Freeholder Director: Rate Hike Decision a 'Small Victory'

Burlington County Freeholder Director Bruce Garganio said Tuesday’s decision by the Board of Public Utilities (BPU) to knock down New Jersey American Water’s rate increase “could be called a small victory” for ratepayers.

According to a release from the county, American Water came away from its meeting with the BPU with a rate hike less than one-third of the $95 million .

However, Garganio said as far as he is concerned, “there is still a battle to be waged here.”

He said he would press for reforms in the way the public is notified and participates in the process, and that would include reforms for all the state entities involved.

“We came away from (Tuesday’s) hearing knowing only that American Water was just awarded $30 million additional per year, but not knowing specifically how that amount was arrived at,” he said. “We never received a line-item accounting before or during the hearing. I’m still perplexed that the New Jersey Division of Rate Counsel , and instead of pressing that case cuts a deal to award American Water an increase of nearly 5 percent.”

The BPU did not take comment on the proposed increase until it had already voted 5-0 to approve it, according to the county release. Garganio used the opportunity to call for reforms in the way rate increases are aired before the public and adjudicated by the various state agencies.

“Unless you read the classified ads during the height of the holiday season, you wouldn’t have even known that American Water was seeking a whopping increase, or that there was a public hearing you could attend to voice your opinion,” said Garganio.

Garganio said he would work with legislators, the BPU and interested citizens to enact reforms ensuring ratepayers receive actual notices of proposed increases and hearings in their monthly billings.

In addition, he said, Rate Counsel, which is charged with representing the interests of the consumer, should be compelled to take the rate increase to trial before the Office of Administrative Law if they have expert testimony saying no increase was merited by the company.

“And if the process leads us down the road to a negotiated settlement, Rate Counsel should be compelled to share it with the public,” he added, noting, in this case, Rate Counsel treated the settlement as privileged information.

Some three dozen senior citizens from retirement communities in Mansfield Township accompanied Garganio to Tuesday’s BPU meeting.

“They came away with a jaded view of democracy,” he said. “And why shouldn’t they? These are people on fixed incomes paying anywhere from $100 to $140 each month to American Water for water and sewer. That’s outrageous by any comparison.”

- Information provided by the Office of Burlington County Freeholders