The 8th District Lawmakers Will Introduce Bill Banning Automatic Rate Increase Mechanisms, Like the One the Water Company Seeks from BPU
New Jersey American Water Co.’s request for a new surcharge that would lead to automatic quarterly rate increases drew the ire today of Assemblywoman Dawn Marie Addiego and Assemblyman Scott Rudder.
“To allow New Jersey American or any other utility company to have automatic rate increases is foolhardy and irresponsible. Residents in this state are already paying exorbitant rates for utilities,” said Assemblywoman Addiego. “We can not tolerate this recklessness that will guarantee spiraling water bills in the state.”
The 8th District legislators have written to Governor Corzine expressing their outrage with New Jersey American’s request, informing him they have introduced Assembly Bill 4156, banning any automatic rate increase mechanism, and urging him “to assure that the state does not play the role of enabler in New Jersey American’s shameless reach for the wallets of Garden State residents.”
“Not only would the increases be automatic, but they would be quarterly,” said Assemblyman Rudder. “Without having to go back to the BPU to justify the increase, New Jersey American could jack up their rates every three months, and there would be nothing their water customers could do to stop it. We can’t tolerate that, and our bill will assure that it is illegal.”
New Jersey American recently applied for a 23 percent rate increase, but the BPU rolled back the increase to a still-staggering 15.2 percent. And New Jersey American’s sister company, Applied Wastewater management, sought and was granted an astronomical 66 percent increase.
“It is absolutely outrageous. We have a utility company asking to put the fox in charge of the henhouse,” said Assemblywoman Addiego. “Time after time, New Jersey American has proven to be a company that puts the almighty dollar ahead of everything else.”
“The arrogance and disdain shown toward their customers is clearly the by-product of the monopoly the company enjoys in many parts of the state,” Assemblyman Rudder said.
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