New Jersey American Water Regulatory Proceedings
New Jersey American Water Petition for Approval of a Municipal Consent Granted by Hopewell Township, Mercer County
On August 26, 2026, New Jersey American Water filed a Petition with the New Jersey Board of Public Utilities for approval of a municipal consent ordinance granted by Hopewell Township in Mercer County to provide water service to the portion of the Township formerly served by Hopewell Borough.
New Jersey American Water Petition for Approval of a Municipal Consent Granted by Mansfield Township, Warren County
On April 13, 2026, New Jersey American Water filed a Petition with the New Jersey Board of Public Utilities for approval of a municipal consent ordinance granted by Mansfield Township in Warren County to provide wastewater collection and treatment services to a portion of the township known as the “Meadows at Mansfield” community.
Public Comment Hearings are scheduled for August 13, 2026 at 10:00 AM. See Public Notice for details.
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.
On March 10, 2025 the Company submitted this letter update to the petition and schedules associated with its First LSLR Plan Surcharge Filing. The Company determined several adjustments were necessary to the tables included in support of its petition. The overall adjustments result in an increase to the estimated average monthly bill impact for customers. The typical residential water customer consuming an average of 5,642 gallons per month may see a surcharge of up to $4.89 per month. Actual charge may vary dependent on usage. The estimated average monthly bill impact for each Subsequent Surcharge Period may result in a surcharge of up to $4.89 for GMS customers (e.g. Residential), and $64.02 for non-GMS customers (e.g. bulk agreements), depending on a variety of factors, including applicable rate schedule, customer count, usage, and the actual project costs incurred.
On May 19, 2026 the Company made its eighth semi-annual surcharge filing with the BPU to recover costs incurred during the November 1, 2025 through April 30, 2026 LSLR Recovery Period. The new rate will be effective July 1, 2026.
Purchased Water Adjustment Clause (PWAC) and Purchased Wastewater Treatment Clause (PSTAC)
On November 14, 2025, New Jersey American Water filed it’s annual petition with the BPU for approval to change the Company’s PWAC and PSTAC charges effective April 1, 2025 to cover the fees New Jersey American Water pays to other water and wastewater purveyors for water and wastewater treatment services.
On March 18, 2026 the Board approved the Company's request for new rates effective on April 1, 2026.
Wastewater System Improvement Charge (WSIC)
On September 9, 2026 the Board of Public Utilities approved the Foundational Filing. Under the WSIC program, the Company submits semi-annual WSIC surcharge filings to the BPU every six months with the resulting surcharge effective every eight months. The surcharge may not exceed 5% of the Company’s total wastewater revenues established in the Company’s base rate case under BPU Docket No. WR26010010.
Effective September 15, 2026, the WSIC surcharge will be reset to $0. The first semi-annual WSIC surcharge filing is anticipated in April 2027.
Distribution System Improvement Charge (DSIC)
On September 9, 2026 the Board of Public Utilities approved the Foundational Filing. Under the DSIC program, the Company submits semi-annual DSIC surcharge filings to the BPU every six months with the resulting surcharge effective every eight months. The surcharge may not exceed 5% of the Company’s total water revenues established in the Company’s base rate case under BPU Docket No. WR26010010
Effective September 15, 2026, the DSIC surcharge will be reset to $0. The first semi-annual DSIC surcharge filing is anticipated in April 2027.
For more information, read our Distribution System Improvement Charge Fact Sheet.
Resiliency and Environmental System Investment Charge (RESIC)
On September 9, 2026 the Board of Public Utilities approved the Foundational Filing. Under the RESIC program, the Company submits semi-annual RESIC surcharge filings to the BPU every six months with the resulting surcharge effective every eight months. The surcharge may not exceed 3.5% of the Company’s total revenues established in the Company’s base rate case under BPU Docket No. WR26010010 and the purchased water and wastewater treatment revenues under BPU Docket No. WR25110596.
Effective September 15, 2026, the RESIC surcharge will be reset to $0. The first semi-annual RESIC surcharge filing is anticipated in April 2027.
PFAS Litigation Universal Surcredit (“PLUS”)
On September 9, 2026 the Board of Public Utilities approved the PLUS mechanism to return PFAS settlement proceeds directly to eligible water customers. New Jersey American Water will return more than $79 million in PFAS litigation proceeds and interest through a monthly PLUS credit of $9.88 for 12 months beginning in September 2026. The credit will appear as “PLUS” on eligible water customers’ bills.
Future PFAS settlement proceeds will be returned through the PLUS mechanism as one-time credits on customers’ bills after calculations are verified by the BPU.
New Jersey-American Water's request for Recovery of Covid-19 Expenses Reg Asset and Establishment of Uncollectible Adjustment Clause (Special Program Charge)
On July 2, 2020, the Board authorized each of the state’s regulated utilities to create a COVID-19 related regulatory asset by deferring their prudently incurred incremental costs related to COVID-19. Since March 2020, the Company has experienced increased costs attributable to COVID-19, including increased uncollectible expense, incremental operations and maintenance expenses, and costs related to financing activity to ensure adequate liquidity during the public health emergency.
On April 28, 2023, New Jersey-American Water Company, Inc. filed a petition with the New Jersey Board of Public Utilities seeking authorization to recover its COVID-19-related net deferred costs over a three-year period through an annual Special Program Charge. By the Petition, NJAWC also requested approval to establish an Uncollectible Adjustment Clause in response to effects of uncollectible expenses created by the COVID-19 moratorium.
On May 22, 2024, the Board issued an Order permitting NJAWC to collect COVID-19-related net deferred costs over a three-year period, through an annual Special Program Charge of $5,406,028, from all water and wastewater customers through a volumetric charge for General Metered Service (“GMS”) of $0.31 per month and a fixed, per-customer, charge for non-GMS customers of $0.99 per month, to be reconciled annually.
On February 1, 2026, the Special Program Charge increase, resulting in a volumetric charge for General Metered Service (“GMS”) of $0.36 per month and a fixed, per-customer, charge for non-GMS customers of $1.22 per month.
On July 13, 2026, NJAWC submitted its Annual Reconciliation of the Special Program Charge to the Board.
Public Comment Hearings are scheduled for November 12, 2026 at 4:30 PM & 5:30 PM. See Public Notice for details.