Residents, Officials Object to Water Rate Hike

With New Jersey American Water holding a public hearing at about a discussed rate hike in the middle of the day on Wednesday, the audience in attendance was somewhat limited. 

The increase as proposed would be for approximately 15 percent depending on the individual consumers, a number many of those in attendance felt was too high.

According to Ira Megdal who spoke on behalf of the utility company, the proposed increase was due to several factors including upgrades in their infrastructure. "The company's expenditures ensure that customers will have safe water and healthy water delivered to their taps," he said.

Many of the people who spoke made note of this fact considering people who may have wanted to express their displeasure would be unable to do so during a workday. Even still, the meeting room was filled with people looking to discuss what they viewed as an unfair increase during these already difficult economic times. 

Officials Object to Increases

Those in attendance included State Senator Robert Singer, Township Manager Helene Schlegel and Committeemen Robert Nicastro and Juan Malave as well as residents of Howell, Lakewood and other neighboring towns. 

Senator Singer was the first to speak and the first to object to the increase. Speaking on behalf of the other representatives for the 30th District, Singer said, "We stand firmly in opposition to New Jersey American Water's request which will increase rates," he said. "We wholeheartedly implore New Jersey Board of Public Utilities to carefully and meticulously before the final decisions are made based on the perception that other utilities are not raising rates as frequently or as severely as New Jersey American Water"

Singer said they believe the BPU should look at what the utility is doing to control its costs and any alternative energy sources they could use "so that the company can ultimately reduce or at least stabilize rates for their customers."

Another point that was brought up during the hearing, including by Singer is the fact that water plays a key role in people's lives and increases can create a "hardship" for people living on a fixed budget. "We're talking about water. We're not talking about phone service that is amplified, or cable service that has been enhanced," he said. "Howell is home to a higher percentage of budget stressed seniors for whom the proposed increase would create a hardship and maybe devestating. There's a large population in Howell who is struggling with the impact of the depressed economy and worse some simply have no income at all."

The senator also serves as the chairman of the Lakewood Municipal Utility Authority and said their rates are close to 40 percent less than the state utility. "We just don't have these increases," he said. "The only increases we can see of this kind of magnitude is if there's a sewer increase which is a pass through. The water costs the amount of money that they're charging is outrageous."

When the senator was done, Schlegel was the next to speak. "I am very disappointed that we are here again. As Township Manager I've had the unfortunate luxury of testifying regarding in this matter in 2008, 2010 and again today," she said. 

Schlegel said she had originally planned to ask that the hearing be postponed to a time when more residents would be able to attend. "Holding a rate hearing at 2 p.m. on a work day, two weeks before the holidays is an obvious indication of New Jersey American Water's attempt to keep the number of resident opponents down," she said. "As I stated previously I've been here before and I knew that that request would not be granted."

During her statement, Schlegel questioned how the rate hikes have been granted even when people have seen their incomes cut and losing jobs. "It appears that both New Jersey American Water and the BPU live in a vacuum with no knowledge of the economic climate throughout not only the United States, but throughout the world," she said. "It is not business as usual any longer and with the audacity to come back every two years for double digit rate increases is just unfathomable."

The Township Manager said it is difficult to challenge the rate increases given the current conditions. "Unfortunately we have no recourse other than to plead our case to the BPU. New Jersey American Water has a monopoly. We can't stop using the water," she said. "This is a very sad situation."

She added the fact that increases have been approved "all faith has been lost in the system. This is just another stage with smoke and mirrors to make people feel like they have a say." She added, "As a township official I will formally ask again, on behalf of all of the Howell Township rate payers, please do not allow this or any portion of this increase to happen."

Councilman Nicastro followed her with similar objections to the increases. "New Jersey American's continued efforts to go digging into its customers pockets over the past 10 years for almost a half a billion dollars is in my opinion proof positive of the company's disregard for their rate payers," he said. "We should be less concerned with increasing profit and more concerned with providing an affordable, reliable and safe supply of viable drinking water for New Jersey families."

Residents Respond

While several residents spoke on Wednesday, none seemed to strike more of a chord than Villages resident Barbara Dixel. Before giving her own statement, Dixel read a resolution the township passed the night before objecting to the rate increase. 

She then read a letter she wrote to Governor Chris Christie about the proposed rate hike. In it she asked the governor to attend Wednesday's meeting to "stand up for the citizens of The Villages, for Surrey Downs another senior development of over 400 families and all of the citizens of Howell Township who have been ravaged every year since 2000 with rate increases from New Jersey American Water company."

Dixel said with New Jersey American Water having already gotten a rate increase this year, another one would do more damage to the rate payers. "They will be taking food out of the mouths of the senior citizens who live on Social Security and their only means of income as well as every citizen of Howell Township." She added, "We are in a bad economy with jobs being lost, houses being foreclosed on and people barely having enough basic necessities."

The long time resident, who is a fixture at township committee meetings further implored the governor to intervene in the proposed increase. "Enough is enough. For most of us, our present homes are our last homes before we pass away," she said of the senior community. "We are your parents, your grandparents and your great grandparents. We have reached our senior years. Please, allow us to live out our remaining senior years in our homes with the basic necesities to sustain life in peace and with dignity."

She concluded by saying, "The financial ravaging of Howell citizens by New Jersey American Water Company must stop now." She added, "Please be aware that the citizens of Howell have bled enough. We cannot bleed anymore. We have been taken to the cleaners for too long and for too many years by New Jersey American Water Company."

Several of the people who came after her said they agreed with her statement and added their own personal anecdotes along the same lines.

Tim Feehan, another Howell resident agreed as well. "Many of us have gone into what is known as survival mode," he said. "If the grocery store that I shopped at decided to raise their prices fifteen and a half percent, I would simply go to another store. However in this case, I the consumer do not have a choice. The only two possible recourses available to me are as follows. One, have my water shut off or two, move. Because neither option is a viable one for me or anyone else in this room, I am asking that the New Jersey Board of Public Utilities hold New Jersey American Water accountable for living within their means and joining us all in sharing in the sacrifice until the state of New Jersey and in fact the United States is able to recover from this current recession."

Feehan, one of the final speakers of the day, said with the scientific symbol for water being two parts hydrogen and one part oxygen, "It seems that New Jersey American Water has redefined H20 as hosed twice over."

Richard G. Barnes, the External Affairs Manager for New Jersey American Water said the application for the current raise was filed in July and that the Howell meeting is one of several being held throughout the state. There will be more hearings in the future with the applied increases not being implemented until next year if they are approved.