New Jersey American Water customers will see adjusted utility rates and a temporary monthly bill credit starting Sept. 15, following approval from the New Jersey Board of Public Utilities (BPU).
The BPU’s decision greenlights a $68 million annual revenue increase to support more than $1.4 billion in ongoing infrastructure updates, including the replacement of nearly 120 miles of aging water mains, lead service line removals, and advanced treatment for emerging contaminants like PFAS.
To help offset these adjustments, the BPU also approved the PFAS Litigation Universal Surcredit (PLUS). Under this program, eligible water customers will receive a $9.88 monthly credit for 12 months, funded by a return of more than $79 million in PFAS litigation proceeds.
- Water Customer Impacts: The average residential water user consuming 5,700 gallons a month will face a $4 increase, which is more than offset by the $9.88 PLUS credit—resulting in an average net bill reduction of nearly $6 monthly for the first year.
- Wastewater Customer Impacts: Residential wastewater customers will see an average increase of about $4 per month.
- Combined Utility Impacts: Customers receiving both water and wastewater services will see an average $8 increase, bringing a net bill reduction of nearly $2 per month for 12 months when factoring in the credit.
“This decision supports critical investments to replace aging infrastructure, advance water quality projects and improve reliability while keeping affordability at the forefront,” Mark McDonough, president of New Jersey American Water, said.
The utility continues to offer financial assistance, flexible payment plans, and budget billing options for income-eligible customers. Detailed breakdown information regarding individual service areas and billing impacts will be included in upcoming customer bills and online at the company’s rate portal.
