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Wednesday, March 18, 2026

NJ American Water request for $1.4 billion in upgrades includes pledge to help financially challenged customers

Company says request supports continued infrastructure investments, expanded customer assistance and plan to return tax-related savings to customers

Calling it a reinforcement of the company’s commitment to implementing critical system
upgrades to improve water quality, New Jersey American Water last week filed a
request with the N.J. Board of Public Utilities to support more than $1.4 billion in
investment through the end of 2026.

More specifically, NJAW officials said the proposed request would include the
replacement or rehabilitation of nearly 120 miles of aging infrastructure, the ongoing
replacement of lead service lines and investments to address emerging contaminants
such as PFAS in drinking water.

Under the company’s proposal, if approved, the average residential water customer
would see an increase of approximately $10 per month. Customers served by sanitary
wastewater systems would see an average increase of $8 per month.

NJ American Water President Mark McDonough said the proposal comes with a
commitment to affordability and offers programs to assist income-eligible customers,
including its H2O Help to Others assistance program, budget billing options and flexible
payment plans.

Additionally, McDonough said New Jersey American Water is seeking permission to
return savings from a Gross Receipts Tax refund directly to customers. The company is
seeking approval to offset other regulatory expenses with the refund, then spread the
remaining balance back to customers.

“This proposal will help ensure that customers benefit from tax-related savings,”
McDonough said. “By passing back the GRT refund through our rates, we’re helping to
keep water service affordable and fair for our customers.”

NJ American Water serves approximately 2.9 million people 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,” McDonough said.

“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.”

McDonough said he is proud that NJAW is seeking approval to make monthly bill
discounts more accessible for customers who already receive energy assistance
through LIHEAP and USF.

If approved, this would make New Jersey American Water the only water utility in New
Jersey to offer this level of support, the company said.

“Our customers deserve reliable, affordable water service,” McDonough said. “We’re
proud to build on our assistance programs so more families can get the help they need.”

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