American Water Works Co. Proposes Rate Increase for New Jersey Infrastructure Improvements

New Jersey American Water Seeks Rate Increase to Fund Infrastructure Improvements

On January 16, 2026, New Jersey American Water submits a request to the New Jersey Board of Public Utilities (BPU) for a rate adjustment aimed at funding significant upgrades to its water and wastewater systems. The company seeks to invest over $1.4 billion through December 2026 to enhance infrastructure, improve water quality, and ensure reliable service for about 2.9 million residents across the state. President Mark McDonough underscores the necessity of modernizing aging systems, which includes plans to replace or rehabilitate nearly 120 miles of infrastructure. This initiative addresses pressing concerns, such as contaminants like PFAS in drinking water, which have raised public health alarms in recent years.

If the proposed rate changes are approved, residential water customers can expect an average increase of approximately $10 per month, while those on sanitary wastewater systems may see an increase of around $8. Despite the rate hike, New Jersey American Water emphasizes its commitment to affordability and quality service. The company is also set to expand customer assistance programs, making financial relief more accessible for low-income households. This initiative marks a significant step, as New Jersey American Water becomes the only water utility in the state to offer bill discounts for customers receiving energy assistance through programs such as LIHEAP and USF.

In addition to the infrastructure investments and assistance programs, New Jersey American Water plans to return savings from a Gross Receipts Tax (GRT) refund directly to customers. This move aims to offset regulatory expenses while redistributing remaining savings to further support customer affordability. McDonough articulates the company’s mission, stating, "Our customers deserve reliable, affordable water service." This comprehensive approach reflects New Jersey American Water's dedication to not only enhancing service quality but also ensuring equitable access to water resources for all residents, especially those in need.

In parallel with these efforts, New Jersey American Water continues to promote its H2O Help to Others assistance program, which provides flexible payment options for income-eligible customers. The company's multifaceted strategy prioritizes both infrastructure resilience and customer support, creating a more sustainable and equitable service model. For further information about the assistance programs, interested customers are encouraged to visit the company's dedicated webpage.