Middlesex Water Files for Rate Adjustment
16 May 2023 - 6:35AM
Middlesex Water Company (NASDAQ:MSEX) (Middlesex or the Company)
today filed a petition with the New Jersey Board of Public
Utilities (NJBPU) requesting an increase of approximately $33.9
million or 31.23% to its base rates in its Middlesex system.
Middlesex is filing for new rates to recover prudently-incurred
investments made to ensure proper maintenance, development and
improvement of its utility assets to support continued regulatory
compliance and overall quality of service.
Since its last base rate filing in May 2021, Middlesex has
invested approximately $136 million as part of its ongoing Water
for Tomorrow® capital improvement program in critical drinking
water infrastructure projects that are not currently reflected in
customer’s rates. These improvements include:
- Construction and installation of a Granular Activated Carbon
water treatment (GAC) system at the Park Avenue wellfield facility
to ensure compliance with New Jersey Department of Environmental
Protection (NJDEP) regulations pertaining to perfluoralkyl and
polyfluoroalkyl chemicals (PFAS);
- Replacement of aging water mains, valves, service lines and
meters in Middlesex Water’s distribution system using a risk-based
approach under the Company’s RENEW program, now in its 28th
year;
- Replacement of approximately 25,000 feet of additional
distribution mains and the related services, valves and meters (not
in the RENEW area) to ensure our ongoing compliance with the New
Jersey Water Quality Accountability Act (WQAA).
The WQAA includes various requirements including compliance with
Safe Drinking Water Act regulations, water supply allocation
permitting and operator licensing requirements, certain
cybersecurity standards, hydrant and valve maintenance schedules,
violation mitigation plans, and infrastructure improvement/capital
investment plans. Middlesex is currently in compliance with all
WQAA requirements as reflected in its 2022 certification submission
posted on our website.
The GAC system installed at the Park Avenue wellfield was the
solution needed to ensure compliance with all state and federal
drinking water standards, including the NJDEP regulations for
PFAS.
“Compliance with ever increasing regulations and protecting
against risks posed by climate change, new emerging contaminants
and cybersecurity threats requires continual assessment of our
labor resources and water distribution assets to ensure the service
we provide supports public health, area fire protection and meets
reliability and resiliency system requirements,” said Dennis Doll,
Middlesex Water Chairman, President and Chief Executive Officer.
“Included in the request is the need for ongoing training,
expansion of the company’s workforce to fill retirements, support
additional water sampling and monitoring needs, as well as meet
additional regulatory requirements,” added Mr. Doll.
In two other separate filings made with the NJBPU today, the
Company is seeking approval of:
- A plan to recoup
the costs of replacing lead service lines pursuant to the New
Jersey Lead Service Line Replacement Law.
- A Foundational
Filing to implement a Distribution System Improvement Charge (DSIC)
to recover costs associated with improvements to the Company’s
distribution system.
The Company’s filings will be reviewed, analyzed and
investigated by the NJBPU, the New Jersey Division of Rate Counsel
and various other intervening entities. The base rate setting
process, which can take a minimum of nine months, includes a public
hearing on this matter, which will be held in the Company's service
area before a decision is made. Public hearings will also be held
on the Lead Service Line Plan and the DSIC Foundational Filing.
Customers may obtain the three Company petitions and all associated
exhibits on the Company's website at www.middlesexwater.com under
the menu tab Customer Care/Regulatory Filings.
If the Company’s base rate increase request is approved as
requested, the residential customer using approximately 15,000
gallons of water per quarter would see their water bill increase
approximately $20.22 per month or $0.66 per day.
About Middlesex Water Company
Established in 1897, Middlesex Water Company (NASDAQ:MSEX)
serves as a trusted provider offering life-sustaining high quality
water service for residential, commercial, industrial and fire
protection purposes. The Company offers a full range of water,
wastewater utility and related services. Middlesex Water Company
(the Middlesex System) serves over 62,000 retail customers and
operates and maintains over 746 miles of transmission and
distribution mains, as well as water production and storage
facilities in eastern Middlesex County, New Jersey. The company
provides retail water service to Carteret, Metuchen, South Amboy,
Woodbridge and portions of Clark, Edison and South
Plainfield. The Company also provides services under contract
to the Borough of Highland Park, the Old Bridge Municipal Utilities
Authority, the Township of Marlboro, the City of Rahway and the
Township of East Brunswick.
This release contains forward looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
including, among others, our long-term strategy and
expectations, the status of our acquisition program, the impact of
our acquisitions, the impact of current and projected rate requests
and the impact of our capital program on our environmental
compliance. There are important factors that could cause actual
results to differ materially from those expressed or implied by
such forward-looking statements including: general economic
business conditions, unfavorable weather conditions, the success of
certain cost containment initiatives, changes in regulations or
regulatory treatment, availability and the cost of capital, the
success of growth initiatives and other factors discussed in our
filings with the Securities and Exchange Commission.
CONTACT: Bernadette Sohler, Vice President - Corporate
AffairsMiddlesex Water Company(732) 638-7549
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