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1 N.J.A.R. 414

Califon Water Co. For a Rate Increase, In the Matter of: The Petition of the
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Citation: 1 N.J.A.R. 414
Decision Date: 1980
Synopsis: Califon, a small water company, filed a petition for an increase in rates for water service with the Board of Public Utilities. The company stated that the increase was necessary to comply with a directive from the Department of Environmental Protection requiring it to provide a second source of water supply and to bring its present water source up to State standards. Rate Counsel and the local municipality disputed the need for the specific program proposed. As a result, the administrative law judge invited DEP to intervene as a necessary party on the issue of capital improvement needs; a stipulation approving the concept of a capital improvement program was subsequently entered into the record. After a discussion concerning abnormally high hourly rates for labor and controlling corporate shareholder salaries paid by the petitioner, the administrative law judge determined fair and masonable operating expenses. The proposed tariff revisions submitted by petitioner were denied and the company was ordered to submit a revised tariff based on the judge's findings as to operating expenses, the rate base and rate of return, and a time schedule for completion of the capital improvements. William R. Watkins, Esq., for Petitioner (Lindabury, McCormick & Estabrook, Attorneys) Robert T. Genovesi, Assistant Deputy Public Advocate for Intervenor Division of Rate Counsel (Stanley C. VanNess, Public Advocate of New Jersey, Attorney) Paul H. Schneider, Deputy Attorney General for the Department of Environmental Protection (John J. Degnan, Attorney General ,')f New Jersey, Attorney)