NJ American Reaches Rate Settlement

Plans are in place for New Jersey American Water customers to be paid back for what amounted to a loan to the state’s biggest water utility.

“Customers paid more after New Jersey American Water temporarily hiked customers' water and sewer bills in June to collect an additional $75 million in revenues, money the utility said would help cover the cost of system upgrades,” The Asbury Park Press reported.

“But in a settlement with the state Board of Public Utilities and the state Rate Counsel, the company agreed that its rate would be raised by a lower figure: $40 million,” the report stated.

Stefanie Brand, director of the state Division of Rate Counsel, explained the circumstances.

"Now they have to return everyone's money," she stated, per the report. "We lent them money for the last five months. We do get interest. I know a lot of consumers who don't have the money to lend to American Water."

New rates are being put in place for the utility’s customers, according to Tap Into Camden.

“Rates for the average water customer using 6,000 gallons of water per month will increase 6.2 percent to $53.45, and for the average wastewater customer the monthly bill will be increased to $58.70. The cost of water service for the company’s customers remains about a penny per gallon,” the report stated.

New Jersey American Water President commented on the development in a statement.

“We are extremely proud of our significant level of system investment, combined with operational efficiency measures and innovative technologies, to ensure continued water quality, service reliability and fire protection for the more than 2.7 million people who depend on us every day. This rate order enables us to continue this important work on behalf of our customers, while balancing the cost impact for them,” she stated.