NJ American Water Wants To Hike Rates For Garden State Customers

The largest water company in New Jersey is asking state officials for permission to raise its customers' water and sewer bills.

Last week, New Jersey American Water (NJAW) filed a 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.

If approved, the company’s new rates would take effect the second half of 2026.

The rate hikes will help the company to make “critical system upgrades,” including the replacement or rehabilitation of nearly 120 miles of aging infrastructure, the ongoing replacement of lead service lines, and investments to address emerging contaminants such as PFAS in drinking water, spokespeople said.

If approved by the BPU, here’s how much bills would increase:

• The typical average residential water customer (using 5,793 gallons/month) would see a monthly increase of $10.02, from $83.87 to $93.89

• The average residential wastewater sanitary sewer customer (using 5,793 gallons/month) would see an average monthly increase of $8.20, from $77.02 to $85.22

New Jersey American Water is the largest water service provider in the state, serving nearly 2.9 million people in more than 190 communities. The company also provides water service to 31 additional communities through bulk purchase water agreements.

See a list of the towns, cities and territories that NJAW currently serves here.

“As we continue to invest in our infrastructure, we’re strengthening our systems, enhancing reliability, and improving water quality from treatment to the tap for the communities that count on us,” New Jersey American Water president Mark McDonough said.

New Jersey American Water said it remains “committed to affordability,” and offers programs to assist income-eligible customers, including its H2O Help to Others assistance program, budget billing options and flexible payment plans. More details can be found online here.

NJAW is also seeking permission to return savings from a Gross Receipts Tax (GRT) refund directly to customers. The company is seeking approval to offset other regulatory expenses with the refund, then spread the remaining balance back to customers, spokespeople said.

WHERE WILL THE MONEY BE SPENT?

According to NJAW, here are some of the places that are slated for major water infrastructure upgrades:

• Netherwood Wellfield (Plainfield area) - Approximately $20.5 million to install advanced PFAS treatment technology

• Oak Street Station (Lakewood-Howell) - A permanent GAC treatment system is being constructed with an investment of $9 million to remove PFAS and improve water supply reliability

• Jamesburg Tank – $3.1 million to build a new re-chloramination system, helping to maintain safe disinfectant levels

• Water Storage Tanks (statewide): An annual investment of $9.3 million supports engineered coating renewals, structural steel repairs, and safety upgrades to extend tank life and enhance fire protection

• Lead Service Line Replacements in Middlesex and Union Counties – $17 million to replace utility-owned lead service lines in Hillside, Plainfield, North Plainfield, Roselle, Roselle Park, Linden, Dunellen and Middlesex

• Distribution System Improvements (South Orange Village) - Upgrades to aging water mains, hydrants, and service lines as part of a broader capital program

• Pinebrook Road Tank Project (Eatontown) - A new ground storage tank, booster pumping station, and generator are being built with an investment of $11.7 million to increase capacity and mitigate flooding risks

• Shark River Intake Improvements (Neptune) - $1.9 million to upgrade intake structures, replace aging equipment, and improve water source reliability

• Raritan-Millstone Water Treatment Plant Storage Buildings - Two new storage buildings are being constructed for $4.7 million to safely house treatment materials and equipment, supporting critical water treatment processes

• Raritan-Millstone WTP HVAC Upgrades - Upgrading HVAC systems for $1.6 million to improve energy efficiency and reliability in office and laboratory spaces

Meanwhile, wastewater systems that will see improvements include:

• Bound Brook Mountain Ave Pump Station Replacement - $1.8 million to modernize the Bound Brook Pumping Station, improving reliability and preventing overflows

• Long Hill Township Collection & Lining Upgrades - Targeted lining and collection-system upgrades are underway, with a project value of $9.98 million, to reduce infiltration and inflow and modernize plant operations

• Statewide Sewer Asset Renewal Projects – Asset renewal projects are being implemented across New Jersey, with values varying by location, to address aging infrastructure and reduce the risk of backups

• Regent Lift Station Improvements – Reliability and capacity upgrades are being made to handle wet-weather events and reduce surcharge risk, with project values detailed in the company’s capital plan

• PFAS in Wastewater and Biosolids – Investments in advanced treatment processes and expanded monitoring programs to meet emerging regulatory requirements and protect environmental health

• Sludge/Biosolids Management – Planning for future rules may require advanced treatment or disposal restrictions for biosolids, with investments supporting compliance and environmental protection

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