Most New Jersey American Water customers will see their bills go down, not up, when new rates take effect Tuesday, Sept. 15.
That's because a separate $9.88 monthly credit from PFAS contamination lawsuit settlements will more than offset the utility's approved rate increase for eligible water customers over the next 12 months. The net result: an average bill reduction of nearly $6 per month for water-only customers, according to the company.
Berkeley Heights is in its service area. NJAW serves about 3 million people statewide as the largest regulated water utility in New Jersey.
What the rate increase looks like
The New Jersey Board of Public Utilities approved the rate hike, which breaks down this way for average residential customers:
- Water-only (about 5,700 gallons per month): approximately $4 per month increase
- Wastewater-only: approximately $4 per month increase
- Both water and wastewater: approximately $8 per month increase
The new rates are expected to generate an additional $68 million in annual revenue. That money will fund more than $1.4 billion in system upgrades, including replacement of nearly 120 miles of aging water main, continued lead service line replacement and treatment improvements for PFAS and other contaminants, Patch reported.
How the PFAS credit offsets the increase
In a separate action, the BPU approved NJAW's PFAS Litigation Universal Surcredit, or PLUS, mechanism. The utility will return more than $79 million in PFAS settlement proceeds and interest to eligible water customers through a $9.88 monthly credit for 12 months starting in September.
The credit will appear as "PLUS" on bills.
For customers receiving both water and wastewater service, the $9.88 credit still outpaces the combined $8 increase, producing an average net reduction of nearly $2 per month.
"This decision supports critical investments to replace aging infrastructure, advance water quality projects and improve reliability while keeping affordability at the forefront," Mark McDonough, president of New Jersey American Water, said in a Sept. 9 statement.
Actual bill impacts will vary based on usage, service type and service area, the company said.
What happens after 12 months
The PLUS credit runs through approximately September 2027. After that, customers' bills will reflect the full rate increase without the offset. Future PFAS settlement proceeds will be returned through the same PLUS mechanism as one-time credits after the BPU verifies the calculations.
Help with bills
NJAW offers payment assistance programs for income-eligible customers, along with budget billing and flexible payment plans. The company said details are available on its website.
