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New Jersey Water Companies to Implement DSIC

Posted on by Carlos

The New Jersey Board of Public Utilities (BPU) recently authorized three major water companies – and NAWC members – to implement a distribution system improvement charge (DSIC) within each of their systems. This is a major and positive step in a careful process in New Jersey to identify both system and customer benefits of implementing this mechanism. Earlier this year, the BPU amended its rules to permit the use of the DSIC, but directed the utilities to make “foundational filings,” which set forth a number of DSIC-eligible projects during a prospective 36-month construction, assessment and review period. According to the BPU, an average residential customer with a 5/8″ meter will be subject to a maximum monthly DSIC surcharge ranging from $1.77 (United Water) to $2.97 (New Jersey American).

For more on DSIC, visit the NAWC regulatory page.

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3 Responses to New Jersey Water Companies to Implement DSIC

  1. Daniel Ford says:

    Isn’t this rediculaus. Owning a water company means budgeting maintaining the system and planed replacements & upgrades.

    Why are we socked an unexpected Fee on top of the rate?

    We need a new BPU board who is not in their pocket.

    You should see the propaganda pamphlet in my last bill from new Jersey American Water.

    • Matt says:

      @ Daniel – I hear your point about rates needing to reflect cost and infrastructure investment, but that is exactly what the infrastructure surcharge does. These investments are “revenue neutral” in that they will not increase the rate base for the customer and are necessary for the utility to continue to replace and upgrade mains, distribution lines, etc. A very similar program has been in place in Pennsylvania since the mid-90s, with zero customer complaints and significant increases in system-wide investments.


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