Trenton Water Works, which supplies water to 4,600 Lawrence residents, approved a rate hike last month.
By: Lea Kahn
Township officials are challenging a hike in water rates approved last month by Trenton Water Works that would affect 4,600 Lawrence households, said Municipal Manager Richard Krawczun.
Mr. Krawczun wrote to the state Board of Public Utilities (BPU) Sept. 13 for clarification on a new state law that allows utilities to bypass BPU approval if rates are the same for all users served by a utility. In this case, some residents in Lawrence, Ewing, Hamilton and Hopewell townships are served by the City of Trenton’s water utility.
Hamilton Township officials filed a formal petition Oct. 3 challenging the water rate hike, said Doyal Siddell, a BPU spokesman. Trenton officials must respond to the petition by Oct. 23, Mr. Siddell said.
The increase, adopted by the Trenton City Council Sept. 7, affects households in the southern part of Lawrence Township. Other parts of Lawrence are served by the Elizabethtown Water Co. and the Lawrenceville Water Co., or by wells on homeowner properties.
The rate hike would increase the average residential customer’s bill by 17 percent. The average household, which uses 21,000 gallons every three months, would see the tab for water use rise by $10.94 from $64.41 per quarter to $75.35.
Residential customers who live in Trenton and those who live in the four townships that purchase water from Trenton all would pay the same rate under the water rate hike. The city is charging a fee for fire hydrant service in the four townships, but not for fire hydrants in the city an issue Lawrence officials are raising, Mr. Krawczun said.
"What it appears to be is that residents in all four townships are paying for fire hydrant service and the residents of Trenton appear not to be paying for fire hydrant service," he said. The water rate hike ordinance does not appear to meet the state standard of having one rate for all communities, a condition in the law allowing BPU approval to be avoided, he said.
Mr. Krawczun said 60 percent of the Trenton Water Works’ customers live in the four townships. Under the new state law eliminating need for BPU approval, township residents have no say on rate hikes imposed on them by the city, he said.
"The tail is wagging the dog," Mr. Krawczun said.
Lawrence officials also are concerned that Trenton officials are using a combined $2.5 million from the Trenton Water Works to fund a portion of the city’s operating budget, he said. About half of that amount is generated by water bills and the rest is taken from the water works’ budget surplus fund.
For example, $51,642 has been allocated to the city clerk’s office and $324,373 is being allocated for the city administration, Mr. Krawczun said. The city is allocating $250,000 for the Trenton Fire Department.
"Our position is that those charges for municipal operations need to be further explained and documented," Mr. Krawczun said. "In essence, the costs borne by the townships are subsidizing the property tax rates for Trenton residents by over 8 cents."
The BPU serves as an objective third party in determining rate hikes, he said. Lawrence officials are seeking to re-establish a review process so they can participate with the city and surrounding townships to ensure the four townships’ residents are paying a fair rate for the services they are receiving, he said.
"What this entire matter is condensed to is whether the (rate hike) ordinance meets the standard of equity across all users, and is the level of rates and appropriations an appropriate one," Mr. Krawczun said.

