New Jersey American seeks rate increase for water, wastewater services across the state
CAMDEN - New Jersey American Water wants a rate increase that would boost an average home customer’s monthly bill by about $11.30 for water and $6.60 for wastewater.
The utility, which serves more than 2.8 million people in 18 New Jersey counties, is seeking a revenue increase of about $161.7 million.
It said the request is driven by more than $1.3 billion in planned capital investments from 2023 through year-end 2024.
Among other projects, New Jersey American plans to replace or upgrade nearly 176 miles of water mains.
A company statement noted improvements to seven surface water treatment plants will target the presence of PFAS, or forever chemicals.
Other work will affect the company’s wells, pumping stations and distribution system.
The request needs approvals from the state Board of Public Utilities and other state agencies.
This process, which is to include public hearings, can take nine months or more, the firm said.
It said an average residential customer uses 5,640 gallons of water per month. That customers pays $70.69 per month for water and $65.72 for wastewater service.
New Jersey American's last rate increase, which boosted annual revenue by about $45.5 million, took effect in September 2022. It boosted the average water customer's monthly bill by about $2.93 for water and $3.74 for wastewater.
The utility is owned by Camden-based American Water, which operates in 14 states.
American Water in November announced net income of $773 million, or $4.03 per share, for the first three quarters of its fiscal year, up from $673 million, or $3.70 per share, one year earlier.
Also in November, New Jersey American announced an agreement to buy Salem City’s water and sewer system for $18 million.
It plans to spend more than $50 million over the next decade to improve the 2,300-customer system. The sale is expected to close by mid-year.
The company said sewer rates in Salem will be unchanged for two years, and then will increase by more more than 3 percent annually over the next three years.
Jim Walsh is a senior reporter for the Courier-Post, Burlington County Times and The Daily Journal. Email: Jwalsh@cpsj.com.
This article originally appeared on Cherry Hill Courier-Post: New Jersey American rate-hike request would boost average water bill
