New Jersey American Water said it has committed to invest more than $11 million in sewer system improvements in the next 10 years for the municipally owned system.
Last month the New Jersey Board of Public Utilities approved the municipal consent allowing New Jersey American Water to provide sewer service to the Bound Brook customers as of the closing of the transaction.
“As Bound Brook’s trusted water provider for over a hundred years, we are happy and honored to now also be their sewer service provider. We are ready to start making the needed improvements to provide the community with sewer service that is as safe, reliable and affordable as the water service we provide,” Mark McDonough, president of New Jersey American Water stated.
“Selling the sewer system to New Jersey American Water was the best solution for our town,” Bob Fazen, Mayor, Bound Brook Borough said. “The sale proceeds will enable us to pay down the Borough’s municipal debt and stabilize, and even potentially reduce, property taxes for our residents.”
In addition to the Bound Brook acquisition, New Jersey American Water won the bid in nearby Somerville to acquire the sewer system. There will be a ballot referendum this November to approve the sale. NJ American Water is already the water company in Somerville. The Somerville deal includes a $7 million purchase price plus at least $9.5 million in infrastructure investments in the sewer system in the first 10 years of ownership.
This is New Jersey American Water’s third wastewater acquisition within the company’s water footprint in the last four years, adding a total of more than 7,500 new wastewater customers. The company acquired the 1,800 customer Mount Ephraim wastewater system in 2019 and the 2,900 customer Long Hill Township wastewater system in 2020.. “The sale proceeds will enable us to pay down the Borough’s municipal debt and stabilize, and even potentially reduce, property taxes for our residents.”