Water rates in New Jersey are expected to rise again.
According to the New Jersey Board of Public Utilities (BPU) on the 4th, New Jersey American Water, the state’s largest water supplier, recently submitted a proposal for a 12% rate hike, which is currently under review. If the proposal passes the BPU’s approval, it is estimated that the average monthly water bill for households will rise to $94 starting this September, an increase of approximately $10 from the current rate.
New Jersey American Water supplies water to about 2.9 million people across approximately 190 towns in 18 counties within the state, including Passaic, Morris, Union, Somerset, Hudson, Warren, Monmouth, Ocean, Camden, Mercer, Middlesex, Atlantic, Bursington, Morris, and Cape May. American Water of New Jersey is pursuing a water rate hike for the first time in two years, following a previous increase of $5.33 in the average monthly rate for September 2024.
The company explained the rationale behind the proposed increase, stating that “an investment of approximately $1.4 billion is unavoidable to carry out improvement projects for aging water and sewage pipelines and facilities.” However, concerns and criticism from residents are mounting amidst news of successive public utility rate hikes.
Some point out that “an additional rise in water rates amidst inflation will place significant economic pressure on New Jersey households.” Indeed, American Water recorded over 18,000 instances of suspending water supply to residential customers due to non-payment last year alone, raising concerns that the rate hike will disproportionately impact low-income households.