In an-already tough financial year for Plainsboro residents, who will see their school tax rates increase by 10 cents, another increase is being proposed: their water rates, which Plainsboro officials estimate will rise by 19 percent.
New Jersey American Water announced last month it has filed for new rates with the New Jersey Board of Public Utilities, which will increase the average customer’s monthly bill by about $7.10, or 23 cents per day.
As part of the filing, the company has proposed implementing a conservation component to its rate filing as well as expanding assistance to low-income customers and creating new rate structures that would, the company says, encourage conservation and generate economic activity in New Jersey.
However, rates will remain unchanged until the request undergoes review by the Board of Public Utilities as well as the New Jersey Division of Rate Counsel and an administrative law judge. The process includes public hearings.
Meanwhile, the Plainsboro Township Committee voted on May 12 to pass a resolution opposing the water rate hikes.
The company also said it has spent $251 million on capital improvements, including replacing miles of aging water mains and upgrading its water treatment facilities. “The cost of increased expenses such as labor, fuel, energy, taxes, and property and liability insurance are part of the company’s rate request,” the press release stated.
The company’s proposed conservation program includes implementation of a do-it-yourself online water audit tool to help customers identify ways they can use water more efficiently based on their habits, a rebate program to encourage customers to purchase water-saving appliances and fixtures, and web-based tools for customer education.
The company said in a press release that it will also focus conservation efforts to help customers who are eligible for the company’s Low Income Payment Program to save water.
The rate filing also includes a provision to “incentivize new businesses to invest in New Jersey, both creating jobs and stimulating the state’s economy,” the press release states. “With the proposed Economic Development Rate, New Jersey American Water will offer lower rates for a set period of time to new commercial or industrial customers who establish their business within the company’s service territory.”
