Judge Conte ruled in January 2012 that the Passaic Valley
Water Commission violated their lease agreement when they increased Lodi’s rates 25%
in 2009 and 29% in 2010. Their agreement
with Lodi allowed them to increase rates 3.5% or the Consumer Price Index plus
half a percent. Their numbers weren’t
even in the ball park.
A year after that judgment, the PVWC increased Lodi’s rate
by 4% which should also be in violation of the agreement. At the end of 2012, the CPI
December-to-December index was 1.7% (1.7% plus a half of a percent is 2.2%). At the end of 2012, the CPI annual average
index was 2.1% (2.1% plus a half of a percent is 2.6%). Whatever index was used for Lodi’s escalation
contract, either one would still be below 3.5%.
Lodi’s consumption rate (per 1 CCF quarterly or monthly) increased
from $4.01 in 2012 to $4.17 in 2013.
Lodi’s base charge increased the same rate as the consumption charge. That is a 4% increase.
During the appeal, the 25% and 29% increases were never
undone and the residents of Lodi were never reimbursed. Why would the Lodi politicians remain silent
when the PVWC appears to have violated their agreement again since that ruling? You would think that they would have spoken
out publicly against the 4% increase for 2013 and gone to court seeking an
injunction against any more increases until the appellate decision came down. They did not.
