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REMARKS OF SEEMA M. SINGH, ESQ.
RATEPAYER ADVOCATE
PRESENTED BY CHRISTINE M. JUAREZ, ESQ., ADRA,
DIVISION OF RATEPAYER ADVOCATE
I/M/O Middlesex Water Company
Petition for an Increase in Rates for Water Service
and Other Tariff Changes
BPU Docket No. WR05050451
Public Hearing
Iselin, New Jersey
September 27, 2005 – 7:00 p.m.
Good evening, ladies and gentlemen, my name is Christine Juarez. I am
an attorney with the New Jersey Division of the Ratepayer Advocate. The
Ratepayer Advocate represents and protects the interests of all utility
consumers - residential customers, small business customers, small and
large industrial customers, schools, libraries, and other institutions
in our communities. The Ratepayer Advocate is a party in cases where New
Jersey utilities seek changes in their rates or services. The Ratepayer
Advocate also gives consumers a voice in setting long-range energy, water
and telecommunications policy that will affect the rendering of utility
services well into the future.
In the present case, Middlesex Water Company (hereafter referred to as
“Middlesex” or the “Company”) is a water utility
that provide water service on a retail basis to customers in South Plainfield,
Metuchen, Carteret, Woodbridge, Edison, South Amboy and portions of Clark;
on a contractual basis, to Edison Township, the Boroughs of Highland Park
and Sayreville, the Old Bridge Municipal Utilities Authority and the Marlboro
Township Municipal Utilities Authority. The Company also provides water
treatment and pumping services to the Township of East Brunswick on a
special contractual basis. This petition, however, is limited to the Company’s
service area.
On May 18, 2005, the Company filed a petition with the New Jersey Board
of Public Utilities (“Board” or “BPU”) seeking
approval for an increase in rates for water service of 13.06% or approximately
$6.44 million in annual revenues. Rates are proposed to become effective
on March 1, 2006. The average residential customer using 20,196 gallons
of water per quarter would see his or her bill increase from $84.01 to
$94.96, an increase of approximately $10.95 per quarter.
We, at the Ratepayer Advocate, are conducting a comprehensive examination
of Middlesex’ proposal to verify the reasons for the increase in
charges and to determine whether the Company’s calculations are
accurate. For example, we have issued questions to the Company, seeking
to discover detailed information regarding the proposed increases, including
the basis for the Company’s calculations. The Company must justify
its expenses and provide evidence to support its calculations. These are
all factors to be considered when analyzing the Company’s proposal.
The Ratepayer Advocate has attorneys and expert witnesses analyzing data
from the Company to effectively examine the proposed pass-through of charges.
If necessary, evidentiary hearings will be held, at which time we will
cross-examine the Company’s witnesses. It is important, however,
that you be aware that decisions regarding all rate modifications in New
Jersey are made by the Board of Public Utilities.
The purpose of this open public hearing is for you, the customer, to voice
your opinion, relate your experiences with the Company, and offer comments
about the Company’s proposed increase and any service problems you
may be experiencing. It is important that you express your views, because
they will become part of the record on which the Board of Public Utilities
makes its decisions. The Ratepayer Advocate also needs to hear your views
in order to represent your interests in this legal process. We strongly
encourage your participation, which will help us evaluate Middlesex’
proposal and prepare for the evidentiary hearings.
This public hearing is being transcribed and your comments will become
part of the record. The hearing officer will instruct you to give your
name and address before you speak. I would like to reiterate the importance
of your input so that the Ratepayer Advocate can have a clear record of
your concerns and interests.
On behalf of the Ratepayer Advocate, I thank you for attending this public
hearing.
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