New Jersey American Water Receives Approval for $68 Million Rate Increase to Fund Infrastructure Upgrades
The New Jersey Board of Public Utilities (BPU) has approved a settlement for New Jersey American Water, authorizing an annualized revenue increase of $68 million. This decision, effective September 15, 2026, is intended to support over $1.4 billion in continued upgrades to the company's treatment, transmission, and distribution systems. Mark McDonough, president of New Jersey American Water, stated that this approval provides a clear path to strengthen the water and wastewater systems. The rate increase will result in an average monthly bill increase of approximately $4 for residential water customers using about 5,700 gallons per month. Additionally, eligible water customers will receive a separate $9.88 monthly PFAS settlement credit for 12 months, which will help offset the new rates. This credit will return more than $79 million in PFAS litigation proceeds and interest directly to customers.