New Jersey American Water is paying $21.8 million to acquire the water and wastewater assets of Egg Harbor City, it announced Monday.
The Camden-based utility said in a news release the transaction will add 3,000 connections from the municipally owned systems — about 1,500 water and 1,500 wastewater connections, respectively. Under the agreement, New Jersey American Water will invest $14 million over 10 years to make upgrades to the systems, including $9 million in the first five years.
“We look forward to providing the residents of Egg Harbor City with reliable water and wastewater services, as we do for over 192 municipalities across the state,” Cheryl Norton, president of New Jersey American Water — who was recently promoted to chief operating officer of parent American Water — said in a prepared statement. “Our plan will help rebuild and modernize the town’s infrastructure for continued quality and increased reliability while stabilizing rates and providing excellent customer service from our local operations center.”
The transaction, through the state’s Water Infrastructure Protection Act process, is expected to be complete in the second half of the year, pending approval from the state. Egg Harbor City is the first municipality in the state to pursue a sale of its systems through the 2015 WIPA law, a process it began in April 2019.
“This agreement provides tremendous benefits for our residents,” Mayor Lisa Jiampetti said in a statement. “The sale of our city’s water and wastewater systems to New Jersey American Water will provide over $21 million to help the city pay off existing debt, while leaving additional money to assist in other areas of the city’s budget.”