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Middlesex Water Company Announces First Quarter Results


May 6, 2011 - ISELIN, NJ

Middlesex Water Company (the "Company"),(NASDAQ: MSEX), a provider of water and wastewater and related servicesprimarily in New Jersey and Delaware, today announced operating revenuesfor the quarter ended March 31, 2011 of $24.0 million, up $2.4 million fromthe same period in 2010. Net income increased $1.1 million to $2.6 million.Basic and diluted earnings per share increased to $0.17 for the threemonths ended March 31, 2011, compared to $0.11 for the same period in 2010.

First Quarter Operating Results

Operating revenues for the three months ended March 31, 2011 increased $2.4million from the same period in 2010. Revenues in the Company's Middlesexsystem in New Jersey increased $2.0 million primarily due to the fulleffect of a 13.5% rate increase granted in late March 2010. Customergrowth in our Delaware system, Tidewater Utilities, increased revenues by$0.1 million and revenues from our non-regulated operating contractsincreased $0.1 million. All other subsidiaries revenues increased $0.2million.

Operation and maintenance expenses for the three months ended March 31,2011 increased $0.4 million compared to the same period in 2010. Thisincrease was primarily due to an additional $0.2 million in employeehealthcare costs and postretirement benefit plan expenses, $0.2 million inincreased labor costs due to higher average labor rates and lowercapitalized labor, $0.2 million of additional information technologysupport costs and $0.2 million in increases for miscellaneous other items.These increases were offset by cost savings of $0.4 million, primarily inthe areas of chemicals and sludge disposal as well as lower costs due to areduced number of water main breaks.

"Timely recovery of capital investments through rate relief along withgrowth in our Delaware customer base and added demand for non-regulatedcontract operations helped grow revenue in the first quarter," said DennisDoll, Chairman, President and CEO of Middlesex Water. "We remain focusedon managing risk, controlling expenses and evaluating profitable growthopportunities. In addition, we look forward to continued improvement inour business processes and enhanced service to customers through furtherintegration of various business systems technology applications," addedDoll.

Board Declares Quarterly Dividend

The Company's Board of Directors declared a quarterly cash dividend of$0.1825 per share, payable June 1, 2011 to common shareholders as of May16, 2011. The Company has paid cash dividends in varying amountscontinually since 1912. The Company has a Dividend Reinvestment Plan underwhich dividends and optional cash payments can be used to purchaseadditional shares of Common stock.

Annual Meeting of Shareholders

The Company will host its Annual Meeting of Shareholders on Tuesday, May24, 2011, beginning at 11:00 EDT at its corporate headquarters in Iselin,NJ.

About Middlesex Water Company

Middlesex Water Company, organized in 1897, is an investor-owned waterutility, serving customers in central and southern New Jersey and in theState of Delaware. The Company and its New Jersey subsidiaries --Pinelands Water Company and Pinelands Wastewater Company -- are subject tothe regulations of the Board of Public Utilities of the State of NewJersey. Middlesex Water operates the water and wastewater utilities forthe City of Perth Amboy through its subsidiary, Utility Service Affiliates(Perth Amboy), Inc. Middlesex Water also provides contract operationsservices and a service line maintenance program through its non-regulatedsubsidiary, Utility Service Affiliates, Inc. The Company's regulatedDelaware subsidiaries, Tidewater Utilities, Inc., together with SouthernShores Water Company, and Tidewater Environmental Services, Inc. (TESI) aresubject to the regulations of the Public Service Commission in Delaware.TESI provides regulated wastewater utility services. White MarshEnvironmental Systems, Inc. operates small water and wastewater systemsunder contract on a non-regulated basis in Delaware. Twin Lakes Utilities,Inc. provides water services to residents of Shohola, Pennsylvania and issubject to the regulations of the Pennsylvania Utility Commission. Thesecompanies are also subject to various Federal, State and regulatoryagencies concerning water and wastewater effluent, quality standards.

For additional information regarding Middlesex Water Company, visit theCompany's Web site at www.middlesexwater.com or call (732) 634-1500.

This release contains forward-looking statements within the meaning of thePrivate Securities Litigation Reform Act of 1995, including, among others,our long-term strategy and expectations, the status of our acquisitionprogram, the impact of our acquisitions, the impact of current andprojected rate requests and the impact of our capital program on ourenvironmental compliance. There are important factors that could causeactual results to differ materially from those expressed or implied by suchforward-looking statements including: general economic business conditions,unfavorable weather conditions, the success of certain cost containmentinitiatives, changes in regulations or regulatory treatment, availabilityand the cost of capital, the success of growth initiatives and otherfactors discussed in our filings with the Securities and ExchangeCommission.



MIDDLESEX WATER COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands except per share amounts)

Three Months Ended
March 31,
2011 2010
========== ==========

Operating Revenues $ 23,996 $ 21,645
---------- ----------

Operating Expenses:
Operations and Maintenance 14,031 13,594
Depreciation 2,412 2,204
Other Taxes 2,785 2,559
---------- ----------

Total Operating Expenses 19,228 18,357
---------- ----------

Operating Income 4,768 3,288
========== ==========

Other Income (Expense):
Allowance for Funds Used During Construction 194 294
Other Income 157 170
Other Expense (49) (17)
---------- ----------

Total Other Income, net 302 447
---------- ----------

Interest Charges 1,214 1,424
---------- ----------

Income before Income Taxes 3,856 2,311
========== ==========

Income Taxes 1,226 751
---------- ----------

Net Income 2,630 1,560

Preferred Stock Dividend Requirements 52 52
---------- ----------

Earnings Applicable to Common Stock $ 2,578 $ 1,508
========== ==========

Earnings per share of Common Stock:
Basic $ 0.17 $ 0.11
Diluted $ 0.17 $ 0.11

Average Number of Common Shares Outstanding:
Basic 15,576 13,538
Diluted 15,839 13,801

Cash Dividends Paid per Common Share $ 0.1825 $ 0.1800


Contact:
Bernadette Sohler
Vice President - Corporate Affairs
Middlesex Water Company
1500 Ronson Road
Iselin, New Jersey 08830
(732) 638-7549
www.middlesexwater.com

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