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 9/15/24)
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
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 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.
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.