DOVER - Tidewater (NYSE:TDW) Utilities, Inc., a subsidiary of Middlesex Water Company (NASDAQ: NASDAQ:MSEX), announced its readiness to comply with the upcoming United States Environmental Protection Agency's (EPA) drinking water standard for specific PFAS compounds.
The new regulations, which were unveiled on April 10, 2024, target six PFAS substances and will establish a Maximum Contaminant Level (MCL) for PFOS and PFOA at 4 parts per trillion (ppt). The rules are slated to take effect in 2029.
PFAS, or Per-and Polyfluoroalkyl substances, are a collection of man-made chemicals prevalent in various industrial applications and consumer goods since the 1940s. The presence of these substances in drinking water has raised health concerns, prompting the EPA to set new national requirements for their regulation.
Bruce E. Patrick, President of Tidewater, expressed the company's support for the EPA's efforts to safeguard public health. Tidewater has been proactively testing all of its 175 wells and has already installed ion exchange resin systems for PFAS treatment at four locations.
The company remains vigilant in monitoring its water supplies to maintain adherence to the new EPA standards and is prepared to undertake further plant upgrades if future water sampling indicates a need.
Tidewater serves approximately 59,000 retail customers across Delaware, providing water for residential, commercial, and fire protection purposes in over 470 communities. The company emphasizes its commitment to delivering a safe and reliable water supply to Delaware's residents and businesses.
The forward-looking statements in Tidewater's announcement are subject to various factors that could cause actual results to differ materially, including economic conditions, weather, regulatory changes, and the availability and cost of capital. These factors are further discussed in filings with the Securities and Exchange Commission.
This news is based on a press release statement from Middlesex Water Company, Tidewater's parent company.
InvestingPro Insights
As Tidewater Utilities prepares to meet the new EPA standards, its parent company, Middlesex Water Company (NASDAQ: MSEX), presents a mixed financial canvas. According to InvestingPro data, Middlesex Water Company has a market capitalization of $844.57 million and maintains a P/E ratio of 26.62, reflecting investor sentiment on its earnings capacity.
The company's commitment to shareholder returns is evidenced by its impressive track record of raising dividends for 20 consecutive years and maintaining dividend payments for an astounding 54 years, a testament to its financial stability.
InvestingPro Tips suggest that MSEX is currently trading near its 52-week low and has seen its price fall significantly over the last three months, which may indicate a potential entry point for investors who believe in the company's long-term value and its proactive approach to regulatory compliance. Despite the price decline, the company has remained profitable over the last twelve months, with a gross profit margin of 50.01%, underscoring its ability to manage costs effectively.
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