EDISON Thomas Lankey, Mayor Office of the Mayor Edison Municipal Complex 100 Municipal Boulevard Edison, New Jersey 08817 Main Phone: (732) 248-7298 Main Fax: (732) 287-6679 Email: Mayorlankey@edisonnj.org Dear Residents of Edison Township, (Our Township's water and sewer infrastructure systems are at an important crossroads: the Township’s contract with New Jersey American Water is expiring and there is a pressing need for investment and modernization of our water and sewer systems, and so, the expiration of the water agreement provides an exceptional opportunity to create a sustainable, long- term solution to address current and future infrastructure needs. Edison's water and sewer systems are vital assets It is important to maintain ownership of these assets while achieving the infrastructure modernization we need. Therefore, we have engaged in a comprehensive, two-year review of our options based on two non-negotiable principles: First, the systems must remain publicly owned by Edison. Second, residents must be protected from large and unpredictable rate increases. In order to achieve both of these goals, my Administration has negotiated a concession agreement with Edison Environmental Partners, the joint venture between SUEZ and KKR. This agreement must be reviewed and approved by the Township Council and three state regulatory agencies. Residents can share their thoughts on this agreement during council meetings and at a public hearing on Thursday, March 28th at 6pm at the Middlesex County College Performing Arts Center. ‘This concession agreement provides a variety of benefits to our community, including long-term protection from spikes in water and sewer bills, repairing and improving our infrastructure and having an experienced water and sewer utility operator maintain the day-to-day operations of our systems. In addition to these benefits, this agreement keeps the senior freeze for sewer and water rates intact. All Edison sewer customers are included in this agreement. Depending on where you live, however, your water service may not be impacted. Water customers located south of Route 287, currently serviced by New Jersey American Water, will be serviced by Edison Environmental Partners customers for both water and sewer service. Water customers that are serviced by Middlesex Water in northern Edison, and water customers near the Scotch Plains border serviced by New Jersey American Water, will see no change to their water service. ‘The concession agreement includes over $851 mill vestments in Edison's water and sewer infrastructure. Including a $100 million dollar investment in infrastructure improvements in the next 7 years alone, $105 million in upfront revenue with an estimated $265 million in annual payments over the next 40 years, and nearly half a billion dollars in total capital improvements to the systems, ensuring a long-term and sustainable solution for our infrastructure. This will help to strengthen Edison’s finances by paying off existing utility debt, increasing reserves, stabilizing the budget and making investments in Township/Board of Education recreational facilities including but not limited to a new Community Center. This concession agreement allows the Township to maintain ownership of our systems’ assets, provides critical infrastructure investments and keep rates stable while maintaining the senior rate freeze program. Should this agreement be approved, the transition process will include many resources for Edison residents. Please go to (REAR 0 dowload the Bsisn Township Water and Sewer Concession Agresment fact sheet. If you have any questions, please email: questions@edisonnj.org. or call the hotline 732-248-6400. Sincerely, MICE Mayor Thomas Lankey “The Birthplace of Recorded Sound” www.EdisonNJ.org