YOUR WATER RATES
Water-service rates are based on the real costs of treating and delivering water to customers, and are regulated by state public utilities commissions (PUCs).
To determine rates, we work with PUC staffs to study costs of construction, maintenance, operation, administration and financing. Once the studies are complete, the company and PUC present any differing conclusions before an administrative law judge. Based on the judge’s opinion, the PUC sets the water rates.
Rates charged for service may vary based on a customer’s meter size. All customers pay the same rate for water usage. Customers are billed based on a regular meter reading, either monthly or quarterly for residential customers as well as for commercial and other public authority customers.
Rates can vary based on the cost of providing service in each of the communities we serve. Before it reaches your home or business, water is treated through an intricate treating and testing process to help ensure it meets or surpasses rigorous drinking water quality standards.
You can learn more about the rate setting process in our white paper: Challenges In The Water Industry: The Rate Approval Process.
New Jersey American Water Tariff
Below is a link to New Jersey American Water's water and wastewater tariff as approved by the New Jersey Board of Public Utilities (NJBPU).
New Jersey Rates (effective 11/1/2020)
Environmental Disposal Corp. Tariff
Environmental Disposal Corp. (EDC), a subsidiary of New Jersey American Water, is a regulated public utility corporation providing wastewater service to more than 5,300 customer accounts in Bedminster and Bernards Townships in Somerset County, New Jersey. In addition, EDC also provides wastewater treatment service to the Boroughs of Far Hills, Peapack, Gladstone and portions of Bedminster, adjacent to EDC’s service territory, on the basis of long term contracts.
Below is a link to EDC’s wastewater tariff as approved by the New Jersey Board of Public Utilities (NJBPU).
EDC Rates (effective 7/20/2019)
Distribution System Improvement Charge
On March 17, 2020, New Jersey-American Water Company, Inc. filed a petition with the New Jersey Board of Public Utilities seeking approval of a Foundational Filing to implement a Distribution System Improvement Charge (“DSIC”) for the renewal of water distribution system assets for the period 2020 through 2024. On October 28, 2020, the New Jersey Board of Public Utilities, concurrent with the approval of the Company’s base rate case, approved the Company’s DSIC Foundational Filing. The Company will submit semi-annually DSIC surcharge filings every six months with the respective surcharge effective every eight months, in an amount not to exceed the maximum amount of annual DSIC revenue of $38.2 million or 5% of the Company’s total water revenues established in the Company’s base rate case under BPU Docket No. WR19121516.
For more information, read our Distribution System Improvement Charge Fact Sheet.
Purchased Water Adjustment Clause (PWAC) and Purchased Wastewater Treatment Clause (PSTAC)
Annually, New Jersey American Water files a petition with the New Jersey Board of Public Utilities seeking approval to Change the Levels of its Purchased Water Adjustment Clause and Purchased Wastewater (Sewerage) Treatment Adjustment Clause, which is effective every April. The “PWAC and PSTAC year” means the 12-month period beginning each April 1 and ending March 31 of the following calendar year.
The Company purchases water from a number of water purveyors to supplement its own surface water and groundwater supplies. These supplies are critical to providing a reliable source of water supply for the Company’s customers. The PWAC surcharge is a pass-through surcharge, which enables New Jersey American Water to recover its cost of purchasing water from other water purveyors.
Like the PWAC, the PSTAC charge is also a pass-through surcharge based on actual wastewater treatment costs. The PSTAC charge is specific to the Company’s service areas of Ocean City, Lakewood and Adelphia. These service areas are where the Company owns and maintains the wastewater collection systems, pipelines and pump stations that are utilized to collect the wastewater from homes and business. The wastewater collected is then transferred to a local Municipal Utilities Authority (MUA) sewage treatment facility to treat and dispose of the collected and treated sewage. Instead of the customers receiving a separate bill from the MUA, New Jersey American Water bills the customers on its monthly invoices for the sewage sent to the MUA.
New Jersey American Water Rate Filing
On December 16, 2019, New Jersey American Water filed an application with the New Jersey Board of Public Utilities requesting an increase in revenues. The request was driven by more than $1 billion of investment to recover costs associated with providing reliable, high-quality water and wastewater service and fire protection to the approximately 2.7 million people across New Jersey who depend on us every day.
On October 28, 2020, the New Jersey Board of Public Utilities approved an increase to New Jersey American Water’s base water and wastewater rates in the amount of $39 million annually. The new base rates are effective November 1, 2020. Concurrently, the New Jersey Board of Public Utilities approved a credit that customers will receive over the next 10 months totaling $32.5 million resulting from excess accumulated deferred income taxes associated with the Tax Cuts and Jobs Act (TCJA). This credit will appear on the bill as a line item labeled “TCJA Credit” through August 31, 2021. Due to the approved credit, the average residential customer using 5,400 gallons of water per month, will see little to no change in their bills through August 31, 2021.
Click here for an Overview of the Rate Case Process
Note about our service areas
- Service Area 1: New Jersey American Water customers not listed below.
- Service Area 2: In December 2006, the Elizabethtown Water Company merged with New Jersey American Water. The territory served by this former company has been renamed and is referenced in the tariff as Service Area 2.
- Service Area 3: In December 2006, the Mount Holly Water Company merged with New Jersey American Water. This also includes Jensens Deep Run which was acquired in 2011. These territories have been renamed and are referenced in the tariff as Service Area 3.
- Service Area 1A: In November 2007, New Jersey American Water acquired South Jersey Water Supply Company. The territory served by this former company has been renamed and is referenced in the tariff as Service Area 1A.
- Service Area 1B: In November 2007, New Jersey American Water acquired Pennsgrove Water Supply Company. The territory served by this former company has been renamed and is referenced in the tariff as Service Area 1B.
- Service Area 1C: In April 2017, New Jersey American Water acquired Shorelands Water Company. The territory served by this former company has been renamed and is referenced in the tariff as Service Area 1C.
- Service Area 1D: In September 2010, Applied Wastewater Management (AWWM) was merged into New Jersey American Water. The territory formerly served by AWWM has been renamed and is referenced in the tariff as Service Area 1D.
- Service Area 1E: On May 21, 2015, New Jersey American Water acquired the water and wastewater assets of Haddonfield Borough. The territory served by this former company has been renamed and is referenced in the tariff as Service Area 1E.
- Service Area 1F: On January 1, 2019 New Jersey American Water acquired Roxbury Water Company. The territory served by this former company is referenced in the tariff as Service Area 1F.
Sometimes customers face circumstances that stretch their financial resources. New Jersey American Water is here to assist. Our customer service representatives will work with you on a plan to pay the balance of the bill over time. You may also be qualified to receive assistance through our Low Income Payment Program/H2O Help to Others Program.