REMARKS OF SEEMA M. SINGH, ESQ.
RATEPAYER ADVOCATE
PRESENTED BY SUSAN E. MCCLURE, ESQ.
ASSISTANT DEPUTY RATEPAYER ADVOCATE
DIVISION OF THE RATEPAYER ADVOCATE
I/M/O
the Petition of Roxbury Water Company
for Approval of an Increase in it’s
Rates for Water Services
BPU Docket No. WR03110904
PUBLIC
HEARING
April 12, 2004
Senior Center
Township of Roxbury
7:00pm
Good evening. My name is Susan McClure, and I am an attorney representing the
New Jersey Division of the Ratepayer Advocate. Our office was created by the
New Jersey Legislature to represent ratepayers in cases such as this where a
utility seeks an increase in rates or change in services.
In order to effectively
represent the public in utility rate cases, our office uses a team of lawyers,
accountants, economists and engineers to analyze requests for rate and service
changes filed by companies who provide energy, water, and telecommunications
services in New Jersey.
Roxbury Water Company (hereafter referred to as “the Company”) filed
a Petition on November 14, 2003 with the New Jersey Board of Public Utilities
(“Board”) asking for an increase in water service rates and charges
for public fire protection service. The Company’s Petition seeks an overall
rate increase of $ 362,175.00 or 27.78% of total revenues.
The Company provides water service to residential and commercial franchise Customers
in portions of Roxbury Township. The Company also provides municipal fire protection
service in portions of Roxbury Township. The proposed rate increase will increase
the fixed rate. Bills will be tendered quarterly and for the average residential
and commercial customer using 22,000 gallons per quarter, this would mean an
increase of about $20.77 from $74.96 to $95.73 quarterly. Municipal Fire Protection
Service billing will increase about $55.50 from $199.80 to $255.30 per quarter.
The Company has not had a rate increase since 2001 and claim this increase is
needed in order to eliminate operating losses; to permit the Company to meet
increased operating expenses experienced by the Company since its last rate
increase; to establish rates which will be sufficient to enable the Company
to maintain financial integrity and to enable the Company to provide safe, adequate
and proper service to customers.
Under the laws of New Jersey, regulated utilities, such as Roxbury Water Company
are permitted to charge rates that are Ajust and reasonable@. The law allows
a utility company a fair opportunity to earn a profit on its investment. Our
office is conducting a complete investigation of the Company’s request
based upon the information that is being supplied and updated by the Company.
We have retained the services of an expert consultant to assist us in our review.
We will issue numerous questions to the Company, seeking to discover detailed
information regarding its financial structure, operation and maintenance expenses,
and other financial obligations. The Company must justify all of its expenses
and other claims, and provide evidence to support its calculations.
We are in the process of analyzing the data we have received so far from the
Company. Our consultants will offer testimony regarding various portions of
this proposal to increase your rates. We can state at this time that we have
some concerns regarding the requested increase. We are focusing especially on
these critical issues:
We expect to question Roxbury
Water Company representatives about these concerns and to raise them at any
settlement meetings. An evidentiary hearing will be held on May 28, 2004 at
the Office of Administrative Law in Newark, NJ, before the Honorable Irene Jones,
who is presiding over this public hearing this evening. At the evidentiary hearings
we will cross-examine any witnesses that the Company might present, and submit
expert testimony in support of our own recommendations. However, it is important
that you are aware that the ultimate decision regarding this requested increase
will be made by the Board.
The purpose of this hearing is for you, the customer, to voice your opinion,
relate your experiences and offer comments about your Company’s rates
and service. It is important that you express your views so they may become
part of the record on which the Board of Public Utilities makes its decisions.
The Ratepayer Advocate also needs to hear your views. Your active participation
is strongly encouraged to help in our evaluation of the Company’s proposals
and our preparations for the evidentiary hearings.
This hearing is being transcribed and your comments will become part of the
record. I would like to reiterate the importance of your participation so that
the Ratepayer Advocate can have a clear record of your concerns and interests.
On behalf of the Ratepayer Advocate, thank you for attending tonight’s
hearing.