Water rates may spike for NJ families already drowning in utility bills

💧 New Jersey American Water is seeking a 12% rate increase for nearly 3 million customers.

⚠️ The average monthly bill would rise by about $10 under the proposal.

🔴 Water shutoffs more than doubled last year as affordability concerns grew statewide.

As New Jersey residents continue to get crushed by rising electricity costs, their water bills are also harder to pay.

New Jersey American Water wants to increase tariffs by 12%. Monthly bills would rise to $94, an increase of $10, for the average customer using 5,800 gallons per month. The last rate increase was in September 2024, when the monthly bill rose by $5.33.

The rate hike will fund $1.4 billion in water and wastewater system investments through the end of the year, according to NJ American Water spokesperson Erin Banes. These will improve water quality and reliability for its nearly 3 million customers.

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"Investments included replacing aging infrastructure, removing utility-owned lead service lines, expanding PFAS treatment, and modernizing treatment plants, storage tanks, and pump stations," said Banes.

According to Banes, NJ American Water is also seeking approval to expand its discount program to more residents. The aim is to make it more accessible to customers who are already on other utility support programs, like the Low-Income Home Energy Assistance Program.

Another utility bill increase could hit New Jersey households hard

In 2025, NJ American Water shut off service to residential customers for non-payment more than 18,000 times. That's around double — a 106% increase — from the year before. While rates didn't double in a year, prices have been rising across the board, from groceries to electricity.

The number-one zip code for most shutoffs was Absecon, located just outside Atlantic City. Its 9,200 residents faced 963 service shutoffs last year. That's a 429% increase from 2024.

"It's not a ranking you want," said clean water advocate Larry Levine.

Other municipalities that tallied more than 500 water shutoffs include Lakewood, Pleasantville, Egg Harbor Township, Camden, Irvington, Plainfield, Linden, and Union Township in Union County.

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Water affordability fight heats up

As shutoffs spike, the Natural Resource Defense Council is fighting to make bills more manageable for struggling residents. The group filed a motion to intervene last month. During a May 27 hearing, an Office of Administrative Law judge in Trenton heard from residents who spoke about the impacts of water shutoffs. New Jersey 101.5 has requested audio of the hearing.

Water bills have been rising faster than inflation for decades, according to Levine, who is also NRDC senior attorney. Cost increases are often attributed to infrastructure upgrades, such as replacing lead lines and addressing forever chemicals.

"There's a need to invest in our water systems to provide safe water, but we've got to do that in a way that doesn't do it on the backs of folks who can't pay the bill when the bill goes up," said Levine.

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