Slide 1: A Provider of Water, Wastewater & Related Services
“A Provider of Water, Wastewater & Related Services” Today’s Presenters Dennis W. Doll, President & CEO Bruce O’Connor, Vice President & CFO
Slide 2: Forward Looking Statement
Forward Looking Statement Certain matters discussed in this presentation are forward-looking statements intended to qualify for the “safe harbor” from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified as such b
Slide 3: Overview
OVERVIEW Serve approximately 125,000 retail and wholesale water customers in New Jersey and Delaware Expanded over time to provide a full range of regulated and non-regulated water, wastewater and related services C ash dividends paid in varying amounts continually since 1912. NASDAQ Global Select M
Slide 4: Stats at a Glance
STATS AT A GLANCE 52-week low/high: $16.93/$20.24 Market capitalization: $249.81 million Common shares outstanding: 13.2 million Average daily volume: 30,000 shares (3 months) Current dividend yield: 3.65% Institutional Ownership: 25% As of September 12, 2007
Slide 5: Middlesex Water Company Service Areas
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Slide 6: Relative Cost of Water
Relative Cost of Water Percentage of Annual Household Utilities Budget 41% 31% 1% 8 A a Water Wastewater & NaturalGas & — Telephone Bectricity Other Fuel Oil
Slide 7: Water vs. Other Utilities' CapEx Requirements
Water vs. Other Utilities’ CapEx Requirements Capital Invested per $1 of Revenue $1.46 Telephone Gas-Dist. Electric
Slide 8: Investor-Owned Water/Wastewater Industry
Investor-Owned Water/Wastewater Industry Capital intensive, high barriers to entry Significant need for continued capital investment on a national level Consolidation has left only 11 publicly-traded investor owned- companies (23 ten years ago) 54,000 community water systems in the U.S. 47,000 serve
Slide 9: Investor-Owned Water/Wastewater Industry
Investor-Owned Water/Wastewater Industry Wastewater is a growing opportunity for investor-owned water purveyors. Skills are complementary Non-regulated contract operations can be an important part of the menu of services Range of products and services continues to expand Regulated utilities are only
Slide 10: The Middlesex Story
The Middlesex Story
Slide 11: Vision & Strategy
Build long-term shareholder value by being a trusted provider of safe, reliable and cost-effective water, wastewater and related products and services in New Jersey, Delaware and beyond. Vision & Strategy
Slide 12: Total Customers Served – 125,000
Total Customers Served – 125,000
Slide 13: What We Do
What We Do Regulated Non-regulated
Slide 14: What We Do
What We Do Any Combination Along the Public/Private Partnership Continuum Design Bid Build Private Contract Fee (O&M) Services Design Build Build Operate Transfer Design Build Finance Operate Build Own Operate Public Projects Public Owns We Operate Public Owns & Operates, We Design & Build Public Ow
Slide 15: Our Services
Our Services Design, build, own and operate water and wastewater assets Complementary water and wastewater products & services Public/Private partnerships Customers 2006
Slide 16: Renewable Energy: Good for the Environment and Good for Business
Renewable Energy: Good for the Environment and Good for Business Solar Panels at Our Largest Treatment Plant
Slide 17: Plentiful and Reliable Supply of Surface Water and Groundwater
Plentiful and Reliable Supply of Surface Water and Groundwater
Slide 18: Building Our Reputation, Drop by Drop
Building Our Reputation, Drop by Drop
Slide 19: Emergency Planning & Preparedness
Emergency Planning & Preparedness Review emergency preparedness plans to ensure the health and safety of our customers. Communicate regularly with local emergency management officials to address crisis planning. Work with State/County Health Departments to plan for the fixed distribution of preventi
Slide 20: Corporate Social Responsibility
Corporate Social Responsibility
Slide 21: Building Relationships
Building Relationships
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Slide 23: Delivering Shareholder Value
Delivering Shareholder Value Prudent Investment In Regulated Utility Infrastructure Rate Base/Rate of Return methodology allows for a return on prudently incurred costs to construct utility assets
Slide 24: How We Deliver Shareholder Value
How We Deliver Shareholder Value Acquisition and Development of Regulated and Non-Regulated Businesses and Contracts Combine organic customer and utility infrastructure growth with prudent investments in additional regulated utilities, non-regulated contract operations and complementary products and
Slide 25: Maximizing Shareholder Value
Maximizing Shareholder Value Timely/adequate rate case outcomes, minimize regulatory lag Diligently manage costs and drive down both capital and O&M costs between rate cases Profitable Growth Organic customer growth, economies of scale Acquisitions at reasonable prices Complementary non-regulated pr
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Slide 27: The Growth Story
P rivatizations and acquisitions in NJ, DE and beyond Significant opportunities in both water and wastewater in DE and beyond Wastewater a key driver of growth Reputation for sound technical solutions spreading beyond NJ & DE Complementary products and services continue to grow (LineCare & LineCare
Slide 28: Where's the Wastewater Treatment Plant?
Where’s the Wastewater Treatment Plant?
Slide 29: Wastewater Plant
Wastewater Plant Critical Facilities Blend into the Landscape
Slide 30: Financial Overview
ATER COMPANY IDDLESEX FINANCIAL OVERVIEW
Slide 31: Performance
Performance (millions except per share amounts) Six Months Ended June 30, 2007 2006 Operating Revenues $ 40.7 $ 39.3 Operating Expenses $ 30.7 $ 29.1 Net Income $ 5.1 $ 4.8 Diluted Earnings per Share $ 0.37 $ 0.40
Slide 32: Key Drivers of Performance
Key Drivers of Performance Rate increases Utility plant investment Customer Growth Upgrades & Replacements Variable production costs Power Chemicals Purchased Water Treatment Residuals Labor and benefits costs
Slide 33: Rate Increases
Rate Increases Amount Increase ($ Millions ) Approved Pinelands $0.1 4/13/06 Tidewater $2.1 6/27/06 (Interim Rates – 15%) Tidewater $1.8 2/28/07
Slide 34: Customer Growth
Customer Growth
Slide 35: Utility Plant
Utility Plant ($ millions)
Slide 36: 2007 Capital Investment
2007 Capital Investment New Jersey $3.9 million on infrastructure upgrades replacements and RENEW Program Delaware $4.9 million on infrastructure upgrades, replacements and new water and wastewater treatment facilities
Slide 37: Equity Financing
Equity Financing Issued 1,495,000 common shares on 11/02/06 for gross proceeds of $27.6 million Dividend Reinvestment Plan $1.2 Million Annual Inflow
Slide 38: 2007 Debt Financing
2007 Debt Financing State Revolving Fund Delaware - $1.0 Million, 20 Years New Jersey - $4.0 Million, 20 Years
Slide 39: Capital Structure
Capital Structure ($ millions) % to 6/30/2007 Total LT Debt $ 130.4 49.3% Preferred 4.0 1.5% Common 130.1 49.2% $ 264.5 100.0%
Slide 40: 2007 Construction Program
2007 Construction Program ($ millions) Delaware Water Systems $12.1 Delaware Wastewater Systems 6.0 MWC RENEW Program 3.9 Other Scheduled Upgrades Total $32.1 10.1
Slide 41: 2007 Construction Funding
2007 Construction Funding ($ millions) SRF Loans Short Term Reinvestment Plan Common Stock Offering Net Cash Flows Total Funding 6.0 6.0 1.2 8.9 10.0 $32.1
Slide 42: Dividends
Dividends Annual Rate Quarterly dividends paid since 1912 2004 2005 2006 $0.67 $0.68 $0.69
Slide 43: Dividends Paid
Dividends Paid $0.69
Slide 44: 2007 Dividend Yield
2007 Dividend Yield Connecticut Water 3.6% Middlesex Water 3.6% Artesian Resources 3.5% California Water 2.9% York Water 2.8% Pennichuck Corp. 2.7% American States Water 2.3% Aqua America 2.0% SJW Corp. 1.9% Southwest Water 1.7%
Slide 45: 2006 Total Shareholder Return
2006 Total Shareholder Return* *Dividends plus change in stock price SJW Corp. 74% American States Water 29% Middlesex Water 12% California Water 9% York Water 6% Artesian Resources 3% Pennichuck Corp. 2% Southwest Water - 2% Connecticut Water - 4% Aqua America -15%
Slide 46: A Quality Investment
A Quality Investment Stable customer base & excellent regulatory relations + Solid balance sheet & financing capability + Comprehensive suite of service offerings + Further growth and profitability (expanding markets in NJ, DE and beyond) + Experienced management team and active industry leader + Re
Slide 47: For Additional Information
For Additional Information about Middlesex Water Company, visit www.middlesexwater.com For Additional Information about Tidewater Utilities, Inc., visit www.tuiwater.com QUESTIONS?
Slide 48: A Provider of Water, Wastewater and Related Products and Services
A Provider of Water, Wastewater and Related Products and Services Thank you for your interest and support!