YOUR WATER RATES

Water-service rates are based on the real costs of treating and delivering water to customers, and are regulated by the New Jersey Board of Public Utility (BPU).

To determine rates, we work with BPU staff 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 BPU sets the water and wastewater rates.

Rates charged for service may vary based on a customer’s meter size. All customers pay the same rate for water usage. Customers are billed based on a regular monthly meter reading for residential customers as well as for commercial and other public authority customers.

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.

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 10/30/2023)

Environmental Disposal Corp. Tariff

Environmental Disposal Corp. (EDC), a subsidiary of New Jersey American Water, is a regulated public utility corporation providing wastewater service to more than 5,300 customer accounts in Bedminster and Bernards Townships in Somerset County, New Jersey. In addition, EDC also provides wastewater treatment service to the Boroughs of Far Hills, Peapack, Gladstone and portions of Bedminster, adjacent to EDC’s service territory, on the basis of long term contracts.

Below is a link to EDC’s wastewater tariff as approved by the New Jersey Board of Public Utilities (NJBPU).

EDC Rates (effective 7/20/2019)

New Jersey American Water Rates

On August 17th, 2022, the New Jersey Board of Public Utilities approved a stipulation of settlement in New Jersey American Water Company’s most recent filing requesting new rates based on significant investments in water and wastewater infrastructure. The new rates went into effect on September 1, 2022, and are included in New Jersey American Water Company’s tariff, which is provided above.

Lead Service Line Replacement Charge

On January 14, 2022, New Jersey American Water filed a Petition with the Board of Public Utilities (BPU) seeking approval of its plan for the replacement of, and cost recovery for, customer-side lead service lines in its service territory (LSLR Plan) over the next 10 years. Under the LSLR Plan, the Company submits semi-annual LSLR Charge filings to the BPU every six months with the resulting surcharge (based on a fixed charge per customer, or volume of water used) effective semi-annually. The average monthly bill impact to replace customer-owned lead service lines will vary depending on the actual amount of expense incurred during each recovery period.

Following the BPU’s approval of the 2022 LSLR Plan on October 12, 2022, the Company made its first semi-annual LSLR Charge filing with the BPU on November 30, 2022, to recover costs incurred in the replacement of customer-owned lead service lines from July 1, 2020 through October 31, 2022. The first LSLR Charge was effective February 13, 2023.

The Company made its third semi-annual LSLR Charge filing with the BPU on November 17, 2023, to recover costs incurred in the replacement of customer-owned lead service lines from through October 31, 2023. The third LSLR Charge is effective January 1, 2024.

Wastewater System Improvement Charge

On June 15, 2021, New Jersey-American Water Company, Inc. filed a petition with the New Jersey Board of Public Utilities (BPU) seeking approval of its First Foundational Filing to implement a Wastewater System Improvement Charge (“WSIC”) for the renewal of wastewater distribution system assets for the period 2021 through 2024. In October 2021, the BPU authorized the Company to begin its WSIC program.

Under the WSIC program, the Company submits WSIC surcharge filings to the BPU every six months, with the resulting surcharge to customers (a fixed charge based on meter size or meter equivalent) effective semi-annually. The WSIC surcharge for the 2021 through 2024 period cannot generate more than $1.88 million, or 5% of the Company’s total wastewater revenues established in the Company’s base rate case under BPU Docket No. WR19121516.

The first semi-annual WSIC surcharge filing was made on May 13, 2022, to recover the costs of investments in wastewater distribution system improvements during the November 1, 2021 to April 30, 2022 WSIC Recovery Period, with the resulting WSIC surcharge beginning on June 27, 2022.

The second semi-annual WSIC surcharge filing was made on November 15, 2022, to recover the costs of investments in wastewater distribution system improvements during the May 1, 2022 to October 31, 2022 WSIC Recovery Period. The resulting WSIC surcharge was implemented effective December 30, 2022.

The fourth semi-annual WSIC surcharge filing was made on November 15, 2023, to recover the costs of investments in wastewater distribution system improvements during the May 1, 2023 to October 31, 2023 WSIC Recovery Period. The resulting WSIC surcharge is implemented effective December 30, 2023.

Distribution System Improvement Charge

On March 31, 2022, New Jersey-American Water Company, Inc. filed a Petition with the New Jersey Board of Public Utilities (BPU) seeking approval of a Foundational Filing to implement a Distribution System Improvement Charge (“DSIC”) for the renewal of water distribution system assets for the period 2022 through 2025. On August 17, 2022, the New Jersey Board of Public Utilities approved the Company’s 2022 DSIC Foundational Filing.
Under the DSIC program, the Company submits DSIC surcharge filings to the BPU every six months with the resulting surcharge to customers (a fixed charge based on meter size or meter equivalent) effective semi-annually. The DSIC surcharge for the 2022 through 2025 period cannot generate more than $42.6 million, or 5% of the Company’s total water revenues established in the Company’s base rate case under BPU Docket No. WR22010019.

The second semi-annual DSIC surcharge filing occurred on September 15, 2023. As a result, the DSIC surcharge, a fixed charge based on meter size, will increase effective October 30, 2023.

For more information, read our Distribution System Improvement Charge Fact Sheet.

Purchased Water Adjustment Clause (PWAC) and Purchased Wastewater Treatment Clause (PSTAC)

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.

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 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 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.

On November 9, 2023, New Jersey American Water filed its annual petition with the BPU for approval to change the Company’s PWAC and PSTAC charges effective April 1, 2024, to cover the fees New Jersey American pays to other water and wastewater purveyors for water and wastewater treatment services.

Note about our service areas

Service Area 1: New Jersey American Water customers not listed below.
Service Area 2: In December 2006, the Elizabethtown Water Company merged with New Jersey American Water. The territory served by this former company has been renamed and is referenced in the tariff as Service Area 2.
Service Area 3: In December 2006, the Mount Holly Water Company merged with New Jersey American Water. This also includes Jensens Deep Run which was acquired in 2011. These territories have been renamed and are referenced in the tariff as Service Area 3.
Service Area 1A: In November 2007, New Jersey American Water acquired South Jersey Water Supply Company. The territory served by this former company has been renamed and is referenced in the tariff as Service Area 1A.
Service Area 1B: In November 2007, New Jersey American Water acquired Pennsgrove Water Supply Company. The territory served by this former company has been renamed and is referenced in the tariff as Service Area 1B.
Service Area 1C: In April 2017, New Jersey American Water acquired Shorelands Water Company. The territory served by this former company has been renamed and is referenced in the tariff as Service Area 1C.
Service Area 1D: In September 2010, Applied Wastewater Management (AWWM) was merged into New Jersey American Water. The territory formerly served by AWWM has been renamed and is referenced in the tariff as Service Area 1D.
Service Area 1E: On May 21, 2015, New Jersey American Water acquired the water and wastewater assets of Haddonfield Borough. The territory served by this former company has been renamed and is referenced in the tariff as Service Area 1E.
Service Area 1F: On January 1, 2019 New Jersey American Water acquired Roxbury Water Company. The territory served by this former company is referenced in the tariff as Service Area 1F.
Service Area 1G: On June 2, 2023, New Jersey American Water acquired the Egg Harbor City Water & Sewer Utility. The territory served by the Egg Harbor City Utility is referenced in the tariff as Service Area 1G.

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 Bill Paying Assistance Program/H2O Help to Others Program.