Advances and Contributions-Net	1,798	1,239	93
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES	(2,117)	4,004	2,156
NET CHANGES IN CASH AND CASH EQUIVALENTS	653	(1,825)	990
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	2,453	4,278	3,288
CASH AND CASH EQUIVALENTS AT END OF PERIOD	3,106	2,453	4,278
SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITY:
Utility Plant received as Construction Advances and Contributions	7,393	2,043	4,264
Long-term Debt Deobligation	560		1,352
Cash Paid During the Year for:
Interest	6,336	7,155	6,887
Interest Capitalized	299	359	421
Income Taxes	$ 4,733	$ 4,617	$ 1,856

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2011	Dec. 31, 2010
Statement of Cash Flows [Abstract]
Allowance for Funds Used During Construction	$ 299	$ 359

CONSOLIDATED STATEMENTS OF CAPITAL STOCK AND LONG-TERM DEBT - USD ($) $ in Thousands	Dec. 31, 2011	Dec. 31, 2010
Common Stock, No Par Value; Shares Authorized- 40,000; Shares Outstanding- 2011- 15,682, 2010- 15,566	$ 141,432	$ 139,534
Retained Earnings	35,549	33,745
TOTAL COMMON EQUITY	176,981	173,279
TOTAL PREFERRED STOCK	3,353	3,362
Long-term Debt:
8.05%, Amortizing Secured Note, due December 20, 2021	2,319	2,456
6.25%, Amortizing Secured Note, due May 19, 2028	6,895	7,315
6.44%, Amortizing Secured Note, due August 25, 2030	5,227	5,507
6.46%, Amortizing Secured Note, due September 19, 2031	5,507	5,787
4.22%, State Revolving Trust Note, due December 31, 2022	546	585
3.30% to 3.60%, State Revolving Trust Note, due May 1, 2025	3,623	3,655
3.49%, State Revolving Trust Note, due January 25, 2027	633	664
4.03%, State Revolving Trust Note, due December 1, 2026	825	865
4.00% to 5.00%, State Revolving Trust Bond, due August 1, 2021	434	522
0.00%, State Revolving Fund Bond, due August 1, 2021	359	397
3.64%, State Revolving Trust Note, due July 1, 2028	364	387
3.64%, State Revolving Trust Note, due January 1, 2028	122	130
3.45%, State Revolving Trust Note, due August 1, 2031	39	17
6.59%, Amortizing Secured Note, due April 20, 2029	6,046	6,395
7.05%, Amortizing Secured Note, due January 20, 2030	4,521	4,771
5.69%, Amortizing Secured Note, due January 20, 2030	9,273	9,786
3.75%, State Revolving Trust Note, due July 1, 2031	2,021
3.75%, State Revolving Trust Note, due November 30, 2030	1,404
First Mortgage Bonds:
5.20%, Series S, due October 1, 2022	12,000	12,000
5.25%, Series T, due October 1, 2023	6,500	6,500
5.25%, Series V, due February 1, 2029	10,000	10,000
5.35%, Series W, due February 1, 2038	23,000	23,000
0.00%, Series X, due September 1, 2018	375	430
4.25% to 4.63%, Series Y, due September 1, 2018	410	590
0.00%, Series Z, due September 1, 2019	894	1,007
5.25% to 5.75%, Series AA, due September 1, 2019	1,080	1,440
0.00%, Series BB, due September 1, 2021	1,206	1,328
4.00% to 5.00%, Series CC, due September 1, 2021	1,400	1,680
5.10%, Series DD, due January 1, 2032	6,000	6,000
0.00%, Series EE, due August 1, 2023	4,804	5,224
3.00% to 5.50%, Series FF, due August 1, 2024	6,160	6,555
0.00%, Series GG, due August 1, 2026	1,352	1,440
4.00% to 5.00%, Series HH, due August 1, 2026	1,640	1,715
0.00%, Series II, due August 1, 2024	1,150	1,239
3.40% to 5.00%, Series JJ, due August 1, 2027	1,560	1,625
0.00%, Series KK, due August 1, 2028	1,526	1,616
5.00% to 5.50%, Series LL, due August 1, 2028	1,635	1,695
0.00%, Series MM, due August 1, 2030	1,901	1,968
3.00% to 4.375%, Series NN, due August 1, 2030	1,985	1,985
SUBTOTAL LONG-TERM DEBT	136,736	138,276
Less: Current Portion of Long-term Debt	(4,569)	(4,432)
TOTAL LONG-TERM DEBT	132,167	133,844
Cumulative Preferred Stock
TOTAL PREFERRED STOCK
Convertible Preferred Stock $7.00 Series
TOTAL PREFERRED STOCK	1,457	1,457
Convertible Preferred Stock $8.00 Series
TOTAL PREFERRED STOCK	816	816
Nonredeemable Preferred Stock $7.00 Series
TOTAL PREFERRED STOCK	80	89
Nonredeemable Preferred Stock $4.75 Series
TOTAL PREFERRED STOCK	$ 1,000	$ 1,000

CONSOLIDATED STATEMENTS OF CAPITAL STOCK AND LONG-TERM DEBT (Parenthetical) - $ / shares	Dec. 31, 2011	Dec. 31, 2010
Common Stock, Par Value	$ 0	$ 0
Common Stock, Shares Authorized	40,000,000	40,000,000
Common Stock, Shares Outstanding	15,682,000	15,566,000
Cumulative Preferred Stock
Preferred Stock, Par Value
Preferred Stock, Shares Authorized	134,000	134,000
Preferred Stock, Shares Outstanding	32,000	32,000
Convertible Preferred Stock $7.00 Series
Preferred Stock, Par Value
Preferred Stock, Shares Outstanding	14,000	14,000
Convertible Preferred Stock $8.00 Series
Preferred Stock, Par Value
Preferred Stock, Shares Outstanding	7,000	7,000
Nonredeemable Preferred Stock $7.00 Series
Preferred Stock, Par Value
Preferred Stock, Shares Outstanding	1,000	1,000
Nonredeemable Preferred Stock $4.75 Series
Preferred Stock, Par Value
Preferred Stock, Shares Outstanding	10,000	10,000

CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock Amount	Retained Earnings	Total
Beginning balance at Dec. 31, 2008	$ 107,726	$ 30,077	$ 137,803
Beginning balance, shares at Dec. 31, 2008	13,404,000
Net Income		9,977	9,977
Dividend Reinvestment & Common Stock Purchase Plan	$ 1,254		1,254
Dividend Reinvestment & Common Stock Purchase Plan, shares	84,000
Restricted Stock Award, Net - Employees	$ 365		365
Restricted Stock Award, Net - Employees, shares	29,000
Stock Award - Board Of Directors	$ 21		21
Stock Award - Board Of Directors, shares	2,000
Cash Dividends on Common Stock		(9,582)	(9,582)
Cash Dividends on Preferred Stock		(208)	(208)
Other		1	1
Ending Balance at Dec. 31, 2009	$ 109,366	30,265	139,631
Ending Balance, shares at Dec. 31, 2009	13,519,000
Net Income		14,330	14,330
Dividend Reinvestment & Common Stock Purchase Plan	$ 1,917		1,917
Dividend Reinvestment & Common Stock Purchase Plan, shares	116,000
Restricted Stock Award, Net - Employees	$ 299		299
Restricted Stock Award, Net - Employees, shares	14,000
Stock Award - Board Of Directors	$ 24		24
Stock Award - Board Of Directors, shares	2,000
Issuance of Common Stock	$ 27,928		27,928
Issuance of Common Stock, shares	1,915,000
Cash Dividends on Common Stock		(10,510)	(10,510)
Cash Dividends on Preferred Stock		(207)	(207)
Common Stock Expenses		(133)	(133)
Ending Balance at Dec. 31, 2010	$ 139,534	33,745	310,485
Ending Balance, shares at Dec. 31, 2010	15,566,000
Net Income		13,447	13,447
Dividend Reinvestment & Common Stock Purchase Plan	$ 1,504		1,504
Dividend Reinvestment & Common Stock Purchase Plan, shares	82,000
Restricted Stock Award, Net - Employees	$ 323		323
Restricted Stock Award, Net - Employees, shares	30,000
Stock Award - Board Of Directors	$ 71		71
Stock Award - Board Of Directors, shares	4,000
Cash Dividends on Common Stock		(11,437)	(11,437)
Cash Dividends on Preferred Stock		(206)	(206)
Ending Balance at Dec. 31, 2011	$ 141,432	$ 35,549	$ 312,501
Ending Balance, shares at Dec. 31, 2011	15,682,000

Organization, Summary of Significant Accounting Policies and Recent Developments

12 Months Ended

Dec. 31, 2011

Organization Summary Of Significant Accounting Policies And Recent Developments

Organization, Summary of Significant Accounting Policies and Recent Developments

Note 1 – Organization, Summary of Significant Accounting Policies and Recent Developments

(a) Organization - Middlesex Water Company (Middlesex) 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), Utility Service Affiliates (Perth Amboy) Inc. (USA-PA) and Twin Lakes Utilities, Inc. (Twin Lakes). 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 (the Company) are reported on a consolidated basis. All significant intercompany accounts and transactions have been eliminated.

Middlesex Water Company has operated as a water utility in New Jersey since 1897, in Delaware, through our wholly-owned subsidiary, Tidewater, since 1992 and in Pennsylvania, through our wholly-owned subsidiary, Twin Lakes, since 2009. We are in the business of collecting, treating, distributing and selling water for domestic, commercial, municipal, industrial and fire protection purposes. We also operate a New Jersey municipal water and wastewater system under contract and provide wastewater services in New Jersey and Delaware through our subsidiaries. Our rates charged to customers for water and wastewater services, the quality of services we provide and certain other matters are regulated in New Jersey, Delaware and Pennsylvania by the New Jersey Board of Public Utilities (NJBPU), Delaware Public Service Commission (DEPSC) and Pennsylvania Public Utilities Commission (PAPUC), respectively. Only our USA, USA-PA and White Marsh subsidiaries are not regulated utilities.

Certain reclassifications have been made to the prior year financial statements to conform with current period presentation.

(b) System of Accounts – Middlesex, Pinelands Water and Pinelands Wastewater maintain their accounts in accordance with the Uniform System of Accounts prescribed by the NJBPU. Tidewater, TESI and Southern Shores maintain their accounts in accordance with DEPSC requirements. Twin Lakes maintains its accounts in accordance with PAPUC requirements.

(c) Utility Plant – Utility Plant is stated at original cost as defined for regulatory purposes. Property accounts are charged with the cost of betterments and major replacements of property. Cost includes direct material, labor and indirect charges for pension benefits and payroll taxes. The cost of labor, materials, supervision and other expenses incurred in making repairs and minor replacements and in maintaining the properties is charged to the appropriate expense accounts. At December 31, 2011, there was no event or change in circumstance that would indicate that the carrying amount of any long-lived asset was not recoverable.

(d) Depreciation – Depreciation is computed by each regulated member of the Company utilizing a rate approved by the applicable regulatory authority. The Accumulated Provision for Depreciation is charged with the cost of property retired, less salvage. The following table sets forth the range of depreciation rates for the major utility plant categories used to calculate depreciation for the years ended December 31, 2011, 2010 and 2009. These rates have been approved by the NJBPU, DEPSC or PAPUC:

Source of Supply	1.15% - 3.44%	Transmission and Distribution (T&D):
Pumping	2.87% - 5.39%	T&D – Mains	1.10% - 3.13%
Water Treatment	1.65% - 7.09%	T&D – Services	2.12% - 3.16%
General Plant	2.08% - 17.84%	T&D – Other	1.61% - 4.63%

Non-regulated fixed assets consist primarily of office buildings, furniture and fixtures, and transportation equipment. These assets are recorded at original cost and depreciation is calculated based on the estimated useful lives, ranging from 3 to 40 years.

(e) Preliminary Survey and Investigation (PS&I) Costs – In the design of water and wastewater systems that the Company ultimately intends to construct, own and operate certain expenditures are incurred to advance those project activities. These PS&I costs are recorded as deferred charges on the balance sheet because these costs are expected to be recovered through future rates charged to customers as the underlying projects are placed into service as utility plant. If it is subsequently determined that costs for a project recorded as PS&I are not recoverable through rates charged to our customers, the applicable PS&I costs are recorded as a charge to the income statement at that time.

(f) Customers’ Advances for Construction (CAC) – Water utility plant and/or cash advances are contributed to the Company by customers, real estate developers and builders in order to extend water service to their properties. These contributions are recorded as CAC. Refunds on these advances are made by the Company in accordance with agreements with the contributing party and are based on either additional operating revenues related to the utility plant or as new customers are connected to and take service from the utility plant. After all refunds are made and/or contract terms have expired, any remaining balance is transferred to Contributions in Aid of Construction.

Contributions in Aid of Construction (CIAC) – CIAC include direct non-refundable contributions of water utility plant and/or cash and the portion of CAC that becomes non-refundable.

CAC and CIAC are not depreciated in accordance with regulatory requirements. In addition, these amounts reduce the investment base for purposes of setting rates.

(g) Allowance for Funds Used During Construction (AFUDC) - Middlesex and its regulated subsidiaries capitalize AFUDC, which represents the cost of financing projects during construction. AFUDC is added to the construction costs of individual projects exceeding specific cost and construction period thresholds established for each company and then depreciated along with the rest of the utility plant’s costs over its estimated useful life. For the years ended December 31, 2011, 2010 and 2009, approximately $0.8 million, $1.0 million, and $1.0 million, respectively of AFUDC was added to the cost of construction projects. AFUDC is calculated using each company’s weighted cost of debt and equity as approved in their most recent respective regulatory rate order. The AFUDC rates for the years ended December 31, 2011, 2010 and 2009 for Middlesex and Tidewater are as follows:

	For The Year Ended December 31,
	2011	2010	2009
Middlesex	7.54%	7.54%	7.65%
Tidewater	8.24%	8.24%	8.24%

(h) Accounts Receivable – We record bad debt expense based on historical write-offs combined with an evaluation of current conditions. The allowance for doubtful accounts was $0.6 million and $0.5 million at December 31, 2011 and 2010, respectively. Bad debt expense for the years ended December 31, 2011, 2010 and 2009 was $0.7 million, $0.6 million and $0.6 million, respectively. Receivables not expected to be received in 2012 are included as non-current assets in Operations and Developer Contracts Receivable.

(i) Revenues - General metered customer’s bills for regulated water service are typically comprised of two components; a fixed service charge and a volumetric or consumption charge. Revenues from general metered service water customers, except Tidewater fixed service charges, include amounts billed in arrears on a cycle basis and unbilled amounts estimated from the last meter reading date to the end of the accounting period. The estimated unbilled amounts are determined by utilizing factors which include historical consumption usage and current climate and economic conditions. Actual billings may differ from our estimates. Tidewater customers are billed in advance for their fixed service charge and these revenues are recognized as the service is provided to the customer.

Southern Shores is an unmetered system. Customers are billed a fixed service charge in advance at the beginning of each month and revenues are recognized as earned.

Revenues from the City of Perth Amboy management contract are comprised of fixed and variable fees. Fixed fees, which have been set for the life of the contract, are billed monthly and recorded as earned. Variable fees, which are not significant, are recorded upon approval of the amount by the City of Perth Amboy.

(j) Deferred Charges and Other Assets - Unamortized Debt Expense is amortized over the lives of the related issues. Restricted Cash represents proceeds from loans entered into through state financing programs and is held in trusts. The proceeds are restricted for specific capital expenditures and debt service requirements.

(k) Income Taxes - Middlesex files a consolidated federal income tax return for the Company and income taxes are allocated based on the separate return method. Investment tax credits have been deferred and are amortized over the estimated useful life of the related property. For more information on income taxes, see Note 3 – Income Taxes.

(l) Statements of Cash Flows - For purposes of reporting cash flows, the Company considers all highly liquid investments with original maturity dates of three months or less to be cash equivalents. Cash and cash equivalents represent bank balances and money market funds with investments maturing in less than 90 days.

(m) Use of Estimates - Conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts in the financial statements. Actual results could differ from those estimates.

(n) Recent Accounting Pronouncements

Fair Value Measurements and Disclosures - In May 2011, the Financial Accounting Standards Board (the FASB) issued Accounting Standards Update (ASU) 2011-04, which amends Accounting Standards Codification (ASC) 820, Fair Value Measurements and Disclosure (ASC 820), to update guidance related to fair value measurements and disclosures as a step towards achieving convergence between generally accepted accounting principles and international financial reporting standards. ASU 2011-04 clarifies intent about application of existing fair value measurements and disclosures, changes certain requirements for fair value measurements and requires expanded disclosures. ASU 2011-04 is effective for interim and annual periods beginning after December 15, 2011. Adoption of 2011-04 is not expected to have any impact on the Company’s results of operations, cash flows or financial position.

In January 2010, the FASB issued ASU 2010-06, which amends ASC 820, to add new requirements for disclosures about transfers into and out of Levels 1 and 2 and separate disclosures about purchases, sales, issuances, and settlements relating to Level 3 measurements. ASU 2010-06 also clarifies existing fair value disclosures about the level of disaggregation and about inputs and valuation techniques used to measure fair value. Further, ASU 2010-06 amends guidance on employers’ disclosures about postretirement benefit plan assets under ASC 715, Compensation – Retirement Benefits to require that disclosures be provided by classes of assets instead of by major categories of assets. Adoption of ASU 2010-06 had no impact on the Company’s results of operations, cash flows or financial position.

(o) Regulatory Accounting - We maintain our books and records in accordance with accounting principles generally accepted in the United States of America. Middlesex and certain of its subsidiaries, which account for 90% of Operating Revenues and 98% of Total Assets, are subject to regulation in the state in which they operate. Those companies are required to maintain their accounts in accordance with regulatory authorities’ rules and guidelines, which may differ from other authoritative accounting pronouncements. In those instances, the Company follows the guidance provided in ASC 980, Regulated Operations.

In accordance with ASC 980, Regulated Operations, costs and obligations are deferred if it is probable that these items will be recognized for rate-making purposes in future rates. Accordingly, we have recorded costs and obligations, which will be amortized over various future periods. Any change in the assessment of the probability of rate-making treatment will require us to change the accounting treatment of the deferred item. We have no reason to believe any of the deferred items that are recorded will be treated differently by the regulators in the future. For additional information, see Note 2 – Rate and Regulatory Matters.

(p) Postretirement Benefit Plans - We maintain a noncontributory defined benefit pension plan (Pension Plan) which covers substantially all active employees who were hired prior to March 31, 2007. In addition, the Company maintains an unfunded supplemental plan for its executive officers. The Company has a postretirement benefit plan other than pensions (Other Benefits Plan) for substantially all of its retired employees. Employees hired after March 31, 2007 are not eligible to participate in this plan. Coverage includes healthcare and life insurance.

The Company’s costs for providing postretirement benefits are dependent upon numerous factors, including actual plan experience and assumptions of future experience. Postretirement benefit plan obligations and expense are determined based on investment performance, discount rates and various other demographic factors related to the population participating in the Company’s postretirement benefit plans, all of which can change significantly in future years. For more information on the Company’s Postretirement Benefit Plans, see Note 7 – Employee Benefit Plans.

(q) Recent Developments

Investment in Ridgewood Green RME, LLC - Middlesex and NSU Ridgewood, LLC, a wholly-owned subsidiary of Natural Systems Utilities, LLC, formed a joint venture, Ridgewood Green RME, LLC, (Ridgewood Green), which entered into a 20-year public-private partnership with the Village of Ridgewood, New Jersey (Ridgewood) whereby Ridgewood Green will design, build, own and operate facilities to optimize the production of electricity at Ridgewood's municipal wastewater treatment plant. Operation of the facilities is expected to begin in the fourth quarter of 2012.

Sunoco Logistics Partners L.P. Wastewater Treatment Facility Operating Agreement - USA has entered into an agreement with Sunoco Logistics Partners L.P. (Sunoco Logistics) to operate the Eagle Point Biological Wastewater Treatment Facility (Eagle Point) in Westville, New Jersey. USA will be responsible for the daily operation of the industrial wastewater treatment facility at Sunoco Logistics' refined products terminal at Eagle Point commencing in the first quarter of 2012.

- Definition

The entire disclosure for the organization, consolidation and basis of presentation of financial statements disclosure, and significant accounting policies of the reporting entity. May be provided in more than one note to the financial statements, as long as users are provided with an understanding of (1) the significant judgments and assumptions made by an enterprise in determining whether it must consolidate a VIE and/or disclose information about its involvement with a VIE, (2) the nature of restrictions on a consolidated VIE's assets reported by an enterprise in its statement of financial position, including the carrying amounts of such assets, (3) the nature of, and changes in, the risks associated with an enterprise's involvement with the VIE, and (4) how an enterprise's involvement with the VIE affects the enterprise's financial position, financial performance, and cash flows. Describes procedure if disclosures are provided in more than one note to the financial statements.

+ References + Details

Rate Matters

12 Months Ended

Dec. 31, 2011

Rate Matters

Rate Matters

Note 2 - Rate and Regulatory Matters

Rate Matters

Middlesex - In January 2012, Middlesex filed an application with the NJBPU seeking permission to increase its base rates by approximately $11.3 million per year. The request was made as a result of capital investments Middlesex has made, or has committed to make, as well as increased operations and maintenance costs. We cannot predict whether the NJBPU will ultimately approve, deny, or reduce the amount of the request. A decision by the NJBPU is not expected until the fourth quarter of 2012.

In August 2011, Middlesex implemented a NJBPU approved Purchased Water Adjustment Clause (PWAC), which allows for the recovery of increased costs of $0.4 million to purchase untreated water from the New Jersey Water Supply Authority (NJWSA) and treated water from a non-affiliated regulated water utility. It is expected that the PWAC rate will reset to zero as part of the ultimate decision rendered in the aforementioned Middlesex base rate increase request.

In March 2010, the NJBPU granted an increase in Middlesex’s annual operating revenues of 13.57%, or $7.8 million. The increase was necessitated by increased costs, as well as to provide a return on invested capital in rate base of $180.3 million based on a return on equity of 10.30%.

Tidewater – In September 2011, Tidewater filed an application with the DEPSC seeking permission to increase its base rates by approximately $6.9 million per year. The request was made as a result of capital investments Tidewater has made, or has committed to make, as well as increased operations and maintenance costs. We cannot predict whether the DEPSC will ultimately approve, deny, or reduce the amount of the request. A decision by the DEPSC is not expected until the second half of 2012. In connection with the base rate increase request, Tidewater implemented a DEPSC approved 10.49% interim rate increase, subject to refund, on November 15, 2011.

A Distribution System Improvement Charge (DSIC) is a DEPSC approved rate-mechanism that allows water utilities to recover investment in non-revenue producing capital improvements to the water system between base rate proceedings. The following summarizes Tidewater’s approved DSIC rates from January 1, 2011 through November 15, 2011, when Tidewater’s DSIC was set to 0.0% in connection with the aforementioned 10.49% interim rate increase:

Date	January 1, 2011	July 1, 2011
% Increase	0.27%	0.64%
Cumulative %	1.34%	1.98%

In September 2009, the DEPSC approved an overall 14.95% or $3.0 million increase in Tidewater’s base rates. This rate increase approval is based on a 10.0% return on equity.

TESI – In July 2011, TESI filed an application with the DEPSC seeking permission to increase its base rates by approximately $0.8 million per year. The request was made as a result of capital investments TESI has made, or has committed to make, as well as increased operations and maintenance costs. We cannot predict whether the DEPSC will ultimately approve, deny, or reduce the amount of the request. A decision by the DEPSC is not expected until mid 2012. In connection with the base rate increase request, TESI implemented a DEPSC approved 7.6% interim rate increase, subject to refund, on September 28, 2011.

Southern Shores – Effective June 1, 2011, the DEPSC approved a multi-year agreement for a phased-in base rate increase for Southern Shores. This increase was made as a result of capital investment in the upgrade and renovation of Southern Shores’ primary water treatment facilities, as well as by increased operating costs. Under the terms of the agreement, which expires on June 30, 2020, Southern Shores also increased rates on January 1, 2012, and will do so on each successive January 1^st through 2015, to generate approximately $0.1 million of additional revenue on an annual basis with each increase. Thereafter, rate increases, if any, cannot exceed the lesser of the regional Consumer Price Index or 3%.

In accordance with the tariff established for Southern Shores, an annual rate increase of 8.9% was implemented in January 2012.

Twin Lakes – In December 2011, Twin Lakes and the interveners in the Twin Lakes Rate Case reached a settlement that provided a $0.1 million, three-year phased-in base rate increase for Twin Lakes. This increase was made as a result of capital investment in the upgrade and renovation of the Twin Lakes System, as well as by increased operating costs. The settlement was approved by the PAPUC in March 2012.

Regulatory Matters

We have recorded certain costs as regulatory assets because we expect full recovery of, or are currently recovering, these costs in the rates we charge customers. These deferred costs have been excluded from rate base and, therefore, we are not earning a return on the unamortized balances. These items are detailed as follows:


	(Thousands of Dollars) December 31,				Remaining Recovery
Regulatory Assets	2011		2010		Periods
Postretirement Benefits	$	49,735	$	25,786		Various
Income Taxes		17,151		12,551		Various
Tank Painting, Rate Cases and Other		416		434		2-9 years
Total	$	67,302	$	38,771

Postretirement benefits include pension and other postretirement benefits that have been recorded on the Consolidated Balance Sheet in accordance with the guidance provided in ASC 715, Compensation – Retirement Benefits. These amounts represent obligations in excess of current funding, which the Company believes will be fully recovered in rates set by the regulatory authorities.

The recovery period for income taxes is dependent upon when the temporary differences between the tax and book treatment of various items reverse.

The Company uses composite depreciation rates for its regulated utility assets, which is currently an acceptable method under generally accepted accounting principles and is widely used in the utility industry. Historically, under the composite depreciation method, the anticipated costs of removing assets upon retirement are provided for over the life of those assets as a component of depreciation expense. The Company recovers certain asset retirement costs through rates charged to customers as an approved component of depreciation expense. As of December 31, 2011 and 2010, the Company has approximately $8.0 and $7.4 million, respectively, of expected costs of removal recovered currently in rates in excess of actual costs incurred. These amounts are recorded as regulatory liabilities.

The Company is recovering in current rates acquisition premiums totaling $0.7 million over the remaining lives of the underlying Utility Plant. These deferred costs have been included in rate base as utility plant and a return is being earned on the unamortized balances during the recovery periods. The Company expects to recover training costs of approximately $0.8 million associated with implementation of a new information technology system in future rates. These costs are included in General Utility Plant.

Income Taxes

12 Months Ended

Dec. 31, 2011

IncomeTaxesAbstract

Income Taxes

Note 3 - Income Taxes

Income tax expense differs from the amount computed by applying the statutory rate on book income subject to tax for the following reasons:

	(Thousands of Dollars) Years Ended December 31,
	2011			2010			2009
Income Tax at Statutory Rate	$	6,816		$	7,224		$	5,147
Tax Effect of:
Utility Plant Related		(620	)		(826	)		(247	)
State Income Taxes – Net		305			336			339
Employee Benefits		1			33			(86	)
Other		25			19			7
Total Income Tax Expense	$	6,527		$	6,786		$	5,160

Income tax expense is comprised of the following:

	(Thousands of Dollars) Years Ended December 31,
	2011			2010			2009
Current:
Federal	$	3,550		$	5,584		$	(208	)
State		395			481			35
Deferred:
Federal		2,594			770			4,933
State		67			30			479
Investment Tax Credits		(79	)		(79	)		(79	)
Total Income Tax Expense	$	6,527		$	6,786		$	5,160

The statutory review periods for income tax returns for the years prior to 2009 have been closed. An examination by the Internal Revenue Service of Middlesex’s Federal income tax returns for 2007 and 2008 was completed during 2010 and resulted in a net refund, including interest, of less than $0.1 million. The refund noted above was recorded to the appropriate current and deferred tax accounts and the interest was reported as other income. In the event that there are interest and penalties associated with income tax adjustments in future examinations, these amounts will be reported under interest expense and other expense, respectively. There are no unrecognized tax benefits resulting from prior period tax positions. The Company is not aware of any uncertain tax positions that could result in a future tax liability.

Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial purposes and the amounts used for income tax purposes. The components of the net deferred tax liability are as follows:

	(Thousands of Dollars)
	December 31,
	2011			2010
Utility Plant Related	$	35,135		$	32,010
Customer Advances		(3,737	)		(3,840	)
Employee Benefits		6,342			1,912
Investment Tax Credits (ITC)		1,146			1,225
Other		(718	)		(391	)
Total Deferred Tax Liability and ITC	$	38,168		$	30,916

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
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-Section 08
-Paragraph h
-Article 4

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-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 136, 172
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Commitments and Contingent Liabilities

12 Months Ended

Dec. 31, 2011

Commitments And Contingent Liabilities

Commitments and Contingent Liabilities

Note 4 - Commitments and Contingent Liabilities

Water Supply - Middlesex has an agreement with the NJWSA for the purchase of untreated water through November 30, 2023, which provides for an average purchase of 27 million gallons a day (mgd). Pricing is set annually by the NJWSA through a public rate making process. The agreement has provisions for additional pricing in the event Middlesex overdrafts or exceeds certain monthly and annual thresholds.

Middlesex also has an agreement with a non-affiliated regulated water utility for the purchase of treated water. This agreement, which expires February 27, 2016, provides for the minimum purchase of 3 mgd of treated water with provisions for additional purchases.

Purchased water costs are shown below:

	Years Ended December 31,
	(Millions of Dollars)
Purchased Water	2011		2010		2009
Untreated	$	2.4	$	2.5	$	2.4
Treated		2.7		2.9		2.6
Total Costs	$	5.1	$	5.4	$	5.0

Contract Operations - USA-PA operates the City of Perth Amboy, NJ’s water and wastewater systems under a 20-year agreement, which expires in 2018. 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.

Construction –The Company may spend up to $21.8 million in 2012, $18.0 million in 2013 and $16.4 million in 2014 on its construction program. The actual amount and timing of capital expenditures is dependent on customer growth, residential new home construction and sales and project scheduling. There is no assurance that projected customer growth and residential new home construction and sales will occur.

Litigation – The Company is a defendant in lawsuits in the normal course of business. We believe the resolution of pending claims and legal proceedings will not have a material adverse effect on the Company’s consolidated financial statements.

Change in Control Agreements – The Company has Change in Control Agreements with certain of its officers that provide compensation and benefits in the event of termination of employment in connection with a change in control of the Company.

- Definition

The entire disclosure for commitments and contingencies.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 14
-Paragraph 3
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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-Paragraph 9, 10, 11, 12
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+ Details

Short-term Borrowings

12 Months Ended

Dec. 31, 2011

Short-term Debt [Abstract]

Short-term Borrowings

Note 5 – Short-term Borrowings

Information regarding the Company’s short-term borrowings for the years ended December 31, 2011 and 2010 is summarized below:

	(Millions of Dollars)
	2011		2010
Established Lines at Year-End	$	60.0	$	58.0
Maximum Amount Outstanding		24.3		45.9
Average Outstanding		20.7		26.4
Notes Payable at Year-End		24.3		17.0
Weighted Average Interest Rate		1.44%		1.58%
Weighted Average Interest Rate at Year-End		1.33%		1.53%

The maturity dates for the Notes Payable as of December 31, 2011 are all in January 2012 and are extendable at the discretion of the Company.

Interest rates for short-term borrowings are below the prime rate with no requirement for compensating balances.

Capitalization

12 Months Ended

Dec. 31, 2011

Capitalization

Capitalization

Note 6 - Capitalization

All the transactions discussed below related to the issuance of securities were approved by either the NJBPU or DEPSC, except where otherwise noted.

Common Stock

In June 2010, the Company sold and issued 1.9 million shares of common stock in a public offering that was priced at $15.21 per share. The net proceeds of approximately $27.8 million were used to repay certain of the Company’s short-term debt outstanding.

The number of shares authorized under the Dividend Reinvestment and Common Stock Purchase Plan (DRP) is 2.3 million shares. The cumulative number of shares issued under the DRP at December 31, 2011, is 2.0 million.

The Company issues shares under a restricted stock plan for certain management employees, which is described in Note 7 – Employee Benefit Plans.

The Company maintains a stock plan for its outside directors (the Outside Director Stock Compensation Plan). In 2011, 3,833 shares of common stock were granted and issued to the Company’s outside directors under the Outside Director Stock Compensation Plan and 93,197 shares remain available for future awards. The maximum number of shares authorized for grant under the Outside Director Stock Compensation Plan is 100,000.

In the event dividends on the preferred stock are in arrears, no dividends may be declared or paid on the common stock of the Company. At December 31, 2011, no preferred stock dividends were in arrears.

Preferred Stock

If four or more quarterly dividends are in arrears, the preferred shareholders, as a class, are entitled to elect two members to the Board of Directors in addition to Directors elected by holders of the common stock. At December 31, 2011 and 2010, there were less than 0.1 million shares of preferred stock authorized and outstanding and there were no dividends in arrears.

The Company may not pay any dividends on its common stock unless full cumulative dividends to the preceding dividend date for all outstanding shares of preferred stock have been paid or set aside for payment. All such preferred dividends have been paid. In addition, if Middlesex were to liquidate, holders of preferred stock would be paid back the stated value of their preferred shares before any distributions could be made to common stockholders.

The conversion feature of the no par $7.00 Series Cumulative and Convertible Preferred Stock allows the security holders to exchange one convertible preferred share for twelve shares of the Company's common stock. In addition, the Company may redeem up to 10% of the outstanding convertible stock in any calendar year at a price equal to the fair market value of twelve shares of the Company's common stock for each share of convertible stock redeemed. In February 2011, the Company repurchased 93 shares of its $7.00 Series, nonredeemable cumulative preferred stock at par value for approximately $9 thousand.

The conversion feature of the no par $8.00 Series Cumulative and Convertible Preferred Stock allows the security holders to exchange one convertible preferred share for 13.714 shares of the Company's common stock. The preferred shares are convertible into common stock at the election of the security holder or Middlesex.

Long-term Debt

In March 2011, Tidewater closed on a $2.8 million loan with the Delaware SRF program which allows, but does not obligate, Tidewater to draw against a General Obligation Note for a specific project. The interest rate on any draw will be set at 3.75% with a final maturity of July 1, 2031 on the amount actually borrowed. As of December 31, 2011, Tidewater has borrowed $2.0 million under this loan.

In March 2011, Southern Shores closed on a $1.6 million loan with the Delaware SRF program, which allows, but does not obligate, Southern Shores to draw against a General Obligation Note for a specific project. The interest rate on any draw will be set at 3.75% with a final maturity of November 30, 2030 on the amount actually borrowed. As of December 31, 2011, Southern Shores has borrowed $1.4 million under this loan.

In December 2010, Middlesex issued $4.0 million of first mortgage bonds through the New Jersey Environmental Infrastructure Trust under the New Jersey SRF program. The Company closed on the first mortgage bonds designated as Series MM and NN in December 2010. Proceeds from the Series MM and NN bonds are included in Restricted Cash and will be used for Middlesex’s 2011 RENEW Program.

In February 2010, Tidewater closed on a $1.1 million loan with the Delaware SRF. This loan allows, but does not obligate, Tidewater to draw down against a General Obligation Note for a specific project. The interest rate on any draw-down will be set at 3.45% with a final maturity of August 1, 2031 on the amount actually borrowed. As of December 31, 2011, Tidewater has borrowed $39 thousand under this loan.

In March 2009, Tidewater closed on a $22.0 million DEPSC approved loan. In 2009, Tidewater borrowed $12.0 million under this loan. In March 2010, Tidewater borrowed the remaining $10.0 million at a rate of 5.69% with a final maturity in January 2030.

First Mortgage Bonds Series S through W and Series DD are term bonds with single maturity dates subsequent to 2015. Principal repayments for all series of the Company’s long-term debt extend beyond 2016. The aggregate annual principal repayment obligations for all long-term debt over the next five years are shown below:

Year	(Millions of Dollars) Annual Maturities
2012	$4.6
2013	$5.0
2014	$5.1
2015	$5.1
2016	$5.2

The weighted average interest rate on all long-term debt at both December 31, 2011 and 2010 was 5.13%. Except for the Amortizing Secured Notes, all of the Company’s outstanding long-term debt has been issued through the New Jersey Economic Development Authority ($57.5 million), the NJEIT program ($29.9 million) and the Delaware SRF program ($9.6 million).

Restricted cash includes proceeds from various New Jersey SRF loans. These funds are held in trusts and restricted for specific capital expenditures and debt service requirements. As discussed above, Series MM and NN proceeds can only be used for the applicable RENEW Program. All other bond issuance balances in restricted cash are for debt service requirements.

In 2011, the NJEIT deobligated $560 thousand of principal payments on several Series of SRF long-term debt.

Substantially all of the Utility Plant of the Company is subject to the lien of its mortgage, which includes debt service and capital ratio covenants. The Company is in compliance with all of its mortgage covenants and restrictions.

Earnings Per Share

The following table presents the calculation of basic and diluted earnings per share (EPS) for the three years ended December 31, 2011. Basic EPS is computed on the basis of the weighted average number of shares outstanding. Diluted EPS assumes the conversion of both the Convertible Preferred Stock $7.00 Series and $8.00 Series.

	(In Thousands, Except per Share Amounts)
	2011					2010					2009
Basic:	Income			Shares		Income			Shares		Income			Shares
Net Income	$	13,447			15,615	$	14,330			14,654	$	9,977			13,454
Preferred Dividend		(206	)				(207	)				(208	)
Earnings Applicable to Common Stock	$	13,241			15,615	$	14,123			14,654	$	9,769			13,454
Basic EPS	$	0.85				$	0.96				$	0.73
Diluted:
Earnings Applicable to Common Stock	$	13,241			15,615	$	14,123			14,654	$	9,769			13,454
$7.00 Series Dividend		97			166		97			166		97			166
$8.00 Series Dividend		56			96		56			96		56			96
Adjusted Earnings Applicable to Common Stock		$13, 394			15,877	$	14,276			14,916	$	9,922			13,716
Diluted EPS	$	0.84				$	0.96				$	0.72

Fair Value of Financial Instruments

The following methods and assumptions were used by the Company in estimating its fair value disclosure for financial instruments for which it is practicable to estimate that value. The carrying amounts reflected in the consolidated balance sheets for cash and cash equivalents, trade receivables, accounts payable and notes payable approximate their respective fair values due to the short-term maturities of these instruments. The fair value of the Company’s long-term debt relating to First Mortgage and SRF bonds is based on quoted market prices for similar issues. The carrying amount and fair value of the Company’s bonds were as follows:

	(Thousands of Dollars) At December 31,
	2011				2010
	Carrying		Fair		Carrying		Fair
	Amount		Value		Amount		Value
First Mortgage Bonds	$	86,577	$	87,283	$	89,037	$	85,405
State Revolving Bonds	$	793	$	799	$	919	$	937

For other long-term debt for which there was no quoted market price, it was not practicable to estimate their fair value. The carrying amount of these instruments was $49.3 million and $48.3 million at December 31, 2011 and 2010, respectively. Customer advances for construction have a carrying amount of $21.9 million and $21.3 million at December 31, 2011 and 2010 respectively. Their relative fair values cannot be accurately estimated since future refund payments depend on several variables, including new customer connections, customer consumption levels and future rate increases.

Employee Benefit Plans

12 Months Ended

Dec. 31, 2011

EmployeeBenefitPlansAbstract

Employee Benefit Plans

Note 7 - Employee Benefit Plans

Pension Benefits

The Company’s Pension Plan covers substantially all active employees hired prior to March 31, 2007. Employees hired after March 31, 2007 are not eligible to participate in this plan, but can participate in a defined contribution plan that provides an annual contribution at the discretion of the Company, based upon a percentage of the participants’ compensation. In order to be eligible for contribution, the eligible employee must be employed by the Company on December 31^st of the year to which the award relates. In addition, the Company maintains an unfunded supplemental plan for its executive officers. The Accumulated Benefit Obligation for the Company’s Pension Plan at December 31, 2011 and 2010 was $46.5 million and $33.8 million, respectively.

Other Benefits

The Company’s Other Benefits Plan covers substantially all of its retired employees. Employees hired after March 31, 2007 are not eligible to participate in this plan. Coverage includes healthcare and life insurance. Accrued retirement benefit costs are recorded each year.

The Company has recognized a deferred regulatory asset relating to the difference between the accrued retirement benefit costs and actual cash paid for plan premiums in years prior to 1998. Included in the regulatory asset is a transition obligation from adopting Statement of Financial Accounting Standard No.106, “Employers’ Accounting for Postretirement Benefits Other than Pensions,” on January 1, 1993. In addition to the recognition of annual accrued retirement benefit costs in rates, Middlesex is also recovering the transition obligation over 15 years. The regulatory asset related to this transition obligation at December 31, 2011 and 2010 was $0.1 million and $0.2 million, respectively.

Regulatory Treatment of Over/Underfunded Retirement Obligations

Because the Company is subject to regulation in the states in which it operates, it is required to maintain its accounts in accordance with the regulatory authority’s rules and guidelines, which may differ from other authoritative accounting pronouncements. In those instances, the Company follows the guidance of ASC 980, Regulated Operations. Based on prior regulatory practice, and in accordance with the guidance in ASC 980, Regulated Operations, the Company records underfunded Pension Plan and Other Benefits Plan obligations, which otherwise would be recognized as Other Comprehensive Income under ASC 715, Compensation – Retirement Benefits, as a Regulatory Asset, and expects to recover those costs in rates charged to customers.

The Company uses a December 31 measurement date for all of its employee benefit plans. The table below sets forth information relating to the Company’s Pension Plan and Other Benefits Plan for 2011 and 2010.

	December 31, (Thousands of Dollars)
	Pension Plan						Other Benefits Plan
	2011			2010			2011			2010
Change in Projected Benefit Obligation:
Beginning Balance	$	42,138		$	38,311		$	29,605		$	22,736
Service Cost		1,574			1,396			1,306			1,025
Interest Cost		2,261			2,228			1,604			1,335
Actuarial Loss		12,047			2,022			11,121			5,032
Benefits Paid		(1,819	)		(1,819	)		(515	)		(523	)
Ending Balance	$	56,201		$	42,138		$	43,121		$	29,605
Change in Fair Value of Plan Assets:
Beginning Balance	$	29,989		$	25,298		$	12,890		$	9,680
Actual Return on Plan Assets		470			3,054			177			910
Employer Contributions		3,556			3,456			3,265			2,823
Benefits Paid		(1,819	)		(1,819	)		(515	)		(523	)
Ending Balance	$	32,196		$	29,989		$	15,817		$	12,890

Funded Status	$	(24,005	)	$	(12,149	)	$	(27,304	)	$	(16,715	)

Amounts Recognized in the Consolidated Balance Sheets consist of:
Current Liability		(303	)		(302	)		-			-
Noncurrent Liability		(23,702	)		(11,847	)		(27,304	)		(16,715	)
Net Liability Recognized	$	(24,005	)	$	(12,149	)	$	(27,304	)	$	(16,715	)

	Years Ended December 31, (Thousands of Dollars)
	Pension Plan									Other Benefits Plan
	2011			2010			2009			2011			2010			2009
Components of Net Periodic Benefit Cost
Service Cost	$	1,575		$	1,396		$	1,372		$	1,306		$	1,025		$	891
Interest Cost		2,261			2,228			2,101			1,604			1,335			1,086
Expected Return on Plan Assets		(2,283	)		(2,020	)		(1,602	)		(1,026	)		(759	)		(595	)
Amortization of Net Transition Obligation		-			-			-			135			135			135
Amortization of Net Actuarial Loss		565			506			615			878			531			493
Amortization of Prior Service Cost		10			10			10			-			-			-
Net Periodic Benefit Cost	$	2,128		$	2,120		$	2,496		$	2,897		$	2,267		$	2,010

Amounts that are expected to be amortized from Regulatory Assets into Net Periodic Benefit Cost in 2012 are as follows:

	(Thousands of Dollars)
	Pension Plan		Other Benefits Plan
Actuarial Loss	$	1,549	$	1,765
Prior Service Cost		10		-
Transition Obligation		-		135

The discount rate and compensation increase rate for determining our postretirement benefit plans’ benefit obligations and costs as of December 31, 2011, 2010 and 2009, respectively, are as follows:

	Pension Plan									Other Benefits Plan
	2011			2010			2009			2011			2010			2009
Weighted Average Assumptions:
Expected Return on Plan Assets		7.50	%		7.50	%		8.00	%		7.50	%		7.50	%		7.50	%
Discount Rate for:
Benefit Obligation		4.37	%		5.48	%		5.95	%		4.37	%		5.48	%		5.95	%
Benefit Cost		5.48	%		5.95	%		6.17	%		5.48	%		5.95	%		6.12	%
Compensation Increase for:
Benefit Obligation		3.00	%		3.00	%		3.50	%		3.00	%		3.00	%		3.50	%
Benefit Cost		3.00	%		3.00	%		3.50	%		3.00	%		3.00	%		3.50	%

The compensation increase assumption for the Other Benefits Plan is attributable to life insurance provided to qualifying employees upon their retirement. The insurance coverage will be determined based on the employee’s base compensation as of their retirement date.

For the 2011 valuation, costs and obligations for our Other Benefits Plan assumed a 9.0% annual rate of increase in the per capita cost of covered healthcare benefits in 2012 with a decline of 1.0% per year for 2013-2015 and 0.5% per year for 2016-2017, resulting in an annual rate of increase in the per capita cost of covered healthcare benefits of 5% by year 2017.

A one-percentage point change in assumed healthcare cost trend rates would have the following effects on the Other Benefits Plan:

	(Thousands of Dollars) 1 Percentage Point
	Increase		Decrease
Effect on Current Year’s Service and Interest Cost	$	555	$	(437	)
Effect on Projected Benefit Obligation	$	7,948	$	(6,236	)

The following benefit payments, which reflect expected future service, are expected to be paid:

	(Thousands of Dollars)
Year	Pension Plan		Other Benefits Plan
2012	$	1,829	$	753
2013		1,913		904
2014		1,904		1,054
2015		1,904		1,196
2016		1,955		1,339
2017-2021		12,024		8,905
Totals	$	21,529	$	14,151

Benefit Plans Assets

The allocation of plan assets at December 31, 2011 and 2010 by asset category is as follows:

	Pension Plan						Other Benefits Plan
Asset Category	2011			2010			2011			2010			Target			Range
Equity Securities		61.6	%		64.0	%		37.0	%		42.3	%		60	%		30-65%
Debt Securities		31.3	%		31.7	%		57.8	%		53.8	%		38	%		25-70%
Cash		6.9	%		4.0	%		4.6	%		3.1	%		2	%		0-10%
Commodities		0.2	%		0.3	%		0.6	%		0.8	%		0	%		0%
Total		100.0	%		100.0	%		100.0	%		100.0	%

Two outside investment firms each manage a portion of the Pension Plan asset portfolio. One of those investment firms also manages the Other Benefits Plan asset portfolio. Quarterly meetings are held between the Company’s Pension Committee of the Board of Directors and the investment managers to review their performance and asset allocation. If the actual asset allocation is outside the targeted range, the Pension Committee reviews current market conditions and advice provided by the investment managers to determine the appropriateness of rebalancing the portfolio.

The objective of the Company is to maximize the long-term return on retirement plan assets, relative to a reasonable level of risk, maintain a diversified investment portfolio and maintain compliance with the Employee Retirement Income Security Act of 1974. The expected long-term rate of return is based on the various asset categories in which plan assets are invested and the current expectations and historical performance for these categories.

Equity securities include Middlesex common stock in the amounts of $0.7 million (2.3% of total plan assets) and $0.7 million (2.4 % of total pension plan assets) at December 31, 2011 and 2010, respectively.

Fair Value Measurements

Accounting guidance provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described as follows:

Level 1 – Inputs to the valuation methodology are unadjusted quoted market prices for identical assets or liabilities in accessible active markets.

Level 2 – Inputs to the valuation methodology that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. If the asset or liability has a specified contractual term, the Level 2 input must be observable for substantially the full term of the asset or liability.

Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

Certain investments in cash and cash equivalents, equity securities, and commodities are valued based on quoted market prices in active markets and are classified as Level 1 investments. Certain investments in cash and cash equivalents, equity securities and fixed income securities are valued using prices received from pricing vendors that utilize observable inputs and are therefore classified as Level 2 investments.

The following table presents Middlesex’s Pension Plan assets measured and recorded at fair value within the fair value hierarchy as of December 31, 2011 (amounts in thousands):

	Level 1		Level 2		Level 3		Total
Common Trust-Large Cap	$	-	$	7,641	$	-	$	7,641
Mutual Funds:
Mid Cap Growth		655		-		-		655
Mid Cap Value		356		-		-		356
Foreign Small Mid Growth		214		-		-		214
Foreign Large Core		97		-		-		97
Foreign Large Blend		586		-		-		586
Diversified Emerging Markets		281		-		-		281
Preferred Stock Index		74		-		-		74
Money Market Funds:
Cash		1,389		1,281		-		2,670
Equity Securities:
Non-Financial Services		189		-		-		189
Financial Services		1,289		-		-		1,289
Utilities		1,629		-		-		1,629
Consumer Growth		1,685		-		-		1,685
Consumer Staples		956		-		-		956
Consumer Cyclicals		853		-		-		853
Industrial Resources		159		-		-		159
Capital Equipment		651		-		-		651
Technology		1,345		-		-		1,345
Energy		1,160		-		-		1,160
Other		40		-		-		40
Corporate Bonds		-		2,324		-		2,324
Mortgage-Backed Securities⁽¹⁾		-		2,527		-		2,527
Asset-Backed Securities⁽¹⁾		-		27		-		27
Agency/US/State/Municipal Debt		129		4,532		-		4,661
Sovereign/Non-US Debt		-		75		-		75
Commodities		52		-		-		52
Total Investments	$	13,789	$	18,407	$	-	$	32,196

(1) Mortgage-backed securities represent AAA rated securities and substantially all of the asset-backed securities are highly-rated (Standard & Poor's rating of AA+), secured primarily by credit card, auto loan and home equity receivables

The following table presents Middlesex’s Pension Plan assets measured and recorded at fair value within the fair value hierarchy as of December 31, 2010 (amounts in thousands):

	Level 1		Level 2		Level 3		Total
Common Trust Fund-Large Cap	$	-	$	6,844	$	-	$	6,844
Mutual Funds:
Mid Cap Growth		717		-		-		717
Mid Cap Value		374		-		-		374
Foreign Small Mid Growth		255		-		-		255
Foreign Large Blend		599		-		-		599
Foreign Large Core		114		-		-		114
Foreign Large Growth		207		-		-		207
Diversied Emerging Markets		398		-		-		398
Preferred Stock Index		80		-		-		80
Money Market Funds:
Cash		553		643		-		1,196
Equity Securities:
Non-Financial Services		209		-		-		209
Financial Services		976		-		-		976
Utilities		1,555		-		-		1,555
Consumer Growth		1,447		-		-		1,447
Consumer Staples		937		-		-		937
Consumer Cyclicals		998		-		-		998
Industrial Resources		498		-		-		498
Capital Equipment		729		-		-		729
Technology		1,188		-		-		1,188
Energy		1,033		-		-		1,033
Other		25		-		-		25
Corporate Bonds		-		2,915		-		2,915
Mortgage-Backed Securities (1)		-		2,323		-		2,323
Asset-Backed Securities (1)		-		93		-		93
Agency/US/State/Municipal Debt		129		3,864		-		3,993
Sovereign/Non-US Debt		-		191		-		191
Commodities		95		-		-		95
Total Investments	$	13,116	$	16,873	$	-	$	29,989

(1) Mortgage-backed securities represent AAA rated securities and substantially all of the asset-backed securities are highly-rated (Standard & Poor’s rating of AA+), secured primarily by credit card, auto loan, and home equity receivables

The following table presents Middlesex’s Other Benefits Plan assets measured and recorded at fair value within the fair value hierarchy as of December 31, 2011 (amounts in thousands):

	Level 1		Level 2		Level 3		Total
Mutual Funds:
Small Cap Core	$	90	$	-	$	-	$	90
Mid Cap Core		48		-		-		48
Mid Cap Growth		253		-		-		253
Mid Cap Value		288		-		-		288
Large Cap Core		3,406		-		-		3,406
Large Cap Growth		398		-		-		398
Large Cap Value		349		-		-		349
Foreign Small Mid Growth		225		-		-		225
Foreign Large Core		279		-		-		279
Foreign Large Growth		247		-		-		247
Diversified Emerging Markets		163		-		-		163
Preferred Stock Index		107		-		-		107
Money Market Funds:
Cash		-		818		-		818
Agency/US/State/Municipal Debt		424		8,622		-		9,046
Commodities		100		-		-		100
Total Investments	$	6,377	$	9,440	$	-	$	15,817

The following table presents Middlesex’s Other Benefits Plan assets measured and recorded at fair value within the fair value hierarchy as of December 31, 2010 (amounts in thousands):

	Level 1		Level 2		Level 3		Total
Mutual Funds:
Small Cap Core	$	95	$	-	$	-	$	95
Mid Cap Growth		277		-		-		277
Mid Cap Value		259		-		-		259
Large Cap Core		3,002		-		-		3,002
Large Cap Growth		365		-		-		365
Large Cap Value		298		-		-		298
Foreign Small Mid Growth		246		-		-		246
Foreign Large Core		276		-		-		276
Foreign Large Growth		306		-		-		306
Diversified Emerging Markets		217		-		-		217
Preferred Stock Index		116		-		-		116
Money Market Funds:
Cash		-		399		-		399
Agency/US/State/Municipal Debt		765		6,170		-		6,935
Commodities		99		-		-		99
Total Investments	$	6,321	$	6,569	$	-	$	12,890

Benefit Plans Contributions

For the Pension Plan, Middlesex made total cash contributions of $3.6 million in 2011 and expects to make cash contributions of approximately $4.1 million in 2012.

For the Other Benefits Plan, Middlesex made total cash contributions of $3.3 million in 2011 and expects to make contributions of approximately $4.8 million in 2012.

401(k) Plan

The Company has a 401(k) defined contribution plan, which covers substantially all employees with more than 1,000 hours of service. Under the terms of the Plan, the Company matches 100% of a participant’s contributions, which do not exceed 1% of a participant’s compensation, plus 50% of a participant’s contributions exceeding 1%, but not more than 6%. The Company’s matching contributions were $0.5 million for each of the years ended December 31, 2011, 2010 and 2009.

For those employees hired after March 31, 2007 and still employed on December 31, 2011, the Company approved and will fund discretionary contribution of $0.2 million, which was based on 5.0% of eligible 2011 compensation. For the years ended December 31, 2010 and 2009, the Company made discretionary contributions of $0.2 million and $0.1 million, respectively, for those employees hired after March 31, 2007.

Stock-Based Compensation

The Company has a stock compensation plan for certain management employees (the 2008 Restricted Stock Plan). The Company maintains an escrow account for 0.1 million shares of the Company's common stock for the 2008 Restricted Stock Plan. Such stock is subject to an agreement requiring forfeiture by the employee in the event of termination of employment within five years of the award other than as a result of retirement, death, disability or change in control. The maximum number of shares authorized for grant under the 2008 Restricted Stock Plan is 0.3 million shares, for which 0.2 million remain as unissued shares.

The Company recognizes compensation expense at fair value for the restricted stock awards in accordance with ASC 718, Compensation – Stock Compensation. Compensation expense is determined by the market value of the stock on the date of the award and is being amortized over a five-year period.

The following table presents information on the 2008 Restricted Stock Plan:

	Shares (thousands)			Unearned Compensation (thousands)			Weighted Average Grant Price
Balance, January 1, 2009		81		$	928
Granted		30			448		$	15.11
Vested		(17	)		-
Forfeited		(1	)		(6	)
Amortization of Compensation Expense		-			(380	)
Balance, December 31, 2009		93		$	990
Granted		14			239		$	16.97
Vested		(13	)		-
Forfeited		-			-
Amortization of Compensation Expense		-			(338	)
Balance, December 31, 2010		94		$	891
Granted		30			518		$	16.97
Vested		(15	)		-
Forfeited		(1	)		(7	)
Amortization of Compensation Expense		-			(323	)
Balance, December 31, 2011		108		$	1,079

The fair value of vested restricted shares was $0.2 million for each of the years ended December 31, 2011, 2010 and 2009.

Business Segment Data

12 Months Ended

Dec. 31, 2011

Business Segment Data

Business Segment Data

Note 8 – Business Segment Data

The Company has identified two reportable segments. One is the regulated business of collecting, treating and distributing water on a retail and wholesale basis to residential, commercial, industrial and fire protection customers in parts of New Jersey, Delaware and Pennsylvania. This segment also includes regulated wastewater systems in New Jersey and Delaware. The Company is subject to regulations as to its rates, services and other matters by the states of New Jersey, Delaware and Pennsylvania with respect to utility service within these states. The other segment is primarily comprised of non-regulated contract services for the operation and maintenance of municipal and private water and wastewater systems in New Jersey and Delaware.

Inter-segment transactions relating to operational costs are treated as pass-through expenses. Finance charges on inter-segment loan activities are based on interest rates that are below what would normally be charged by a third party lender.

	(Thousands of Dollars)
	Years Ended December 31,
Operations by Segments:	2011			2010			2009
Revenues:
Regulated	$	91,729		$	92,378		$	80,910
Non – Regulated		10,805			10,937			10,857
Inter-segment Elimination		(465	)		(580	)		(524	)
Consolidated Revenues	$	102,069		$	102,735		$	91,243

Operating Income:
Regulated	$	22,760		$	24,815		$	18,117
Non – Regulated		1,441			1,782			2,044
Consolidated Operating Income	$	24,201		$	26,597		$	20,161

Depreciation:
Regulated	$	9,601		$	9,093		$	8,401
Non – Regulated		145			151			158
Consolidated Depreciation	$	9,746		$	9,244		$	8,559

Other Income, Net:
Regulated	$	1,982		$	1,265		$	1,565
Non – Regulated		896			313			337
Inter-segment Elimination		(729	)		(134	)		(176	)
Consolidated Other Income, Net	$	2,149		$	1,444		$	1,726

Interest Expense:
Regulated	$	6,376		$	6,925		$	6,733
Non – Regulated		97			134			193
Inter-segment Elimination		(97	)		(134	)		(176	)
Consolidated Interest Charges	$	6,376		$	6,925		$	6,750

Net Income:
Regulated	$	12,088		$	13,152		$	8,652
Non – Regulated		1,359			1,178			1,325
Consolidated Net Income	$	13,447		$	14,330		$	9,977
Capital Expenditures:
Regulated	$	23,125		$	29,344		$	20,104
Non – Regulated		437			260			24
Total Capital Expenditures	$	23,562		$	29,604		$	20,128

	As of December 31, 2011			As of December 31, 2010
Assets:
Regulated	$	539,947		$	486,918
Non – Regulated		10,325			8,116
Inter-segment Elimination		(12,736	)		(5,849	)
Consolidated Assets	$	537,536		$	489,185

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 131
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 35
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 29
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 33
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-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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+ Details

Quarterly Operating Results - Unaudited

12 Months Ended

Dec. 31, 2011

Quarterly Operating Results - Unaudited

Quarterly Operating Results - Unaudited

Note 9 - Quarterly Operating Results - Unaudited

Operating results for each quarter of 2011 and 2010 are as follows:

	(Thousands of Dollars, Except per Share Data)
2011	1^st		2^nd		3^rd		4^th		Total

Operating Revenues	$	23,996	$	26,102	$	28,671	$	23,300	$	102,069
Operating Income		4,768		6,738		8,516		4,179		24,201
Net Income		2,630		3,625		5,143		2,049		13,447
Basic Earnings per Share	$	0.17	$	0.23	$	0.33	$	0.12	$	0.85
Diluted Earnings per Share	$	0.17	$	0.23	$	0.32	$	0.12	$	0.84

2010	1^st		2^nd		3^rd		4^th		Total

Operating Revenues	$	21,645	$	26,538	$	29,585	$	24,967	$	102,735
Operating Income		3,288		7,894		10,021		5,394		26,597
Net Income		1,560		4,424		5,736		2,610		14,330
Basic Earnings per Share	$	0.11	$	0.31	$	0.37	$	0.17	$	0.96
Diluted Earnings per Share	$	0.11	$	0.31	$	0.37	$	0.17	$	0.96

The information above, in the opinion of the Company, includes all adjustments consisting only of normal recurring accruals necessary for a fair presentation of such amounts. The business of the Company is subject to seasonal fluctuation with the peak period usually occurring during the summer months. The quarterly earnings per share amounts above may differ from previous filings due to the effects of rounding.

- Definition

The entire disclosure for the quarterly financial data in the annual financial statements. The disclosure may include a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income or loss before extraordinary items and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished.

+ References + Details

Label	Element	Value
AllowanceForFundsUsedDuringConstruction	MSEX_AllowanceForFundsUsedDuringConstruction	$ 421,000