Mahwah December 21, 2011 THE VILLADOM TIMES IV • Page 9 Township opposes United Water rate increase by Frank J. McMahon The Mahwah Township Council has passed a resolution opposing the rate increase United Water New Jersey has requested from the New Jersey Board of Public Utilities for water service to its residential customers. The township has its own water department and only buys bulk water from United Water, but that rate would also increase under the current proposal. The estimated average increase to a residential customer would be 23.91 percent per quarter. If approved, the rate increase would become effective on May 1, 2012. “This is an exorbitant increase that will adversely affect every resident in the township through direct billing by United Water without a breakdown of costs or explanation or profits,” the council’s resolution stated. “The proposed rate increase far exceeds the two percent cap under which municipalities must abide.” The resolution also states that the rate increase would have a direct impact on the 2012 budgets of the affected towns and the residents of those towns. “The mayor and council are adamantly opposed to this dramatic and exorbitant rate increase,” the resolution continued, “and the Township of Mahwah urges the BPU to reject this rate increase as exorbitant.” The township is also urging the surrounding towns in the United Water service area to oppose the rate increase and to contact the BPU to register their opposition on behalf of all residents and rate payers. Sonja Clark, senior manager of communications and community relations for United Water, advised that the company filed for rate relief with the BPU in July to recover the investment of over $67 million in water system improvements and increased operating expenses for the period between Aug. 1, 2010 and April 30, 2012. The company’s rate increase of approximately $38.7 million, if approved by the BPU, would increase the typical residential customer’s bill by approximately 33 cents per day, or $9.98 per month. At the time the rate increase request was filed, United Water Vice President and General Manager Jim Glozzy said, “We are sensitive to requesting rate relief, especially during difficult economic times. Our application describes investments necessary to improve water quality and maintain reliable service for our customers. These upgrades also help us meet increasingly stringent water quality regulations set forth by the U.S. Environ- mental Protection Agency and the New Jersey Department of Environmental Protection.” Glozzy explained that the rate increase is primarily related to about $30 million in improvements in the company’s transmission and distribution system, which carries water from the treatment plant to customer homes and businesses. These items include new water mains and valves, new fire hydrants and fire service lines, and a new water storage tank. The company has also made infrastructure investments of approximately $25 million in water treatment, pumping plant, metering, and other assets to enhance the company’s ability to provide reliable water service and fire protection. In addition, Glozzy said the company seeks to recover about $12 million in costs related to a new customer information and billing system that replaced aging computer infrastructure. “This new system enables us to respond to an entire range of customer concerns in a timelier, more comprehensive manner,” Glozzy said. “It better equips us to manage data, improve consistency and reporting, (continued on page 11)