Ocean City Renews Fight with Water Company Over Customer Billing
The Utility Advisory Commission questions New Jersey American Water about billing procedure.
Do you remember whom you were emailing in 2005? Bill Sundermeir does.
Six years ago, Sundermeir, chair of the Utility Advisory Commission of Ocean City, sent an email to Frank Simpson, director of Rates & Regulation at New Jersey American Water Company, questioning the way in which the supplier of water and sewer service to Ocean City bills its customers, specifically at the time a home is sold.
The commission views the water company’s billing practice as unfair to the home buyer.
“Say you have a house for sale and 12 people are renting it,” explained Joseph Clark, city representative and liaison to the commission, which met Wednesday in Council Chambers on the third floor of City Hall. “At settlement, there may be one person buying the house. Billing for that person should start clean. Instead, the buyer inherits a lingering problem from the people who lived there the summer before and may have been irresponsible in their water use.”
New Jersey American bases its sewer service charges on the previous summer-quarter usage (July, August and September). The commission contends that the company should have a mechanism in place by which to charge the home seller instead of passing the cost to the home buyer.
“You should never be billing a customer on someone else’s use,” Sundermeir said. “The people who cause the cost should pay the cost.”
Because this issue has become a hot button (again), Sundermeir looked through his computer files for his original email to New Jersey American.
“I sent a proposal in 2005,” Sundermeir said. “That’s how long this has been going on. I found the email, tweaked it and sent it to NJ American Water last Wednesday. I said, ‘Here’s our proposal from six years ago.’ I called Frank Simpson on Monday to see if he got it. He said they’re still considering it.”
The commission proposes that the home seller pay sewer service charges for the entire year, and the home buyer pay a nominal fee based on average use, according to Utility Advisory Commission secretary Chet Czerpak.
According to a handout available at Wednesday’s meeting, the water company collects sewage in Ocean City, and cleans and maintains the collection system. The Cape May County Municipal Utilities Authority maintains the pumps and pipes necessary to treat and dispose of collected sewage. Roughly 35 percent of a customer’s sewer payment goes to New Jersey American and the remaining 65 percent to CMCMUA. The same handout says the policy of calculating charges on the previous summer’s usage “… ensures that everyone will share proportionately in the CMCMUA’s costs of owning and operating their sewer treatment facilities.”
Sundermeir said the fight with the water company is not over.
“I’ll be back with Frank again and again,” he said.
In the meantime, Sundermeir had good news for New Jersey American customers: If the Board of Public Utilities approves a decrease on Aug. 18, sewer charges should dip 15 percent, or $120 per year for the average user.
“There was an over-collection from last year,” Sundermeir said, “and this year they’re passing it along.”
Also discussed at Wednesday’s meeting:
- Atlantic City Electric is reconductoring its wiring on Bay Avenue, switching from copper to aluminum. Copper is much more expensive than aluminum, and aluminum provides the ability to insert a steel core among the strands, improving strength, said UAC member Eugene Hille.
- Having a problem receiving Channel 2? Check your security cameras. If your security cameras are on the same frequency as Channel 2, you won’t be able to view that particular station. Sundermeir said a resident contacted him and Comcast about his inability to receive Channel 2; a Comcast technician figured out the problem.
- Clark said that users of smart phones have noted a decrease in service during high-volume times on the island, such as the Fourth of July and Night in Venice. Specifically, data transmission has been sluggish, and in many cases, nonexistent during times when demand has overwhelmed the networks’ capabilities. Questions on this issue have been referred to individual carriers, such as AT&T and Verizon.
Joseph cano
5:34 pm on Thursday, July 28, 2011
I have a huge problem wit the ocean city sewer charges, I am paying 75 dollars a month for sewer, 75 DOLLARS A MONTH, not every 3 months. This is ridiculous, all other surrounding areas pay every quarter what I pay a month. SOMETHING NEEDS TO BE DONE. My water usage is roughly 7000 gallons a month give or take a little. The water and sewer bill I receive is 145 a MONTH. that is more than any of my other utility's even more than my cable bill!!!!!
Phyllis Geisdorf
3:31 pm on Thursday, February 2, 2012
And Joe, it's going up again...47%. Just spoke with the water company and they informed me the billing is done this way because OC administration wants it this way. How would you like to have a property that you rent out for 5 weeks of the year and pay a monthly sewerage charge based on those 5 weeks.....of renters who could care less about water, electric or air-conditioning usage! Everything is out of control in OC and no one seems to care there either! Hang in ...don't think it can get any worse although for the last 80 some years my parents would lament "Only in Ocean City"!
Eric Sauder
9:12 pm on Thursday, February 2, 2012
Thank You Phyllis and Joe. I couldn't agree with you more. The water company is a monopoly and they sure know a captive clientele when they see one. It is outrageous what we pay for sewer here. My MONTHLY bills exceed what I used to pay (in Pa.) QUARTERLY. I brought this up with the mayor at a Council meeting a year ago and stated that where a monoploy is involved it is incumbent on our government to keep it in check. Now those bills are going UP again. Property owners have a major investment in Ocean City. The only people making money off that investment are the municiplality and the utilities. Why would anyone want to invest in Ocean City? You'll lose your shirt if you do. I have most of my wealth tied up in my place here, and far from making money on that investement its a struggle just to break even.
Beachy Keen
10:59 am on Friday, February 3, 2012
Ah yes....monopolies....sort of like the government and we are all a captive clientel! Don't forget that the developers, public servants, and town council are making major money off of our investments in OC. I will say it again, the leadership in OC will not be happy until they run the place into the ground. Some people may have their wealth tied up in their homes here but many, many people can walk away and not look back. The water bill is going up and I recall AC electric went up last year??
Phyllis Geisdorf
6:28 pm on Tuesday, March 20, 2012
Just called the water company again trying to understand the charges and hoping that I was incorrectly being charged as a commercial rather than a residential customer as stated on my bill. Had a good conversation with a young man who to my amazement indicated that they had not received any calls questioning/expressing concerned about their increased water bills....are we the only persons concerned about monopolies/inequality/highway robbery?????