June 8, 2026 - News about NJAW Proposed Rate Hikes
NJAW has filed for a series of rate increases on both water and wastewater. This is done every two years with the last increase having been approved in Fall of 2024. NJAW proposed rates have not been approved and are subject to the Board of Pubic Utilities (BPU) review.
What that means for you:
- Residential water rates, statewide, assuming a monthly average usage of 5,793 gallons, will go from $83.87 a month to $93.89 a month, which is a $10.02 increase per month
- Hydrant rates, currently at $66 a month, would increase to $72.44 month, an increase of $6.44/monthly. Residents don’t pay for them, but we do as a municipality. The township currently pays $14,191 a month for the hydrants in Bedminster, and $1,332 for the Pottersville hydrants, for a total of $15,523 a month.
- EDC wastewater rates, metered, would on average increase from $94.93/month to $99.93/month, or a $5 increase. Your mileage may vary, as that charge is usage-based, calculated on actual water consumption
- EDC flat wastewater rates, currently fixed at $80.93/month, are proposed to increase to $119.47/month, representing a $38.54 monthly increase.
- NJAW has formally submitted these proposed rates, and now the case is heard by an administrative law judge, in this case the honorable Judge Jacob Gertsman.
- Present at these hearings are representatives from NJAW, the NJ BPU, the office of the ratepayer advocate, who represents the public interests, and any interveners who want to file suit – typically larger interests like corporations. The public is also able to weigh in at these hearing.
- On May 21st, Cm Colin Hickey submitted a formal letter to Judge Gertsman objecting to the proposed rates increases, highlighting in particular the proposed flat rate sewer increase. That letter was also transmitted to the BPU secretary and is now filed under docket WR26010010.
What Happens Next:
- There will be a discovery period, followed by settlement conferences and evidentiary hearings. NJAW will attempt to make their case for why the rate increases are necessary, and will likely cite state-mandated lead pipe and PFAS remediation as two major cost drivers.
- The rate payer advocate will make a counter case and the BPU will have to weigh the evidence before making a final determination later in the summer. They may approve or reject individual parts of the filing, and eventually will reach a settlement with NJAW.
- The final rates, once approved, would likely take effect in the third quarter, and certain increases could even be delayed beyond that, depending on the BPU’s review and determination
- NJAW is a wholly owned subsidiary of American Water Works, which is the largest publicly traded water and wastewater utility company in the United States. It is a $24B dollar company with over $5B in annual revenue.