New Jersey American Water is seeking approval for a new round of rate increases that, if granted, would raise monthly bills for millions of customers across the state, adding new pressure to household budgets already strained by rising utility and living costs.
The state’s largest water utility filed a request Thursday with the New Jersey Board of Public Utilities to increase rates in order to fund more than $1.4 billion in water and wastewater system investments through December 2026. The proposal affects roughly 2.9 million residents served by the company statewide.
Under the filing, the typical residential water customer would see an average bill increase of about $10 per month, while customers receiving sanitary wastewater service would face an additional $8 per month. For households paying for both services, the combined increase could approach $18 monthly if approved.
New Jersey American Water says the higher rates are needed to support extensive infrastructure work, including the replacement or rehabilitation of nearly 120 miles of aging pipes, continued lead service line replacements, and investments to address emerging contaminants such as PFAS in drinking water.
“As we continue to invest in our infrastructure, we’re strengthening our systems, enhancing reliability, and improving water quality from treatment to the tap,” said company President Mark McDonough. He described the upgrades as essential to long-term service reliability and public health.
But for customers, the proposal translates into immediate and unavoidable higher bills — a particularly sensitive issue as inflation and energy costs remain elevated and water service, unlike many other expenses, is not optional. Consumer advocates are expected to scrutinize whether the scale and timing of the increases fairly balance infrastructure needs against affordability.
Alongside the rate hike, the company is also seeking approval to expand access to customer assistance programs. If authorized, customers already receiving energy aid through LIHEAP or the Universal Service Fund would automatically qualify for monthly water bill discounts — a benefit New Jersey American Water says would make it the only water utility in the state offering that level of coordinated assistance.
The company is also proposing to return savings from a Gross Receipts Tax refund to customers, after offsetting certain regulatory expenses, with the remaining balance spread through customer rates. McDonough said the move would help ensure customers benefit directly from tax-related savings.
The rate request will now undergo a lengthy review by the BPU, the New Jersey Division of Rate Counsel, and the Office of Administrative Law. The process includes public input hearings and evidentiary proceedings and can take nine months or longer. Customers will have opportunities to submit written comments or testify at hearings before any final decision is made.
If approved, the new rates would take effect in the second half of the year — locking in higher monthly costs for millions of New Jersey households even as the broader debate over utility affordability continues to intensify in Trenton.
All the idiots who believed Mikie Sherril when she said that on the her first day of being Governor she would lower utility costs, and voted for her, now you can see where your vote got you.. Keep voting Democrat and this is what you get.