New Jersey American Water customers will soon see higher rates, but many will also receive a monthly bill credit that could leave them paying less overall.
New Jersey American Water announced the changes after the New Jersey Board of Public Utilities approved a rate increase and a new customer credit tied to settlements in PFAS contamination lawsuits.
Eligible water customers will receive a $9.88 monthly credit through the PFAS Litigation Universal Surcredit, or PLUS, funded by PFAS litigation proceeds and interest.
"This decision supports critical investments to replace aging infrastructure, advance water quality projects and improve reliability while keeping affordability at the forefront," New Jersey American Water President Mark McDonough said in a news release.
The approved rates will support more than $1.4 billion in upgrades to the company's treatment, transmission and distribution systems, including a $68 million annual revenue increase.
Planned improvements include replacing or rehabilitating nearly 120 miles of water mains, continuing lead service line replacements and updating treatment processes to address PFAS and other emerging contaminants.
The company said the projects are intended to improve reliability for residential, commercial and community customers, including schools and hospitals.
The new rates take effect Sept. 15.
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An average residential water customer using 5,700 gallons per month will see a bill increase of about $4 per month. Customers eligible for the PLUS credit will receive $9.88 per month for 12 months, resulting in an average net bill reduction of nearly $6 per month.
Residential wastewater customers will also see bills rise by about $4 per month.
Customers who receive both water and wastewater service will see a combined increase of nearly $8 per month. However, the monthly credit will offset that increase, resulting in an average net reduction of about $2 per month during the next year.
Actual bill impacts will vary based on water usage, service type and location.
"The PLUS mechanism provides a transparent way to return PFAS settlement proceeds and interest directly to eligible water customers," McDonough said. "Customers will see the credit identified separately on their bills, making it clear how those funds are being returned."
The Board of Public Utilities approved the PLUS mechanism to return more than $79 million in PFAS litigation proceeds and interest to eligible customers. The credit will appear on bills as "PLUS" for 12 months beginning in September 2026.
The utility said future PFAS settlements will be returned to customers as one-time bill credits after BPU verification.
New Jersey American Water also continues to offer payment assistance programs for income-eligible customers, along with budget billing and flexible payment options.
As part of the rate approval, the utility is working with the New Jersey Department of Community Affairs to evaluate enrollment in its Universal Affordability Tariff program, including potential automatic enrollment for customers who already receive certain energy assistance benefits.
"Water service is essential, and customers experiencing financial hardship should know assistance is available," McDonough said. "We encourage customers who need help to review the available programs and contact us before falling behind on their bills."
New Jersey American Water serves about 3 million people across the state and employs more than 875 people.
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This story was created by reporter Brad Wadlow, [email protected], with the assistance of Artificial Intelligence (AI). Journalists were involved in every step of the information gathering, review, editing and publishing process. Learn more.
This article originally appeared on MyCentralJersey.com: NJ water bills are rising. Many customers will still pay less