By Maria Prato-Gaines, Staff Writer
Residents in Cranbury, Jamesburg and Monroe may see the trickle down effect of a recent New Jersey American Water 15.2 percent rate increase, which was approved by the state Board of Public Utilities Monday.
Between 5,000 to 7,000 Cranbury and Jamesburg residents purchase their water from the company. Cranbury residents can expect an $8.37 increase in their water bills with the average customer now paying approximately $43.92 per month, said Richard Barnes, an external affairs manager for the company.
Jamesburg residents will see a $4.71 increase with the average customer now paying $49.25 per month, he said.
Monroe residents, on the other hand, purchase their water from the township, which has a wholesale contract with the company, said Mike Rogers, executive director of the Monroe Township Utilities Authority.
However, Monroe receives 15 percent of its water supply from New Jersey American, he said. The company charges Monroe $2.13 per 1,000 gallons of water, but that rate will increase to $2.63 per 1,000 gallons as a result of the approval.
Monroe residents have not seen a rate increase in more than 17 years, and Mr. Rogers said he is hopeful the MUA can keep that streak going.
Mr. Rogers said although he cannot guarantee it, he expects the MUA to absorb the additional costs that have resulted from New Jersey American’s rate increase.
Statewide, the 2.5 million customers of New Jersey American will, on average, see a monthly residential water bill increase of $4.71 per month, from $44.54 to $49.25, based on usage of 7,000 gallons per month.
Although the BPU did not approve the amount, the New Jersey American proposed a 23.35 percent rate hike in January. The company had asked for the increase to help pay for the $325 million it has spent on replacements and upgrades to its facilities, infrastructures and water supply sources since 2006 as well as the increased cost of both labor and chemicals.
”Maintaining reliable, high-quality water service requires significant investment in our treatment and delivery systems,” said John Bigelow, president of New Jersey American Water, in a press release. “Our company strives to operate in a cost-efficient manner. Despite this increase, water remains one of the lowest-cost utility bills for homeowners, who spend less than 1 cent for every gallon used.”
In 2006, the company made a similar request, asking the BPU for a 23 percent increase, but eventually was approved for a 12.5 percent increase, which went into effect in 2007.
Cranbury and Jamesburg residents are eligible for one of New Jersey American Water’s programs that assist with bill payment.
The H2O or the Help to Others program gives eligible recipients a one-time grant of $500 to pay their bill while a low-income payment program pays up to 20 percent of a monthly water bill for customers who are on fixed incomes as long as they remain eligible.
Customers should receive detailed information by mail explaining the rate changes.
Customers with additional questions are encouraged to contact the company at 800-272-1325.
