Rates may go up next year for NJ American Water customers

David Madden
December 27, 2019 - 4:00 am

CAMDEN, N.J. (KYW Newsradio) — Customers of New Jersey American Water could see their monthly bills go up in 2020. 

The average water bill could go up about 12% — about $6.50 a month more — if the utility gets all it is seeking from the state Board of Public Utilities. 

New Jersey American Water spokeswoman Denise Venutti Free says it’s their first rate hike request in a couple years.

"Our rate request is based on the actual cost of providing water and wastewater service to our customers. The rate request is driven by the over one billion dollars we’ve invested in treatment and distribution system upgrades statewide since our last rate case," Free said.

The typical household uses about 5,400 gallons of water a month. 

Requests like this take about nine months before regulators make the call. The company will net about $88 million a year in revenue if the full increase is granted, which would affect 2.7 million people, covering most of the state.