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Rate Change Q and A RATE CHANGE INFORMATION- Are water rates regulated?
Yes. New Jersey American Water is regulated by the New Jersey Board of Public Utilities (NJBPU), and rates are established based upon the cost of providing service. As part of the rate filing, New Jersey American Water submitted extensive financial and operational data documenting its cost of doing business to the NJBPU.
- When will the new rates become effective?
The new rates are effective January 1, 2011.
- When were the new rates approved and by whom?
The New Jersey Board of Public Utilities (NJBPU) issued its final order on the new rates for New Jersey American Water customers on December 6, 2010.
- How will the rate change affect me?
The impact to a customer’s bill using 7,000 gallons a month would increase per month as follows:
| Service Area | Increase/Month | | Service Area 1 | $3.24 | | Service Area 2 | $4.31 | | Service Area 3 | $4.31 | | Service Area 3 (Columbus Section of Mansfield/Southampton) | $4.53 | | Service Area 3 (Columbus Section of Mansfield/Homestead) | $3.24 | | Service Area 1A | $4.31 | | Service Area 1B | $4.31 | | Service Area 1D (former AWWM customers) | No change |
New Jersey American Water tap water will still cost less than one penny per gallon. - As someone on a fixed income, do you have any programs that assist low-income customers?
Yes. For more than eight years, New Jersey American Water has been assisting low-income customers who qualify through its H2O Help to Others Program™. - Customers who qualify may receive a grant of up to $500 to help pay their water bill and a discount on their monthly fixed service charge. For more information, visit www.newjerseyamwater.com or contact the H2O Help to Others Program™ administrator, New Jersey SHARES, toll-free at
1-877-NJAWH2O. - As part of this rate change the NJBPU approved our proposal to increase the eligibility for the service charge discount program and increase the amount from 85 percent of the fixed service charge for water to 100 percent for those who qualify.
- In addition, to qualify for the discount program, customers had to be at or below 175 percent of the Federal Poverty Income Guidelines. The NJBPU approved our proposal to increase this to 200 percent. For example, for a family of four, to qualify currently, the household income may not exceed $3,217 a month. Currently, the monthly household income can be as much as $3,675 to qualify.
- The Commission also approved the company’s request to provide additional assistance for low-income customers to help them reduce their water use. We anticipate launching these new services some time in 2011. These will include:
- Comprehensive water audits by phone
- Free water-saving retrofit kits
- Up to $300 for in-home leak repairs and the installation of water-efficient devices
Are the reconnection charges changing? Any others?
- Reconnection Fees. Yes. The reconnection fee during normal working hours increased from $22 to $28. This fee is charged to customers requesting service reactivation and restoration of service due to non-payment.
- Normal Working Hours* (Monday-Friday from 8 a.m. and 6 p.m. EST; Saturday from 8 a.m. and 2 p.m. EST): Fee increased from $22 to $28. To activate or restore service on the same day, the request for reconnection must be made during normal working hours.
- Emergency Call Outs (reconnections outside of normal working hours)*: No change. Rate remains $100.
- *Note: Reconnects performed on the following holidays are $100 at all times: New Year’s Day, President’s Day, Veteran’s Day, Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and the day after and Christmas Day.
- Non-sufficient Fund Charge: Increased from $9 to $15 for each returned check.
- Late payment charge (commercial and industrial customers only): A late payment fee will be charged for any unpaid balances after 25 days following the bill date.
- Why was a rate change needed?
The rate increase was needed primarily because New Jersey American Water has invested about $285 million in treatment and distribution facilities to continue to provide high-quality, reliable water service. These improvements are necessary to allow us to continue to provide our customers with high-quality water service. These investments included: - replacement and rehabilitation of more than 30 miles of water and sewer pipeline
- source of supply and capacity projects
- improvements to surface water treatment facilities and groundwater well stations
- updated storage facilities to enhance reliability of service
- pump stations to improve water pressure
- new or replaced fire hydrants to enhance fire protection
- new meters and services
- technology equipment and software
- Even with the rate change, New Jersey American Water still costs less than a penny per gallon for quality water delivered directly to your home.
- What has New Jersey American Water done to control costs?
New Jersey American Water employs best management practices and cost containment techniques, while taking advantage of economies of scale to enhance efficiencies and reduce operational costs. Many of these enhancements have been in place for a number of years, such as: - Computer monitoring control systems in most of our treatment facilities, which minimize both operating costs and personnel needs.
- Centralized bulk purchasing of chemicals, supplies, materials, insurance and employee benefits.
- Centralized financial accounting, payroll and cash management systems.
- Customer service programs to better manage work load for field service reps. For example, laptops were installed in service vehicles, moving us from a paper-based to a real-time work distribution system. Information is communicated to and from the field using wireless technology, which has enabled our field representatives to better manage their work load.
- Installation of automated meter reading systems, which increase efficiency and reduce labor costs.
- Investment in leak detection equipment and programs to minimize water lost through water mains.
- Sharing costs with other American Water companies to take advantage of one of the most advanced water testing laboratories in the nation. This laboratory processes the most sophisticated water quality tests for New Jersey American Water at a cost which is less than what the tests would cost if completed at independent testing laboratories.
AUTOMATIC PAYMENT PROGRAM
- Can I use automated payments to pay my bill?
Yes. Under New Jersey American Water’s automatic payment program, you can have your bill paid each month from your checking or savings account.
- How does it work?
You can sign up online through My H2O Online at www.amwater.com\myh2o (all you need is your account number) or by completing the Automatic Payment Program authorization form. Your bill will be paid on time, every time, automatically from your checking or savings account! No checks to write. No postage to worry about. You will still receive a copy of your water bill before the payment is due so that you have time to review your bill.
- Do I have to pay any extra if I use the automatic payment program?
No. This is a free service from New Jersey American Water. An exception would be that a fee may be applied due to insufficient funds in the account or returned checks.
- Am I locked in for a long period?
No. You can discontinue the service at any time.
- How do I sign up?
All you have to do is sign up online using My H2O Online at www.amwater.com\myh2o or complete the Automatic Payment Program enrollment form and return it to the address provided on the form. If you have additional questions, please call our customer service center at 1-800-652-6987.
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