New Jersey American Water Jan. 16 filed a request with the New Jersey Board of Public Utilities (BPU) for new rates to support more than $1.4 billion in water and wastewater service system investments through December 2026.
The company said the request reinforces its “commitment to implementing critical system upgrades and continuing to improve water quality and reliability for approximately 2.9 million people served statewide.”
The company’s last rate case was filed on Jan. 19, 2024. On Sept. 4, 2024, the company received approval from the New Jersey Board of Public Utilities to implement rates on Sept. 15, 2024.
“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,” stated New Jersey American Water President Mark McDonough. “These improvements reflect our commitment to providing our customers with affordable, high-quality service – made possible by our dedicated employees, who remain focused on protecting the health and safety of the people and communities we serve.”
The proposed request will support the company’s continued investment to modernize and strengthen its water and wastewater systems in communities across New Jersey, including the replacement or rehabilitation of nearly 120 miles of aging infrastructure, the ongoing replacement of lead service lines, and investments to address emerging contaminants such as PFAS in drinking water.
Under the company’s proposal, if approved, the typical average residential water customer would see an increase of approximately $10 per month. Customers served by sanitary wastewater systems would see an average increase of $8 per month.
New Jersey American Water is seeking approval to make monthly bill discounts more accessible for customers who already receive energy assistance through LIHEAP and USF. If approved, this would make New Jersey American Water the only water utility in New Jersey to offer this level of support. “Our customers deserve reliable, affordable water service,” shared McDonough. “We’re proud to build on our assistance programs so more families can get the help they need.”
Additionally, New Jersey American Water is seeking permission to return savings from a Gross Receipts Tax (GRT) refund to customers. The company is seeking approval to offset other regulatory expenses with the refund, then spread the remaining balance back to customers.
“This proposal will help ensure that customers benefit from tax-related savings,” added McDonough. “By passing back the GRT refund through our rates, we’re helping to keep water service affordable and fair for our customers.”
The company’s request for new rates undergoes scrutiny by the BPU, the New Jersey Division of Rate Counsel, and the Office of Administrative Law. This review process includes examinations, public hearings and evidentiary hearings and can take nine months or more. All rate changes require BPU approval. If approved, the company’s new rates would take effect the second half of the year.
New Jersey American Water is a subsidiary of American Water, the largest regulated water utility in the state serving about 2.9 million people.
