New Jersey American Water Granted New Rates by New Jersey Board of Public Utilities
September 11 2015 - 3:50PM
Business Wire
Cost of Water Service Remains Less Than a
Penny a Gallon; Sewer Rates Formula Also Adjusted to Provide Relief
to Some Customers
The New Jersey Board of Public Utilities (BPU) today approved
new water and wastewater rates for New Jersey American Water,
effective September 21, 2015.
The new rates represent a $22 million annual increase in water
and wastewater revenues for New Jersey American Water.
The cost of water service for the company’s customers remains
less than a penny a gallon. The average bill for a customer using
6,000 gallons of water per month will rise from $51.82 to $53.41,
an approximate three percent increase.
Since New Jersey American Water’s last rate adjustment in May of
2012, the company has invested more than $775 million to replace
and upgrade approximately 160 miles of water infrastructure to
improve uninterrupted access to high-quality, reliable water
service for its customers. During the same period, the company has
lowered its operating expenses by more than $19 million. Those cost
reductions supported more than $125 million of infrastructure
investment with no impact on customers’ bills.
“New Jersey American Water’s proactive infrastructure
replacement demonstrates our commitment to providing our customers
with outstanding water and wastewater services,” said William
Varley, president of New Jersey American Water. “We’re meeting the
challenge of replacing or upgrading thousands of miles of aging
infrastructure while decreasing our operating costs. Compared to
the cost of other household utilities, water service is an
excellent value.”
The new rates will also result in some New Jersey American Water
sewer customers seeing no increase or, in some cases, a decrease in
wastewater rates. The BPU has accepted the company’s proposal that
wastewater rates be recalculated to lessen the impact that outdoor
water use has on wastewater bills.
In addition, the BPU approved New Jersey American Water’s
request to modify its Low Income Payment Program (LIPP). Customers
enrolled in the program, who also receive Social Security or are
enrolled in Medicare, will be exempt from the monthly distribution
system improvement charge. LIPP enrollees had previously only been
exempt from paying the monthly fixed service charge.
After filing for the rate increase in January 2015, 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, some of whom 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.
New Jersey American Water, a wholly owned subsidiary of American
Water (NYSE: AWK) 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 and most geographically diverse
publicly traded U.S. water and wastewater utility company. With
headquarters in Voorhees, N.J., the company employs more than 6,800
dedicated professionals who provide drinking water, wastewater and
other related services to approximately 15 million people in 47
states, as well as parts of Canada. More information can be found
by visiting www.amwater.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20150911005857/en/
New Jersey American WaterRichard Barnes,
856-782-2371richard.barnes@amwater.com
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