New Jersey American Water has filed a rate request with the New Jersey Board of Public Utilities (BPU) for new rates to support over $1.4 billion in ongoing water and wastewater service system investments through December 2026. This request aims to reinforce the company’s commitment to implementing critical system upgrades and improving water quality and reliability for approximately 2.9 million people served statewide.
The proposed request, if approved, would result in the typical average residential water customer seeing an increase of approximately $10 per month, while customers served by sanitary wastewater systems would see an average increase of $8 per month. Additionally, the company is seeking approval to make monthly bill discounts more accessible for customers who already receive energy assistance through LIHEAP and USF, potentially becoming the only water utility in New Jersey to offer this level of support.
New Jersey American Water is also seeking permission to return savings from a gross receipts tax (GRT) refund directly to customers, aiming to help ensure that customers benefit from tax-related savings. The company plans to offset other regulatory expenses with the refund and spread the remaining balance back to customers.
The rate changes proposed by the company will undergo extensive scrutiny by the BPU, the New Jersey Division of Rate Counsel, and the Office of Administrative Law, including examinations, public hearings, and evidentiary hearings, which can take nine months or more. If approved, the new rates would take effect in the second half of the year.
As a result of these announcements, the company's shares have moved -0.01% on the market, and are now trading at a price of $133.34. For more information, read the company's full 8-K submission here.
