STATE OF NEW JERSEY
Division of The Ratepayer Advocate
31 Clinton Street, 11th Fl
P. O. Box 46005
Newark, New Jersey 07101
Press Release
| For Immediate Release Thursday, June 26, 2003 |
For
Further Information |
Newark, NJ – Seema M. Singh, the state’s Ratepayer Advocate, today praised the purchase and sale agreement approved by the Board of Public Utilities (BPU) permitting United Water Lambertville, Inc. (UWL) to convey property to Delaware & Raritan Greenway, Inc. (D&R Greenway), a non-profit land trust in the State of New Jersey.
“This agreement, which will provide each customer of United Water Lambertville with a $305.00 refund check, brings specific financial benefits to ratepayers and is clearly an example of the Ratepayer Advocate’s work to protect the interest of consumers when settling utility matters in New Jersey,” said Ms. Singh, noting that the agreement was negotiated among the parties, including her office and the staff of the BPU.
Customers will be credited with approximately 42 percent of the net proceeds from the land sale. Today’s decision also provides that in UWL’s next rate proceeding, the company’s customers will be relieved of the revenue requirement associated with the property including return on rate base and associated operating and maintenance expenses.
“Chief among the benefits for consumers is that this agreement advances the State’s Smart Growth policy by preserving the property as open space land use, further providing families of New Jersey with a clean and healthy environment,” said Ms. Singh.
D&R Greenway works closely with the New Jersey Department of Environment Protection’s Green Acres Program in acquiring properties for open space and passive recreation. The property outlined in the land sale agreement is uniquely situated to provide an east-west linkage in the greenbelt created between the Delaware River and the wooded Sourland Ridge.
The land, preserved as Open Space can serve as a north-south linkage between the Sourland Ridge and preserved land in Mercer County between Howell Living History Farm, Baldpate Mountain Preserve and Washington Crossing State Park.
D&R Greenway agreed to purchase from UWL approximately 290 acres outright, and conservation and public access easements on another 108 or so acres, for a total price of $2,021,693.65. After paying certain expenses and taxes associated with the sale, the net gain to be split between the customers and UWL was $1,180,377.33.
The customers’ share will be split among the approximately 1600 customers of UWL in Lambertville and West Amwell. The Company will issue checks to each of its customers by August 31.
The Company indicated that it would use the sale proceeds to improve the financial health of the utility, and to fund needed improvements to UWL’s dam and other system infrastructure.
The Division of the
Ratepayer Advocate represents the interests of utility consumers and serves as
an active participant in every case 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 delivery of utility
services well into the future.