By: centraljersey.com
MANSFIELD — Residents of Homestead at Mansfield pushing to have their sewer-water usage bill changed from a flat rate to a consumption rate have the attention of the president of the New Jersey American Water Co., John Bigelow, after a recent public meeting.
Representatives from the New Jersey American Water Co. addressed the issue at a meeting Dec. 14, and tried to answer questions from some of the nearly 65 residents in attendance.
Homestead residents pay a monthly combined water and sewer bill. The water bill is based on usage at a rate dictated by the state Board of Public Utilities (BPU) and the sewer usage rate is based on one flat rate. All residents are paying the same amount for sewer usage regardless of how many members are in the household or how much is actually used.
"There’s been a desire, from what I’ve been told, that a lot of the residents would prefer to go on a consumption basis versus a flat billing rate," Director of Rates and Regulations Frank Simpson said. "What I can tell you is our president, John Bigelow, has sent a letter to the representatives here that … in our next rate case, when we go before the BPU, that we will ask to base the sewer bill on your water consumption. We can’t guarantee that the BPU will approve it but I don’t see any reason why they wouldn’t."
Water bills are based on two components, a fixed usage charge of $9 a month and the consumption cost. The fixed usage charge is used to cover meter reading costs, the cost of the meter and providing the service for the meter so customers are charged the $9 whether water is used or not. The consumption charge is a rate per 1,000 gallons. Mr. Simpson said he believes that customers have to actually click to 1,000 gallons on the meter before they will get billed.
New Jersey American Water also just went through a rate adjustment that will be effective Jan. 1, which will increase each customer’s water usage rate by about 6.5 percent.
"There’s not a lot that we as New Jersey American Water can do about the rates right now because they are pretty much dictated by the state," Director of Communications and External Affairs Peter Eschbach said. "What we want to ultimately get to is where your rates and any kind of rate increases are aligned with the rest of our customers. When we have our next rate case we are going to fold you in. At that point then we’ll have more control over what the rates are in terms of negotiating with the BPU."
Many of the residents at Homestead said they are seniors living on a fixed income, and the current rates are a burden. There are two mechanisms in place for financial assistance; Help to Others (H2O), and a Low-Income Payment Program.
H2O is a "one time annual grant of up to $500 to help pay the water bill," according to New Jersey American Water Company. The program can fund up to a total of $50,000 in grants, according to the website.
The Low Income Payment Program "takes the H2O Program one step further by providing aid to New Jersey American Water’s most economically challenged customers with an 85 percent discount on the monthly fixed service charge," according to the website.
Both programs are administered by New Jersey Shares, an independent, non-profit organization to help those in need pay their utility bills.
"In the rate case that we just went through, that will go into effect in January, the BPU authorized us to increase the size of those programs," Mr. Eschbach said. "Those programs do exist and I would encourage you, if you’re in a situation where the bill is a burden, to take a look at them."
Mr. Eschbach also encouraged residents to check for leaks that aren’t that obvious around the home. Sometimes the toilet can be leaking water from the tank to the bowl and a "small leak, an eighth of an inch of a leak running into your bowl, is thousands of gallons a month and that adds up." Mr. Eschbach said New Jersey American Water is the largest privately held water company in New Jersey.
"We’ve got about 9,000 miles of pipe under the ground and about 900 employees all working to keep millions of gallons of water flowing a day," he said.
Homestead at Mansfield accounts for nearly 36 percent of Mansfield’s population and includes about 1,140 single homes.