Middlesex Water Company Files for Rate Increase

ISELIN, NJ--(Marketwire - August 17, 2009) - Middlesex Water Company, (NASDAQ: MSEX), a
provider of water and wastewater and related services in New Jersey and
Delaware, today filed a request with the New Jersey Board of Public
Utilities (BPU) for a general increase in water rates for its Middlesex
system in New Jersey. The Company, which last filed in April 2007, is
requesting an overall increase of approximately 26.03% or $15.1 million
over current revenues to support its ongoing capital program and to cover
costs of increases in operations, chemicals and fuel, electricity, taxes,
labor and benefits. Even at the increased rate, the cost of treated water
delivered by Middlesex Water is about one-half penny per gallon.

If the increase were granted in its entirety as requested, a typical
residential customer using 2,600 cubic feet (19,448 gallons) of water per
quarter would see their bill increase from $98.20 to $123.76, or about
$8.52 per month. The proposed increase is being requested to be applied
equally to all classes of customers, e.g. residential, commercial, and
industrial.

"Delivering quality drinking water and prudently investing in our
facilities and distribution infrastructure to support that mission is our
utmost priority. But faced with rising costs in power, fuel, chemicals, we
are experiencing the same economic crunch that is impacting many of our
customers," said Dennis W. Doll, President and CEO. "Part of this increase
seeks to recover $39.0 million of investments we have made in
rehabilitating aging water mains and enhancing our operational efficiencies
through upgrades in our facilities, equipment and technology since our last
rate filing," added Doll.

Upon receipt of this rate increase request, the proposal will next be
reviewed, analyzed and challenged by the BPU and various state agencies. A
thorough investigation including a public hearing on this matter will be
held in the company's service area before a decision is made.

Middlesex Water Company (the Middlesex system) presently serves 59,700
retail customers in the Townships of Woodbridge, Edison, the Borough of
South Plainfield, Carteret, Metuchen, the City of South Amboy, the Township
of Clark and the Town of Fortescue in Downe Township in Cumberland County,
NJ. The Company also provides service under contract to the Boroughs of
Highland Park and Sayreville, the Old Bridge Municipal Utilities Authority
(MUA), the Marlboro Township MUA, the City of Rahway and, under a special
contract, the Township of East Brunswick.

About Middlesex Water Company

Middlesex Water Company, organized in 1897, is an investor-owned water
utility, serving customers in central and southern New Jersey and in the
State of Delaware. Headquartered in Iselin, NJ, Middlesex Water is subject
to various Federal and State regulatory agencies concerning water quality
standards.

For additional information regarding Middlesex Water Company, visit the
Company's Web site at www.middlesexwater.com or call (732) 634-1500.

This release contains forward looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995, including, among others,
our long-term strategy and expectations, the status of our acquisition
program, the impact of our acquisitions, the impact of current and
projected rate requests and the impact of our capital program on our
environmental compliance. There are important factors that could cause
actual results to differ materially from those expressed or implied by such
forward-looking statements including: general economic business conditions,
unfavorable weather conditions, the success of certain cost containment
initiatives, changes in regulations or regulatory treatment, availability
and the cost of capital, the success of growth initiatives and other
factors discussed in our filings with the Securities and Exchange
Commission.