NJ American Water completes sewer system acquisition in Somerset County

Bound Brook serves approximately 2,900 customers

Gabrielle Saulsbery//August 12, 2022//

Listen to this article

New Jersey American Water completed its acquisition of Bound Brook’s wastewater collection system for $5 million Aug. 11.

This system serves approximately 2,900 customers, most of whom already receive water service from New Jersey American Water.

The New Jersey Board of Public Utilities approved the municipal consent on July 13 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,” said Mark McDonough, president of New Jersey American Water. “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.”

New Jersey American Water and Bound Brook officials — Pictured before the signing of the closing agreement for the acquisition of the Bound Brook’s wastewater system are (back row from left) Andy Lewis, senior director of operations for New Jersey American Water’s central operating region; Bound Brook Administrator Hector Herrera; Department of Public Works Superintendent Dale Leubner and (front row, from left) Thomas Shroba, vice president of operations for New Jersey American Water, and Mayor Bob Fazen. – NEW JERSEY AMERICAN WATER

Nearly two-thirds of Bound Brook voters approved the transaction by ballot referendum in November 2021.

As part of the acquisition agreement, New Jersey American Water committed to invest more than $11 million in sewer system improvements over the next 10 years.

“Selling the sewer system to New Jersey American Water was the best solution for our town,” said Bound Brook Mayor Bob Fazen. “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 financial benefits for the borough, transferring the ownership of the Bound Brook sewer system gives our Department of Public Works staff the ability to focus on road and public area improvements and other essential projects while not having to manage the daily demands of sewer maintenance and emergency repairs,” added Bound Brook Council President Abel Gomez.

Residents will receive additional information in the mail in the coming weeks.

This is New Jersey American Water’s third wastewater acquisition within its water footprint in the last four years, adding more than 7,500 wastewater customers. The company acquired the Mount Ephraim wastewater system and its 1,800 customers in 2019 and the 2,900-customer Long Hill Township wastewater system in 2020.