New Jersey American Water seeks $94M increase for utility services

Jim Walsh, Cherry Hill Courier-Post
·3 min read

CAMDEN - New Jersey American Water is seeking a rate hike of $94 million per year from the state Board of Public Utilities.

If approved, the proposed rate would boost the monthly water bill by $6.78, to $69.23, for the average residential customer using 5,520 gallons per month.

A comparable sewer bill would increase between 26 cents and $16.69, depending on the service area the utility said.

The proposal calls for specific increases in Haddonfield, where New Jersey American acquired the water and wastewater system for about 4,500 customers in May 2015.

The company's request describes Haddonfield as its "lowest price district" and says higher rates there would reduce a gap with the rest of the firm's customer base.

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It wants a 27.8 percent increase for sewer service in Haddonfield, compared to a 13.9 percent increase in most other areas. That would boost the monthly sewer bill for an average Haddonfield resident to $27.88, up from $21.74.

A rate-hike request by New Jersey American Water seeks specific increases to close a gap between Haddonfield, described as its "lowest price district," and other areas across the state.
A rate-hike request by New Jersey American Water seeks specific increases to close a gap between Haddonfield, described as its "lowest price district," and other areas across the state.

For water usage, the proposal would boost the monthly bill by $6.81 per month, to $46.73 for the average residential customer in the borough .

"This is the second increase for Haddonfield customers since the acquisition," company spokeswoman Denise Venuti Free said last Wednesday. She noted the firm has invested more than $27 million in the borough's water and wastewater infrastructure.

The overall proposal, intended to boost annual revenues by 11.2 percent, “is driven primarily by the capital investment required to maintain and improve the company’s infrastructure,” says the firm's filing with the BPU.

“Since our last rate case, we have invested or will invest more than $985 million in infrastructure upgrades,” Mark McDonough, the utility’s president, said in a statement.

That spending represents almost 70 percent of the proposed increase, according to the 887-page filing.

The BPU approved the utility firm’s last increase in October 2020, a base rate hike of $39 million per year. New Jersey American also cited infrastructure investments in making that request.

In its new proposal, New Jersey American also is seeking to recover about $16 million in costs related to the COVID-19 pandemic. That would include expenses for suspending service disconnections for nonpayment, reconnecting customers previously cut off for non-payment, and suspending late fees and interest penalties on overdue accounts.

The proposal is to be reviewed by the BPU, the state Division of Rate Counsel and the Office of Administrative Law.

“This process, based on prior requests, can take a minimum of nine months,” said the company, which has posted its petition at its website, newjerseyamwater.com, under Customer Service & Billing, Your Water and Wastewater Rates.

New Jersey American serves more than 2.8 million people in 18 counties, including all of South Jersey except Cumberland County.

It is part of Camden-based American Water Co, the nation’s largest investor-owned water and wastewater utility company.

Jim Walsh covers public safety, economic development and other beats for the Courier-Post, Burlington County Times and The Daily Journal.

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This article originally appeared on Cherry Hill Courier-Post: New Jersey American rate-hike request would hit Haddonfield customers