EGG HARBOR TOWNSHIP – Aqua New Jersey on April 17 announced its purchase of water distribution assets owned by Seaview Harbor Water Company LLC, which provides water to 93 residential customers in the township’s Seaview Harbor section.
The Mercer County based company will operate the service as part of its Southern Division, which is located in Erial, Camden County.
The company says it has improvements planned for the system including “state-of-the-art” radio frequency water meter reading equipment that it promises will allow it to bill only for the actual water used.
“The RF system will allow Aqua to read your water meter remotely without having access to your meter pit,” according to a press release, which also promises improvements to water quality.
Residents have been told to expect no water rate changes. The company also will not charge for or provide fire protection service, the press release states.
The deal was made possible in August 2013 when the township adopted an ordiance granting consent to Aqua to provide water service to Seaview Harbor, according to the Board of Public Utilities.
In February 2013, the buyer and seller entered into an “asset purchase agreement” allowing the sale of Seaview Harbor's water system assets to Aqua for $225,000.
According to the BPU, Seaview Harbor is selling to Aqua the portion of its land that contains water system infrastructure. Seaview Harbor intends to retain the remaining undeveloped portion of land, two lots fronting Longport Somers Point Boulevard, for possible future development.
The purchase price when current Seaview Harbor owners bought the utility was $425,000. The sale price for the water system assets being sold to Aqua is $225,000, BPU says, noting the loss of $200,000.
Seaview Harbor will survive the asset sale as owner of the two lots.
The agreement also provides that Aqua pay $2,000 per new residential connection to the water system within the next 10 years.
Aqua has stated that it intends to make capital investments to the water system of approximately $300,000 over five years.
In addition, billing will change from a quarter schedule to monthly.
Learn more at AquaAmerica.com.