YOUR WATER AND WASTEWATER RATES

Water-service and wastewater service rates are based on the real costs of providing safe, reliable and essential services to our customers. Your water and wastewater rates are regulated by the New Jersey Board of Public Utilities (the “Board” or “BPU”). To determine rates, we work with the Board 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 Board establishes the water and wastewater rates.

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.

Rates charged for service may vary based on a customer’s meter size. All customers in each service area pay the same rate per gallon for water usage. Customers are billed monthly, based on a regular monthly meter reading, for residential customers as well as for commercial and other public authority customers.

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 11/01/24) 

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 customer assistance programs.

New Jersey American Water Rate Case

On September 4th, 2024, the New Jersey Board of Public Utilities (BPU) approved a settlement between New Jersey American Water and the N.J. Division of Rate Counsel and BPU Staff for new water and wastewater rates for New Jersey American Water. The company’s rate request was filed on January 19, 2024, and was primarily driven by more than $1.3 billion in infrastructure investment in treatment system and distribution upgrades since its last rate filing. 

FAQs

The new rates are effective September 15, 2024. 

Yes. 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 need for the Company to adjust rates. The BPU, Division of Rate Counsel and other parties then scrutinize the information received from our company in an open and thorough process. Based on this, the BPU decides whether it will grant all, some or none of the requested changes in rates. In the end, the BPU, with significant input from the Division of Rate Counsel and a recommendation from an administrative law judge, determines the final rates to be implemented by New Jersey American Water. 

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

  • The water bill for the average residential customer with a 5/8” meter using 5,642 gallons of water a month will increase from the current charge of $75.64 to $80.96, an increase of $5.32 per month, or 18 cents per day.  
  • The average monthly residential wastewater bill changes will depend on the service area. To find out how your rates will change, please refer to our Tariff above, or 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 services continues to be among the lowest household utility bills.  
  • New Jersey American Water is regulated by the New Jersey Board of Public Utilities (BPU). 

The rate increase is primarily because New Jersey American Water invested 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 aging water mains 
  • investments in treatment facilities to comply with regulations for PFAS 
  • improvements to surface water treatment facilities 
  • replacement of aging, critical, large-diameter transmission mains and several large-scale pipeline replacement projects to improve system reliability 
  • replacement of thousands of utility-owned lead and galvanized service lines 
  • advanced leak detection technology 
  • replacement or upgrades to improve reliability and efficiency at dozens of wells 
  • pumping stations and other critical facilities 
  • sewer system upgrades to meet environmental regulations 

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 a number of 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 main leaks. 
  • Sharing costs with other American Water subsidiaries 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.

Yes. New Jersey American Water assists residential customers who qualify through its H2O Help to Others Program™ in two ways: grants and Universal Affordability 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 Level.
  • Discount - Water: For water customers who qualify, there is a tiered discount ranging from 15-60% of the Fixed Service Charge and volumetric Water Charge depending on household income levels.  To qualify for this program, customers must be at or below 200% of the Federal Poverty Level. 
  • Discount - Wastewater: For wastewater customers who qualify, there is a tiered discount ranging from 15-60% of the Fixed Service Charge and Volumetric Wastewater Charge depending on household income levels.  To qualify for this program, customers must be at or below 200% of the Federal Poverty Level. 

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.

 

Household Income

Fixed Service Charge Discount

Water Charge Discount

Tier 1

0% - 50% of FPL

60%

60%

Tier 2

51% - 100% of FPL

45%

45%

Tier 3

101% - 150% of FPL

30%

30%

Tier 4

151% - 200% of FPL

15%

15%

Lead Service Line Replacement Charge

On July 22, 2021, the Governor Phil Murphy signed Assembly Bill No. 5343 into law requiring investor-owned public community water systems such as New Jersey American Water to submit a proposal to the Board of Public Utilities to recoup the costs of lead service line replacements from its customers.

New Jersey-American Water filed its Petition with the Board of Public Utilities in January 2022 and received approval on October 12, 2022 to recover the costs incurred in the replacement of customer-owned lead service lines through a Lead Service Line Replacement Charge (LSLRC) on customers’ bills.

Wastewater System Improvement Charge (WSIC)

  • The Wastewater System Improvement Charge (WSIC) is a surcharge to enable the accelerated level of needed investment to promote the timely rehabilitation and replacement of critical wastewater infrastructure projects, including replacing and repairing sewer mains, manhole replacements and replacing and repairing lateral lines.

Distribution System Improvement Charge (DSIC)

  • The Distribution System Improvement Charge (DSIC) is a surcharge to enable the accelerated level of needed investment to promote the timely rehabilitation and replacement of critical water distribution projects, including replacing and repairing water mains, valve and hydrant replacements and service lines requiring replacement of old substandard materials, or otherwise in need of repairs.

Resiliency and Environmental System Investment Charge (RESIC)

  • On January 16, 2024, Governor Phil Murphy signed into law L. 2023, c. 315, N.J.S.A. 48:19-29 et seq., thereby establishing the “Resiliency and Environmental System Investment Charge Program”. RESIC is a regulatory mechanism that enables timely cost recovery of investment in certain non-revenue-producing water and wastewater system components that are in direct or indirect compliance with requirements addressing existing or emerging requirements, and enhance water and wastewater system resiliency, and the health, safety or environmental protection of customers, employees, or the public.

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.

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

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 at-cost 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 at-cost surcharge based on actual wastewater treatment costs. The PSTAC charge is specific to the Company’s service areas of Ocean City, Lakewood, Adelphia, Elk Township, and Somerville. 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.

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.

Annual Reports to the Board of Public Utilities