Water, Sewer Bill Hike In NJ Will Impact Millions Of Residents

The cost of water and sewer services are about to go up for nearly three million people in the Garden State.

New Jersey American Water (NJAW) recently announced that a water and wastewater rate increase for customers will begin on Sept. 15.

A subsidiary of American Water, NJAW is the largest regulated water utility in the state. It provides water and wastewater services to nearly three million people. Not sure if you're in their service area? See a list of towns and cities here.

Here’s how much bills will go up, the company said:

• Water – The average residential water customer using about 5,700 gallons per month will see a monthly bill increase of approximately $4 per month
• Sewer – Residential wastewater customers will see an average increase of about $4 per month

Actual bill impacts will vary based on customer usage, service type and service area, NJAW said.

The rate hike has been approved by the New Jersey Board of Public Utilities (BPU).

According to NJAW, the rate hike is expected to raise an additional $68 million in annual revenue. The money will support more than $1.4 billion in continued upgrades across the company's treatment, transmission and distribution systems.

In addition, the NJBPU also approved the company's infrastructure mechanism foundational filings, which also helps deliver water, wastewater improvements and resilience infrastructure investments.

The approved rates support the replacement or rehabilitation of nearly 120 miles of aging main, continued lead service line replacement and treatment upgrades related to PFAS and other emerging contaminants, company spokespeople said.

The New Jersey Board of Public Utilities previously approved a rate hike for NJAW in 2024 – also for infrastructure investments.

TEMPORARY CREDIT FOR CUSTOMERS

In a separate filing, the NJBPU approved the company's PFAS Litigation Universal Surcredit (PLUS) mechanism to return PFAS settlement proceeds directly to eligible water customers.

New Jersey American Water will return more than $79 million in PFAS litigation proceeds and interest through a monthly PLUS credit of $9.88 for 12 months, beginning in September 2026. The credit will appear as "PLUS" on eligible water customers' bills.

“For eligible customers, the $9.88 monthly PLUS credit will more than offset [the new rate increase], resulting in an average net bill reduction of nearly $6 per month for 12 months,” NJAW said.

New Jersey American Water offers bill payment assistance programs for income-eligible customers, along with budget billing and flexible payment plans. Learn more here.

As part of the rate request approval, New Jersey American Water 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, the company said.

• Related: These New Jersey Towns Are Privatizing Their Water, Sewer Utilities
• Related: Race To Replace Lead Pipes Is On Pace, NJ's Largest Water Company Says

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