Saturday, August 22, 2009

New Mexico American Water Files for Rate Increase in Edgewood

EDGEWOOD, N.M., - New Mexico American Water has filed an application with the New Mexico Public Regulation Commission (NMPRC) to increase water rates in Edgewood. The proposed rate increase funds necessary infrastructure improvement and recovers increases in operational and maintenance costs. If the proposed rates are approved, the average residential customer will see rates increase about 80 cents per day over current rates. The filing also requests the addition of a fifth local staff position to further the company's efforts to provide excellent customer service and supply high quality water to its customers.

"New Mexico American Water has made strategic investments to ensure that we maintain a high level of service and water quality for our customers," said New Mexico American Water vice president Kathy Wright. "We are also focusing on additional staffing needs to continue to deliver the excellent service our customers depend upon at an exceptional value. Water service still typically costs about one penny a gallon and remains the lowest utility bill that most consumers pay each month."

New Mexico American Water has invested $1.5 million in improvements to its Edgewood water system since 2005. In 2008, the Company constructed the Juniper Hill Pump Station for a total cost of $473,000. The new pump station replaced an outdated pump system that was constructed in the 1970s. The new pump station improved reliability and water delivery for daily use. New Mexico American Water has also spent more than $300,000 since 2005 to replace and improve about 1.9 miles of water mains, $580,000 on improvements to five of the wells that provide Edgewood's water supply, and $208,000 to replace aging water meters. The rate case also requests adding an additional operator for the Edgewood system to read meters and provide customer service in the field. Currently, Edgewood has four local employees. New Mexico American Water, like many other businesses, is also experiencing increased costs for electricity, fuel, chemicals and insurance.

New Mexico American Water anticipates a decision on the rate case in mid-2010. If the filing is approved in its entirety, the bill for the average metered residential customer in Edgewood, assuming water use of 5000 gallons per month, would increase 65 percent from $37.04 for the average monthly bill to $61.07. This would equal an increase of approximately 80 cents per day.

Any change in rates for New Mexico American Water customers will become effective only by order of the NMPRC after a thorough analysis and review of the Company's application, a process that takes approximately 12 months and includes opportunities for public input.

"The process for the New Mexico Public Regulation Commission to review and approve our request is an open and transparent process with many opportunities for customer input," Wright said. "We will be out in the community speaking about the investments and expenses we are asking the NMPRC to approve and how they benefit our customers."

New Mexico American Water is the largest investor-owned water utility in the state, providing high-quality and reliable water and related services to more than 48,000 people.

Founded in 1886, American Water is the largest investor-owned U.S. water and wastewater utility company. With headquarters in Voorhees, N.J., the company employs more than 7,000 dedicated professionals who provide drinking water, wastewater and other related services to approximately 15 million people in 32 states and Ontario, Canada. More information can be found by visiting www.amwater.com.

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