*Breaking News* Rents increase throughout affected areas.

Paying more for water? United Water requests 28 percent rate hike

Jersey Journal Saturday, February 24, 2007

United Water filed an application yesterday with the state Board of Public Utilities asking permission to raise rates $7.91 per month for the typical customer, an amount that would raise the cost of a monthly residential water bill from $28.28 to approximately $36.16 - a 28 percent increase.

In Hudson County, the rate increase - which translates to approximately 26 cents per day - would affect Weehawken, Union City, Guttenberg, Secaucus, North Bergen and West New York, all of which are United Water customers.

Jersey City and Hoboken, both of which use United Water as a subcontractor, and Bayonne, which gets water from its own Municipal Utilities Authority, would not be affected, said United Water spokesman Rich Henning.

The company claims the increase is necessary to recoup nearly $240 million in investments it says it has made over the past decade to improve water quality and water service, as well as the money the utility says it has shelled out in increased energy costs, Henning said.

The BPU has up to nine months to approve the request, Henning said. In the meantime, United Water will have to prove to the agency that the increase is proportional to the investments for enhanced service it has made.

The BPU can also reduce the increase. "Anything's possible, including the possibility of the board reducing what we're asking for," said Henning.

GREG HANLON