New Jersey American Water Regulatory Proceedings

On December 20, 2023, in Docket No. WM23030145, the Board approved the completion of the merger of New Jersey-American Water and Environmental Disposal Corp. (“EDC”), with NJAWC as the surviving entity. Effective December 31, 2023, the companies were merged; therefore, this Petition, as well as its Exhibits and Schedules supporting the requested revenue requirement, include the former EDC wastewater service area.

The Company is seeking a total annual revenue increase of approximately $161.7 million. The impact of this Petition on the bill of an average customer using 5,640 gallons of water per month would be an increase of $11.30. The average monthly residential wastewater bill would increase about $6.16 per month. The actual increases applicable to specific customers will vary according to the applicable rate schedule and the level of each customer’s usage.

The company’s rate request undergoes extensive public scrutiny by the BPU, the New Jersey Division of Rate Counsel, and the Office of Administrative Law. This process includes numerous interrogatories, public hearings and evidentiary hearings and can take nine months or more. The BPU will make the final decision to allow some, all or none of the increase. Once a final decision has been made, customers will receive information about the new rates in the mail and on the company’s website. To increase transparency of the process, the company’s petition and its associated exhibits are available here: New Jersey-American Water Petition.

Lead Service Line Replacement Charge

On January 14, 2022, New Jersey American Water filed a Petition with the Board of Public Utilities (BPU) seeking approval of its plan for the replacement of, and cost recovery for, customer-side lead service lines in its service territory (LSLR Plan) over the next 10 years. Under the LSLR Plan, the Company submits semi-annual LSLR Charge filings to the BPU every six months with the resulting surcharge (based on a fixed charge per customer, or volume of water used) effective semi-annually. The average monthly bill impact to replace customer-owned lead service lines will vary depending on the actual amount of expense incurred during each recovery period.
The fourth LSLR Plan Surcharge filing occurred May 17, 2024. As a result, the new LSLRC will be effective July 1, 2024.

Wastewater System Improvement Charge (WSIC)

On Sept 4, 2024 the Board of Public Utilities approved the Foundational Filing.  Effective September 15, 2024, the WSIC surcharge was reset to $0.  Under the WSIC program, the Company submits semi-annual WSIC surcharge filings to the BPU every six months with the resulting surcharge effective every eight months. The surcharge may not exceed $3,105,041 or 5% of the Company’s total water revenues established in the Company’s base rate case under BPU Docket No. WR24010056

Distribution System Improvement Charge (DSIC)

On Sept 4, 2024 the Board of Public Utilities approved the Foundational Filing.  Effective September 15, 2024, the DSIC surcharge was reset to $0.  Under the DSIC program, the Company submits semi-annual DSIC surcharge filings to the BPU every six months with the resulting surcharge effective every eight months. The surcharge may not exceed $50,394,641 or 5% of the Company’s total water revenues established in the Company’s base rate case under BPU Docket No. WR24010056

For more information, read our Distribution System Improvement Charge Fact Sheet.

Resiliency and Environmental System Investment Charge (RESIC)

On Sept 4, 2024 the Board of Public Utilities approved the Foundational Filing.  Under the RESIC program, the Company submits semi-annual RESIC surcharge filings to the BPU every six months with the resulting surcharge effective every eight months. The surcharge may not exceed $26,863,210 or 2.5% of the Company’s total water revenues established in the Company’s base rate case under BPU Docket No. WR24010056

New Jersey-American Water's request for Recovery of Covid-19 Expenses Reg Asset and Establishment of Uncollectible Adjustment Clause (Special Program Charge)

On July 2, 2020, the Board authorized each of the state’s regulated utilities to create a COVID-19 related regulatory asset by deferring their prudently incurred incremental costs related to COVID-19. Since March 2020, the Company has experienced increased costs attributable to COVID-19, including increased uncollectible expense, incremental operations and maintenance expenses, and costs related to financing activity to ensure adequate liquidity during the public health emergency.

On April 28, 2023, New Jersey-American Water Company, Inc. filed a petition with the New Jersey Board of Public Utilities seeking authorization to recover its COVID-19-related net deferred costs over a three-year period through an annual Special Program Charge. By the Petition, NJAWC also requested approval to establish an Uncollectible Adjustment Clause in response to effects of uncollectible expenses created by the COVID-19 moratorium.

On June 21, 2023, in accordance with the June 7, 2023 Board Order, NJAWC filed an amended petition, proposing to collect COVID-19-related net deferred costs over a three-year period, through an annual Special Program Charge of $5,406,028, from all water and wastewater customers through a volumetric charge for General Metered Service (“GMS”) of $0.37 per month and a fixed, per-customer, charge for non-GMS customers of $1.23 per month, to be reconciled annually.

On May 22, 2024 the New Jersey Board of Public Utilities approved the Special Program Charge, effective June 1, 2024.