New Jersey American Water Rate Filing Seeks Recovery for $868 Million in System Upgrades
VOORHEES, N.J.--(BUSINESS WIRE)--
Jersey American Water has filed a petition with the New Jersey Board
of Public Utilities (BPU) for new rates seeking recovery of the
significant investment the company has made into its water and
wastewater infrastructure since its last rate adjustment in 2015.
"In less than three years, we have invested more than $868 million in
infrastructure upgrades, including over 1 million feet of water main, to
ensure continued water quality, service reliability and fire protection
for the more than 2.7 million people who depend on us every day," said
Robert G. MacLean, president of New Jersey American Water. "Not only are
these investments critical to the public's health and safety, but they
also support the economic health of the communities we serve. This level
of investment contributes to the creation of close to 14,000 jobs across
Some of the company's critical infrastructure projects included in the
rate request are as follows:
Expansion of the Oak Glen Water Treatment Facility to serve the needs
of the company's Monmouth County service area.
Flood protection project at the Raritan-Millstone Water Treatment
Facility to ensure the continued sustainability of the water supply
for more than 1 million people in seven counties in Central New Jersey.
Construction of an iron removal facility in Toms River, Ocean County,
as well as iron removal upgrades to other systems for improved water
quality and service for customers.
Replacement of several aging, critical, large-diameter transmission
mains in the Coastal region.
Conversion from chlorine gas to an on-site sodium hypochlorite
generation system at the Delaware River Regional Water Treatment Plant
to improve safety.
Needed system improvements to the Jumping Brook, Swimming River,
Delaware River, Canoe Brook and Raritan-Millstone Water Treatment
Replacement or upgrades to dozens of wells, pumping stations and other
critical facilities serving customers in service areas throughout the
Sewer system upgrades throughout the company's statewide service areas
including sewer mains, lift stations and other infrastructure in Ocean
City, Lakewood and Haddonfield.
In addition to these major projects, New Jersey American Water's
investment into replacing or rehabilitating more than 200 miles of aging
water mains is also included in this rate request. The company renewed
aging water mains on a 90- to 100-year cycle, which achieves the level
of investment specified by the state of New Jersey's newly approved
Water Quality and Accountability Act.
"According to the latest report card issued by the American Society of
Civil Engineers earlier this year, the nation's water infrastructure was
graded a ‘D' and the wastewater infrastructure was graded a ‘D-plus.' As
the provider of water and/or wastewater services to nearly one in three
people in the state, New Jersey American Water is committed to making
needed investments to proactively upgrade infrastructure to ensure
reliable service," said MacLean.
MacLean added that New Jersey American Water's rates are based on the
actual cost of providing water and wastewater service. "To help mitigate
rate increases for customers, we work very hard to control our costs and
operate as efficiently as possible," he said.
If approved as requested, the water bill for the average residential
customer using 6,000 gallons of water a month would increase
approximately 36 cents per day. The average residential wastewater bill
would increase approximately 20 cents per day. Even with these
increases, the cost of high-quality, reliable, 24-hour water and
wastewater service would continue to be among the lowest household
Rates will remain unchanged until this request undergoes extensive
public scrutiny by the BPU, the New Jersey Division of Rate Counsel, and
the Office of Administrative Law. This vetting will include numerous
interrogatories, public hearings and evidentiary hearings. This process,
based on prior requests, can take a minimum of nine months. To increase
transparency of the process, the company's petition and its associated
exhibits are being posted to the Company's website, www.newjerseyamwater.com,
under Customer Service, Your
New Jersey American Water is seeking a total annual revenue increase of
approximately $129.3 million. The increased rates proposed in the rate
petition are a request only. The New Jersey Board of Public Utilities
will make the final decision regarding the actual increase. Once a final
decision has been made, customers will receive information on the new
rates in the mail and on the company's website.
New Jersey American Water, a 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 2.7 million people. More information can be found at www.newjerseyamwater.com.
With a history dating back to 1886, American Water (NYSE: AWK) is the
largest and most geographically diverse publicly traded U.S. water and
wastewater utility company. The company employs 6,800 dedicated
professionals who provide regulated and market-based drinking water,
wastewater and other related services to an estimated 15 million people
in 47 states and Ontario, Canada. More information can be found by
View source version on businesswire.com: http://www.businesswire.com/news/home/20170915005845/en/
New Jersey American Water
Denise Venuti Free
Communications and External Affairs
Source: New Jersey American Water
News Provided by Acquire Media