Short Hills and Millburn water customers will see lower bills starting Tuesday, Sept. 15, even as New Jersey American Water raises its rates.
A $9.88 monthly credit from PFAS lawsuit settlements will more than offset the utility's new rate increase for eligible water customers, according to a company announcement on Sept. 9. The net result: an average bill reduction of nearly $6 a month for the next 12 months.
The credit expires after one year. Once it does, customers will pay the full higher rates with no offset.
What's changing
The New Jersey Board of Public Utilities (BPU) approved NJ American Water's rate request on Sept. 9, authorizing a $68 million annual revenue increase. The new rates will fund $1.4 billion in infrastructure work, including replacement of nearly 120 miles of aging water mains and treatment upgrades for PFAS and other contaminants.
Here's how the numbers break down for the average residential customer:
- Water-only service: about $4 more per month
- Wastewater-only service: about $4 more per month
- Combined water and wastewater: about $8 more per month
NJ American Water's Short Hills service area covers roughly 217,230 people, according to Environmental Working Group data, making the rate change a household issue across Millburn Township.
The PFAS credit
In a separate action, the BPU approved NJ American Water's PFAS Litigation Universal Surcredit, or PLUS, mechanism. The utility will return more than $79 million in PFAS lawsuit settlement proceeds and interest to eligible water customers through the $9.88 monthly credit.
The credit will appear as "PLUS" on bills starting in September 2026 and run for 12 months.
For water-only customers, the credit turns a $4 increase into a roughly $6 decrease. Customers with both water and wastewater service will see a net reduction of about $2 a month, according to the company announcement.
Wastewater-only customers get no credit and face the full $4 monthly increase, NJ.com reported.
Mark McDonough, president of New Jersey American Water, said in the Sept. 9 announcement that the PLUS mechanism "provides a transparent way to return PFAS settlement proceeds and interest directly to eligible water customers."
What happens next
The company has not fully defined which customers are eligible for the PLUS credit beyond confirming it applies to water customers and excludes wastewater-only accounts. Actual bill impacts will vary by usage, service type and service area, the company said.
After the 12-month credit period ends, around September 2027, customers will pay the full rate increase without any offset.
NJ American Water offers payment assistance programs for income-eligible customers, including budget billing and flexible payment plans. The company said it is also working with the New Jersey Department of Community Affairs to evaluate automatic enrollment in its Universal Affordability Tariff program for customers who already receive certain energy assistance benefits.
Details on the new rates, the PLUS credit and assistance programs are available at newjerseyamwater.com/rates.
