NJ American Water Customers In Lawrenceville Will See Hike In Bill

LAWRENCEVILLE, NJ — State officials recently approved a rate increase for New Jersey American Water (NJAW).

This will result in a slight price hike for its customers in Lawrence. The township is served in part by NJAW.

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.

The average bill for most water customers with a 5/8-inch meter (using 5,642 gallons per month) will increase from $75.64 to $80.96 – about $5.32 per month.

The bill for an average wastewater customer will increase by about $5.68 per month, depending on the service area.

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

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.

NJAW filed its request to raise rates on Jan. 19, telling state officials that the need was primarily driven by more than $1.3 billion in infrastructure investments for treatment systems and distribution upgrades that it has made 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

How does the BPU determine if a provider’s rate increases are appropriate? According to the agency’s website:

“As part of the pending rate case, we submitted detailed financial data documenting the need for the company to adjust rates. The BPU, Division of Rate Counsel and other parties then scrutinize the information received from our company in an open and thorough process. Based on this, the BPU decides whether it will grant all, some or none of the requested changes in rates. In the end, the BPU, with significant input from the Division of Rate Counsel and a recommendation from an administrative law judge, determines the final rates to be implemented by New Jersey American Water.”

The company’s proposed Universal Affordability Tariff was also approved as part of the latest rate filing and will be incorporated into the company’s H2O Help to Others assistance program.

The new tariff will provide discounts on both the monthly fixed service charge and the monthly usage charge for income-eligible customers. Learn more here.

NJAW, a subsidiary of American Water, is the largest regulated water utility in the state.

It provides services to about 2.9 million people.

(With reporting from Eric Kiefer, Patch Staff)

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