RE: Middlesex Water Rate Increase
February 24, 2022
Marlboro Township Water Utility obtains approximately 70% of its potable water through a long term contract with the Middlesex Water Company (“MWC”). The cost of this water over the 12 month period beginning October 1, 2020 and ending September 30, 2021 was just above $4 million.
In May, 2021, the MWC petitioned the New Jersey Board of Public Utilities (NJBPU) for an unprecedented increase, one which amounted to 61.5% for Marlboro Water Utility customers. (See letter HERE). The Township Council authorized the Township to intervene in the matter before the NJBPU, and we partnered with the Old Bridge Municipal Utilities Authority in presenting our objections.
Historically, the Township has succeeded in negotiating down the size of MWC’s requests for rate increases, and when possible, has used our reserves to buffer and spread approved rate hikes out over time. That said, the NJBPU has always approved MWC’s request for an increase based on the long-held assumption that the Company is entitled to a highly favorable rate of return on its capital investment.
Ultimately, the NJBPU approved an approximately 40% in MWC’s rates to take effect in 2022. This requires that Marlboro Water rates be adjusted in order to raise sufficient revenue to offset the Middlesex increase.
For the average customer using 27,000 gallons, this will represent an increase of 9.39% or $13.53 per quarter.
It is noted that the Marlboro Utility’s rates still remain well below other public and private suppliers in the region.
- Even a small leak can add up very quickly. Review ‘Water Usage Memo’ to check for leaks and tips to conserve water, lower your bill and protect the environment.
- To review your prior water usage and billing history, visit https://webportal.municipal-software.com/lookup/marlboro