Camden, N.J. – – September 15, 2026 -- New Jersey American Water secured a $68 million annual revenue increase from the New Jersey Board of Public Utilities, funding more than $1.4 billion in infrastructure upgrades while a parallel PFAS settlement mechanism returns over $79 million to customers over the next year.
Regulator approves rate hike alongside PFAS credit to soften bill impact
The BPU-approved rates take effect September 15, 2026. Average residential water customers using roughly 5,700 gallons monthly will see bills rise by approximately $4, while wastewater-only customers face a similar $4 increase. Customers receiving both services will see a combined increase of nearly $8 per month.
A separate BPU filing approved the PFAS Litigation Universal Surcredit (PLUS) mechanism, which will apply a $9.88 monthly credit to eligible water customers' bills for 12 months starting in September 2026. For water-only customers, that credit more than offsets the rate increase, producing a net bill reduction of nearly $6 per month. Combined water-and-wastewater customers will see a net reduction of nearly $2 per month once the credit is applied.
$1.4 billion investment targets aging mains, lead lines and PFAS treatment
The approved revenue supports replacement or rehabilitation of nearly 120 miles of aging water main, continued lead service line replacement, and treatment upgrades addressing PFAS and other emerging contaminants. The BPU also approved infrastructure mechanism foundational filings that will fund additional resilience investments across the utility's treatment, transmission and distribution systems.
Mark McDonough, president of New Jersey American Water, said the PLUS mechanism gives customers a transparent line item showing how settlement funds are being returned. The credit will appear separately on bills labeled "PLUS."
Future settlement proceeds to flow through same credit mechanism
Beyond the initial $79 million distribution, any future PFAS settlement proceeds recovered by the utility will be returned to customers as one-time PLUS credits once verified by the BPU. New Jersey American Water serves approximately 3 million people and is the state's largest regulated water utility.
The company said it will continue working with the New Jersey Department of Community Affairs to assess automatic enrollment for its Universal Affordability Tariff program, targeting customers who already qualify for certain energy assistance benefits. Existing bill assistance includes budget billing and flexible payment plans for income-eligible customers.