New Jersey American Water Rate files for new rates to cover USD775m invested in system upgrades.
M2 EQUITYBITES-January 12, 2015-New Jersey American Water Rate files for new rates to cover USD775m invested in system upgrades
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New Jersey American Water, a wholly owned subsidiary of investor-owned water utility American Water (NYSE:AWK), disclosed on Saturday that it has filed a petition with New Jersey Board of Public Utilities (BPU) for new rates to recover the investments of USD775m made by the company in the state's water and waste water infrastructure, since its last rate increase in 2012.
The company said that the new rate request would result in an increase of just less than USD0.17 per day for the average residential water customer and raise revenues by about USD66m, the smallest requested increase in a decade for the company. It also stated that while the request undergoes extensive scrutiny by the BPU, the New Jersey Division of Rate Counsel and the Office of Administrative Law, which can take a minimum of nine months, the rates will remain unchanged and to increase process transparency this petition and its associated exhibits are being posted to http://www.newjerseyamwater.com.
Finally, BPU will make the final decision regarding the actual percentage of increase and at present, the increased rates proposed in the rate petition are a request only, the company said and added that when the final decision is made, customers will be informed via mail, as well as on its website, explaining the new rates.
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|Publication:||M2 EquityBites (EQB)|
|Date:||Jan 12, 2015|
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