New Jersey American Water to Implement Provisional Rates as the Company’s Rate Request is Being Reviewed
May 11 2018 - 3:00PM
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 and Facebook. 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20180511005395/en/
New Jersey American WaterDenise Venuti Free,
856-782-2316Director of Communications and External
Affairsdenise.free@amwater.com
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