Middlesex Water Company Files Rate Request Seeking Recovery for System Upgrades

Middlesex Water Company has filed a petition with the New Jersey Board of Public Utilities (NJBPU) for a general increase in water rates for its Middlesex system in New Jersey.  Middlesex filed the request seeking recovery of $92 million in investments made to its drinking water infrastructure since its last filing in 2015.

“We remain committed to investing in our utility infrastructure. The service we provide is essential to public health, fire protection, quality of life and economic growth in the communities we serve,” said Dennis W. Doll, Middlesex Water President and CEO.  “Maintaining critical infrastructure has been the highest of priorities at Middlesex throughout our history and has become a major challenge facing water utilities across the nation. In addition to enhancing the integrity of our service, these upgrades are contributing to the overall sustainability and economic vitality of the municipalities we serve,” added Doll.

Middlesex Water serves over 61,000 customers and operates and maintains over 700 miles of transmission and distribution mains, as well as water production and storage facilities in eastern Middlesex County, New Jersey.

Since its last filing, the company has completed numerous infrastructure improvements, including:

• Complete rehabilitation of the water distribution system in targeted areas including replacement of 32,000 feet of pipe, valve upgrades,  targeted service line replacements and meters requiring replacement through the RENEW Program
• Replacement of 35 outdated fire hydrants and laterals in its 55-square mile service area
• Installation of 2,450 meter enclosures for meters planned to be relocated outside the home for added customer convenience
• Installation of a 12” diameter pipeline across the NJ Turnpike required for critical access and enhanced fire flows
• Booster station upgrades to facilitate emergency interconnections with other water providers
• Addition of permanent back-up electrical power generation for greater resiliency in emergencies
• Upgrades to its Mobile Workforce Management system for added efficiencies managing field dispatch and work orders
• A Distribution System Pipeline Asset Assessment Program to identify and prioritize pipeline replacements

“In March 2017, we also announced our Water for Tomorrow® capital program which focuses on key improvements that will further enhance service quality, reliability and resiliency of our water system for current and future generations of water users,” said Doll. “These project components, while outside of this rate request, will include a supplemental transmission pipeline, introduction of ozone to the surface water treatment process and additional elevated storage tanks.”

Middlesex is seeking a total annual revenue increase of $15.3 million to recover costs for upgrades as well as increases in chemicals, fuel, electricity, technology, taxes, labor, benefits and other factors impacting required utility operating income. If the rate increase request is approved, as requested, the typical residential customer using 17,000 gallons of water per quarter would see their water bill increase approximately $0.38 per day. 

Upon filing of this rate increase request, the proposal will next be reviewed, analyzed and investigated by the NJBPU and various other intervening entities. The rate setting process includes a public hearing on this matter, which will be held in the company’s service area before a decision is made.  Customers may obtain additional information about this rate filing by visiting http://www.middlesexwater.com/customer-care/regulatory.

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