IMPROVING EDISON’S WATER AND WASTEWATER SYSTEM

IMPROVING EDISON’S WATER AND WASTEWATER SYSTEM

ABOUT THE AGREEMENT

Edison’s partnership with KKR and SUEZ will allow systems to remain publicly owned and will protect residents from large rate increases. The proposed agreement will bring renowned resources and industry experts to operate and upgrade the system.

SUEZ and the private investment firm KKR, will provide $481 million in capital improvement investment, including $100 million within the first seven years. In addition, there is an upfront payment of $105 million. The Township is looking to use this funding to further invest in the community and build a stronger more sustainable future for Edison as a whole.

Under the new agreement, KKR and SUEZ will deliver on multiple factors that will improve the quality of utility service for Edison customers.

ABOUT THE AGREEMENT

Edison’s water and sewer systems are vital assets of the Township. Edison’s partnership with KKR and SUEZ will allow systems to remain publicly owned and will protect residents from large rate increases. Residents have seen these affects through the numerous sewage overflows and breaks that have caused hazards for the community. Under the proposed agreement Edison would remain the owner of the system, while bringing in renowned resources and industry experts to operate and upgrade the system.

SUEZ and the private investment firm KKR, would provide a $481 million improvement investment within the first seven years with an upfront payment of $105 million. The Township is looking to use this funding to further invest in the community and build a stronger more sustainable future for Edison as a whole.

Under the new agreement KKR and SUEZ will deliver on multiple factors that will improve the quality of utility service for Edison customers.

The highlighted area of this map shows Edison Township
water customers included in this agreement.

Facts About the Deal

WATER QUALITY

Long-Term Investments

COMMUNITY INVESTMENT

SYSTEM IMPROVEMENTS
CUSTOMER SUPPORT

Customer/Staff Impact

Community Investment

SUEZ is known for investing in each community it serves. SUEZ has contributed to Little Leagues and county civic organizations such as WomenRising in Hudson County. Other organizations SUEZ has partnered with include: The Boys and Girls Club, Rebuilding Together, The Hoboken Public Education Foundation, local police and fire departments, and much more. SUEZ also has a robust school outreach program where SUEZ experts visit local schools and inspire students to pursue STEM careers. With a diverse town such as Edison, SUEZ looks forward to connecting with local organizations and discovering the needs that mean most to the community.

Water Quality

During the transition period, there will be no interruption in water service. The water source for residents will remain the same. The Township of Edison, through an agreement with KKR and SUEZ, has adopted full transparency with residents as the transition progresses. The service switch to occur will be strictly operational and customers will continue to receive quality drinking water that meets or exceeds all health and safety standards set by the United States Environmental Protection Agency (EPA) and the New Jersey Department of Environmental Protection (NJDEP). This agreement will impact all sewer customers and New Jersey American Water customers that are south of 287. Middlesex Water and New Jersey American Water customers that are north of 287 will not have their water service impacted as a result of this agreement.

Long-Term Investments

The Township and its residents will benefit immensely from its agreement with KKR and SUEZ. From critical infrastructure investments to significant long-term debt service reduction, this agreement provides a path to ensure Edison’s wastewater treatment system remains in compliance with State and Federal standards without burdening taxpayers with significant long-term debt.
This long-term financial investment will contribute to the modernization of Edison’s water and wastewater infrastructure. This benefits both the service provider as well as the consumer.
Traditionally, towns have borrowed money for large capital projects by creating a bond that is paid over years, resulting in increased municipal real estate taxes.  The agreement with KKR/SUEZ creates an alternative funding option that requires no long-term debt repayment by the Township.

SYSTEM Improvements

To minimize flooding, main breaks and reduce the risk of sewage leaks, significant investment is required to repair the water and waste water systems. The Township recognizes SUEZ’s operational expertise and ability to invest capital to fix the systems. Enhancements under this agreement will improve overall water use efficiency. These critical improvements will be made through a capital expenditure of nearly half a billion dollars over the term of the agreement. The following infrastructure improvements will be addressed within the first seven years of the agreement:

  • Rehabilitating and replacing wastewater pump stations,
  • Replacing water meters,
  • Replacing water pipes, and
  • Ensuring that the systems comply with State and Federal regulations.

The agreement also calls for the creation of a Rate Stabilization Fund which will initially be funded with $2 million. Residential rate increases have been capped at 4.9% per year over the first seven years of the agreement. A significant upfront investment in the infrastructure will ensure long-term reliability, environmental compliance and predictable rate increases over the long term. Through our comprehensive ongoing maintenance program, customers will benefit from affordable rate increases and avoid unplanned rate spikes.

Customer Support

SUEZ is known for its customer centric approach to providing quality service and improving service reliability. Under the new agreement, with 24-hour customer service support and a toll-free hotline for emergencies, customers will get updates before, during, and after critical repairs are made. Our team of specially trained representatives are here to take your questions and resolve any issues that may arise. In addition to enhanced customer service, Edison residents will see the following:

    • Dedicated social media applications for customer communication and notification of scheduled or unplanned work
    • Mass notification phone system for emergency repairs
    • Multiple ways to contact customer service including online, email, phone, fax and AT&T NJ Relay Center for hearing-impaired customers
    • Robust customer outreach in advance of upcoming work and service interruptions through tools such as a website, social media channels, and door-to-door communication
    • Simple and Easy Billing with the option to switch to online billing.

SUEZ, in partnership with HomeServe, offers customers optional yet affordable programs that cover the cost of sewer and water line repairs and provides access to a qualified, vetted contractor network. If a customer’s line breaks, HomeServe will come out and fix it. Through this affordable program, homeowners do not bear the complete cost of broken or damaged water and sewer infrastructure.

Customer/staff impact

Edison will recognize many benefits while continuing to own all of its water and sewer related assets. KKR/SUEZ will not take ownership of the Township’s systems. The operators of the water and wastewater systems will work for you, the people of Edison. They will be accountable to the Mayor and Council. Township residents will realize improved customer service, simple and easy billing, and a dedicated partner invested in the community all while retaining ownership in its assets associated with this deal. This agreement will impact all sewer customers and New Jersey American Water customers that are south of 287. Middlesex Water and New Jersey American Water customers that are north of 287 will not have their water service impacted as a result of this agreement.
The agreement also allows all current Sewer Department staff to work for SUEZ in a comparable position or they can continue to work for the Township of Edison in an available Department of Public Works position. This will ensure a smooth and easy transition for all impacted employees. SUEZ will also look to hire additional employees for needed positions.
There will be no change to the current senior rate freeze program. The rate freezes available to Edison seniors will remain “as is” for current and future participants for the duration of this concession agreement with the same requirements of the current program. This includes sewer rates and impacted water rates.

Facts About the Deal

Water Quality

During the transition period, there will be no interruption in water service. The water source for residents will remain the same. The Township of Edison, through an agreement with KKR and SUEZ, has adopted full transparency with residents as the transition progresses. The service switch to occur will be strictly operational and customers will continue to receive quality drinking water that meets or exceeds all health and safety standards set by the United States Environmental Protection Agency (EPA) and the New Jersey Department of Environmental Protection (NJDEP). This agreement will impact all sewer customers and New Jersey American Water customers that are south of 287. Middlesex Water and New Jersey American Water customers that are north of 287 will not have their water service impacted as a result of this agreement.

Long-Term Investments

The Township and its residents will benefit immensely from its agreement with KKR and SUEZ. From critical infrastructure investments to significant long-term debt service reduction, this agreement provides a path to ensure Edison’s wastewater treatment system remains in compliance with State and Federal standards without burdening taxpayers with significant long-term debt.
This long-term financial investment will contribute to the modernization of Edison’s water and wastewater infrastructure. This benefits both the service provider as well as the consumer.
Traditionally, towns have borrowed money for large capital projects by creating a bond that is paid over several years, resulting in increased municipal real estate taxes.  The agreement with KKR/SUEZ creates an alternative funding option that requires no long-term debt repayment by the Township.

This long-term financial investment will contribute to the modernization of Edison’s water and wastewater infrastructure. This benefit both the service provider as well as the consumer.

Traditionally, towns have borrowed money for large capital projects by creating a bond that is paid over several, resulting in increased municipal real estate taxes.  The contract with KKR/SUEZ creates an alternative funding option that requires no long-term debt repayment by the Township.

Community Investment

SUEZ is known for investing in each community it serves. SUEZ has contributed to Little Leagues and county civic organizations such as WomenRising in Hudson County. Other organizations SUEZ has partnered with include: The Boys and Girls Club, Rebuilding Together, The Hoboken Public Education Foundation, local police and fire departments, and much more. SUEZ also has a robust school outreach program where SUEZ experts visit local schools and inspire students to pursue STEM careers. With a diverse town such as Edison, SUEZ looks forward to connecting with local organizations and discovering the needs that mean most to the community.

SYSTEM Improvements

To minimize flooding, main breaks and reduce the risk of sewage leaks, significant investment is required to repair the water and waste water systems. The Township recognizes SUEZ’s operational expertise and ability to invest capital to fix the systems. Enhancements under this agreement will improve overall water use efficiency. These critical improvements will be made through a capital expenditure of nearly half a billion dollars over the term of the agreement. The following infrastructure improvements will be addressed within the first seven years of the agreement:

  • Rehabilitating and replacing wastewater pump stations,
  • Replacing water meters,
  • Replacing water pipes, and
  • Ensuring that the systems comply with State and Federal regulations.

The agreement also calls for the creation of a Rate Stabilization Fund which will initially be funded with $2 million. Residential rate increases have been capped at 4.9% per year over the first seven years of the agreement. A significant upfront investment in the infrastructure will ensure long-term reliability, environmental compliance and predictable rate increases over the long term. Through our comprehensive ongoing maintenance program, customers will benefit from affordable rate increases and avoid unplanned rate spikes.

Customer Support

SUEZ is known for its customer centric approach to providing quality service and improving service reliability. Under the new agreement, with 24-hour customer service support and a toll-free hotline for emergencies, customers will get updates before, during, and after critical repairs are made. Our team of specially trained representatives are here to take your questions and resolve any issues that may arise. In addition to enhanced customer service, Edison residents will see the following:

    • Dedicated social media applications for customer communication and notification of scheduled or unplanned work
    • Mass notification phone system for emergency repairs
    • Multiple ways to contact customer service including online, email, phone, fax and AT&T NJ Relay Center for hearing-impaired customers
    • Robust customer outreach in advance of upcoming work and service interruptions through tools such as a website, social media channels, and door-to-door communication
    • Simple and Easy Billing with the option to switch to online billing
    • There will be no change to the current senior rate freeze program. The rate freezes available to Edison seniors will remain “as is” for current and future participants for the duration of this concession agreement with the same requirements of the current program. This includes sewer rates and impacted water rates.

SUEZ, in partnership with HomeServe, offers customers optional yet affordable programs that cover the cost of sewer and water line repairs and provides access to a qualified, vetted contractor network. If a customer’s line breaks, HomeServe will come out and fix it. Through this affordable program, homeowners do not bear the complete cost of broken or damaged water and sewer infrastructure.

Employee Retention

Edison will recognize many benefits while continuing to own all of its water and sewer related assets. KKR/SUEZ will not take ownership of the Township’s systems. The operators of the water and wastewater systems will work for you, the people of Edison. They will be accountable to the Mayor and Council. Township residents will realize improved customer service, simple and easy billing, and a dedicated partner invested in the community all while retaining ownership in its assets associated with this deal. This agreement will impact all sewer customers and New Jersey American Water customers that are south of 287. Middlesex Water and New Jersey American Water customers that are north of 287 will not have their water service impacted as a result of this agreement.
The agreement also allows all current Sewer Department staff to work for SUEZ in a comparable position or they can continue to work for the Township of Edison in an available Department of Public Works position. This will ensure a smooth and easy transition for all impacted employees. SUEZ will also look to hire additional employees for needed positions.

MORE ABOUT THE PARTNERS

KKR
Founded in 1976, KKR is a leading global investment firm that manages investments across multiple alternative asset classes including infrastructure, along with private equity, energy, real estate and credit. With $195 billion in assets under management, KKR is a long-term investor with the goal of building and growing great businesses. Over the last decade, KKR has been a leader in driving and protecting value throughout the firm’s private markets portfolio through thoughtful Environmental, Social and Governance (“ESG”) management, as well as measuring and reporting on performance to the public and investors. The firm also has a history of investing in businesses that promote sustainable solutions to societal challenges. This includes four water-related investments, two of which were in the U.S. in Bayonne, New Jersey, and Middletown, Pennsylvania. Since 2011, KKR has invested more than $400 million in water infrastructure projects.

 

SUEZ
SUEZ North America, headquartered in Paramus, New Jersey, operates across all 50 States and Canada with 3,260 employees dedicated to environmental sustainability and smart and sustainable resource management.  The company provides drinking water, wastewater and waste collection service to 6.4 million people on a daily basis; treats over 600 million gallons of water and over 450 million gallons of wastewater each day; delivers water treatment and advanced network solutions to 16,000 industrial and municipal sites; processes 55,000 tons of waste for recycling; rehabilitates and maintains water assets for more than 4,000 municipal and industrial customers; and manages $4.1 billion in total assets.  The company posted revenues of $1.064 billion in 2017 and is a subsidiary of Paris-based SUEZ.

MORE ABOUT THE PARTNERS

KKR
Founded in 1976, KKR is a leading global investment firm that manages investments across multiple alternative asset classes including infrastructure, along with private equity, energy, real estate and credit. With $195 billion in assets under management, KKR is a long-term investor with the goal of building and growing great businesses. Over the last decade, KKR has been a leader in driving and protecting value throughout the firm’s private markets portfolio through thoughtful Environmental, Social and Governance (“ESG”) management, as well as measuring and reporting on performance to the public and investors. The firm also has a history of investing in businesses that promote sustainable solutions to societal challenges. This includes four water-related investments, two of which were in the U.S. in Bayonne, New Jersey, and Middletown, Pennsylvania. Since 2011, KKR has invested more than $400 million in water infrastructure projects.

 

SUEZ
SUEZ North America, headquartered in Paramus, New Jersey, operates across all 50 States and Canada with 3,260 employees dedicated to environmental sustainability and smart and sustainable resource management.  The company provides drinking water, wastewater and waste collection service to 6.4 million people on a daily basis; treats over 600 million gallons of water and over 450 million gallons of wastewater each day; delivers water treatment and advanced network solutions to 16,000 industrial and municipal sites; processes 55,000 tons of waste for recycling; rehabilitates and maintains water assets for more than 4,000 municipal and industrial customers; and manages $4.1 billion in total assets.  The company posted revenues of $1.064 billion in 2017 and is a subsidiary of Paris-based SUEZ.

CONTACT US

KKR and SUEZ are committed to providing the best service to Edison customers by answering any questions or concerns that may come up along the way. Please fill out the form below with your inquiry and we will get back to you as soon as possible. We look forward to hearing from you and partnering with the Edison community.


CONTACT US

KKR and SUEZ are committed to providing the best service to Edison customers by answering any questions or concerns that may come up along the way. Please fill out the form below with your inquiry and we will get back to you as soon as possible. We look forward to hearing from you and partnering with the Edison community.