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New Jersey American Water Granted New Rates by NJ Board of Public Utilities

Posted on: Monday, 8 December 2008, 15:20 CST

New Jersey American Water has invested more than $325 million in service quality improvements

VOORHEES, N.J., Dec. 8 /PRNewswire/ -- New Jersey American Water was granted new rates by the New Jersey Board of Public Utilities (BPU) today. The increase reflects the costs of serving New Jersey American Water's more than 2.5 million people and the investment of more than $325 million to replace and upgrade the infrastructure necessary for customers to have continuous access to water that meets the highest standards.

"Maintaining reliable, high-quality water service requires significant investment in our treatment and delivery systems," said John Bigelow, president of New Jersey American Water. "Our Company strives to operate in a cost efficient manner. Despite this increase, water remains one of the lowest cost utility bills for homeowners, who spend less than one cent for every gallon used."

New Jersey American Water's last rate increase was approximately two years ago. Since that time, the Company has invested heavily in replacing and upgrading its treatment and distribution facilities making a number of improvements including:

• Replacing hundreds of miles of water and sewer pipeline
• Improving surface water treatment facilities
• Expanding the Canal Road Water Treatment Plant
• Adding new or updated storage facilities to enhance service reliability
• Investing in pumping stations for improved water pressure

The overall increase of approximately 15.2 percent means the majority of New Jersey American Water's customers will see an average monthly residential water bill increase of $4.71 per month, from $44.54 to $49.25, based on usage of 7,000 gallons per month. Former Elizabethtown and Mt. Holly customers will see an increase of $8.37 per month, from $35.55 to $43.92. Rates for former Pennsgrove customers will increase $6.23 per month, from $26.05 to $32.28; and customers of the former South Jersey Water Supply Company will see a rate increase of $9.10 per month, from $34.82 to $43.92.

In addition, the New Jersey Board of Public Utilities also granted New Jersey American Water's request to transition customers in the former Elizabethtown and Mt. Holly systems, Harrison, Pennsgrove, Adelphia, Chester Borough and Mt. Ephraim from quarterly to monthly billing in 2009. Those customers moving to monthly billing will receive notice prior to the actual transition.

Through its H2O - Help to Others program and its Low Income Payment Program, New Jersey American Water offers financial assistance to qualified customers who may need help paying their bill. Both programs are administered though the Dollar Energy Fund, an independent, non-profit organization. New Jersey American Water was the first water company in the state to offer such bill payment assistance programs.

Since filing for the rate increase in January 2008, New Jersey American Water's request underwent extensive public scrutiny. The ratemaking process required a lengthy and detailed review by the staff of the BPU, the New Jersey Public Advocate, Division of Rate Counsel, and approximately 20 interveners who were granted full status in this proceeding. The process also included public hearings for customer input and evidentiary hearings before an Administrative Law Judge. Customers will receive information in the mail explaining the increase. Customers with additional questions can contact New Jersey American Water's call center toll free at 1-800-272-1325.

New Jersey American Water, a wholly owned 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 2.5 million people. Founded in 1886, American Water is the largest investor-owned U.S. water and wastewater utility company. With headquarters in Voorhees, N.J., the company employs more than 7,000 dedicated professionals who provide drinking water, wastewater and other related services to approximately 15 million people in 32 states and Ontario, Canada.

SOURCE New Jersey American Water

Source: PR Newswire

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