New Jersey Water Rates Increase: $1.3B Infrastructure Investment Drives Hike

New Jersey American Water Granted New Rates by New Jersey Board of Public Utilities.Photo byMorristown Minute

Rate hike driven by $1.3 billion in infrastructure investments; new affordability program introduced

NEW JERSEY - The New Jersey Board of Public Utilities (BPU) has approved a settlement between New Jersey American Water, the Division of Rate Counsel, and BPU staff that will result in new water and wastewater rates for customers. The new rates, set to take effect on September 15, 2024, represent an annual revenue increase of approximately $79.5 million.

The rate hike follows over $1.3 billion in infrastructure improvements, including upgrades to treatment systems and distribution networks since the company's last rate filing. For most customers with a standard 5/8” meter, monthly water bills will increase by about $5.33, while wastewater customers will see an increase of approximately $5.68, depending on their service area.

“We are committed to making appropriate investments to continue to provide safe, reliable services, while maximizing efficiencies to balance the impact to customers,” said Mark McDonough, President, New Jersey American Water. “Our effective capital planning helps keep water and wastewater services compliant with state and federal regulations, reliable amidst the challenges of climate and other impacts, and affordable for the 2.9 million people we serve.”

Despite the rise, New Jersey American Water noted that the cost of water and wastewater services will remain one of the lowest utility bills for households.

In addition, the BPU approved a new Universal Affordability Tariff to support low-income customers. This will provide discounts on both fixed service and usage charges, as part of the company's H2O Help to Others assistance program. Further information on the new rates and assistance programs will be made available on New Jersey American Water’s website and through customer bills.

For details on bill assistance, visit the company's website or call customer service at 800-272-1325.

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