Water Rate Hike Approved by N.J. for Some Barrier Island Communities

Ortley Beach residents and officials gather to mark the 10th anniversary of Superstorm Sandy, Oct. 29, 2022. (Photo: Daniel Nee)

Island communities that utilize water lines owned by New Jersey American Water – including all of Toms River and Brick Township’s portions – will receive a water rate hike following a decision rendered by the state Board of Public Utilities.

The BPU granted New Jersey American Water a total annualized revenue increase of approximately $79.5 million, according to a statement issued by NJAW this week. The company’s rate request was filed Jan. 19, 2024, and was “primarily driven by more than $1.3 billion in infrastructure investment in treatment system and distribution upgrades since its last rate filing,” the company added.

The new rates will become effective Sept. 15, 2024. With the approved rate increase, the average bill for most water customers with a 5/8-inch meter using 5,642 gallons per month will increase approximately $5.33 per month. The bill for an average wastewater customer will increase approximately $5.68 per month, depending on the service area.

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“We are committed to making appropriate investments to continue to provide safe, reliable services, while maximizing efficiencies to balance the impact to customers,” said NJAW President Mark McDonough. “Our effective capital planning helps keep water and wastewater services compliant with state and federal regulations, reliable amidst the challenges of climate and other impacts, and affordable for the 2.9 million people we serve.”

A portion of the revenue generated by the rate hike will go toward the company’s “H2O Help to Others” assistance program, which provides reduced rates for low-income customers.

Customers will receive information about the new rates in their next New Jersey American Water bill, the company said. More information on rates is also available on the company’s website.