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The New Jersey Board of Public Utilities approved a settlement between New Jersey American Water and the Division of Rate Counsel and NJBPU staff for new water and wastewater rates, the Camden-based utility announced Sept. 4. 

NJ American Water requested new rates Jan. 19, seeking a total annual revenue increase of approximately $161.7 million. The approved rates represent a total increase of about $79.5 million. 

The company said it filed the proposal because of the more than $1.3 billion it’s investing in infrastructure upgrades across its service area through December. 

“We are committed to making appropriate investments to continue to provide safe, reliable services, while maximizing efficiencies to balance the impact to customers,” NJ American Water President Mark McDonough said in a statement. 

McDonough added that the utility is also tasked with keeping services compliant with state and federal regulations as well as ensuring they’re reliable amid climate challenges. 

What does this mean for customers?

The new rates will become effective Sept. 15. The average bill for most water customers with a 5/8-inch meter using 5,642 gallons per month will increase approximately $5.33 per month, NJ American Water estimated. 

The bill for an average wastewater customer will increase about $5.68 per month, depending on the service area. Customers will receive information about the new rates in their next bill. 

Under the original proposal, average water and wastewater bills would have jumped about $11.30 per month and $6.16 per month, respectively.

NJBPU also approved the company’s proposed Universal Affordability Tariff, which will provide discounts ranging from 15% to 60% on both the monthly fixed service charge and the usage charge for eligible customers. More information is available here.

New main, new customers

The company’s recent infrastructure investments across the state include:

• $2.1 million in projects in Cherry Hill and Pleasantville
• $8.4 million across Atlantic, Burlington, Camden and Union counties
• $3.8 million in Ocean City
• $3 million in Union Township and Middletown

Additionally, the company has been adding facilities over the past few years, including:

• June 2024: City of Salem‘s water and wastewater systems ($18 million)
• October 2023: Borough of Somerville‘s wastewater collection system ($7 million)
  
• June 2023: Egg Harbor City’s water and sewer system ($21.8 million, via the state’s Water Infrastructure Protection Act) 
• February 2022: Bound Brook’s wastewater collection system ($5 million)
• October 2020: Long Hill Township’s sewage and water treatment system ($12.7 million)
• January 2019: Mount Ephraim’s wastewater assets ($1.4 million)

NJ American Water also signed an agreement earlier this year to acquire the Manville wastewater system with 3,700 customers. In November 2023, residents there approved the sale with more than 80% of the vote. The company said it expects to close that deal in the second half of 2024, pending approval from the NJBPU. 

See also:

• As Atlantic City Electric energy bills spike, lawmakers call for action