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New Jersey American Water requests rate increase to fund $1.4 billion infrastructure upgrades

  • New Jersey American Water requests rate increase to fund $1.4 billion infrastructure upgrades
    Credit: New Jersey American Water

About the entity

New Jersey American Water has filed a rate request with the New Jersey Board of Public Utilities (BPU) aimed at supporting over $1.4 billion in ongoing investments in its water and wastewater systems through December 2026. This proposal is part of the company’s commitment to enhancing water quality and service reliability for the 2.9 million residents it serves across the state.

Mark McDonough, President of New Jersey American Water, emphasized the company's dedication to infrastructure improvements: "As we continue to invest in our infrastructure, we're strengthening our systems, enhancing reliability, and improving water quality from treatment to the tap for the communities that count on us. These improvements reflect our commitment to providing our customers with affordable, high-quality service."

The investment plan includes replacing nearly 120 miles of aging infrastructure, ongoing lead service line replacements, and addressing emerging contaminants like PFAS in drinking water. If approved, the typical residential water customer could see an increase of about $10 per month, while customers served by wastewater systems may see an increase of $8 per month.

The investment plan includes replacing nearly 120 miles of aging infrastructure, ongoing lead service line replacements, and addressing emerging contaminants like PFAS in drinking water

In an effort to assist low-income households, New Jersey American Water also seeks to expand access to its customer assistance programs. This includes offering monthly bill discounts to customers who already receive energy assistance, potentially making the company the first water utility in New Jersey to offer this level of support.

Additionally, the company is proposing to return savings from a Gross Receipts Tax (GRT) refund to its customers, helping offset other regulatory expenses and ensuring customers benefit directly from the tax savings.

The BPU, along with the New Jersey Division of Rate Counsel and the Office of Administrative Law, will review the proposed rate adjustments through a process that includes public hearings and opportunities for customer feedback. If approved, the new rates would go into effect later this year.

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