Rate change is to recover cost of replacing customer-owned lead service lines

New Jersey American Water is scheduled to begin implementing its first Lead Service Line Replacement (LSLR) Charge for all water and fire service customers statewide beginning February 13, 2023, under a new LSLR surcharge mechanism approved by the NJ Board of Public Utilities (NJ BPU) in 2022. The LSLR surcharge is to recover $7.3 million in costs associated with the replacement of customer-owned lead and galvanized service lines from July 1, 2020, through October 31, 2022. The implementation of this surcharge follows the filing of a petition, review by the NJ BPU and Rate Counsel, and a public hearing, notice and comment period. Proposed at the rate of $0.01643 per 100 gallons, the surcharge for a residential customer who uses the average amount of 5,520 gallons per month would be $0.91.

“At New Jersey American Water, we are working diligently on our plan to replace all company- and customer-owned lead service lines across our footprint statewide per the groundbreaking state legislation, and thanks to our size, scale and expertise, we are doing it with efficiency and affordability in mind,” said Mark McDonough, President, New Jersey American Water. “Nobody likes another charge on their bill, but by working with our skilled teams of engineering and operations employees and contractors, leveraging technology, partnering with our communities, and maximizing our national supply chain, we are strategically and systematically working as cost effectively as possible for the benefit of our customers.”

Under the LSLR Plan, as approved by the BPU on October 12, 2022, the company submits semi-annual LSLR Charge filings to the NJ BPU every six months with the resulting surcharge (based on a fixed charge per customer, or volume of water used) effective semi-annually. The average monthly bill impact to replace customer-owned lead service lines will vary depending on the actual amount of expense incurred during each recovery period. More information about the LSLR surcharge is available on the company’s website at www.newjerseyamwater.com under Customer Service & Billing, Your Water and Wastewater Rates.

New Jersey American Water created a robust, interactive webpage with information about its lead service line replacement program, and map that allows customers to view the service line material of their property or any property in its service areas in the state. The page can be found at www.newjerseyamwater.com/LeadFacts.

Additionally, the company is fine-tuning its lead service line replacement plans for 2023 and will be sharing this information in the coming weeks with customers, county and municipal officials and other key stakeholders. More information about New Jersey American Water’s approach to lead service line replacement prioritization and the work that has been done to date is available on the company’s Lead Facts webpage under Our Approach.

About New Jersey American Water

New Jersey American Water, a subsidiary of American Water (NYSE: AWK), is the largest investor-owned water utility in the state, providing high-quality and reliable water and/or wastewater services to approximately 2.8 million people. For more information, visit www.newjerseyamwater.com and follow New Jersey American Water on Twitter, Facebook, Instagram, and LinkedIn.

About American Water

With a history dating back to 1886, American Water is the largest and most geographically diverse U.S. publicly traded water and wastewater utility company. The company employs more than 6,500 dedicated professionals who provide regulated and regulated-like drinking water and wastewater services to more than 14 million people in 24 states. American Water provides safe, clean, affordable and reliable water services to our customers to help keep their lives flowing. For more information, visit amwater.com and diversityataw.com. Follow American Water on Twitter, Facebook and LinkedIn.

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