Environmental Impact
As a leading provider of life-sustaining utility services, we strive to operate in a responsible manner and focus on impacts of our operations on the environment. Operating responsibly means making prudent and timely investments in infrastructure and working to mitigate environmental risks to ensure the sustainability of our business.
We are committed to high standards of excellence in the delivery of water and wastewater services, to taking measures to ensure climate resilience, to serving as a trusted resource to our customers and local governments, to building stronger communities and to providing a solid framework that drives economic stability, prosperity and quality of life. Our updated Environmental Policy frames the foundation of our commitment to environmental stewardship.
Investments in Infrastructure (2022 Progress)
- Middlesex Water’s wellfield tested above new health-based standards for an insidious threat used to make nonstick cookware known as PFAS (per- and polyfluoroalkyl substances) in late 2021. The Company promptly notified customers of the exceedance and was able to switch to alternate drinking water sources by November 2021. By June 2022, MWC began successfully treating groundwater for PFAS compounds with its Phase 1 construction of an advanced treatment facility at its Park Avenue wellfield which continues to effectively treat groundwater in compliance with all state and federal drinking water standards. Despite lingering challenges in the supply chain, the full treatment facility project remains on target for completion in June 2023. Proceedings continue in Middlesex Water’s lawsuit against the alleged polluter.
- Invested approximately $10 million to replace 22,500 linear feet of aging water main as well as 583 service lines, valves and 21 fire hydrant replacements.
- MWC has complied with all the amended requirements to the Water Quality Accountability Act. These include expanded cybersecurity requirements for utilities, new inspection schedules for valves and hydrants and the requirement of annual submission of capital improvement reports and associated capital expenditures to regulatory agencies.
Lead service lines present the greatest threat of lead in drinking water. Based on the knowledge that replacing lead lines helps reduce exposure and protect public health as well as new Lead and Copper Rule revisions enacted by the USEPA, Middlesex has embarked on a utility-wide program to remove all lead and galvanized steel service lines on the customer and utility side by 2031. Middlesex had been proactive and replaced most of the known lead service lines on the utility-owned portion of the service line decades ago. Now, MWC is in the process of replacing known galvanized steel service lines on utility-owned and customer-owned portions of the service line.- The Company will be working on a neighborhood-by-neighborhood basis to replace lead service lines, factoring in planned construction activities and prioritizing geographic areas based on the most vulnerable areas that serve a large number of at-risk individuals. A publicly available inventory map of service lines whose lead status is known or unknown can now be found on our website and online tools are available where customers can view and self-report service line composition.
- Upholding the Company’s continued commitment to water quality and sustainability, and the need to invest in technologies that keep pace with changing regulations and emerging contaminants, MWC began the operation of its ozone plant upgrade. This $72 million facility was dedicated in 2022 to VP of Engineering, G. Christian Andreasen, who, over a 40-year career, has substantially led the company’s extensive capital investment program and other engineering initiatives.
Minimizing Our Carbon Footprint (2022 Progress)
- Middlesex replaced aging generators at its raw water intake station with new Tier 4 Emissions compliant models which not only increase reliability during emergencies but also reduce overall emissions.
- The Company executed a recent upgrade to its Oracle Mobile Workforce Management application which, while minimizing greenhouse gas emissions by reducing travel time and vehicle usage, also results in more efficient fleet dispatching as it optimizes driving routes to help crews better respond to customer service requests.
- Increased utilization of video conferencing and other meeting platform applications is helping to reduce employee travel.
- The Company’s hybrid work model contributes to work/life balance for employees whose jobs allow them to work remotely. A further benefit of this model is that it helps to further reduce emissions as well as non-recyclable waste.
- Work has begun on the design and construction of four dual charging stations for conversion to electric vehicles.
- Upgrades to our operating facilities include conversion away from fuel oil for heating, additional variable frequency drives on large pumps, and energy-efficient lighting, etc.
- Sustainable landscaping, including native plants, has been incorporated at our CJO Treatment Plant.
- We continue to encourage our customers to be environmentally conscious through e-billing and viewing paperless statements which reduce cost, waste, and emissions.
Maintaining and Protecting Resources/Climate Resiliency (2022 Progress)
- Throughout 2022, as high temperatures and lingering dry conditions placed pressures on water systems, Middlesex continued to practice environmental stewardship of water resources by diligently managing unaccounted for water through leak detection measures and increasing conservation messaging to customers.
- Middlesex participates in a load-shedding program with the electrical power grid by switching over to generator power during times of peak electrical demand.
- As part of our Water for Tomorrow program to ensure service quality, reliability and resiliency our teams continued to research suitable locations to construct new elevated water storage tanks in the Middlesex system area.
- We have increased efforts to work with local law enforcement to identify and prosecute individuals who have gained water in an unauthorized manner.
- Conducted a total review of our enterprise GIS system to identify enhancements. Upgrading our GIS technology will help us further integrate GIS into our enterprise-wide Asset Management program and further assist in supporting Company response to main breaks or other operational emergencies.
- Having completed our Western Transmission main several years ago which helps provide critical back-up water supply, we began planning for an overall condition assessment of another critical transmission pipeline.This work will help us plan for overall transmission system resiliency.
- To adapt to climate change vulnerabilities (rising average temperatures and greater storm intensity) and maintain resiliency, the Middlesex team works to identify and remediate operational risk concerns. In 2022, for example, as part of hurricane/storm preparedness activities, crews cleared, cut and removed very large tree hazards and vegetative overgrowth which could pose a threat to critical water storage facilities. Also, we elevated our new generator above the floodplain in the area and added new electrical upgrades including new switch gears to maintain resiliency.
- The Middlesex Enterprise has Emergency Response and Business Continuity plans in place to prepare for a water quality emergency. Middlesex participated in a New Jersey Board of Public Utilities Tabletop Exercise, designed to test emergency procedures, decision-making processes and customer communications in a real-time simulated realistic scenario.
- To help ensure a safe, reliable water supply to rapidly expanding communities in DE, our subsidiary Tidewater constructed elevated storage tanks in the Millville by the Sea and South Rehoboth districts in southern DE. The elevated storage tanks, standing over 150 feet tall with a capacity of one million gallons, will help address water use fluctuations and improve pressures throughout the system.
- To further maximize system efficiencies and stabilize water supply for area residents in southern Delaware, we interconnected two large water systems – the Rehoboth District and the Angola District in Sussex County, DE, whose combined systems serve nearly 20,000 service connections with over 1,100 new connections added in the past year. Also, a new plant was designed/built in the community of Bayside Americana and placed into service in the second quarter of 2022 to serve that growing community.
Social Impact
Our approach to employee engagement, safety, training and diversity, equity and inclusion are critical investments in human capital that help promote an agile and engaged workforce and support the sustainability of our business. We work to serve as a trusted resource to our customers and local governments, build stronger communities through active participation and by providing a solid water delivery framework that drives economic stability, prosperity and quality of life.
Supporting Our Employees (2022 Highlights)
- Provided employees with a robust compensation and benefits package to support their health and well-being. These include flexible/hybrid work arrangements, monthly health, self-care, mindfulness and wellness tips, incentive exercise programs, mental health and Employee Assistance Programs, sit/stand desks, on-site flu shot clinics and convenient on-site mammograms, First Aid and CPR Safety courses, as well Defensive Driving classes.
- Demonstrated employee appreciation through numerous employee-focused events and activities, such as awards dinners, trips, barbecues and crab fests, holiday parties, Food Truck Days, sporting events and contests.
- Delivered workplace training and implemented policies to help ensure a work environment free from all forms of discrimination and harassment. See our Human Rights Policy Statement.
- To help ensure meaningful and consistent delivery of technical training, we created a position for a Technical Training Manager. This position will manage corporate technical training programs that align with our company’s current and future goals to help ensure the success of our employees in their current and potential future roles.
- Developed numerous video materials and resources to enhance support of our employee onboarding and external recruitment efforts.
- Supported numerous training initiatives in support of the NJ Water Apprenticeship Program and continued working with the DE Department of Labor to support enrollment in the Electrical Apprenticeship program.
- To assist newly hired water and wastewater operators and accelerate the acquisition of technical knowledge, MWC implemented a simulated operator training tool where operators are provided scenarios and have to respond by making simulated treatment changes.
Workplace Safety & Security (2022 Highlights)
- To ensure compliance with regulatory agency and review alignment to industry standards such as NIST (National Institute of Standards and Technology), the Board of Directors has commissioned a comprehensive audit of our IT networks. The audit which is scheduled for 2023, will include a comprehensive review of cybersecurity policies, procedures and practices.
- MWC works with a leader in cyber security risk rating platforms to obtain a holistic view of the Company’s cybersecurity posture for risk and compliance monitoring. Data provided helps MWC build a more secure cyber eco-system mitigating risks, eliminating vulnerabilities and meeting compliance standards.
- Middlesex worked to continually strengthen cybersecurity awareness in its employees through frequent bulletins, ongoing training on how to recognize common security risks, and by recognizing good day-to-day cybersecurity hygiene through employee recognition.
- MWC earned a Risk Management Excellence Award from PMA Insurance Group honoring Middlesex Water’s strong organizational commitment to employee safety over the past few years.
- Working with the NJ Office of Homeland Security and Preparedness, the Company offered lunch and learn sessions for employees and their families on the topics of Individual and Community Preparedness, and Recognizing and Reporting Suspicious Activity.
- MWC has hired an Enterprise Safety Coordinator whose role is to assist with the design of programs and procedures to ensure compliance with applicable occupational health and safety regulations.
- With a goal of ensuring safety is at the focus, Middlesex hosted Safety/Practical Days where operations personnel rotated to different safety instructional stations learning about Hydrants, fittings, traffic safety and flagging, shoring, gas monitor and pump training, and guillotine saw handling. Fire Extinguisher training was also offered to allow our distribution department to receive hands-on training in proper handling.
- To reinforce good day-to-day safety habits, the Company held enterprise-wide safety competitions which helped foster camaraderie as teams competed to answer safety-related questions.
- Installed devices in all company vehicles that monitor factors such as vehicle location, speed, hard stopping and a variety of other metrics used not only for safety but also to manage vehicle usage and fuel consumption.
- With a goal of further instilling driver accountability and vehicle awareness, all company service vehicles include a sticker reminding occupants to do a full 360 inspection of the vehicle prior to entering.
Engaging our Customers, Community and Industry (2022 Highlights)
- To better support the Company’s response to emergencies, the position of Emergency Preparedness, Safety & Security Manager was created. This professional works with our Emergency Management and Security Committee to ready the company for emergencies and climate events such as storms, floods, as well as fires, pandemics, prolonged power outages and more.
- To further cultivate strong relationships with local law enforcement and first responders as well as local, state and federal Emergency Management agencies and local government, we held facility tours to emphasize the criticality of our infrastructure so appropriate response plans are developed to help keep the public and our employees safe in an emergency.
- Completed an annual Toxic Catastrophe Prevention Audit at our newly upgraded ozone facility, facilitated by the NJDEP, to ensure compliance with safety procedures and practices. The audit included on-site inspection, review of materials handling, maintenance protocols, employee training and emergency response plans.
- To further adapt to the changing cybersecurity threat landscape, we continued to implement measures to heighten cybersecurity and maintain operational resiliency while protecting sensitive company and customer data. In addition to aligning with industry NIST standards and best practices, our IT group worked to secure our information technology network through external penetration, segmentation analysis, vulnerability and social engineering testing and establishing policies and playbooks to address various IT business risks.
- We regularly coordinate water main replacement work with municipal paving programs and other utility work. This eliminates the need for repaving and minimizes the impact of construction work on our customers.
- Employees supported the communities we serve through volunteer events such as Adopt a Highway Clean Up, Bowl for Hunger, Future City – Meet the Professionals, a cross-curricular educational program that brings STEM to life for middle school students, Junior Achievement, backpack collections, toy drives and food collections.
- Our subsidiary, Tidewater Utilities held its 14th Annual Charity Golf Outing and raised more than $31,000 for the Food Bank of Delaware.
- We supported numerous charitable endeavors including sponsoring a local bike share program that promotes health and well-being while reducing air pollution and greenhouse gases associated with vehicles; the Have a Heart Food Drive, Senior Olympics and YMCA events among others.
- Middlesex Water was presented with an American Water Works Association – New Jersey Section Employer Support Award in April 2022 for its ongoing commitment to employee development through industry leadership and participation.
- Maintained strong communications and collaboration with local government, stakeholder groups and other utilities in planning large infrastructure projects.
- In addition to arranging payment plans, MWC continued to address affordability by promoting the Low Income Household Water Assistance Program (LIHWAP), to water customers facing difficulty paying their bills.
- To better serve our non-English speaking customers, we added a translation capability to our website and offer multi-language notifications when needed.
- We continue to help educate our customers on numerous topics including how to avoid scams, protect pipes from freezing and how to use water wisely.
- The MWC family of companies works closely with builders and developers, as well as commercial and industrial facilities and municipal entities. We further highlighted the importance of our Company Code of Conduct on our website specifically as it relates to our suppliers and partners.
Diversity, Equity and Inclusion (2022 Highlights)
- Intent on integrating DEI principles which are consistent with our company culture, the Company formalized a Statement on Diversity, Equity and Inclusion.
- Delivered various trainings launching with “Moving from Bias to Inclusion in a DEI Journey” to our entire employee base.
Showcased various cultural holidays in internal communications to help employees learn about and better appreciate different cultures.
- Middlesex CEO Dennis Doll became a signatory to CEO Action for Diversity and Inclusion which encourages companies to cultivate environments that support dialogue on DEI, implement and expand bias education and training and engage the board of directors in the development and evaluation of inclusion and diversity strategies.
- Implemented an applicant tracking system that enables candidates to apply for jobs online fairly and equitably.
- To further expand equity and opportunity, we continue to be intentional in our efforts to attract candidates from historically marginalized groups and seek a diverse pool of candidates for apprenticeships and internship opportunities.
- Our Board of Directors is represented by 33% women. We continue to make progress in advancing toward a more diverse workforce that reflects the communities we serve.
Governance
The Board of Directors maintains overall oversight of the Company’s business strategy while the Corporate Governance and Nominating Committee oversees matters related to ESG and overall sustainability including Enterprise Risk Management. We seek to mitigate risks related to environmental impact and climate variability, workforce safety, cybersecurity, and work to actively promote diversity, equity and inclusion. Management discusses all matters or risks, including ESG challenges and incremental progress toward sustainability regularly with the Corporate Governance and Nominating Committee.
Governance ( 2022 Highlights)
Board Composition and Responsibilities
- We continue to review committee accountabilities on the board level to ensure board competency in overseeing enterprise risks including those related to climate change, cybersecurity and human capital.
- We seek directors who understand the company strategy and key risks, who are committed to representing the interests of shareholders, who combine a broad spectrum of experience and who have a diverse skill set and a reputation for collaboration, leadership and integrity.
- Except for our CEO, all directors are independent, including our Lead Director. Board committees are 100% independent.
Board committee and director performance evaluations are conducted annually.
Policies and Best Practices
- All employees are required to annually review, sign and attest to a Code of Conduct and Insider Trading Policy.
- Stock ownership requirements are in place for Board members and executive management.
- Board members receive ongoing director education.
- We believe transparency and strong disclosure are fundamental to good governance practices.
- We mail and post to our website quarterly company updates to registered shareholders.
- We continued to uphold our strong company values (RIGHT) which stands for Respect, Integrity, Growth, Honesty and Teamwork.
- We regularly remind our employees do to the right thing, even when no one is watching. In 2022, the Company recognized 32 employees in its Do Right Spotlight which celebrates employees who have been nominated by their peers for living the company values.
- Company Statements on Diversity, Equity and Inclusion, our Human Rights Policy and Whistleblower Hotline can be readily found on our website.
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Social Impact
Our approach to employee engagement, safety, training and diversity, equity and inclusion are critical investments in human capital that help promote an agile and engaged workforce and support the sustainability of our business. We work to serve as a trusted resource to our customers and local governments, build stronger communities through active participation and by providing a solid water delivery framework that drives economic stability, prosperity and quality of life.
Supporting Our Employees (2022 Highlights)
Workplace Safety & Security (2022 Highlights)
Engaging our Customers, Community and Industry (2022 Highlights)
Diversity, Equity and Inclusion (2022 Highlights)
Showcased various cultural holidays in internal communications to help employees learn about and better appreciate different cultures.