Shorelands settles on rate increase
Utility and consumer advocate agree on 12.5-percent hike
BY DAN NEWMAN
Staff Writer

Following months of back-and-forth discussions, Hazlet-based Shore-lands Water Co. and the New Jersey Ratepayer Advocate have agreed on a one-time 12.5-percent rate increase, which went into effect last month.

Originally, Shorelands, a privately owned and operated water utility that serves approximately 10,000 customers in Hazlet and northern Holmdel, was seeking a 19.72-percent increase. Shorelands representatives said the steep hike was mainly because it has not raised its rates in several years.

The company was also looking for an increase in order to help pay for its new treatment plant, located on Pine Knot Avenue in Hazlet. Construction on the site is ongoing, with an anticipated completion date of April.

Although Shorelands did not get everything it was looking for, company President Michael Walsh said in the end, it was good that both sides were able to settle the matter out of court.

“This was something that both sides were able to agree upon, and so it’s good that this is out of the way now and we can focus on getting the plant completed,” Walsh said.

Ratepayer Advocate Seema Singh agreed that it was probably due time for Shorelands to raise its rates.

“This is the first time in six years that Shorelands has had an increase in its rates, so it was time for them to do so. Plus, with the treatment plant being built, people probably thought they would raise rates,” Singh said. “Their expenses were prudent at this point, and they deserved it.”

Walsh echoed Singh’s sentiments concerning the fact that the company did not have to raise its rates for years.

“Now that we’re building an entirely new plant, we had to take into account the costs of running the plant, and so we were really left with no choice but to raise our rates,” Walsh said. “It’s time for us to move forward now.”

Walsh also noted that the average bill will increase by about $52 per year. He also said that there probably will not be another rate increase for at least another three to four years.

“I would think it will be a little while before another rate increase goes into effect,” Singh said. “Right now, there was a need for one because it had been so long. So maybe in the future, they will need to have another one.”