New Jersey American Water filed a request with the New Jersey Board of Public Utilities for new rates. 

The increase will support the company’s more than $1.4 billion in ongoing water and wastewater service system investments through December 2026, the Camden-based utility announced Jan. 16. 

If approved, the typical average residential water customer would see an increase of about $10 per month, while wastewater customers’ bills would bump up approximately $8 a month. 

The new rates would take effect the second half of the year, if approved by the NJBPU, the New Jersey Division of Rate Counsel and the Office of Administrative Law. 

In September 2024, the company increased rates following NJBPU’s approval. That bumped customers’ water bills by approximately $5.33 and wastewater bills about $5.68 per month.  

New Jersey American Water’s continued infrastructure upgrades in its service area “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,” New Jersey American Water President Mark McDonough said in a statement. 

Work has included: 

• Replacing or rehabilitating nearly 120 miles of aging infrastructure 
• Replacing lead service lines 
• Addressing emerging contaminants such as PFAS in drinking water 

The most recent projects include: 

• $1.5 million investment to upgrade water infrastructure in downtown Bernardsville
  • Work began the week of Jan. 12 and is expected to be complete by April.
• Lead service line replacement work in South Orange Village
  • Work began Jan. 20.
  • This project follows New Jersey American Water’s $19.7 million acquisition of the village’s water system in October 2025.

Bill assistance 

The company is also seeking approval for two programs that aim to help customers with their utility bills. 

The first would make monthly bill discounts more accessible for customers who receive energy assistance through Low Income Home Energy Assistance (LIHEAP) and the Universal Service Fund (USF). If approved, New Jersey American Water would be the only water utility in New Jersey to offer this level of support, the company said.

The second proposal would allow the company to return savings from a Gross Receipts Tax refund directly to customers.

The company is seeking approval to offset other regulatory expenses with the refund, then return the remaining balance to customers.

“This proposal will help ensure that customers benefit from tax-related savings,” McDonough noted. “By passing back the GRT refund through our rates, we’re helping to keep water service affordable and fair for our customers.”

New Jersey American Water provides services to approximately 2.9 million people throughout the state.