SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report: February 4, 1999
MIDDLESEX WATER COMPANY
(Exact name of registrant as specified in its charter)
NEW JERSEY 0-422 22-1114430
(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) File Number) Identification No.)
1500 RONSON ROAD, P.O. BOX 1500, ISELIN, NEW JERSEY 08830
(Address of principal executive offices, including zip code)
(732) 634-1500
(Registrant's telephone number, including area code)
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MIDDLESEX WATER COMPANY
Item 5. Other Events
The Company has completed a transaction that includes a 20-year contract with
the City of Perth Amboy (the "City") for operation, maintenance and management
services for the City's Water System and Wastewater System and a financing
related to the contract. In the financing the Middlesex County Improvement
Authority (the "Authority") issued three series of bonds totaling
approximately $ 68 million, with the Company being the guarantor on one of the
series in the principal amount of approximately $ 26 million.
Under the contract the Company, through its newly-formed subsidiary Utility
Service Affiliates (Perth Amboy) Inc. ("USA-PA"), will operate and manage the
City's water and sewer utilities and pay the City concession fees of $4.5
million annually for the first five years of the contract and $1.1 million for
the remaining 15 years. USA-PA is to be paid fees ranging from $6.4 million
in the first year to $9.7 million in the final year of the contract. The City
and USA-PA will generally share equally in new revenues generated.
USA-PA has entered into a subcontract with an unaffiliated entity that will
operate and manage the wastewater system. USA-PA will make $18 million in
capital improvements using funds obtained from the Authority.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned hereunto duly authorized.
MIDDLESEX WATER COMPANY
(Registrant)
Date: February 4, 1999 /s/Marion F. Reynolds/
Marion F. Reynolds
Vice President, Secretary and Treasurer