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 4/30/2024)

Environmental Disposal Corp. Service Area Tariff

Below is a link to the Environmental Disposal Corp. (EDC) wastewater service area tariff as approved by the New Jersey Board of Public Utilities.

EDC Rates (effective 7/20/2019)

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 January 19th, 2024, New Jersey American Water Company filed a petition requesting new rates, driven by more than $1.3 billion in capital investments in water and wastewater infrastructure. Read more about the rate case here.
Lead Service Line Replacement Charge
Wastewater System Improvement Charge
Distribution System Improvement Charge
Resiliency and Environmental System Investment Charge

FAQs

When would the new rates go into effect?
Final rates will not occur until the BPU’s review process is completed and it has rendered its final decision, which generally takes about nine months or more.

Are water rates regulated?
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 request for the Company to adjust rates. The BPU, Division of Rate Counsel and other parties then scrutinize the information received from the Company in an open and thorough process. Based on this, the BPU decides whether it will grant all, some or none of the request. In the end, the BPU, with significant input from the Division of Rate Counsel and an administrative law judge, determines the final rates to be implemented by the Company.

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

How would this rate request affect my monthly bill?

If the company’s proposed rates are approved as requested, the water bill for the average customer using 5,640 gallons of water a month would increase from the current charge of $70.70 to $82.00, an increase of $11.30 per month, or 38 cents per day.
The average monthly residential wastewater bill would increase $6.16, or 21 cents per day depending on the service area. To find out how your rates would change, please 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 service would continue to be among the lowest household utility bills.
New Jersey American Water is regulated by the New Jersey Board of Public Utilities (BPU). The BPU might grant all, some or none of the request. As a result, the rate charged to customers might be different than the rate requested by the company.

What are the primary reasons for New Jersey American Water’s rate request?
The rate increase is primarily because New Jersey American Water invested or will invest 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 water and wastewater pipeline
source of supply and capacity projects
improvements to surface water treatment facilities and groundwater well stations
investments in treatment facilities to comply with regulations for PFAS
updated storage facilities to enhance reliability of service
upgrading and rehabbing wastewater lift stations
pump stations to improve water pressure
new or replaced fire hydrants to enhance fire protection
new meters and services
technology equipment and software, computer systems

What has New Jersey American Water done to control costs?
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 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 mains.
Sharing costs with other American Water companies 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.

I’m on a fixed income. Do you have any programs that assist low-income customers?

For nearly a decade, New Jersey American Water has been assisting residential customers who qualify through its H2O Help to Others Program™ with grants and service charge 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 Income Guidelines.

Universal Affordability Program: If approved by the BPU, this proposed program will replace the current service charge discount program.
- AVAILABILITY: Available to all residential water & wastewater customers served by the Company in all service areas who meet the income eligible criteria of 200% or less than the Federal Poverty Level (“FPL”). This is a tiered discount program; therefore your discount amount is dependent upon your income level. This program will be administered by New Jersey SHARES.
- APPLICABILITY: The discount will be applied to the water & wastewater Fixed Service Charge and Usage Charge (volumetric) portions of the bill. The discount will not apply to BPU approved surcharges.

	Household Income	Water & Wastewater Fixed Service Charge Discount	Water & Wastewater Usage Charge Discount
Tier 1	0% - 50% of FPL	80%	80%
Tier 2	51% - 100% of FPL	60%	60%
Tier 3	101% - 150% of FPL	40%	40%
Tier 4	151% - 200% of FPL	20%	20%

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.

Other utilities provide incentives for businesses to move into the area. Does New Jersey American Water?
With a prior rate filing, the BPU approved a provision to provide incentives for new businesses to come to our state or existing businesses to expand, both creating jobs and stimulating the economy. The Economic Development Rate allows us to offer lower rates for a set period of time to new commercial or industrial customers who establish their business within our service territory. This concept is not new and is in fact similar to economic development tariffs used by other New Jersey utilities. Businesses must meet specific criteria to be eligible. More information can be found in New Jersey American Water’s tariff on Rate Schedule Rider A.

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.