PASCACK VALLEY AREA, N.J.—Suez North America, which provides water service to 258,000 customers in 10 New Jersey counties, including Bergen County, is seeking state approval to increase its base rates to generate $35.4 million in annual revenue, approximately a 12% increase.
The state Board of Public Utilities is holding a virtual hearing on March 4 to determine whether the increase will be permitted. Public comment will be accepted in advance of and during the hearing. Suez is represented by attorney Stephen B. Genzer of Saul Ewing, Arnstein, and Lehr LLP of Newark.
“We are giving Suez’s rate request a close review and will have representation at the upcoming public hearing, but we do not have a position at this time,” New Jersey Division of Rate Counsel Director Stefanie Brand told Pascack Press on Feb. 23.
The rate counsel office is an in-house state advocate that represents the interests of water utility customers statewide.
The Suez petition public notice lists rate increases for general metered service on specific sized meter lines, ranging from $3.55 per month to as much as $585.75 for a 12-inch line.
The proposed average residential customer increase will be 0.76 for every 100 cubic feet of water, which equates to about $1 for every 1,000 gallons of water. Currently, 1,000 gallons cost about $5.67. The rate increase would raise that charge to approximately $6.68.
The public notice states the average monthly bill using about 6,732 gallons would increase from $54.15 to about $64.51, an increase of $10.36.
The private water company has petitioned the state Board of Public Utilities (BPU) to increase its rates for water service due to specific factors that increased its expenses, said the utility.
“Suez continues to make significant capital investments to its utility plant in order to continue to provide safe, adequate and proper service to its customers, and seeks in this proceeding to recognize those investments in rate base. For example, since its last base rate case order, Suez has invested over $237 million in facilities to serve customers,” the company state in its rate increase filing.
The company said it is “entitled to earn a fair return of, and on, these investments, and this should be accomplished through the updating of rate base within the context of the implementation of the results of a base rate proceeding.”
It also cites “increases in certain categories of costs, including labor and labor-related expenses, power and waste residual expenses which costs should be recovered if they are included in base rates.”
A separate Suez petition to increase rates to conduct a customer lead service line replacement program remains undecided by the BPU in a Suez filing initially submitted in March 2019. Suez has replaced hundreds of its lead service lines and goosenecks, the pipes connecting the main service line to customers’ water lines.
In a press release, Suez listed specific efforts underwritten by its $237 million infrastructure investment, which is why it requests an increase in base water rates. These include lead removal, water main upgrades, treatment plant improvements, modernized control systems, to overhaul and replace aging water and sewer systems, water tank rehabilitation, and workforce management.
“The $237 million in infrastructure projects represents necessary, crucial improvements to the transmission and distribution systems, which delivers water to each and every customer. The proposed 12% increase, if approved by the state BPU, would increase the typical residential customer’s bill by approximately 24 cents a day, dependent on local and individual water usage. It will take several months for the NJBPU to accept, reject or modify the request,” said Suez.
Spokeswoman Debra Vial told Pascack Press Suez’s investment program “is calculated to have added approximately 5,000 jobs to the economy.” She said, “In the next four years, Suez anticipates investing $640 million more in essential infrastructure projects—initiatives that will put even more people to work and support more businesses across the state.”
The BPU hearing March 4, from 4:30 to 6:30 p.m., can be accessed by going to Zoom.us/join, Meeting ID 890 5286 4906 and entering passcode 549859.
The public can provide comments then or submit written comments in advance to Hon. Irene Jones, Administrative Law Judge, OAL, 33 Washington Avenue, 15th floor, Newark, NJ, 07102.
Written public comments must also note OAL Docket No. PUC 10966-2020, and Agency Docket No. WR20110729 in the comment letter.