CHIVUKULA: CONSUMERS DROWNING IN HIGH GAS, FOOD PRICES SHOULD NOT BE OVERBURDENED WITH WATER RATE INCREASES

CHIVUKULA: CONSUMERS DROWNING IN HIGH GAS, FOOD PRICES SHOULD NOT BE OVERBURDENED WITH WATER RATE INCREASES
Chair, Assembly Utilities Panel Decries Rate Hikes, Announces Hearing
To Examine Proposed Increases by NJ American Water, United Water Toms River 

(TRENTON) - Assemblyman Upendra J. Chivukula, chairman of the Assembly Telecommunications and Utilities Committee, today announced he will hold hearings to examine the sharp rate increases of up to 93 percent proposed by several New Jersey water utilities at a time New Jersey residents are facing record high gas and food prices.

"At a time when consumers are already drowning in high gas and food prices, these increases could be catastrophic," said Chivukula (D-Somerset). "The drastic water rate increases proposed by several utilities in the state would overburden residents already struggling to pay their existing bills."

Chivukula said the Assembly panel would examine the basis  for calculations  of rate increases and whether, and to what extent, an increase would be appropriate.

Representatives from the utilities, the state's rate counsel and public advocate, the Board of Public Utilities, consumer advocates, and members of the public will be asked to testify.

"The timing of the proposed rate increases is terrible," said Chivukula. "We must determine whether these increases are truly necessary so that consumers already fighting for survival in a depressed economy are not left hanging out to dry."

Chivukula said the utilities committee will examine the quality, reliability and adequacy of water supply by utilities proposing a rate increase. It also will look into the utilities' delivery systems, efficiencies, and infrastructure.

Chivukula said he supported the New Jersey Rate Counsel's position that the water rate increases  should be only what is absolutely necessary to make sure ratepayers get clean water at affordable rates. 

New Jersey American Water, a water and wastewater supplier to more than 2.6 million state residents, filed for a 23.35 percent rate increase in January with the Board of Public Utilities (BPU).

New Jersey American Water says it needs the rate increase to cope with the rising cost of doing business and to replace its aging infrastructure. Other published factors driving the utility's proposed rate increase include the need to improve its supply capacity and water production facilities to meet increasing demand.

United Water Toms River, which filed a petition last month with the BPU seeking to to nearly double its rates with a 93 percent increase, provides water to 122,000 customers in Toms River South, Toms River and Berkeley.

United Water Toms River claims it has not increased its rates for thirteen years and needs the rate increase to make capital improvements and necessary repairs to the water supply system.

The utility has come under fire in the past from town officials and the public for its radiation levels, low water pressure, and inadequate water supply.

"These utilities need to prove to us that rate hikes of up to 93 percent are justifiable and necessary to improve service," said Chivukula. "State government cannot sit idly by and let New Jersey ratepayers get soaked."

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