Company may seek hike in water rates of 20-25%
BY TOYNETT HALL Staff Writer

HOWELL - Customers of the New Jersey American Water Company are learning this week that the utility may be seeking to raise its rates by 20 to 25 percent.

New Jersey American informed the township in December that it was planning to file an application for a rate increase with the New Jersey Board of Public Utilities (BPU) on Jan. 14.

On Jan. 8, representatives from Howell met with New Jersey American executives in Lakewood to hear more about the proposed rate increase. Township Manager Helene Schlegel, Township Attorney Ernest Bongiovanni and resident Rob Nicastro represented Howell.

Mayor Joseph DiBella was unable to attend the meeting. The mayor is on record as calling the notice of the proposed rate hike unacceptable.

Following the meeting with the water company representatives, Nicastro and Schlegel both quoted the potential 20 to 25 percent rate hike.

According to Nicastro, New Jersey American cannot charge developers connection fees. Because of that, "they have no way of offsetting their revenues."

Nicastro said residents do not have a problem paying for reliable quality water and for sewer service. However, he said there is a huge disparity in Howell's rates compared to neighboring municipalities.

"My hope is that they try to put the sewer and water charges on an even playing field," he said. "We are prepared to contribute to the cost of improving and protecting the water environment, but the disparity in what many homeowners pay is huge compared to the municipal sewer authorities of neighboring towns. That is not fair."

Nicastro has asked the Howell Township Council to object to New Jersey American's request for a rate increase, which comes only a few years after the most recent rate hike that was granted by the BPU.

New Jersey American's letter to Howell states that 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."

"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," New Jersey American executives said in the letter to Howell.