NJ American Water granted new water, wastewater rates, effective Sept. 21
The New Jersey Board of Public Utilities has 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 NJAW. The cost of water service for the company's customers remains less than a penny per 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 3-percent increase.
Since NJAW'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.
The new rates will also result in some NJAW 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 NJAW'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, NJAW's request underwent extensive public and regulatory scrutiny. The ratemaking process required a lengthy and detailed review by the staff of the BPU, New Jersey Division of Rate Counsel, Office of Administrative Law, and more than a dozen interested groups, some of whom the state granted full intervener status in the proceedings. The process also included several public hearings for customer input before an Administrative Law Judge.
About New Jersey American Water
New Jersey American Water, a wholly owned subsidiary of American Water (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 publicly traded U.S. water and wastewater utility company. With headquarters in Voorhees, N.J., the company employs approximately 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.. For more information, visit www.amwater.com.