AWK Subsidiary New Jersey American Water Receives Approval for $68M Rate Increase

American Water Works Company, Inc. announced its subsidiary, New Jersey American Water, received approval from the New Jersey Board of Public Utilities (NJBPU) for a $68 million annualized increase in water and wastewater revenues. This settlement is significantly less than the company's updated request of approximately $145 million.

Key Details

• Revenue Increase: The order approves a $68 million annualized revenue increase, effective September 15, 2026.
• Financial Terms: The new rates are based on an authorized Return on Equity (ROE) of 9.5%, a rate base of $6.06 billion, and a 54.0% common equity ratio.
• Capital Investment: The rate increase is primarily driven by $1.4 billion in incremental capital investments made since the last general rate case.
• Customer Credit: A separate approval will provide eligible water customers with a $9.88 monthly bill credit for 12 months from a PFAS litigation settlement, which will help offset the rate increase.