Ridgewood Water Loses Rate Lawsuit, Must Recalculate Rates

RIDGEWOOD, NJ — A Superior Court judge ruled in favor of three municipalities that sued the utility over a 31-percent rate increase from 2010 to 2012.

The law firm of Sills, Cummis & Gross, which represented the three plaintiffs, confirmed Judge Lisa Perez Friscia's ruling Friday.

Glen Rock, Wyckoff and Midland Park, which are all served by the utility, claimed in its class action lawsuit that it inflated its costs and unlawfully raised its rates.

Perez Friscia ordered the three Ridgewood water-rate ordinance invalid and that the matter be remanded to the village for a hearing where the water rates will be recalculated, according to a report by NorthJersey.com.

The suit, filed on behalf of ratepayers in 2011, sought the complete repeal of the utility's rate increase. Ridgewood representatives claimed the increase was necessary for the utility to stay solvent. Ratepayers claim the utility artificially inflated its costs and cost them millions of dollars.

RELATED: Lawsuit Challenges Ridgewood Water Rate Increase

The mayors of Wyckoff and Glen Rock, Midland Park council members, and municipal administrators from those towns and Ridgewood met with retired Judge Peter E. Doyne in 2011 to try and settle the lawsuit. Ridgewood elected officials did not attend the meeting.

The plaintiffs claimed the additional rate hikes were necessary to offset village operating expenses, including fire and police salaries, according to the NorthJersey.com report.

Rates rose 21 percent in 2010 and 5 percent in both 2011 and 2012.

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