New Jersey American Water Regulatory Proceedings
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 fifth LSLR Plan Surcharge filing occurred November 19, 2024. As a result, the new LSLRC will be effective January 1, 2025.
On March 10, 2025 the Company submitted this letter update to the petition and schedules associated with its First LSLR Plan Surcharge Filing. The Company determined several adjustments were necessary to the tables included in support of its petition. The overall adjustments result in an increase to the estimated average monthly bill impact for customers. The typical residential water customer consuming an average of 5,642 gallons per month may see a surcharge of up to $4.89 per month. Actual charge may vary dependent on usage. The estimated average monthly bill impact for each Subsequent Surcharge Period may result in a surcharge of up to $4.89 for GMS customers (e.g. Residential), and $64.02 for non-GMS customers (e.g. bulk agreements), depending on a variety of factors, including applicable rate schedule, customer count, usage, and the actual project costs incurred.
Public Comment Hearings are scheduled for May 8, 2025 at 4:30 PM and 5:30 PM. See Public Notice for details.
Purchased Water Adjustment Clause (PWAC) and Purchased Wastewater Treatment Clause (PSTAC)
On November 15, 2024, New Jersey American Water filed its annual petition with the BPU for approval to change the Company’s PWAC and PSTAC charges effective April 1, 2025 to cover the fees New Jersey American Water pays to other water and wastewater purveyors for water and wastewater treatment services.
On March 19, 2025 the Board approved the Company's request for new rates effective on April 1, 2025.
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
The first semi-annual WSIC surcharge filing was made on April 14, 2025. As a result, the WSIC surcharge, a fixed charge based on meter size or meter equivalent, will be implemented effective May 30, 2025.
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
The first semi-annual DSIC surcharge filing was made on April 14, 2025. As a result, the DSIC surcharge, a fixed charge based on meter size or meter equivalent, will be implemented effective May 30, 2025.
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
The first semi-annual RESIC surcharge filing was made on April 14, 2025. As a result, the RESIC surcharge, a fixed charge based on meter size or meter equivalent, will be implemented effective May 30, 2025.
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.