Listen to this article

With the acquisition of another sewer system and the opening of a new operations center, New Jersey American Water already has had a productive fall. 

On Oct. 3, the Camden-based utility company announced it completed its previously announced $7 million acquisition of the Borough of Somerville’s wastewater collection system. The deal adds about 3,800 customers to the company’s service area – many of whom already receive water service from New Jersey American Water. 

As part of the agreement – which was approved by 75% of voters in a November 2022 referendum and OK’d by the New Jersey Board of Public Utilities on Sept. 27 – New Jersey American Water committed to invest a minimum of $9.5 million in sewer system improvements in the next 10 years.  

Mark McDonough, president of New Jersey American Water, said the company was “honored” to be the borough’s sewer company, adding in a statement, “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.” 

Somerville Mayor Dennis Sullivan said the move “was the right decision for our community.” 

“With private ownership of the system, the borough will eliminate the need for significant rate increases going forward and borrowing money for future improvements will end. Somerville will then be able to fund other needed projects, the sewer system will be maintained and improved on a consistent basis, and sewer rates will remain stable,” Sullivan added. 

The addition of the Somerville system marks New Jersey American Water’s fourth such acquisition in the past five years, for a total of 11,300 new wastewater customers. 

The company acquired systems from Bound Brook in 2022 ($5 million); Long Hill Township in 2020 ($12.7 million); and Mount Ephraim in 2019 ($1.4 million). Additionally, in June of this year, the company acquired Egg Harbor City’s water and sewer system for $21.8 million via the state’s Water Infrastructure Protection Act, which added more than 1,500 customers to its service area. 

Looking ahead, the Borough of Manville and the City of Salem will have a referendum on their Nov. 7 ballots to decide whether to sell their systems to New Jersey American Water, a company representative confirmed with NJBIZ on Oct. 4. If approved in Manville, the borough would sell its sewer system to the company for $6.5 million, plus a commitment to invest $10 million in upgrades and repairs in the first 10 years of ownership. Also if passed, the Salem acquisition would include an $18 million purchase price of the city’s water and sewer system and more than $50 million in infrastructure investments over the first decade of ownership.

UPDATED: 11:40 a.m. ET Nov. 13, 2023: Voters in both the Borough of Manville and Salem City approved these ballot referendums Nov. 7, according to New Jersey American Water. Voters in Manville approved the sale of the Borough’s sewer system with more than 80% of the vote. Voters in Salem City approved the sale of the city’s water and sewer system with more than 60% of the vote.

Hello, Lawnside 

Last week, New Jersey American Water cut the ribbon on its new operations center in Lawnside, a facility that will employ more than 80 people, with the possibility of growing 20%, the company said Sept. 28. 

Two years in the making, the new operations center includes 19,780 square feet of office and administrative space and about 38,325 feet of garage and warehouse space. The company estimated it will contribute approximately $900,000 annually in property taxes to the borough. 

The new facility will also provide more centralized operations for the company’s approximately 400,000 customers in Burlington, Camden, Gloucester and Salem counties. 

McDonough said the Lawnside facility will allow the company to serve these residents faster and will also give it the space it needs to expand. 

“We have deep roots here in Lawnside,” McDonough added. “A number of our employees are residents, and we are excited to call this our new home.”

According to the company, New Jersey American Water and its predecessors have been serving Lawnside since 1897. 

New Jersey Board of Public Utilities Commissioners Mary-Anna Holden and Marian Abdou as well as Lawnside Mayor Mary Ann Wardlow also attended the ribbon cutting.  

Holden commended New Jersey American Water for its involvement in the community, saying, “You don’t just see them when there’s a water break, you don’t just see them in your mailbox when you get a bill; they’re participating, they’re volunteering, and offering job opportunities.”