New Jersey American Water Seeks Rate Increase to Enhance Infrastructure and Affordability

New Jersey American Water Seeks Rate Increase

In a notable move to bolster the quality of water service in New Jersey, the state's largest regulated water utility, New Jersey American Water, has filed a request with the New Jersey Board of Public Utilities (BPU). This request is motivated by more than $1.4 billion in ongoing investments aimed at ensuring safe, clean, reliable, and affordable water utilities for approximately 2.9 million residents statewide.

A Commitment to Infrastructure

President Mark McDonough emphasized that these upgrades are crucial for providing high-quality water from the treatment facilities directly to consumers. The company's plan includes vital infrastructure improvements such as the replacement or rehabilitation of around 120 miles of aging pipes, the ongoing removal of lead service lines, and targeted investments to confront emerging contaminants, particularly PFAS, that may affect drinking water.

The proposed rate increase, if approved, will see the average residential water customer face an additional $10 per month on their bill. Those using sanitary wastewater services will experience an average increase of $8 monthly. McDonough stated, "As we continue to invest in our infrastructure, we're enhancing reliability and improving water quality for the communities that rely on us."

Enhanced Customer Assistance Programs

Highlighting its commitment to affordability, New Jersey American Water is also seeking to make its customer assistance programs more accessible. The utility is proposing the introduction of bill discounts for households already receiving energy assistance through programs like LIHEAP and USF. This would position New Jersey American Water as the sole water utility in the state to offer such a level of support.

McDonough expressed, "Our customers deserve reliable, affordable water service. We aim to expand our assistance programs to help more families access the financial aid they need to maintain their water services."

Among the existing initiatives is the H2O Help to Others program, which provides aid to eligible customers along with flexible payment plans designed to ease financial burdens. More information about these programs can be found on their official website.

Tax Refunds for Customers

Additionally, New Jersey American Water is seeking to return savings that have been accrued from a Gross Receipts Tax (GRT) refund back to its customers. This involves offsetting other regulatory expenses with the refund, with the intention of distributing the remaining amount directly to consumers.

"By managing to return the GRT refund through our rates, we're ensuring that our customers can benefit from tax-related savings," noted McDonough, reinforcing the company's goal to maintain affordable service costs.

The Path Forward

The current request for rate adjustments will undergo a thorough review process conducted by the BPU, alongside scrutiny from the New Jersey Division of Rate Counsel and the Office of Administrative Law. This extensive evaluation includes public hearings, examinations, and the opportunity for customer feedback through written comments and public forums. Final approval for any rate changes is contingent upon BPU consent, with the anticipated implementation planned for the latter half of the upcoming year.

In conclusion, New Jersey American Water's proactive steps towards infrastructure enhancement and customer assistance are pivotal in ensuring the delivery of dependable water services for millions of residents. The ongoing investments not only aim to modernize the water distribution systems but also to uplift the community by maintaining service affordability. Residents can find more details regarding the rate filing and infrastructure investments on the New Jersey American Water website.