New Jersey American Water Files Rate Request Driven by Over $1.3 Billion in Investment
January 19 2024 - 4:15PM
Business Wire
Request reinforces company’s commitment to
providing safe, clean reliable and affordable service
New Jersey American Water filed a petition today with the New
Jersey Board of Public Utilities (BPU) requesting new rates, driven
by more than $1.3 billion in capital investments through December
2024, to continue providing safe and reliable service. The company
continues to make needed investments to replace aging
infrastructure, meet water quality and environmental regulations,
provide resiliency of operations, increase fire protection, and
meet customers’ other water and wastewater service needs.
“Our approach to long-term, efficient and consistent investments
in our water and wastewater systems helps us continue to deliver
high-quality, reliable service and fire protection for the more
than 2.8 million people in 18 counties we serve. As the state’s
largest water and wastewater utility, we believe it is essential
that the service we provide is safe, complies with state and
federal water quality regulations; reliable, so that it is
resilient in the face of floods, droughts, and other
weather-related impacts; and affordable,” said Mark McDonough,
president of New Jersey American Water. “One of the steps we are
taking to address affordability is proposing a universal
affordability tariff to expand our customer assistance
program.”
If the company’s proposed rates are approved as requested, the
water bill for the average residential customer using 5,640 gallons
per month would increase about $11.30 per month. The average
monthly residential wastewater bill would increase about $6.16 per
month. The new affordability tariff, if approved by the BPU, would
provide a 20 to 80 percent monthly bill reduction for
income-eligible customers.
New Jersey American Water’s investment in replacing or
rehabilitating nearly 176 miles of aging water mains is included in
this rate request. Additional critical infrastructure projects
included in the rate request are improvements to the company’s
seven surface water treatment plants serving nearly all customers
statewide; investments in its treatment facilities to comply with
regulations for PFAS; replacement of aging, critical,
large-diameter transmission mains and several large-scale pipeline
replacement projects throughout the state to improve system
reliability; replacement of thousands of utility-owned lead and
galvanized service lines statewide; additional advanced leak
detection technology; replacement or upgrades to improve
reliability and efficiency at dozens of wells, pumping stations and
other critical facilities statewide; and sewer system upgrades to
meet environmental regulations throughout the company’s service
areas.
The company’s rate request undergoes extensive public scrutiny
by the BPU, the New Jersey Division of Rate Counsel, and the Office
of Administrative Law. This process includes numerous
interrogatories, public hearings and evidentiary hearings and can
take nine months or more. To increase transparency of the process,
the company’s petition and its associated exhibits are being posted
to the Company’s website, newjerseyamwater.com, under Customer
Service & Billing, Your Water and Wastewater Rates.
New Jersey American Water is seeking a total annual revenue
increase of approximately $161.7 million. The increased rates
proposed in the petition are a request only. The BPU will make the
final decision regarding the actual increase. Once a final decision
has been made, customers will receive information on the new rates
in the mail and on the company’s website.
About American Water
American Water (NYSE: AWK) is the largest regulated water and
wastewater utility company in the United States. With a history
dating back to 1886, We Keep Life Flowing® by providing safe,
clean, reliable and affordable drinking water and wastewater
services to more than 14 million people with regulated operations
in 14 states and on 18 military installations. American Water’s
6,500 talented professionals leverage their significant expertise
and the company’s national size and scale to achieve excellent
outcomes for the benefit of customers, employees, investors and
other stakeholders. For more information, visit amwater.com and
join American Water on LinkedIn, Facebook, X (formerly Twitter) and
Instagram.
About New Jersey American Water
New Jersey American Water, a subsidiary of American Water, is
the largest investor-owned water utility in the state, providing
high-quality and reliable water and wastewater services to
approximately 2.8 million people. For more information, visit
www.newjerseyamwater.com and follow New Jersey American Water on
Facebook, X (formerly Twitter), Instagram, and LinkedIn.
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version on businesswire.com: https://www.businesswire.com/news/home/20240119054707/en/
Media Contact: Denise Venuti Free Senior Director of
Communications & External Affairs New Jersey American Water
Denise.Free@amwater.com
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