New Jersey Settlement will Help Low-Income Residents Maintain Access to Water
New Jersey American Water Ordered to Expand Program to Help Vulnerable Customers Afford Their Bills
TRENTON, NJ – A settlement was approved today by the New Jersey Board of Public Utilities (BPU) that should double enrollment in New Jersey American Water’s (NJAW) low-income discount program in the near-term. The settlement is also designed to lead to comprehensive reforms to benefit low-income customers based on NRDC’s (Natural Resources Defense Council) recommendations for auto-enrollment of energy assistance participants into the company’s water assistance program. In the settlement, the State also secured concessions that reduced NJAW’s proposed rate increase of approximately 12% for a typical residential customer to under 5%. NRDC was granted a motion to intervene in the case in May and filed a formal statement with the BPU concerning the settlement.
The following statement is from Larry Levine, director of Urban Water Infrastructure and senior attorney at NRDC:
“All residents of New Jersey have a right to safe, sufficient, and affordable water. Yet utility affordability remains a major concern for too many families as costs continue to rise. New Jersey American Water has an obligation to serve customers at a cost they can afford, regardless of household income, and in a manner that does not put them at risk of water shutoffs due to inability to pay their bill. Yet, the company has enrolled only 4% of eligible customers in its low-income discount program and shuts off tens of thousands of people each year when they can’t afford the bill.
“NRDC intervened in the case to secure expanded eligibility for – and participation in – New Jersey American Water’s low-income discount program. Though the settlement does not require automatic enrollment, which the company originally proposed to pilot, it does enable a doubling of enrollment in the near-term through coordination with the NJ Department of Community Affairs’ energy assistance programs and other customer outreach, and potentially a much larger expansion over the next two to three years.
“Today marks an important step forward for residents who are struggling to pay their bills for essential needs like water and wastewater. But much more work is still needed to realize the settlement’s full potential. We will continue to engage with the Sherrill Administration, BPU, the legislature, and others to ensure the program reaches as many of the 92,000 eligible customers as possible.”
Background:
An estimated 20% of New Jersey households struggle to pay water and sewer bills, and rates have only increased across the state in recent years. In January, NJAW sought a rate increase of $10 per month for a typical residential water customer. Although American Water offers a discount program to low-income customers, the company has enrolled only 4% of eligible households. NRDC analysis of the company’s data found that NJAW had a total of 18,074 residential shutoffs in 2025, which is a 106% increase from 2024.
NRDC (Natural Resources Defense Council) is an international nonprofit environmental organization with more than 3 million members and online activists. Established in 1970, NRDC uses science, policy, law and people power to confront the climate crisis, protect public health, and safeguard nature. NRDC has offices in New York City, Washington, D.C., Los Angeles, San Francisco, Chicago, Beijing and Delhi (an office of NRDC India Pvt. Ltd).