MSEXP Middlesex Water Company (PK)

Item 8.01 Other Events

Middlesex Water Company Enters Into Perfluorooctanoic Acid-Related Administrative Consent Order with the New Jersey Department of Environmental Protection

In September 2021, the New Jersey Department of Environmental Protection (NJDEP) issued a Notice of Non-Compliance (Notice) to Middlesex Water Company (the Company) based on self-reporting by the Company that the level of Perfluorooctanoic Acid (PFOA) in water treated at its Park Avenue Wellfield Treatment Plant in South Plainfield, New Jersey exceeded a recently promulgated NJDEP standard effective in 2021. The NJDEP standard for PFOA was developed based on a Health-based Maximum Contaminant Level of 14 parts per trillion. Neither the NJDEP nor the Company has characterized this exceedance as an acute health threat. However, the Company was required to notify its affected customers and complied in November 2021 and January 2022 as required by the regulation.

Further, the Notice required the Company to take any action necessary to comply with the new standard by September 7, 2022. Construction of an enhanced treatment process at the Park Avenue Wellfield Treatment Plant to comply with the new standard had already begun prior to the regulation being enacted. Since completion of the enhanced treatment project was not expected until mid-2023, in December 2021, the Company implemented an interim solution to meet the Notice requirements. The Park Avenue Wellfield Treatment Plant was taken off-line and alternate sources of supply were obtained. Simultaneously, the Company accelerated a portion of the enhanced treatment project to allow a restart of the Park Avenue Wellfield Treatment Plant ahead of the historical higher water demand periods during the summer months.

In June 2022, the construction of the accelerated portion was completed and the Park Avenue Wellfield Treatment Plant is effectively treating ground water to ensure compliance with all state and federal drinking water standards. Working in coordination with the NJDEP, the Company successfully restarted the Plant and introduced treated wellfield water into the distribution system. Water being delivered to customers is in compliance with all United States Environmental Protection Agency and NJDEP drinking water standards, including the newly established water quality standard for PFOA.

On September 13, 2022, the Company entered into an Administrative Consent Order (ACO) with the NJDEP, which requires the Company to take whatever actions are necessary to achieve and maintain compliance with the Safe Drinking Water Act, N.J.S.A, 58:12A-1 et seq., and the Safe Drinking Water Act regulations N.J.A.C. 7:10-1 et seq., including applicable public notifications. The Company must issue the public notifications by February 22, 2023 and continue to complete and distribute public information as prescribed in the ACO.

In addition, in accordance with the ACO:

The Company’s failure to comply with the Compliance Schedule and or/ Progress Reporting requirements of the ACO could lead to penalties up to $500 per day. In additon, the NJDEP could penalize the Company for other violations of the ACO.