Aqua America Commends New Jersey Board of Public Utilities for Approving the
State’s First DSIC Filing
BRYN MAWR, Pa. -- October 24, 2012
Aqua America, Inc. (NYSE: WTR) Chairman and CEO Nicholas DeBenedictis
commended the New Jersey Board of Public Utilities today, after it unanimously
approved the foundational Distribution System Improvement Charge (DSIC) filing
of its New Jersey subsidiary. The approval, which took place yesterday, is the
first of its kind for the New Jersey BPU. The BPU commissioners adopted the
water infrastructure improvement recovery mechanism in November 2011.
The DSIC encourages utilities to accelerate their much-needed infrastructure
improvement programs by allowing water utilities the timely recovery of
capital costs, including return on equity and depreciation, for certain
capital improvements (including aging pipe, service lines and hydrant
rehabilitation) through a bill surcharge, subject to audit, without filing an
expensive and lengthy formal rate request.
Aqua New Jersey’s request, filed in July 2012, listed projects and activities
the company believes are eligible for recovery through the DSIC over the next
two-to-three years. Aqua America Chairman and CEO Nicholas DeBenedictis said,
“The BPU is to be commended for joining the list of other states that now
employ a water infrastructure surcharge mechanism. One of the reasons we are
able to complete the amount of capital improvement projects we do in other
states is directly attributable to the DSIC. All one has to do is look at
recent headlines about the state of our nation’s drinking water infrastructure
to know how badly these improvements need to be made. DSIC programs are a
win-win for the company and its customers because it encourages infrastructure
investment while reducing the regulatory lag that can slow down important
The Environmental Protection Agency estimates a 20-year capital investment of
$334.8 billion is needed for public water system repairs including the
replacement of the nation’s transmission pipes, storage and treatment
equipment, and other projects required to protect public health. The DSIC will
help private water utilities like Aqua New Jersey to address the distribution
system improvements cited by EPA.
Aqua New Jersey provides water and wastewater service to more than 165,000
residents in22 municipalities across the Garden State.
Aqua America, Inc.
Donna Alston, 610-645-1095
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