This past spring, New Jersey American Water (NJAW) approached the Bedminster Township Committee requesting a resolution in support of their proposed purchase of EDC in Pluckemin. Purchase of a utility requires a hearing before the Board of Public Utilities (BPU). The Bedminster Township Committee elected to hire special counsel, William Mosca, Bedminster/Hills resident, to represent the township and the surrounding municipalities (Bernards Twp, Far Hills and Peapack-Gladstone) serviced by EDC. Mr. Mosca negotiated an agreement with NJAW to freeze rates for five years, investigate and report on alternative billing plans (user-based sewer rates), and address storm water infiltration into the system.
Why didn’t the TC ask to lower rates? A “Rate Challenge” is the mechanism required to go before the BPU to formally ask for a rate decrease. Purchase of a utility does not open the door to a rate challenge by the users or the new owners of the utility. A freeze agreement is the best alternative under the present circumstances. The last rate increase was nearly 5 years ago and this agreement will not likely take affect for another six months, making the overall rate freeze more than 10 years.
What does “addressing infiltration” mean? Much of the water EDC treats is storm water (rain water) that seeps into the system due to leaks in the pipes and drains due to poor maintenance over the years. Plugging these holes will make EDC more efficient, allow them to treat less water overall, saving the utility money, which should be passed along to the consumer.
Are user based rates around the corner? There is much debate as to how user based rates will be enacted and if so, will the average user save money? We will see what the rate study shows and expect to give it a public airing before it will likely be enacted.
NJAW already supplies most users with their water, therefore should know water usage by individual users. EDC always argued flow meters would need to be installed on households at great capital cost to accomplish a user-based rate structure.
For more info read the article in the Bernardsville News.