New Mexico Public Regulation Commission Approves New Mexico American Water Rate Increase in Edgewood

EDGEWOOD, N.M., April 22 /PRNewswire/ -- The New Mexico Public Regulation Commission (NMPRC) approved increased water rates for New Mexico American Water's Edgewood water district.  The rate increase reflects necessary infrastructure improvements made by the company and recovers increases in operational and maintenance costs.  The average residential customer will see rates increase about 43 cents per day over current rates. The increase will ensure that New Mexico American Water has the revenue necessary to continue to provide excellent customer service and supply high quality water to its customers.

"New Mexico American Water has made strategic investments to ensure that we maintain a high level of service and water quality for our customers," said New Mexico American Water general manager Kathy Wright.  "We are also focusing on additional staffing needs to continue to deliver the excellent service our customers depend upon at an exceptional value.  Water service still typically costs about one penny a gallon and remains the lowest utility bill that most consumers pay each month."

New Mexico American Water has invested $1.5 million in improvements to its Edgewood water system since 2005.  In 2008, the Company completed construction of the Juniper Hill Pump Station for a total cost of $473,000.  The new pump station replaced an outdated pump system that was constructed in the 1970s.  The new pump station improved reliability and water delivery for daily use.  Since 2005 New Mexico American Water has also spent more than $300,000 to replace and improve about 1.9 miles of water mains, $580,000 on improvements to five of the wells that provide Edgewood's water supply, and $208,000 to replace aging water meters.  The rate increase also covers increased costs for electricity, fuel, chemicals and employee benefits.

New rates will be come effective May 10, 2010.  Revenues will increase 42 percent, overall, but the average residential customer will see a smaller increase of about 32 percent, or 43 cents per day.  As part of a negotiated settlement, a progressive tiered rate structure will be implemented for residential users that increases costs based on water usage.  The tiered rate structure creates incentives for conservation and maintains an affordable base rate for customers that conserve.

"The process for the New Mexico Public Regulation Commission to review and approve our request was an open and transparent process with many opportunities for input from customers and the city," Wright said.  "In fact, the new tiered rate design for residential customers resulted from a collaborative process involving the town, the staff of the NMPRC, several residential customers who intervened in the case and New Mexico American Water."

New Mexico American Water, a wholly owned subsidiary of American Water (NYSE: AWK), is the largest investor-owned water utility in the state, providing high-quality and reliable water and related services to approximately 60,000 people

Founded in 1886, American Water is the largest investor-owned U.S. water and wastewater utility company.  With headquarters in Voorhees, N.J., the company employs more than 7,000 dedicated professionals who provide drinking water, wastewater and other related services to approximately 16 million people in 35 states, as well as Ontario and Manitoba, Canada. More information can be found by visiting www.amwater.com.

SOURCE New Mexico American Water

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