NJBIZ

New Jersey American Water to raise rates – slightly

New Jersey American Water customers will start seeing a small bill increase Sept. 1.

The uptick comes following the Camden-based water utility’s Aug. 17 announcement that the New Jersey Board of Public Utilities approved a settlement between the company and the state’s Division of Rate Counsel, BPU staff and others for new water and wastewater rates.

New Jersey American Water said the approved rates represent a total annualized revenue increase of approximately $45.5 million.

The company filed a rate request Jan. 14 after it invested more than $985 million in infrastructure in treatment system and distribution upgrades since its last rate filing.

water faucet — The new monthly bill for an average water customer using 5,520 gallons will increase by about $2.93 starting Sept. 1, New Jersey American Water said. – PEXELS

The new monthly bill for an average water customer using 5,520 gallons will increase by about $2.93, and the monthly bill for an average wastewater customer will increase by approximately $3.74, the utility said. The overall cost works out to be about one penny per gallon, it added.

NJBIZ has reported on the infrastructure upgrades, including:

An $8.75 million investment announced earlier this summer to replace over 4 miles of aging water main in Plainfield, Roselle, Summit and Union Township.
Two major water main projects – one in South Plainfield and another in Cherry Hill – beginning next week and totaling $2.3 million.
Investing $2.8 million to replace over 2 miles of aging water main in Northfield and Pleasantville.

The company also tallied more than $432 million in system upgrades and improvement projects across its service areas in 2021.

“We are proud of the level of investment we are able to make into our systems to continue to provide high-quality, reliable service, even through extreme weather and other challenges including the pandemic, while maximizing efficiencies to balance the impact to customers,” New Jersey American Water President Mark McDonough said in a statement.

New Jersey American Water will send customers information about the new rates in their next bill. They may also visit www.newjerseyamwater.com, under “Customer Service & Billing” and “Your Water and Wastewater Rates,” or call 800-272-1325 with further questions.

NJ American Water completes sewer system acquisition in Somerset County

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.

NJ American Water investing $2.3 million in South Plainfield, Cherry Hill

New Jersey American Water is undergoing two major water main projects — one in South Plainfield that started this week and the other in Cherry Hill beginning next week — according to June 23 announcements.

In both locations, the company will upgrade the aging 6-inch and 8-inch cast-iron water lines that were installed in the 1920s with new 8-inch ductile iron main.

The $900,000 South Plainfield investment and the $1.4 million investment in the Cherry Hill area are part of New Jersey American Water’s multimillion-dollar water infrastructure initiative aimed at improving service and increasing water flows for residents and fire protection for more than 100 Garden State communities. In 2021, the company invested more than $432 million in system upgrades and improvement projects.

Project timelines are subject to change, so customers may sign up for alerts through their MyWater account and follow the company on Facebook and Twitter for updates. Drivers should also expect traffic restrictions and/or alternating traffic patterns during work hours.

South Plainfield details

The company is replacing about 2,500 feet of aging water main along the following streets:

Melrose Avenue from Grant Avenue to Baker Avenue
Baker Avenue from Melrose Avenue to O’Donohue Avenue
Ivy Street from Clinton Avenue to the dead end

The project also includes replacing three fire hydrants, 48 utility-owned service lines as well as any customer-owned service line that has been identified as lead or galvanized as part of a statewide initiative to remove all such service lines by 2031.

Local contractor The Shauger Group began work this week and expects to be completed within four months, weather permitting. Work hours will be from 7 a.m. to 4:30 p.m. Monday through Friday. Final street restorations will be completed in fall of 2023.

Cherry Hill details

The water utility will replace approximately 7,000 feet of aging water main starting next week along the following streets:

Eaton Way from Walt Whitman Boulevard to Longfellow Drive
Hillside Drive from Walt Whitman Boulevard to Longfellow Drive
Keats Place from Walt Whitman Boulevard to Longfellow Drive
Kipling Road from Walt Whitman Boulevard to Longfellow Drive
Longfellow Drive from Walt Whitman Boulevard to Hillside Drive
Walt Whitman Boulevard from Longfellow Drive to Dumas Road

The project also includes replacing three fire hydrants, 128 utility-owned service lines and, like South Plainfield, any customer-owned service line that has been identified as lead or galvanized.

Local contractor Pioneer Pipe Contractors Inc. expects work to be completed within four months, weather permitting. Work hours will be from 7 a.m. to 4 p.m. Monday through Friday. Final street restorations will be completed in the spring of 2023.

New Jersey American Water awards 2022 environmental grants

To mark Earth Day, April 22, New Jersey American Water announced this week the recipients of its 2022 Environmental Grant Program.

A total of $41,000 was awarded to five organizations that are engaged in sustainability projects to improve water source protection or watershed protection.

“At New Jersey American Water, we recognize that people aren’t the only ones who need clean water – the environment depends on it too,” said Danielle Kearsley, environmental program lead, New Jersey American Water. “This is why we are proud to offer over $40,000 in funding this year to support these innovative projects. By investing in the restoration and protection of our watersheds, we can help preserve our water sources and the life they should sustain for years to come.”

The following groups and organizations were recipients of the 2022 grants:

Cranford Public Library was awarded $1,000 to establish a Native Seed Library for Union County residents. A curated collection of plant seeds will be distributed at no cost to residents.
The Hanson Foundation was awarded $10,000 for its biodiversity project in partnership with Enlightened Farm. The project focuses on restoring the natural local habitat by diversifying plant and animal species.
Rumson Borough Environmental Commission was awarded $10,000 for its Emerald Green Necklace Infrastructure Project, which will include three demonstration rain gardens with bioswales throughout the town. The commission will also host workshops to teach the public how to create their own rain garden.
Somerset County OEM was awarded $10,000 for county-wide restoration efforts using native trees and shrubs to help mitigate flooding from stormwater runoff impacts in the county’s most vulnerable areas. The efforts will help with the runoff while providing clean, water, habitat and food for local wildlife.
West Orange Township Environmental and Open Space Commission was awarded $10,000 for its Down Stream to the River: Phase II project, which continues the group’s efforts around river clean-ups, restoration, and education for the Rahway River and its connecting water bodies.

American Water’s Environmental Grant Program was established in 2008, providing more than $429,000 in funding to 51 projects that improve, restore or protect the watersheds, surface water and groundwater supplies in communities served by the company.

American Water donates $1.3M to Camden organizations in 2021

American Water — along with the American Water Charitable Foundation and New Jersey American Water — donated more than $1.3 million in 2021 to community organizations that benefited Camden, the utility company announced March 23.

Susan Hardwick, executive vice president and CFO, American Water; board of directors, New Jersey Resources. — Hardwick

“American Water is proud to continue supporting impactful local initiatives and programs in Camden,” Susan Hardwick, president and CEO of American Water, said in a statement. “Since moving to Camden in 2018, we’ve been working to grow our partnerships with community organizations that support the residents, families and students in this great city.”

Most recently, the foundation and NJ American Water donated $35,000 to Hopeworks to support its in-house training program expansion, which helps with job placement for young adults.

In a statement, Camden Mayor Victor Carstarphen commended American Water for its contributions, calling the company “a catalyst for tangible transformation in Camden.”

In addition to Hopeworks, American Water gave more than $300,000 to several Camden-based nonprofits last year, supporting organizations such as the Boys & Girls Club of Camden County, LUCY Outreach, Mighty Writers, St. Joseph’s Carpenter Society, UrbanPromise and Joseph’s House of Camden.

The company’s engagement and support of community initiatives also include:

Partnering with Fresh Artists, which works with local youth artists, to display more than 100 pieces at American Water’s Camden headquarters;
Donating $250,000 to LUCY Outreach to go toward the organization’s youth center;
NJ American Water’s contribution of $950,000 in Neighborhood Revitalization Tax Credit funding to Parkside Business and Community in Partnership of Camden to improve housing and economic development opportunities in the city’s Parkside neighborhood;
Commemorating the 20th anniversary of Sept. 11, 2001, with a display of 2,977 American flags – one for each life lost – on RCA Pier;
The foundation’s final grant installment of $150,000 to complete the construction of a STEM Lab at Woodrow Wilson High School (soon to be Eastside High), opening to students this fall.

New Jersey American Water agrees to purchase Bound Brook collection system

New Jersey American Water signed an agreement to acquire the wastewater collection system of the Borough of Bound Brook for $5 million, the company announced Feb. 14.

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

The agreement follows a voter referendum that took place in November in which almost two-thirds of local voters approved the sale of the system to New Jersey American Water.

“I want to thank the elected officials and residents of Bound Brook for entrusting us to manage and improve their sewer utility and protect the environment from the many risks associated with running a sewer collection system,” said Mark McDonough, president of New Jersey American Water, in a prepared statement. “Providing water and wastewater service is all we do, and as Bound Brook’s water company for over a hundred years, we are deeply committed to 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 will invest more than $11 million in critical sewer system improvements over the next decade. The company will also freeze current sewer rates for residents for two years and then increase rates no more than 3% annually for the three years after that.

“I am grateful to the voters for recognizing that selling the system to New Jersey American Water is 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, or even potentially reduce, property taxes for our residents. Additionally, New Jersey American Water will be adding the sewer charges onto the existing water bills, which removes the significant burden of customer billing from the Borough’s finance department,” Fazen said.

New Jersey American Water acquired two other systems within its water footprint in the last three years, including Mount Ephraim and Long Hill Township. The systems serve 1,800 people and 2,900 people, respectively.

New Jersey American Water expects the acquisition to close in the second half of 2022, following approval from the New Jersey Board of Public Utilities.

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South Plainfield details

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