At its Sept. 9 meeting, the New Jersey Board of Public Utilities announced a water-rate increase, lower gas bills and another step toward procuring advanced nuclear power.
TRENTON, NJ – The New Jersey Board of Public Utilities approved a settlement Wednesday that will raise the typical New Jersey American Water residential water bill by $4.06 per month and the typical residential sewer bill by $3.82.
An order approving the settlement appeared in the company’s public rate-case docket following the board’s Sept. 9 meeting.
The board also posted a separate order approving a rate schedule that will return proceeds from litigation over PFAS, commonly called “forever chemicals,” to eligible New Jersey American Water customers through bill credits. The meeting agenda did not state the amount each customer will receive or when the credits will begin.
As of 1:40 p.m. Wednesday, written orders had not been posted in the public dockets for several other major items on the revised meeting agenda. Those included the state’s advanced nuclear consultant, proposed New Jersey Natural Gas bill reductions and three New Jersey American Water infrastructure programs.
The nuclear docket contained no public documents identifying the selected consultant or the contract price. The gas and infrastructure dockets similarly did not contain Sept. 9 orders documenting the board’s actions.
A replay of the meeting is available through the board’s YouTube channel.
Water infrastructure charges could follow
In addition to the base-rate settlement, New Jersey American Water asked the board to approve three foundational infrastructure filings.
The proposed programs would establish maximum monthly surcharges of:
- $5.11 for water distribution improvements.
- $3.56 for resiliency and environmental investments.
- $4.83 for wastewater system improvements.
Those figures assume a residential customer with a five-eighths-inch meter. The wastewater charge would apply only to customers receiving that service.
The maximums do not represent an immediate combined $13.50 increase on the next bill. A foundational filing identifies eligible projects and establishes a program ceiling. New Jersey American Water must subsequently submit surcharge filings based on qualifying projects placed into service.
The company’s regulatory proceedings page states that the distribution, wastewater and resiliency programs use semiannual filings, with resulting surcharges subject to regulatory review.
Written orders will clarify whether the board approved the new foundational filings and whether it changed any of the proposed caps or other terms.
Gas customers could see lower bills
Two settlements on Wednesday’s agenda could reduce bills for New Jersey Natural Gas customers.
The larger adjustment would reduce the typical residential bill by about $14.09 per month, based on monthly use of 100 therms. It concerns the company’s gas-supply and conservation incentive rates.
A separate energy-efficiency adjustment would reduce a winter-month bill by approximately $2.68 for a residential customer using 100 therms.
The figures measure different rate mechanisms and time periods. They should not be combined into a year-round monthly reduction.
Another proposed settlement would move bills in the opposite direction for Elizabethtown Gas customers, raising the typical 100-therm residential bill by approximately $1.33 per month.
The agenda also included a Jersey Central Power & Light accounting proceeding related to pandemic-era costs. The board’s description said that item would have no impact on residential bills.
Nuclear policy moves into procurement
The board was also scheduled to award a consulting contract for New Jersey’s new advanced nuclear procurement program.
The contract is part of the state’s implementation of the Power NJ Act, signed by Gov. Mikie Sherrill on July 13. The law directs the BPU and New Jersey Economic Development Authority to create a competitive process for proposed advanced nuclear facilities.
Under the final legislation, the state must open a request for expressions of interest within 180 days of the law’s enactment. That places the deadline in January 2027.
Developers will have to submit information about federal licensing, permits, site studies, project costs, financing, customer-bill effects and community impacts. Projects receiving provisional approval would then enter negotiations with the state.
The law uses 1,100 megawatts as a procurement-program design parameter, but expressly says that figure is not a state commitment to purchase that amount of electricity.
Before granting final approval, the board must determine that a project’s costs are justified, financing is sufficient, risks are allocated fairly and the proposal provides a net benefit to ratepayers. Payments through the program would begin only after an approved plant starts generating electricity.
New Jersey earlier removed a state permitting barrier that had prevented consideration of new nuclear facilities. The July law then created the procurement structure, moving the policy from authorization toward potential project selection, according to the governor’s signing announcement.
The next disclosure will be the consultant’s name, contract value and scope of work. Until the award order is published, those details cannot be confirmed from the board’s public record.