Senator Christopher J. Connors, Assemblyman Brian E. Rumpf and Assemblyman Daniel M. Van Pelt today re-submitted testimony in the official public record of testimony in opposition to the petition by United Water Toms River to increase rates by 93 percent, which would affect residents in this Legislative District living in Berkeley Township. Hearings on the petition are scheduled to take place on August 21 and 22 in Newark. The 9th District Delegation remarks were as follows:
“Our Delegation, again, wishes to enter into the official public record of testimony its unalterable opposition to the proposed 93 percent rate increase sought by United Water Toms River. We raise the same objections submitted into testimony at the June 23, 2008 hearing in Toms River held on the same petition by United Water Toms River.
“Such an increase would adversely impact many of our constituents living in Berkeley Township. The shared concern of individuals who contacted our office is that this added expenditure would only exacerbate the financial hardship with which those living on fixed and retirement incomes are struggling with due to escalating gas prices and the resulting cost increases for other necessary goods and services.
“It should be duly noted that Berkeley Township is among the municipalities with the highest concentration of senior citizens within its population. Therefore, the economic consequences of such a dramatic rate hike would likely be widespread, not just limited to a handful of individuals. Limiting usage is not really an option when considering the common usages of water, at least not enough to make such expenditure any more financially feasibly. Furthermore, we believe it to be unreasonable to ask or require someone to reduce usage of such a basic service and lower their standard-of-living because a utility company has determined a massive rate hike is to be imposed on ratepayers all at once.
“Perhaps more alarming than any other aspect is the sheer size of the increase being sought which will nearly double rates for a basic and essential utility service. To our knowledge, no proposal was presented to the public offering incremental increases as a means to lessen the inevitable rate shock which would ensue for customers.
“The brazen attempt to raise rates at such an obscene level has created a great deal of anxiety among residents of potentially affected communities. It has even caught the attention of the State Legislature in Trenton beyond the objections of our Delegation. In fact, the Chairman of the Assembly Telecommunications and Utilities Committee, Assemblyman Upendra J. Chivukula, has announced he will be holding hearings to examine sharp increases in water rates proposed by several water utilities in the state. Furthermore, in his announcement the Chairman cited the rate increase sought by United Water Toms River as one example for the need to hold such hearings.
“Upon learning of his intentions, our Delegation immediately contacted Assemblyman Chivukula and provided information we had obtained from state agencies on the petition filed by United Water Toms River. We also provided information on a petition filed by the Crestwood Water Co., which provides service in areas of Manchester Township, which sought a 69 percent increase in its rates. Our Delegation will continue to work with Chairman Chivukula on this matter and fully support the dedication of state resources to protect consumers from the imposition of exorbitant rate hikes by utility companies.
“Most would agree that it is poor business practice for a company to increase prices or rates by 93 percent. In most cases, this would entail the company losing customers to a competitor and eventually going out of business. However, in the case of a utility service, consumers have limited options. Since utility service is basic to a person’s’ quality-of-life, guidelines are established and enforced by appropriate State agencies whose responsibility and mandate is to protect the rights of ratepayers. Today’s hearing is a clear example of why these consumer protections were established in the first place.
“Authorizing this substantial rate hike for such a basic service would be setting a dangerous precedent. The rate shock that would surely follow would have a detrimental impact on the finances of affected individuals, many of whom would be seniors living on a fixed income. The people of Berkeley Township and other affected communities require the assistance of the State in this matter. Accordingly, we urge, in the strongest possible terms, that the petition filed by United Water Toms River seeking approval for a 93 percent rate increase be rejected.
“Our Delegation appreciates the opportunity to submit testimony at this hearing.”
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October 10, 2008
