New Jersey American Water seeks rate increase to fund $1.4B in system investments
New Jersey American Water has filed a request with the New Jersey Board of Public Utilities (BPU) seeking new rates to support more than $1.4 billion in water and wastewater system investments through December 2026, aimed at improving drinking water quality, reliability, and regulatory compliance for approximately 2.9 million customers statewide.
“As we continue to invest in our infrastructure, we're strengthening our systems, enhancing reliability, and improving water quality from treatment to the tap for the communities that count on us,” said Mark McDonough, president of New Jersey American Water, in a press release. “These improvements reflect our commitment to providing our customers with affordable, high-quality service – made possible by our dedicated employees, who remain focused on protecting the health and safety of the people and communities we serve.”
If approved, the filing would support replacement or rehabilitation of nearly 120 miles of aging water and wastewater infrastructure, continued lead service line replacements, and investments to address emerging contaminants such as PFAS in drinking water. Under the proposal, the typical residential water customer would see an average increase of about $10 per month, while wastewater customers would see an average increase of $8 per month.
The utility is also seeking approval to expand bill discounts for customers already receiving energy assistance through LIHEAP and USF, potentially making it the only water utility in New Jersey to offer this level of coordinated support. In addition, New Jersey American Water is requesting approval to pass back savings from a Gross Receipts Tax refund to customers after offsetting certain regulatory expenses.
The rate request will undergo review by the BPU, the New Jersey Division of Rate Counsel, and the Office of Administrative Law, with opportunities for public input before any changes take effect later this year, if approved.