Investment In Infrastructure

The United States Environmental Protection Agency (USEPA) estimates that approximately $277 billion of capital spending will be needed across the nation between 2003 and 2022 to replace aging water infrastructure and comply with stricter water quality standards. The USEPA also estimates that approximately $388 billion will be needed between 2000 and 2019 to replace aging wastewater infrastructure. We intend to invest capital prudently to enable us to continue to provide essential services to our regulated water and wastewater utility customers. Investing in our infrastructure is critical to our mission of serving our customers quality and reliable water and wastewater service.

We have a proven record of investing in our systems, and we are committed to delivering excellent service that our customers depend upon at an exceptional value. Tap water costs about a penny a gallon - a remarkable value compared to any other utilities today. With few exceptions, water service remains the lowest utility bill that a household will pay.

In New Jersey alone, we have invested more than $200 million in 2008 to improve service to our customers. Every year, we deliver system improvements to the communities we serve – from extending water pipelines to replacing meters and hydrants to upgrading plant equipment. We also invest in major projects to improve service to customers. 

Some of the completed projects include replacing mains in Ocean City, building a new state-of-the-art water treatment plant that enables radium-removal in Jamesburg, and the expansion of solar panel use in our Canal Road and Raritan-Millstone plants that allows solar energy to help power the plant and offset electricity demands in the community. Construction is underway the the Canal Road plant that will increase its capacity by 20 million gallons of water each day.

New Jersey American Water System Improvements Underway

New Jersey American Water is committed to providing high-quality, reliable water service to our customers. This requires continually investing in our treatment and distribution facilities. Below are system improvements currently underway. These projects seek to improve the reliability of water service to the area.

Ocean City: 

• Beginning the week of October 13, 2008, we began drilling a new well to replace the existing well that was constructed in 1923. We are pleased to let you know that we will be completing the well project this month. Weather permitting, drilling of the new well should be completed by the end of December.The second phase of the project will include replacing the existing building. Construction of the new well building is scheduled to take place in 2010. View a copy of the most recent customer letter. The second phase of the project has begun, which involves designing a new structure to replace the existing building. Construction of the new well building is scheduled to begin in 2010. Additional updates will be provided prior to construction.
• The company is also in the process of repainting two water distribution tanks in Ocean City. For more information, view our 46th Street and 8th Street customer newsletters.