Rate request filed to fund $1.4 billion in New Jersey water, wastewater system upgrades
(UI) - New Jersey American Water has filed a rate request with the New Jersey Board of Public Utilities to support more than $1.4 billion in ongoing water and wastewater system investments across the state through December 2026.
The filing is tied to capital spending aimed at replacing and rehabilitating aging infrastructure, expanding treatment capacity, and meeting tightening regulatory requirements. Planned work includes the replacement or rehabilitation of nearly 120 miles of water and wastewater pipe, continued lead service line removals, and investments to address emerging contaminants such as PFAS in drinking water.
According to the utility, the rate request is intended to keep pace with long-term system modernization needs as infrastructure assets age and regulatory compliance costs increase. The company serves approximately 2.9 million people statewide.
If approved, the proposal would result in an average increase of about $10 per month for residential water customers and roughly $8 per month for customers receiving sanitary wastewater service. The company is also seeking regulatory approval to expand eligibility for customer assistance programs by aligning water bill discounts with existing state and federal energy assistance programs.
In addition, the filing asks regulators to allow the pass-through of savings tied to a Gross Receipts Tax refund, with remaining balances returned to customers after offsetting other regulatory costs.
The rate request will undergo review by the Board of Public Utilities, the New Jersey Division of Rate Counsel, and the Office of Administrative Law. The regulatory process includes public input hearings and evidentiary review and is expected to take nine months or longer. Any rate changes would require formal BPU approval before taking effect later this year.
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