New Jersey American Water Files for Rate Adjustment
14 Januar 2022 - 10:02PM
Business Wire
Over $985 Million in System Upgrades for Water
Quality and Reliability Drives Request
New Jersey American Water has filed a petition with the New
Jersey Board of Public Utilities (BPU) for new rates based on the
significant investment the company has made or will make into its
water and wastewater infrastructure since its last rate case.
“Since our last rate case, we have invested or will invest more
than $985 million in infrastructure upgrades, including nearly 140
miles, or over 736,000 feet, of water main, to continue to deliver
high-quality water, reliable service and fire protection for the
more than 2.8 million people in 18 counties we serve,” said Mark
McDonough, president of New Jersey American Water.
Some of the company’s critical infrastructure projects across
its service areas included in the rate request are as follows:
- Filter rehabilitation project and related improvements to
improve water quality at the Raritan-Millstone Water Treatment
Facility, serving more than 1 million people in the company’s
Central operating region including Mercer, Middlesex, Somerset,
Hunterdon and Union counties.
- System improvements to six of the company’s seven surface water
treatment plants – Oak Glen, Swimming River, Delaware River, Canal
Road, Canoe Brook and Raritan-Millstone Water Treatment Plants –
serving most of the company’s customers.
- Replacement of aging, critical, large-diameter transmission
mains in the company’s Central and Coastal regions, and several
large-scale pipeline replacement projects throughout the state to
improve system reliability.
- Improved groundwater treatment for PFAS to maintain compliance
with DEP regulations, and for 1,4-dioxane at the Delaware River
Regional Water Treatment Plant to meet proposed regulations.
- Implementation of additional leak detection technology in the
company’s Central and North operating regions.
- Replacement or upgrades to improve water quality at dozens of
wells, pumping stations and other critical facilities serving
customers in service areas throughout the state.
- Sewer system upgrades to protect the environment throughout the
company’s statewide service areas including sewer mains, lift
stations and other infrastructure in Ocean City, Lakewood, Long
Hill and Haddonfield.
In addition to these major projects, New Jersey American Water’s
investment into replacing or rehabilitating nearly 140 miles, or
over 736,000 feet, of aging water mains is also included in this
rate request. The company renews aging water mains on a 90- to
100-year cycle, which achieves the level of investment recommended
by New Jersey’s Water Quality Accountability Act. As reflected in
the company’s certification submission in December 2021, New Jersey
American Water is fully compliant with each requirement of the law,
including Safe Drinking Water Act regulations, licensing of water
supply and wastewater operators, water supply allocation permits,
hydrant and valve maintenance, cyber security, violation mitigation
plans, and infrastructure improvement/capital investment plans. The
company is also poised to be in compliance with new amendments to
the law that were added for 2022.
New Jersey American Water’s investments into its treatment
facilities to comply with new regulations for PFAS and upcoming
regulations for other compounds are also included in this rate
request. While many drinking water utilities are challenged by PFAS
contamination, New Jersey American Water successfully piloted
cutting-edge treatment strategies to effectively remove PFAS from
several groundwater stations and is also upgrading treatment
capabilities at its surface water treatment plants for other
emerging compounds. New Jersey American Water’s water treatment
technology, combined with its proactive infrastructure investment
program and the expertise of more than 800 professionals across the
state work together to support the continued provision of high
quality and reliable water service to customers.
McDonough 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, leverage our economies of scale and operate as
efficiently as possible,” he said. “Even with the proposed
increase, the cost of high-quality, reliable water service would
continue to be about a penny per gallon and remain among the lowest
household utility bills.”
If the company’s proposed rates are approved as requested, the
monthly water bill for the average residential customer using 5,520
gallons per month, would increase $6.78 per month, or $0.23 cents
per day. The average monthly residential sewer bill would increase
between $0.26 and $16.69, depending on the service area.
The company’s rate 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, newjerseyamwater.com, under Customer Service
& Billing, Your Water and Wastewater Rates.
New Jersey American Water is seeking a total annual revenue
increase of approximately $94.7 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 also continues to
provide income-eligible customers with payment assistance programs,
including its H2O Help to Others program, which provides service
charge discounts of up to 100 percent. For more information, visit
newjerseyamwater.com, under Customer Service & Billing, Bill
Paying Assistance.
About New Jersey American Water
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 2.8 million people. For more information,
visit www.newjerseyamwater.com and follow New Jersey American Water
on Twitter and Facebook.
About American Water
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 6,400
dedicated professionals who provide regulated and regulated-like
drinking water and wastewater services to 14 million people in 25
states. American Water provides safe, clean, affordable and
reliable water services to our customers to make sure we keep their
lives flowing.
AWK-IR
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version on businesswire.com: https://www.businesswire.com/news/home/20220114005455/en/
Media: Denise Venuti Free Director of Communications and
External Affairs 856-955-4874 Denise.Free@amwater.com
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