Water company customers facing an increase
Howell mayor calls news of higher rates 'totally unacceptable'
BY TOYNETT HALL Staff Writer
Customers of the New Jersey American Water Company may have to dig a little deeper to pay their bills in the near future. Speaking at last week's reorganization meeting of the Howell Township Council, Mayor Joseph DiBella read a letter from the water company that stated that on Jan. 14, the firm is planning to file an application with the state Board of Public Utilities to seek an increase in rates.

According to the letter, "The proposed rate adjustment will reflect the substantial investment in infrastructure the company continues to make in order to provide high quality, reliable water service to over two million residents throughout the state."

The letter did not state the size of the increase that would be sought.

After reading the letter, DiBella called the water company's proposed rate increase "hogwash, unwarranted and totally unacceptable," especially since the company raised its rates about two years ago.

The letter extended an invitation to DiBella to attend an informational meeting at New Jersey American Water Company's Lakewood facility on Jan. 8 to learn about the rate review process and the investments the company has made to its water system.

DiBella said he could not attend themeeting, but said he would send a representative in his place.

Howell resident James J. Gerard is a New Jersey American Water Company customer. GreaterMedia Newspapers recently published a guest column Gerard wrote about the company's billing practices.

When Gerard was informed last week that the water company has notified township officials that it is seeking to raise rates, he said, "This is outrageous. This company is killing us with water charges. We are practically making mortgage payments for sewer service."

He said that instead of "finding economies of scale and taking the funds they need from out of their profits, (the company has) turned to the consumer. They are using us as a capital source" to fund the investments they have made to their water systems.

"It is so hard to fight against someone (New JerseyAmerican) when they are saying you don't have any other options," Gerard said. "How can they possibly say they need to increase rates on something that comes from nature?"

According to the water company's letter to the township, the proposed rate increase comes as a result of the company's effort "to invest a substantial level of capital to upgrade facilities statewide while absorbing increased chemical and energy costs."