New Jersey American Water rates to increase by $4 per month on average
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New Jersey American Water ratepayers will soon see an almost 5% increase on their water bill.
The average household will pay an additional $4 a month, making their monthly water bill rise to almost $90.
The investor-owned utility said the increase, which takes effect Tuesday, will help recoup more than $1 billion in completed water and wastewater projects.
Ratepayers won’t see the new rates for another year, as New Jersey American Water will use settlement funds from a federal PFAS contamination lawsuit to credit customer bills.
“We feel we’ll be able to deliver on that promise of safe, clean, reliable and affordable water going forward in the future, and it really sets us up to be able to make those investments that we still need to make,” said Mark McDonough, president of New Jersey American Water.
The New Jersey Board of Public Utilities approved the rate increase Wednesday.
Customers served by sanitary wastewater systems will also see an average increase of $4 per month. Households that receive water and wastewater services will see a combined impact of about $8 per month, depending on their service area, meter size and usage.
The new rates are lower than the roughly 12% increase New Jersey American Water asked for when it filed the rate case with the BPU in January.
The company will credit ratepayers’ bills using settlement funds from a federal lawsuit against chemical manufacturers, including DuPont, over PFAS contamination in drinking water sources.
The so-called “forever chemicals,” found in hundreds of everyday products, don’t naturally break down in the environment and are linked to serious health problems, including some cancers.
Ratepayers will receive a $9.88 credit for one year, meaning the average household could save $6 a month over 12 months.
New Jersey American Water said the rate increase is essential to improve aging infrastructure, replace dangerous lead service lines and address PFAS chemicals.