New Jersey American Water rates to increase Sept. 15; eligible customers to receive $9.88 monthly credit
NEW JERSEY — New Jersey American Water customers will see new water and wastewater rates beginning Sept. 15 following approval by the New Jersey Board of Public Utilities, while eligible water customers will receive a $9.88 monthly credit for 12 months.
The approved rates include a $68 million annual revenue increase to support more than $1.4 billion in upgrades to the company’s treatment, transmission and distribution systems.
“This decision supports critical investments to replace aging infrastructure, advance water quality projects and improve reliability while keeping affordability at the forefront,” said Mark McDonough, president of New Jersey American Water. “It provides a clear path to strengthen the water and wastewater systems our communities rely on.”
The investments include replacing or rehabilitating nearly 120 miles of aging water main, continuing lead service line replacements and making treatment upgrades related to PFAS and other emerging contaminants.
Under the new rates, the average residential water customer using about 5,700 gallons per month will see a monthly bill increase of approximately $4.
Eligible water customers will also receive a $9.88 monthly PFAS Litigation Universal Surcredit, or PLUS, for 12 months. For an average residential water customer, the credit will more than offset the rate increase, resulting in an average net bill reduction of nearly $6 per month during that period.
Residential wastewater customers will see an average increase of approximately $4 per month. Customers receiving both water and wastewater service will see an average increase of nearly $8 per month. For eligible customers receiving both services, the $9.88 credit will result in an average net bill reduction of nearly $2 per month for 12 months.
Actual bill impacts will vary depending on usage, service type and service area.
The BPU separately approved the PLUS mechanism to return more than $79 million in PFAS litigation proceeds and interest to eligible water customers. The $9.88 monthly credit will begin in September and appear as “PLUS” on eligible customers’ bills.
“The PLUS mechanism provides a transparent way to return PFAS settlement proceeds and interest directly to eligible water customers,” McDonough said. “Customers will see the credit identified separately on their bills, making it clear how those funds are being returned.”
Future PFAS settlement proceeds will be returned through the mechanism as one-time bill credits after calculations are verified by the BPU.
New Jersey American Water also offers payment assistance programs for income-eligible customers, along with budget billing and flexible payment plans.
As part of the rate request approval, the company will continue working with the New Jersey Department of Community Affairs to evaluate the enrollment process for its Universal Affordability Tariff program, including potential automatic enrollment for eligible customers who already receive certain energy assistance benefits.
“Water service is essential, and customers experiencing financial hardship should know assistance is available,” McDonough said. “We encourage customers who need help to review the available programs and contact us before falling behind on their bills.”
