New Jersey American Water Rates Start September 15

New Jersey American Water will introduce new water and wastewater rates on September 15, 2026, following approval by the New Jersey Board of Public Utilities. The decision provides a $68 million annual revenue increase to support more than $1.4 billion in system upgrades, including nearly 120 miles of main replacement or rehabilitation. Eligible water customers will also receive a $9.88 monthly PFAS settlement credit for 12 months, funded by more than $79 million in settlement proceeds and interest. For the average residential water customer, the credit exceeds the estimated $4 monthly rate increase.

Infrastructure Investment Plan

The approved rates will support upgrades across the company’s treatment, transmission and distribution systems. Planned work includes continued lead service line replacement and treatment upgrades related to PFAS and other emerging contaminants. These projects will strengthen service for homes, businesses, schools, hospitals and communities across New Jersey. The BPU also approved the company’s infrastructure mechanism foundational filings, which also help deliver water and wastewater improvements and resilience infrastructure investments.

Mark McDonough, president of New Jersey American Water, said:

“This decision supports critical investments to replace aging infrastructure, advance water quality projects and improve reliability while keeping affordability at the forefront. It provides a clear path to strengthen the water and wastewater systems our communities rely on.”

Customer Bill Changes

Average residential water customers using about 5,700 gallons a month will see bills rise by approximately $4 a month under the new rates. Eligible customers receiving the $9.88 monthly PLUS credit will see an average net bill reduction of nearly $6 a month for 12 months.

Residential wastewater customers will see an average monthly increase of about $4. Customers receiving both water and wastewater service will see an average increase of nearly $8 a month, with the PLUS credit resulting in an average net reduction of nearly $2 a month for 12 months. Actual bills will vary by water use, service type and service area.

PFAS Settlement Credits

The BPU also approved the PFAS Litigation Universal Surcredit, or PLUS, mechanism, which will return more than $79 million in PFAS litigation proceeds and interest to eligible water customers. The $9.88 monthly credit will begin in September 2026 and appear as “PLUS” on customer bills.

Future PFAS settlement proceeds will be returned as one-time bill credits once calculations have been verified by the BPU.

Mark McDonough, president of New Jersey American Water, said:

“The PLUS mechanism provides a transparent way to return PFAS settlement proceeds and interest directly to eligible water customers. Customers will see the credit identified separately on their bills, making it clear how those funds are being returned.”

Assistance For Eligible Customers

New Jersey American Water offers payment assistance programs for income-eligible customers, alongside budget billing and flexible payment plans. Information on available support is available through the company’s customer assistance programs.

As part of the rate approval, the company will continue working with the New Jersey Department of Community Affairs to evaluate the enrollment process for its Universal Affordability Tariff program, including potential automatic enrollment for customers already receiving certain energy assistance benefits.

Mark McDonough, president of New Jersey American Water, said:

“Water service is essential, and customers experiencing financial hardship should know assistance is available. We encourage customers who need help to review the available programs and contact us before falling behind on their bills.”

Rate Information And Next Steps

Customers will receive information on the approved rates through upcoming bill communications. Details on rates, PLUS credits, projected bill impacts and customer resources will be available on New Jersey American Water’s rates page.