Camden-based New Jersey American Water (NJAW) President Cheryl Norton on Thursday announced a program that proposes to accelerate capital investment in water and wastewater infrastructure while creating and/or sustaining thousands of jobs.
Solutions Today and Reinvesting Tomorrow (START), consists of several distinct proposed pieces, which collectively will serve the greater good of New Jersey American Water’s customers and the entire state.
In testimony before the Assembly Special Committee on Infrastructure and Natural Resources, Norton said New Jersey American Water envisions START as part of the state’s economic recovery from COVID-19—putting people to work while also continuing to provide hundreds of thousands of residents with safe and reliable water and wastewater services, so they don’t have to worry about adding it to their list of current concerns.
Norton – NEW JERSEY AMERICAN WATER
“What we are proposing is an acceleration in capital investment in water and wastewater infrastructure that can result in the improvement of those systems and the creation of thousands of jobs,” said Norton in a company-issued press release. “We feel that our proposed START program can, and will, make a difference, as together we fight this public health emergency and its economic impact while continuing to provide the citizens of New Jersey with clean, reliable drinking water and environmentally safe wastewater services.”
One of the proposed components of START includes a Water and Wastewater Infrastructure Investment Program (WWIIP), which could generate between $100 million to $150 million in new capital investments and the creation of 1,500 to 2,000 jobs.
Projects under WWIIP must be on non-revenue producing assets and must fall into certain categories, like existing Distribution System Improvement Charge (DSIC) eligible projects, replacement of plant items, water main cleaning and lining, distribution, production, and other infrastructure for the purpose of safety, water quality, resiliency and environmental compliance.
Another component includes the DSIC Expansion. Currently, under New Jersey law, water utilities can only get recovery through DSIC on mostly underground distribution system assets – pipes, etc. NJAW is proposing to expand the current DSIC program to include the replacement of above-ground distribution system assets – meters, booster stations, storage tanks, and the like.
The utility proposed to raise the cap on what it can recover from 5 to 10 percent. By raising that cap and allowing DSIC to apply to above-ground assets, an additional $50 million to $75 million in annual capital investment could be generated. That investment would sustain or create more than 500 jobs.
DSIC expansion is contingent on the result of the WWIIP proposal. If WWIIP is approved, this proposed DSIC expansion would no longer be necessary.
Similar to DSIC proposal, NJAW is seeking to accelerate the Wastewater System Improvement Charge (WSIC). It differs from DSIC in that it covers wastewater collection system assets rather than underground distribution system assets. Currently pending before the Board of Public Utilities, approval of this charge could create between $6 million and $8 million of annual investment along with approximately 150 jobs.
Like the DSIC expansion, this is also contingent on the result of the WWIIP proposal. If WWIIP is approved, this proposed change would no longer be necessary.
Norton also proposed Lead Service Line Replacement Legislation (Assembly Bill 1544) that would allow for water utilities to receive full cost recovery for the replacement of the customer-owned portion of a lead service line – from the street to the home – in addition to the company-owned side. The measure aims to reduce lead in drinking water through the proactive elimination of lead service lines and ongoing optimization of water treatment to reduce corrosion of plumbing materials that may contain lead.
Other proposals included an expansion to NJAW’s supplier diversity programs and development of a new workforce employment initiative apprentice program. Further details for both programs will be given at a later date.
Finally, NJAW said that for nearly a decade it has been assisting low-income water customers who qualify through its H2O Help to Others Program, which is administered by New Jersey Shares, and has implemented new measures aimed at increasing participation in the program by making it easier to apply and qualify. Eligible customers may receive a grant of up to $500 to help pay their water bill for indoor water use only.
