State Approves New Jersey American Water Rate Increase

New Jersey American Water customers will see an increase in their rates after the Board of New Jersey Public Utilities approved a hike this week. The rate represents $285 million in improvements across the water company's network since its last increase in 2008.

Richard Barnes, a NJ American Water spokesman said that, based on a monthly usage of 7,000 gallons, the average family in Maplewood would have an increase of $3.24, from $49.51 to $52.75 per month. That's a 6.5% increase. Customers will receive additional information about the rate increase in their January bill.

"At less than a penny a gallon, water remains one of the lowest utility bills for homeowners," said John Bigelow, president of New Jersey American Water, in a press release. "While we recognize the difficulty that increased utility costs impose on our customers, we have a responsibility to properly maintain and upgrade our systems to ensure quality, reliable water service and fire protection for the communities we serve. And, to do it right requires significant capital investment. The consequences of not maintaining our systems would have a far greater negative impact on the health, welfare and economic stability of our customers and the communities they live in."

But the  are not included in the rate increase. Those costs could be included in a future rate increase, Barnes said, but he did not say when that could happen.

The water company received its final approvals more than a week ago from the Millburn Planning Board for the $72 million treatment plant improvements. The plan is to construct a new treatment plant at the company's property on John F. Kennedy Parkway in Short Hills.

The rate increase also includes additional help for customers who have been hit hard by the current economic climate. In addition to providing the company's low-income programs with increased funding, eligible customers will be able to receive a comprehensive telephone audit of their water use; free water-saving retrofit kits and plumbing assistance to install water-efficient devices, according to a company press release. The program offers grants of up to $500 and a discount on the monthly service charge, and is administered by New Jersey SHARES (1-877- 652-9426 or 1-877-NJAWH2O). More information about payment assistance can be found on the New Jersey American Water website.