Approved Rate Increase Affects NJ American Water Customers In Chatham

CHATHAM, NJ — State officials have approved a rate increase for New Jersey American Water (NJAW), leading to a slight price hike for customers in Chatham and numerous other municipalities across New Jersey.

On Wednesday, the New Jersey Board of Public Utilities (BPU) approved a settlement regarding new water and wastewater rates for NJAW. The new rates will become effective on Sept. 15.

With the approved rate increase, the average monthly bill for most water customers with a 5/8-inch meter (using 5,642 gallons per month) will rise from $75.64 to $80.96, an increase of approximately $5.32.

For average wastewater customers, the monthly bill will go up by about $5.68, though this may vary depending on the service area.

The rate hikes will raise about $79.5 million for the company, officials said.

The company's rate request, submitted on Jan. 19, was largely motivated by over $1.3 billion invested in upgrading treatment systems and distribution infrastructure since its last rate filing.

The work included:

• replacement and rehabilitation of nearly 176 miles of aging water mains
• investments in treatment facilities to comply with regulations for PFAS
• improvements to surface water treatment facilities
• replacement of aging, critical, large-diameter transmission mains and several large-scale pipeline replacement projects to improve system reliability
• replacement of thousands of utility-owned lead and galvanized service lines
• advanced leak detection technology
• replacement or upgrades to improve reliability and efficiency at dozens of wells
• pumping stations and other critical facilities
• sewer system upgrades to meet environmental regulations

“We are committed to making appropriate investments to continue to provide safe, reliable services while maximizing efficiencies to balance the impact to customers,” said Mark McDonough, president, New Jersey American Water. "Our effective capital planning helps keep water and wastewater services compliant with state and federal regulations, reliable amidst the challenges of climate and other impacts, and affordable for the 2.9 million people we serve."

Customers will receive information about the new rates in their next bill. Information will also be available on the company’s website or by calling 800-272-1325.

Not sure if you're in the company's service area? See a list of towns and cities here.