VOORHEES, N.J.--(BUSINESS WIRE)--Beginning June 15, 2018, New
Jersey American Water is implementing provisional rates for water
and wastewater service while the New Jersey Board of Public Utilities
(BPU) reviews the company’s rate change request. New Jersey American
Water’s rate request, which was filed September 15, 2017, was driven by
more than $868 million in needed investment in treatment and
distribution system upgrades statewide since the company’s last rate
increase in 2015.
The provisional rates, which will generate approximately $75 million in
additional annual revenue, will increase customer charges in each
service area by approximately 12.3 percent, excluding surcharges. As a
result, the water bill for the average residential customer using 6,000
gallons of water a month will increase approximately $5.90 per month,
and the average residential wastewater bill will increase approximately
$4.12 per month.
These provisional rates are temporary and will remain in effect until
the BPU renders its final decision on the company’s rate case, which is
expected later in the year. If the approved rates are lower than the
provisional rates, the company will refund, with interest, any amount
billed in excess of the approved rates. If the approved rates are higher
than the provisional rates, there will be no retroactive adjustment to
customer bills. Final approved rates may not exceed the $117 million
(inclusive of tax law changes) requested by the company in its filing.
“Our rate request is based on the more than $868 million in
infrastructure upgrades, including over 1 million feet of water main, to
ensure reliable service to 2.7 million New Jersey residents that count
on us every day,” said Deborah Degillio, President, New Jersey American
Water. “Rates are based on the true cost of water and wastewater
service. We continue to work hard to control our costs by operating as
efficiently as possible to control our operating expenses,” she said.
Degillio further noted that increases in operating expenses are not a
driver of this rate increase.
New Jersey American Water customers also recently had a rate decrease as
a result of the Tax Cuts and Jobs Act. On April 1, 2018, most customer
water rates were reduced by 5.9 percent (and 2.3 percent for former
Shorelands Water Company customers). The water bill for the average
residential customer using 6,000 gallons a month decreased approximately
$3.36 per month ($1.00 per month for former Shorelands customers), and
the average residential wastewater bill decreased between $1.49 and
$5.81 per month, depending on service area. The BPU is continuing their
review of the overall impact of the new tax act, and further rate
adjustments are anticipated in the coming months.
More information about the company’s rates can be found online at www.newjerseyamwater.com
(under the Customer Service & Billing menu, select Your
Water and Wastewater Rates) or call 1-800-272-1325, Monday through
Friday, 7 a.m. to 7 p.m.
New Jersey American Water, a 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 2.7 million people. For more information, visit www.newjerseyamwater.com
and follow New Jersey American Water on Twitter
With a history dating back to 1886, American Water is the largest and
most geographically diverse U.S. publicly traded water and wastewater
utility company. The company employs more than 6,900 dedicated
professionals who provide regulated and market-based drinking water,
wastewater and other related services to an estimated 15 million people
in 46 states and Ontario, Canada. American Water provides safe, clean,
affordable and reliable water services to our customers to make sure we
keep their lives flowing. For more information, visit amwater.com.
New Jersey American Water
Denise Venuti Free, 856-782-2316
Director of Communications and External Affairs