YOUR WATER RATES

Water-service rates are based on the real costs of treating and delivering water to customers, and are regulated by the New Jersey Board of Public Utility (BPU).

To determine rates, we work with BPU staff and other parties to study costs of construction, maintenance, operation, administration and financing. Once the studies are complete, the company, BPU and other parties present any differing conclusions before an administrative law judge. Based on the judge’s opinion, the BPU sets the water and wastewater rates.
 
Rates charged for service may vary based on a customer’s meter size. All customers pay the same rate for water usage. Customers are billed based on a regular monthly meter reading for residential customers as well as for commercial and other public authority customers.
  
Rates can vary based on the cost of providing service in each of the communities we serve. Before it reaches your home or business, water is treated through an intricate treating and testing process to help ensure it meets or surpasses rigorous drinking water quality standards.

 

You can learn more about the rate setting process by watching this short video.

Click here for an Overview of the Rate Case Process.

Resources

State of New Jersey Board of Public Utilities 
State of New Jersey Division of the Rate Counsel

New Jersey American Water Tariff

Below is a link to New Jersey American Water's water and wastewater tariff as approved by the New Jersey Board of Public Utilities (NJBPU).

New Jersey Rates (effective 1/1/2024)

Environmental Disposal Corp. Tariff

Environmental Disposal Corp. (EDC), a subsidiary of New Jersey American Water, is a regulated public utility corporation providing wastewater service to more than 5,300 customer accounts in Bedminster and Bernards Townships in Somerset County, New Jersey.  In addition, EDC also provides wastewater treatment service to the Boroughs of Far Hills, Peapack, Gladstone and portions of Bedminster, adjacent to EDC’s service territory, on the basis of long term contracts.

Below is a link to EDC’s wastewater tariff as approved by the New Jersey Board of Public Utilities (NJBPU).

EDC Rates (effective 7/20/2019)

New Jersey American Water Rates

On January 19th, 2024, New Jersey American Water Company filed a petition requesting new rates, driven by more than $1.3 billion in capital investments in water and wastewater infrastructure.  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.  

FAQs

When would the new rates go into effect?
Final rates will not occur until the BPU’s review process is completed and it has rendered its final decision, which generally takes about nine months or more.

Are water rates regulated?
New Jersey American Water is regulated by the New Jersey Board of Public Utilities (BPU). As part of the pending rate case, we submitted detailed financial data documenting the request for the Company to adjust rates. The BPU, Division of Rate Counsel and other parties then scrutinize the information received from the Company in an open and thorough process. Based on this, the BPU decides whether it will grant all, some or none of the request. In the end, the BPU, with significant input from the Division of Rate Counsel and an administrative law judge, determines the final rates to be implemented by the Company.

When did New Jersey American Water request the rate change?
New Jersey American Water filed for a rate change with the New Jersey Board of Public Utilities (NJBPU) on January 19, 2024.

How would this rate request affect my monthly bill?

  • If the company’s proposed rates are approved as requested, the water bill for the average customer using 5,640 gallons of water a month would increase from the current charge of $70.70 to $82.00, an increase of $11.30 per month, or 38 cents per day.
  • The average monthly residential wastewater bill would increase $6.16, or 21 cents per day depending on the service area. To find out how your rates would change, please contact our customer service center at 1-800-272-1325, Monday to Friday, 7 a.m. to 7 p.m.
  • Even with these increases, the cost of high-quality, reliable, water and wastewater service would continue to be among the lowest household utility bills.
  • New Jersey American Water is regulated by the New Jersey Board of Public Utilities (BPU). The BPU might grant all, some or none of the request. As a result, the rate charged to customers might be different than the rate requested by the company.

What are the primary reasons for New Jersey American Water’s rate request?
The rate increase is primarily because New Jersey American Water invested or will invest more than $1.3 billion in infrastructure improvements to continue to provide safe, reliable water and wastewater service. Not only are these investments critical to the public’s health and safety, but they also support the economic health of the communities we serve.

These improvements included:

  • replacement and rehabilitation of nearly 176 miles of water and wastewater pipeline
  • source of supply and capacity projects
  • improvements to surface water treatment facilities and groundwater well stations
  • investments in treatment facilities to comply with regulations for PFAS
  • updated storage facilities to enhance reliability of service
  • upgrading and rehabbing wastewater lift stations
  • pump stations to improve water pressure
  • new or replaced fire hydrants to enhance fire protection
  • new meters and services
  • technology equipment and software, computer systems

What has New Jersey American Water done to control costs?
New Jersey American Water employs best management practices and cost containment techniques, while taking advantage of economies of scale to enhance efficiencies and manage operational costs. Many of these enhancements have been in place for years, such as:

  • Computer monitoring control systems in most of our treatment facilities, which minimize both operating costs and personnel needs.
  • Centralized bulk purchasing of chemicals, supplies, materials, insurance and employee benefits.
  • Centralized financial accounting, payroll and cash management systems.
  • Customer service programs to better manage workload for field service reps. For example, laptops were installed in service vehicles, moving us from a paper-based to a real-time work distribution system. Information is communicated to and from the field using wireless technology, which has enabled our field representatives to better manage their workload.
  • Installation of automated meter reading systems, which increase efficiency and reduce labor costs.
  • Investment in leak detection equipment/programs to minimize water lost through water mains.
  • Sharing costs with other American Water companies to take advantage of American Water’s Central Laboratory in Belleville, Illinois, which conducts sophisticated drinking water testing and analysis. American Water scientists refine testing procedures and innovate new methods for detecting potentially new contaminants—even before regulations are in place.

I’m on a fixed income. Do you have any programs that assist low-income customers?

  • For nearly a decade, New Jersey American Water has been assisting residential customers who qualify through its H2O Help to Others Program™ with grants and service charge discounts.

    • Grants: Under the company’s H2O assistance program, customers who qualify may receive a grant of up to $500 to help pay their water bill. To qualify for this program, customers must be at or below 300% of the Federal Poverty Income Guidelines.
  • Universal Affordability Program: If approved by the BPU, this proposed program will replace the current service charge discount program.
    • AVAILABILITY: Available to all residential water & wastewater customers served by the Company in all service areas who meet the income eligible criteria of 200% or less than the Federal Poverty Level (“FPL”). This is a tiered discount program; therefore your discount amount is dependent upon your income level.  This program will be administered by New Jersey SHARES.
    • APPLICABILITY: The discount will be applied to the water & wastewater Fixed Service Charge and Usage Charge (volumetric) portions of the bill. The discount will not apply to BPU approved surcharges.

 

 

Household Income

Water & Wastewater

Fixed Service Charge Discount

Water & Wastewater Usage Charge Discount

Tier 1

0% - 50% of FPL

80%

80%

Tier 2

51% - 100% of FPL

60%

60%

Tier 3

101% - 150% of FPL

40%

40%

Tier 4

151% - 200% of FPL

20%

20%

 

For more information about our current H2O Help to Others program, visit the Customer Service and Billing, Bill Paying Assistance page on the company’s website, or call the company’s program partner, New Jersey Shares, toll-free at 1-877-NJAWH2O (1-877-652-9426) or visit their website at www.njshares.org.

Other utilities provide incentives for businesses to move into the area. Does New Jersey American Water?
With a prior rate filing, the BPU approved a provision to provide incentives for new businesses to come to our state or existing businesses to expand, both creating jobs and stimulating the economy. The Economic Development Rate allows us to offer lower rates for a set period of time to new commercial or industrial customers who establish their business within our service territory. This concept is not new and is in fact similar to economic development tariffs used by other New Jersey utilities. Businesses must meet specific criteria to be eligible. More information can be found in New Jersey American Water’s tariff on Rate Schedule Rider A.

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.

Following the BPU’s approval of the 2022 LSLR Plan on October 12, 2022, the Company made its first semi-annual LSLR Charge filing with the BPU on November 30, 2022, to recover costs incurred in the replacement of customer-owned lead service lines from July 1, 2020 through October 31, 2022. The first LSLR Charge was effective February 13, 2023.

The Company made its third semi-annual LSLR Charge filing with the BPU on November 17, 2023, to recover costs incurred in the replacement of customer-owned lead service lines from through October 31, 2023. The third LSLR Charge is effective January 1, 2024.

Wastewater System Improvement Charge

On June 15, 2021, New Jersey-American Water Company, Inc. filed a petition with the New Jersey Board of Public Utilities (BPU) seeking approval of its First Foundational Filing to implement a Wastewater System Improvement Charge (“WSIC”) for the renewal of wastewater distribution system assets for the period 2021 through 2024. In October 2021, the BPU authorized the Company to begin its WSIC program.

Under the WSIC program, the Company submits WSIC surcharge filings to the BPU every six months, with the resulting surcharge to customers (a fixed charge based on meter size or meter equivalent) effective semi-annually. The WSIC surcharge for the 2021 through 2024 period cannot generate more than $1.88 million, or 5% of the Company’s total wastewater revenues established in the Company’s base rate case under BPU Docket No. WR19121516.

The first semi-annual WSIC surcharge filing was made on May 13, 2022, to recover the costs of investments in wastewater distribution system improvements during the November 1, 2021 to April 30, 2022 WSIC Recovery Period, with the resulting WSIC surcharge beginning on June 27, 2022.

The second semi-annual WSIC surcharge filing was made on November 15, 2022, to recover the costs of investments in wastewater distribution system improvements during the May 1, 2022 to October 31, 2022 WSIC Recovery Period. The resulting WSIC surcharge was implemented effective December 30, 2022.

The fourth semi-annual WSIC surcharge filing was made on November 15, 2023, to recover the costs of investments in wastewater distribution system improvements during the May 1, 2023 to October 31, 2023 WSIC Recovery Period. The resulting WSIC surcharge is implemented effective December 30, 2023.

Distribution System Improvement Charge

On March 31, 2022, New Jersey-American Water Company, Inc. filed a Petition with the New Jersey Board of Public Utilities (BPU) seeking approval of a Foundational Filing to implement a Distribution System Improvement Charge (“DSIC”) for the renewal of water distribution system assets for the period 2022 through 2025. On August 17, 2022, the New Jersey Board of Public Utilities approved the Company’s 2022 DSIC Foundational Filing.
Under the DSIC program, the Company submits DSIC surcharge filings to the BPU every six months with the resulting surcharge to customers (a fixed charge based on meter size or meter equivalent) effective semi-annually. The DSIC surcharge for the 2022 through 2025 period cannot generate more than $42.6 million, or 5% of the Company’s total water revenues established in the Company’s base rate case under BPU Docket No. WR22010019.

The second semi-annual DSIC surcharge filing occurred on September 15, 2023. As a result, the DSIC surcharge, a fixed charge based on meter size, will increase effective October 30, 2023.

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

Purchased Water Adjustment Clause (PWAC) and Purchased Wastewater Treatment Clause (PSTAC)

Every November, New Jersey American Water files a petition with the New Jersey Board of Public Utilities (BPU) seeking approval to change the levels of its Purchased Water Adjustment Clause (PWAC) and Purchased Wastewater (Sewerage) Treatment Adjustment Clause (PSTAC), which is effective every April.

The Company purchases water from a number of water purveyors to supplement its own surface water and groundwater supplies. These supplies are critical to continuing to provide a reliable source of water supply for the Company’s customers. The PWAC surcharge is a pass-through surcharge, which reimburses New Jersey American Water for its cost of purchasing water from other water purveyors.

Like the PWAC, the PSTAC charge is also a pass-through surcharge based on actual wastewater treatment costs. The PSTAC charge is specific to the Company’s service areas of Ocean City, Lakewood and Adelphia. These service areas are where the Company owns and maintains the wastewater collection systems, pipelines and pump stations that are utilized to collect wastewater from homes and businesses. The wastewater collected is then transferred to a local municipal utilities authority (MUA) sewage treatment facility for treatment and disposal. Instead of the customers receiving a separate bill from the MUA, New Jersey American Water pays the MUA directly and gets reimbursed by its customers through the PSTAC surcharge.

On November 9, 2023, 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, 2024, to cover the fees New Jersey American pays to other water and wastewater purveyors for water and wastewater treatment services.

Public Comment Hearings are scheduled for February 28, 2024 at 4:30 PM and 5:30 PM. See the Public Notice for details.

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

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.

Public Comment Hearings are scheduled for March 13, 2024 at 4:30 PM and 5:30 PM. See the Public Notice for details.

Note about our service areas

  • Service Area 1: New Jersey American Water customers not listed below.
  • Service Area 2: In December 2006, the Elizabethtown Water Company merged with New Jersey American Water. The territory served by this former company has been renamed and is referenced in the tariff as Service Area 2.
  • Service Area 3: In December 2006, the Mount Holly Water Company merged with New Jersey American Water. This also includes Jensens Deep Run which was acquired in 2011. These territories have been renamed and are referenced in the tariff as Service Area 3.
  • Service Area 1A: In November 2007, New Jersey American Water acquired South Jersey Water Supply Company. The territory served by this former company has been renamed and is referenced in the tariff as Service Area 1A. 
  • Service Area 1B: In November 2007, New Jersey American Water acquired Pennsgrove Water Supply Company. The territory served by this former company has been renamed and is referenced in the tariff as Service Area 1B.
  • Service Area 1C: In April 2017, New Jersey American Water acquired Shorelands Water Company. The territory served by this former company has been renamed and is referenced in the tariff as Service Area 1C.
  • Service Area 1D: In September 2010, Applied Wastewater Management (AWWM) was merged into New Jersey American Water. The territory formerly served by AWWM has been renamed and is referenced in the tariff as Service Area 1D.
  • Service Area 1E: On May 21, 2015, New Jersey American Water acquired the water and wastewater assets of Haddonfield Borough. The territory served by this former company has been renamed and is referenced in the tariff as Service Area 1E.
  • Service Area 1F: On January 1, 2019 New Jersey American Water acquired Roxbury Water Company. The territory served by this former company is referenced in the tariff as Service Area 1F.
  • Service Area 1G: On June 2, 2023, New Jersey American Water acquired the Egg Harbor City Water & Sewer Utility. The territory served by the Egg Harbor City Utility is referenced in the tariff as Service Area 1G.

Payment Assistance

Sometimes customers face circumstances that stretch their financial resources. New Jersey American Water is here to assist. Our customer service representatives will work with you on a plan to pay the balance of the bill over time. You may also be qualified to receive assistance through our Bill Paying Assistance Program/H2O Help to Others Program

NJ Board of Public Utilities Annual Reports