The New Jersey Board of Public Utilities (BPU) today approved new water and wastewater rates for New Jersey American Water, effective immediately, the company announced. “The new rates recognize the more than $300 million the company has spent over the past two years to replace and upgrade its complex web of nearly 9,000 miles of water and sewer mains in order to continue providing customers with uninterrupted access to high-quality, reliable water service”, NJ American Water said. “While the new rates represent a $30 million increase in revenues for the company, the cost of tap water for customers remains less than a penny a gallon.”
“We are certainly aware and sensitive to the difficulties the current economic situation that many of our customers face, and we are mindful of that as we strive to ensure that the communities we serve never experience the potentially disastrous results of a failing water system,” said David K. Baker, president of New Jersey American Water. “We are committed to maintaining that balance for our customers. Keeping our rates less than a penny a gallon means that water remains quite a value, and is one of the lowest utility bills for homeowners.
“For more than a century we have provided quality, reliable water service and fire protection in New Jersey. When we put in the water mains for Thomas Edison’s West Orange laboratory in 1904, the cast iron main cost about 45 cents a foot. That same operation today costs hundreds of dollars a foot.”
Water system improvements that will be completed by the company and recovered in the new rates include:
– Construction of a new state-of-the art water treatment plant in Short Hills that will replace an 1920s-era treatment plant and meet new federal water quality requirements
– Replacement, cleaning and lining of many miles of pipelines
– Rehabilitation of water storage tanks to enhance service reliability
– Installation of three solar projects that produce about two megawatts of electricity, enough to power about 325 average homes. These projects reduce the company’s reliance on traditional power sources, lower energy costs, and eliminate more than 1,600 metric tons of carbon dioxide.
“Our capital expenditures have not only improved the reliability and quality of our water service to customers, but have also contributed to approximately 2,000 direct and indirect jobs statewide,” said Baker.
The company has also been making significant progress to reduce its operating expenses, the company said. “We have instituted several initiatives to drive down the costs of providing our customers with water service,” said Baker. “We’ve reduced our operating expenses by nearly $10 million over the last couple of years.”
Another aspect of the BPU decision was the recognition of declining water consumption, which was reflected in the revenue allowances. “Our customers are using less water than they have in the past, however the infrastructure required to bring water to homes, businesses and fire hydrants still needs to be properly maintained,” said Baker. “This decline in demand is a result of many factors, which include the wider adoption of more efficient washing appliances, low-flow toilets, and personal conservation. More and more, customers recognize that the water they use is a critical, but limited resource.”
“Since filing for the rate increase in July 2011, New Jersey American Water’s request underwent extensive public and regulatory scrutiny. The ratemaking process required a lengthy and detailed review by the staff of the BPU, the New Jersey Division of Rate Counsel, the Office of Administrative Law, and more than a dozen interested groups, who the state of New Jersey granted full intervener status in the proceedings. The process also included several public hearings for customer input before an Administrative Law Judge.”
“The new rates granted by NJBPU continue to provide help for customers who have been particularly hard hit by the current economic environment. In addition to providing customers with financial assistance through the company’s low-income programs, eligible customers are able to receive a comprehensive telephone audit of their water use; free water-saving retrofit kits; as well as plumbing assistance to install water-efficient devices.”
“For those families who are struggling to pay their bills, we want them to know that assistance is available through our H2O Help to Others Program(TM),” said Baker. The program offers grants of up to $500 and a discount on the monthly service charge, and is administered by New Jersey SHARES (1-877-652-9426 or 1-877-NJAWH2O).
New Jersey American Water, a wholly owned subsidiary of American Water is the largest investor-owned water utility in the state, providing high-quality and reliable water and/or wastewater services to approximately 2.5 million people. Founded in 1886, American Water is the largest publicly traded U.S. water and wastewater utility company. With headquarters in Voorhees, N.J., the company employs more than 7,000 dedicated professionals who provide drinking water, wastewater and other related services to approximately 15 million people in more than 30 states, as well as parts of Canada. TLS.
Wow such liars! They always claim is less then a penny, but thats not including the mandatory sewer charge for the same water which brings the price well over a penny per gallon!
They keep on saying we should save water to save money and they say because we use less water they got approved an increase! So why save when u end up paying the same or even more??!
they are our biggest bill its a disaster over 200 dollars a month shame on them. so manipulative
Sadly we have a water rate hike but thankfully the BPU turned down their rate hike request on sewer for Lakewood.
Can TLS please post a copy of the approval document?
why are their meter counters only by the thousands? when they calculate your fresh water usage there may not really be a difference since whatever they billed extra one month will reconcile itself the following month, however, to use the 1000 gallon measuring method for sewage is outright cheating in my opinion since the usage is set for the entire year based on 3 months, whatever discrepency was formed during the 3 month period is yours for the rest of the year, and that affects 2 charges on your bill 1)sewer volume and 2) PSTAC charges.
I use 4000 gallons a month and pay $79.94 a month!!
You tell me if that is a penny a gallon.
To “accurate news”- where do you get that info from? This article says they were approved for both water and sewer (wastewater)?
Liars. I use 13000 gallons a month and pay them $210 a month. that is almost 2 cents a gallon. I pay more for water than for electric or gas. Let Lakewood take over the water system via eminent domain like other cities have done and stop the highway robbery.
Dig a well!It cost about $2000 to put it in and no more water bills. and they can never threaten to turn off your water
Why aren’t they using the rate money we pay each month to keep up and improve their system….. I guess they use the rates we pay for their salaries and benefits and bonuses for management. There should be a complete audit of all their money, and NOT one cent of this rate increase to go to salaries.
Does it really only cost 2000 to put in a well? who can I call?
Attn: Jack,
You can’t use your own well water in Lakewood.
An old ordinance deal with the Lakewood Township disallows home water usage if your well is within 100 feet of their pipes – out of fear that “their pipes may get damaged”.
Never mind that for lawn irrigation you can use the very same well. The logic seems to be that the NJAWC knew that they could not get away with that, as the uproar would be great.
Bottom line? We need to get rid of that ordinance prohibiting a home owner to use his own resources.
The current ordinance is un-American.
Is it legal to put in a well and what to do with the sewage?
Its TIME TO STOP THE MADNESS. WE NEED TO DIRECT OUR ANGER TO ACTION. THIS GERMAN COMPANY HAS RIPPED US OFF FOR WAY TOO LONG. OUR WATER BILL IS TOO @#$& HIGH.
why cant the Township throw them out lets get a campaign going to throw them out.
The disfunctional Community board the Township set up to deal with the utlity crooks should have objected to any increases, that’s why they are a non-entity in my book.
I have well water. They still bill me $45 a month for sewer only.
Downside of well water. A power outage, and you better find another place to go to the john.
This is absurd. The BPU has again caved in at the determent of rate payers. Where is the ratepayer advocate? Where is justice? How much is too much? It is time for ratepayers around the state of NJ to say “NO MORE”. You and your monopoly are bleeding the ratepayers.
Perhaps litigation by more counties is the only alternative.
Why can’t we pay for actual usage, instead of a minimum charge??
Some residents don’t use that much water.
like someone posted last week when the water company said to watch your water use. that they are asking us to use less water and then they will probably up the rates since everyone is cutting back on there water use and they are not making money.
MY NEIGHBOR PUT A WELL IN FOR ABOUT $3500. THE PRICE WENT UP DUE TO SOME CRAZY ENVIRONMENTAL LAWS
does NYC charge for water??
For New Jersey American Water customers in 189 municipalities, the increase in rates will range between $2.15 per month to $3.93 monthly, depending upon where the customer is located, according to the BPU staff.
The company’s original filing sought a 15.5 percent increase that would generate an additional $95.5 million in revenue. Under a stipulated settlement with the BPU, the Division of Rate Counsel, and others that number was whittled down to $31 million or 5.32 percent.
can TLS have a vote if we think the Township should throw out American Water