New Jersey American Water, the largest regulated water company in the state, said Tuesday that it has completed its purchase of the water system of Shrewsbury Township’s Alfred Vail Mutual Association community for $525,000. The company said it will invest $2.5 million in infrastructure improvements.
The system serves 265 customer connections and follows the approval of the New Jersey Department of Community Affairs and the New Jersey Board of Public Utilities. It is the second in New Jersey to be completed through the Water Infrastructure Protection Act (WIPA).
The purchase of the Shrewsbury water system is New Jersey American Water’s second WIPA sale following its acquisition of Egg Harbor City’s water and wastewater system in June 2023, which added more than 1,500 water and wastewater customers.
The state’s WIPA legislation was signed into law in 2015. It permits the sale of municipally owned water or wastewater systems that meet certain criteria. The New Jersey Department of Environmental Protection certified the township’s request to pursue the sale through the WIPA path in July 2023.
This is New Jersey American Water’s ninth acquisition in the last five years. The company has spent more than $66 million on those acquisitions. Over that period, the company had added more than 17,000 water and/or wastewater customers.
“This agreement is a win for our community,” said Shrewsbury Township Mayor Lester Jennings. “By selling the Alfred Vail Mutual Association water system to New Jersey American Water, we are securing much-needed infrastructure improvements, high-quality service, and affordable rates for our residents.”
Under the agreement, New Jersey American Water will make several infrastructure investments in the community’s water system. These projects include identifying and replacing all lead and galvanized steel service lines in addition to upgrading all water meters. All aging water mains within the system will be replaced.
“We are committed to delivering safe, reliable, and affordable water service to the residents of Shrewsbury Township’s Alfred Vail Mutual Association, just as we do for the 2.9 million people we serve across the state,” said Ben Morris, vice president of operations, New Jersey American Water.
Residents will receive additional information in the mail from New Jersey American Water within the next week to facilitate a smooth transition.
New Jersey American Water, a subsidiary of American Water (NYSE: AWK), provides water and wastewater services to about 2.9 million people. Shares of American Water have risen more than 13% since the beginning of the year. The company has a market cap of $27.48 billion.
