Moorestown Opposes Water Rate Hike

Moorestown has joined a handful of other Burlington County municipalities opposing a significant rate hike from New Jersey American Water (NJAW).

In addition to the 917 million gallons it pulls from its owns wells, the township also purchases 315 million gallons a year from NJAW to meet its 1.1- to 1.2-billion-gallon annual demand, according to utilities superintendent Bill Butler.

Township financial officer Tom Merchel said the township pays—per its contract—approximately $2 million a year to NJAW for that water.

NJAW requested approval from the state Board of Public Utilities (BPU) in July to raise rates 20 percent, according to a release from the county. If the rate hike were approved, Merchel said, “You’re talking about a half million dollar (increase) … which is huge.”

Continued commercial development in the township—i.e., a at Main and Marter—will significantly increase demand, Butler said, because the state Department of Environmental Protection says municipalities must provide three times as much water as it’s projected to need for certain commercial structures.

The township just built another well—partly to cover the new Virtua building, he said—so it’d have to purchase more water from NJAW should development continue.

County spokesman Ralph Shrom said 23 of the county’s 40 municipalities would be directly affected by NJAW’s rate increase. All 40 communities received a letter from Freeholder Director Bruce Garganio asking them to voice their opposition to the increase.

“We’re not going to let this increase quietly slip by,” Garganio stated in a release. “We’re going to make sure residents know what’s going on, and we intend to stay fully engaged.” 

Shrom said so far only three have passed resolutions opposing the rate hike (not including Moorestown, which just passed a resolution Monday), but he expected more would.

The county will also post a petition on its website for residents to sign so they can express their opposition.

Ultimately, if there were a rate increase, the burden would fall back on residents in one way or another, said Moorestown township manager Scott Carew. “We’re obviously going to have to pass that on to somebody.”

Shrom said the BPU will likely hold hearings on the rate hike in March or April. A ruling wouldn’t come until sometime in the summer.

“It’s a long, involved process,” he said.