In the Matter of the Petition of New Jersey-American Water Copmany, Inc., for an Increase in Rates for Water and Sewer Service and Other Tariff Modifications

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In the Matter of the Petition
of New Jersey-American Water Company, Inc.,
for an Increase in Rates for Water and Sewer Service and Other Tariff Modifications

APRIL 2005

II
IN THIS ISSUE

Camden
Bd.of Ed. v. Alexander, et al.

Camden
Bd. of Ed. v. McGreevey et al.

P.H. and P.H. on behalf of M.C. v. Bd. of Ed. of the Borough of Bergenfield

Franklin Twp.
Bd. of Ed. v. Franklin Twp. Ed. Ass'n

Magnolo v. Washington Twp. Bd. of Ed.

O’Shea v. West Milford Bd. of Ed

Ramsey
Bd. of Ed. v. Ramsey Teachers Ass'n

In the Matter of Monmouth-Ocean Educational Services Commission, Rumson-Fair Haven Regional High School District, Stafford Twp. Bd. of Ed.

In the Matter of the Petition of New Jersey American Water Company, Inc., for an Increase in Rates for Water and Sewer Service and Other Tariff Modifications

BOARD OF PUBLIC UTILITIES

“Water, water, everywhere/ Nor any drop to drink,” wrote Samuel Taylor Coleridge in his poem, “The Rime of the Ancient Mariner” in 1798. Some two hundred years later, those words would have special meaning for the Jamesburg Board of Education.
   In 1996-1997, the Jamesburg Board of Education built an addition to one of its elementary schools from plans that, at the time, had to have the approval of the Department of Education, Bureau of Facility Planning Services. The plans, approved in accordance with the Uniform Construction Code, called for a single water line to service both the drinking water needs of the school and its fire sprinkler system. However, the New Jersey American Water Company insisted that, as a condition of providing water service to the school, a separate dedicated line be installed exclusively for the fire sprinkler system.
    The Jamesburg Board protested but, faced with construction deadlines, ultimately acquiesced to the demands of the water company to install two separate lines, at substantial cost to the Jamesburg Board. The water company derived its authority from its water tariff which was approved by the New Jersey Board of Public Utilities (BPU) for the customers in its service territory.
    NJSBA, at the request of the Jamesburg Board, participated in a proceeding before the BPU concerning matters of the tariff of the New Jersey American Water Company. The NJSBA argued that it was improper for the BPU to grant a tariff that overrode the Uniform Construction Code, overseen by the Department of Community Affairs. NJSBA requested that the water company be prohibited from requiring a capital improvement on any school facility that is built in accordance with the requirements of the Uniform Construction Code.
    The BPU issued a decision in April 1999 and ordered that various departments within the BPU initiate an inquiry on the need for a second dedicated fire line and look into the discrepancy between the requirements of the BPU and the Department of Community Affairs. In the Matter of the Petition of New Jersey-American Water Co. for an Increase in Rates for Water and Sewer Service and Other Tariff Modifications, Slip Opinion, 4/6/99 page 53.
    The BPU established various working groups made up of all the interested parties, including the NJSBA, to come up with a solution. After a series of meetings, a new draft tariff was proposed that was agreeable to all the parties involved. The draft tariff would permit customers in the water company’s service area to choose a single water line if they affirmatively chose to do so.
    To date, this draft tariff has not yet been adopted by the BPU.