TIDEWATER FILES FOR RATE INCREASE CITING ADDED UTILITY PLANT INVESTMENT TO SUPPORT CUSTOMER GROWTH 

CONTACT: Gerard L. Esposito, President or Carol S. Murphy, Customer/Community Outreach Coordinator (302) 734-7500

DOVER, DELAWARE (April 26, 2004) -- Tidewater Utilities, Inc. (Tidewater) has filed a request with the Delaware Public Service Commission (PSC) for a 24% increase in water rates.  Tidewater has invested $11.9 million in plant upgrades and equipment over the past year to keep pace with double-digit growth in its customer base. The Company, which last filed for an increase in January 2002, is requesting an overall increase of $2.5 million over current revenues, to cover costs of its increased capital investment as well as operations and maintenance expenses. The Company is proposing that new rates be implemented in phases -- with an initial 13% interim rate increase within 60 days of the filing request, -- and the remainder split and phased in over two subsequent 6-month periods. 

Presently, the average household served by Tidewater is charged approximately $29.35 per month for 5,000 gallons of water. This figure includes the 4.89% Distribution System Improvement Charge (DSIC) which was approved by the PSC and placed into effect on January 1, 2004. The new rate, based on 5,000 gallons of water, and reflecting the final phase of this request, would result in a monthly bill of $36.42.

Since 1992, Tidewater has invested more than $48 million to build new water systems, upgrade treatment facilities and improve its water distribution infrastructure. In 2003, Tidewater added 31 miles of main and installed new wells, pump houses, generators and booster stations throughout its systems. The Company continues to focus on creating system interconnections, water main extensions and consolidating its many independent systems into regional districts. Tidewater operates 70 independent water systems with 100 water plants and over 209 wells to serve over 240 residential communities throughout Delaware. 

Tidewater Utilities, Inc., currently serves about 24,000 residential and other customers in Kent, New Castle and Sussex Counties, DE. Under the new rate structure, water charges for residential customers would consist of a $42.22 quarterly facilities charge and a consumption charge of $4.77 per 1,000 gallons. 

“Tidewater has made significant capital additions and improvements to its new and existing systems. Nearly $20 million of utility plant has been placed in service since the last rate case,” said Gerard L. Esposito, President of Tidewater Utilities, Inc. “This rate filing will help support the upgrades needed to continue providing quality service to our customers,” said Esposito.

The Delaware Public Service Commission will next examine the rate proposal. A public hearing on the matter will be held in the Company’s service area where customers are welcome to comment on the filing request.

Tidewater Utilities, Inc. is a wholly owned subsidiary of Middlesex Water Company, a leading New Jersey water utility established in 1897.