New Jersey American Water filed a petition late last week with the New Jersey Board of Public Utilities requesting new rates. The Camden-based utility announced Jan. 19 it is seeking a total annual revenue increase of approximately $161.7 million. 

The request stems from more than $1.3 billion the company is investing in infrastructure upgrades across its service area through December 2024.  

If the proposed rates are approved, the water bill for the average residential customer using 5,640 gallons per month would increase about $11.30 per month, and the average monthly residential wastewater bill would increase about $6.16 per month, the company said. 

“Our approach to long-term, efficient and consistent investments in our water and wastewater systems helps us continue to deliver high-quality, reliable service and fire protection for the more than 2.8 million people in 18 counties we serve,” New Jersey American Water President Mark McDonough said in a statement. 

Additionally, he said the company is proposing a universal affordability tariff that would provide a 20% to 80% monthly bill reduction for income-eligible customers. 

The company noted the rate request will support work including: 

• Replacing or rehabilitating nearly 176 miles of aging water mains; 
• Improvements to the company’s seven surface water treatment plants; 
• Investments in its treatment facilities to comply with regulations for PFAS; 
• Replacing aging, large-diameter transmission mains and large-scale pipeline replacement projects throughout the state to improve system reliability; 
• Replacing thousands of utility-owned lead and galvanized service lines; 
• Sewer system upgrades to meet environmental regulations.

Some of the infrastructure work the company announced in the past year includes: 

• $3 million in projects in Union and Monmouth counties;
• $22 million in upgrades in Linden in November 2023, as well as a recently announced $1 million project in the municipality; 
• $21 million last summer across Camden, Atlantic, Monmouth and Union counties.

Additionally, the company is expanding its footprint with the planned $18 million acquisition of the City of Salem’s water and sewer system and the initial $6.5 million deal with the Borough of Manville, among other recent acquisitions.  

“As the state’s largest water and wastewater utility, we believe it is essential that the service we provide is safe, complies with state and federal water quality regulations; reliable, so that it is resilient in the face of floods, droughts, and other weather-related impacts; and affordable,” McDonough said. 

The rate request will be reviewed by the NJBPU, the New Jersey Division of Rate Counsel and the Office of Administrative Law, a process that can take nine months or more, NJ American Water added. Customers may click here for updates.