New Jersey American Water Files Rate Request Driven by More Than $1.4 Billion in Ongoing Investment to Provide Safe, Clean, Reliable and Affordable Service

Core Viewpoint - New Jersey American Water has filed a request for new rates to support over $1.4 billion in ongoing water and wastewater service system investments, emphasizing its commitment to improving water quality and reliability for approximately 2.9 million customers in New Jersey [1][2]. Infrastructure Investments - The proposed request aims to modernize and strengthen water and wastewater systems, including the replacement or rehabilitation of nearly 120 miles of aging infrastructure and the ongoing replacement of lead service lines [2]. - Investments will also address emerging contaminants such as PFAS in drinking water [2]. Customer Impact - If approved, the average residential water customer would see an increase of approximately $10 per month, while customers served by sanitary wastewater systems would experience an average increase of $8 per month [3]. Customer Assistance Programs - New Jersey American Water seeks to make monthly bill discounts more accessible for customers receiving energy assistance through LIHEAP and USF, potentially becoming the only water utility in New Jersey to offer this level of support [4]. - The company offers various assistance programs for income-eligible customers, including the H2O Help to Others program, budget billing options, and flexible payment plans [4]. Tax Refund Proposal - The company is requesting permission to return savings from a Gross Receipts Tax (GRT) refund directly to customers, aiming to offset other regulatory expenses and spread the remaining balance back to customers [5][6]. Regulatory Process - The request for new rates will undergo extensive scrutiny by the New Jersey Board of Public Utilities (BPU), including public hearings and evidentiary hearings, which can take nine months or more [7]. - All rate changes require BPU approval, and if approved, the new rates would take effect in the second half of the year [7]. Company Overview - New Jersey American Water is a subsidiary of American Water, the largest regulated water utility in the state, serving approximately 2.9 million people with over 950 dedicated employees [10].