Slide 1: Annual Meeting of Shareholders
Annual Meeting of Shareholders May 19, 2015 IDDLESEX ATER COMPANY
Slide 2: Forward Looking Statement
Forward Looking Statement As an introduction to the information we will be discussing, please be aware that some of our comments can be considered forward-looking statements as defined by the federal securities laws and as outlined in the Company’s SEC filings. As such, any forward- looking statemen
Slide 3: Power of Water
No other resource has its tremendous power to quench, to heal, to grow, to soothe, to cleanse, to energize, to protect and to sustain life itself. ower of Water
Slide 4: Company Overview
Company Overview Incorporated 1897 Market Cap: (millions) $354M 52-Week Range $19.50-$23.85 Average Volume (3m) 27,746 Tot. Shares Outstanding 16.1M Dividend Yield 3.5% Dividend Rate/Share ON Institutional Ownership 40% NASDAQ: MSEX
Slide 5: Middlesex Water Company Service Areas
Stott Middlesex Water Company Service Areas ‘ | Oy Retail Service Area ‘Tin Lakes Us, Ee Pennsylvania Middlesex owns and Operates regulated water and wastewater systems in New Jersey, Delaware and Pennsylvania. CHUEGUEE Oe Tidewater Atlantic a . Utilities, Ine. Ocean =e “Delaware *Y 5
Slide 6: Tidewater
Tidewater System Tidewater Environmental Services, Inc. Non- Regulated Contract Operations and Other |Services and Investments Utility Service Affiliates Emergency Home Repair Programs
Slide 7: Evolving Opportunities in a Fluid Environment
Evolving Opportunities in a Fluid Environment Contract Operations Public Private Partnerships Military Base Acquisitions: Leveraging Our Core © Utility applcations Expertise Renewable Energy
Slide 8: Dover Air Force Base
Dover Air Force Base April 2014 DPSC approved Tidewater’s 50-year agreement with the U.S. Department of Defense for the privatization of the water system of Dover Air Force Base October 2014 Tidewater assumed ownership of DAFB water utility assets and began providing regulated water service
Slide 9: Resilience
Resilience Vulnerability Hardening Assessments our Assets Backup Generation Plant Upgrades Technology Upgrades Emergency Power & Interconnections Customer Communications
Slide 10: Physical and Cybersecurity
Slide 11: Physical and Cybersecurity
Physical and Cybersecurity Employee Connect- Accounts Manage- Financials ivity Payable ment -Business Systems Transactional -HR Data Information Security -Employee SEeuiiy Information Security -Penetration Prevention Security -Intrusion Prevention Virus Detection and Removal
Slide 12: Discussing Infrastructure Projects & Emergency Response Protocols with Municipal Reps
Slide 13: Analyst Commentary
Analyst Commentary March 2015 — MSEX upgraded from “Neutral” to “Outperform” by investment analysts at Robert W. Baird. ‘With a rate relief/rate design authorized and DSIC established, MSEX is now focused on accelerated CapEX investment opportunities that are expected to boost rate base growth CAGR
Slide 14: Analyst Commentary
Analyst Commentary August 2014 — Middlesex Water Co. Outlook Revised to Positive; A- Corporate Credit Rating Affirmed by Standard & Poors. “The positive outlook reflects our expectation for continuing improvements in the company’s management of regulatory risk. The “excellent” business risk profile
Slide 15: Dividend Payout Ratio
Dividend Payout Ratio Lowest rate in 31 aire 87.30% 82.60% 73.10% a 66. a 2011 2012 2013 2014
Slide 16: Financial Highlights
Financial Highlight
Slide 17: Net Income (millions)
13.4 2011 Net Income (millions) 16.6 14.4 2012 2013 18.4 2014 17
Slide 18: Earnings Per Share
Earnings Per Share 1.13 0.90 0.9 2011 2012 2013 2014 18
Slide 19: Return on Equity
Return on Equity 8.0% 7.6% 9.0% 2011 2012 2013 8.9% 2014 19
Slide 20: Revenues (millions)
Revenues (niillions) 117.1 114.8 110.4 102.1 / 2011 2012 2013 2014 20
Slide 21: Operating Revenues By Segment
Operating Revenues By Segment © Regulated ™ Non-Regulated 21
Slide 22: 2014 Sources of Revenue
2014 Sources of Revenue Sales = Residential = Commercial = Industrial _ Fire Protection © Contract Sales Contract Ops. = Other
Slide 23: 2003 Sources of Revenue
2003 Sources of Revenue Sales = Residential = Commercial = Industrial _ Fire Protection © Contract Sales Contract Ops. = Other
Slide 24: Efficiency Performance
Efficiency Performance ($Millions) Year Ended December 31, 2014 2013 2012 Operating Revenues $117.1 $114.8 $110.4 O & M Expenses $ 59.1 $ 60.7 $ 60.5 O & M Efficiency Ratio 49.5% 47.1% 45.2% Regulated Efficiency Ratio 53.0% 50.6% 48.8% 24
Slide 25: First Quarter 2015 Results
First Quarter 2015 Results ($Millions except per share amounts) First Quarter Ended March 31, 2015 2014 Operating Revenues $28.8 $27.2 O & M Expenses $16.0 $15.4 Net Income $ 3.6 $ 3.2 Diluted Earnings Per Share $0.22 $ 0.20 25
Slide 26: 2015 Performance
2015 Performance ($Millions) Large Customer Revenue Losses Valuation Changes — All Benefit Plans Pre-Tax Operating Income Impact $ 0.7 $ 2.9 $ 3.6 26
Slide 27: Rate Activity
Sede Rate Activity Amount Filed Middlesex $9.5 Million March 2015 Amount Effective Middlesex $4.2 Million June 2014 Middlesex DSIC $0.3 Million May 2015 Tidewater $0.8 Million August 2014 Tidewater DSIC $0.1 Million January 2015 27
Slide 28: Distribution System Improvement Charge (DSIC)
Distribution System Improvement Charge (DSIC) DSIC: A rate mechanism that allows water utilities to recover investment in improvements to their water distribution system between base rate proceedings. NEW JERSEY DSIC Program in place since 2012. June 2014 — 24 Foundational Filing DELAWARE DSIC Progr
Slide 29: Utility Plant (millions)
Utility Plant (sminions) 2011 2012 2013 2014
Slide 30: 2015 Construction Program
2015 Construction Program $23.6 Million gs cK S&S a. Technology Other Infrastructure Plant Distribution System Needs Improvements $7.00 30
Slide 31: Construction Funding
Construction Funding > — Total Funding —*3.60 4 — $23.6 Million = =] | Funding $7.00 _ $0.70 $1.00 $4.30 Customer SRF Loans Reinvestment Long-term Net Cash Advances Plan Loans Flows 31
Slide 32: Long Term Debt
Long Term Debt * Q4 2014 Tidewater -$15.0 Million ¢ Final Maturity - 2040 ¢ Effective interest rate — 4.46% 32
Slide 33: Electronic Billing Payment & Presentation
Electronic Billing Payment & Presentation + Convenient & Easy » Secure Online Environment + Green, Eco-friendly, Sustainable + Access, Manage, View & Pay Benefits + Detailed Bill View & History + Enhanced Customer Service + Faster collection of accounts receivable management + Saves on printing, pos
Slide 34: Dividend History
$0.78 $0.76 $0.74 $0.72 $0.70 $0.68 $0.66 $0.64 $0.62 Dividend History 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 34
Slide 35: Operations
OPERATIONS 35
Slide 36: RENEW Pilot
RENEW PILOT $3.8 million investment to clean and line aging water mains and replace valves, fire hydrants and water service lines
Slide 37: Asset Management
Asset Management Leak Detection and Survey Asset Condition Assessment > Likelihood of Failure > Consequence of Failure Prioritization of Rehabilitation & Replacement Risk Management and Mitigation Capital Program Development 37
Slide 38: Asset Lifecycle and Capital Budget
Range Capital Dispose Salvage Annual Capital Budget Procure Construct and install SY Operate Depreciate Revenue
Slide 39: Drinking Water Treatment
Drinking Water Treatment Scheduled switch from chlorine to = chloramine at Southern Shores Water Company in Delaware - Keeps water mains clean and free of potentially harmful bacteria - Reduces disinfection byproducts
Slide 40: Honors and Awards
Honors and Awards Yeas of Good Works the Year Torch Award for Marketplace Ethics
Slide 41: Lending a Helping Hand
Slide 42: The Value of Water
pes Pig ee Value of Water GAINING A VOICE TRUTH FROM : ey) a S DDS WATER The Value of RSe aun WATER A.COMPENDIUM OF ESSAYS BY SMART CEOS BUSINESS WATER PUTS AMERICA TO WORK| waterforjobs.org thevalueof water.org waterisyourbusiness.org
Slide 43: Finalist in the Governance, Risk & Compliance Leadership Awards
Middlesex Water Company has been named a Finalist in the Governance, Risk & Compliance Leadership Awards « Award recognizes outstanding companies who have demonstrated noteworthy efforts in the areas of governance, risk and compliance " Best Governance, Risk & Compliance Program at a Small to Mid-Ca
Slide 44: In Grateful Acknowledgement
In Grateful Acknowledgement The Middlesex Water family of Companies acknowledges Dr. John Cutting for his leadership and counsel throughout his 18 years of service. Dr. Cutting served as Chair of the Pension Committee and as a member of the Audit and Ad Hoc Pricing Committees 44
Slide 45: Questions?
| Questions? \ This presentation will be archived on our Investor Relations site at www.middlesexwater.com IDDLESEX ATER COMPANY AS