LETTER TO THE EDITOR

From the issue of April 12, 2007.

Water rates, programs incorrectly reported
To the editor:
   
Thank you for the article which appeared in The Manville News on March 29, regarding New Jersey American Water’s rate increase.
   However, the article contained some factual errors and misrepresentations that I hope to correct with this letter.
   On March 22, the New Jersey Board of Public Utilities (BPU) signed an order granting New Jersey American Water an overall rate increase of 12.5 per cent.
   The article states that the residents of Manville will see a rate increase of 19 percent. While it is true that under our new rates the average customer in Manville will see an increase of 18.8 percent, the article fails to explain the discrepancy between the stated 12.5 percent increase and the 18.8 percent increase in Manville.
   New Jersey American Water does not have statewide rates. For many reasons, the company’s rates vary according to the area in which our customers live. When our rate increase is applied to certain areas within our system, the actual increase for that specific area can end up being slightly higher or lower than the 12.5 percent average that was published.
   Across all geographic areas and for all the services we offer, New Jersey American Water’s rate increase averaged 12.5 percent.
   New Jersey American Water customers will receive information with their April water bill regarding their new rates. We are very proud of these programs and feel it is vitally important that our customers receive accurate information about them.
   Please note that our customer assistance programs are not funded through a utility bill surcharge. We do allow and encourage our customers to voluntary donate to our H2O Help to Others program, but our Low Income Payment Program is funded solely by the company.
   The H2O Help-to-Others program was established in 2002. It provides assistance to low-income water customers by offering a one-time payment of a portion of their water bill. The Low Income Payment Program, which began in 2006, takes H2O Help to Others one step further by offering a reduction in water rates for our customers in need.
   We have provided information with customer bills explaining the programs and their requirements three times over the last 12 months. It is our hope that every customer who qualifies, signs up for one or both programs.
   Both programs are administered through the $1 Energy Fund which is an independent, non-profit organization established to help those in need pay their utility bills. Customers can learn more H2O Help to Others and the Low Income Payment Program and their requirements by visiting www.njwater.com or calling the $1 Energy fund at (888) 282-6616.
   I would also like to apologize to the mayor for any inconvenience these published misrepresentations may have caused him.
Lendel G. Jones

Vice president of External Affairs

New Jersey American Water Co.