Cherry Hill water customers will pay less on their monthly bills starting Tuesday, Sept. 15, even as New Jersey American Water raises rates across the state.
The reason: a $9.88 monthly credit from a PFAS contamination lawsuit settlement will more than offset the rate increase for most customers. The New Jersey Board of Public Utilities (BPU) approved both the new rates and the credit mechanism, the company announced Wednesday, Sept. 9.
The credit, labeled "PLUS" on bills, returns more than $79 million in PFAS litigation proceeds and interest to eligible water customers over 12 months.
What it means for your bill
The math works in customers' favor. An average residential water customer using about 5,700 gallons a month will see a rate increase of roughly $4. But the $9.88 PLUS credit wipes that out and then some, producing an average net reduction of nearly $6 per month.
Customers who also get wastewater service face a combined increase of about $8 a month. The credit still covers most of it, leaving those households with an average net reduction of nearly $2 per month.
Both reductions last 12 months, starting in September 2026. After that, the rate increase stands on its own unless additional PFAS settlement funds come through. The company said future settlement proceeds would be returned as one-time credits verified by the BPU.
Actual bill impacts vary by usage, service type and service area, the company said.
Where the money goes
The BPU-approved rate increase generates $68 million in new annual revenue for New Jersey American Water. Mark McDonough, president of New Jersey American Water, said the funds support infrastructure replacement, water quality improvements and system reliability.
The company said the revenue backs more than $1.4 billion in system upgrades statewide. That includes replacing or rehabilitating nearly 120 miles of aging water main, continued lead service line replacement and treatment upgrades for PFAS and other emerging contaminants.
Help for customers who need it
New Jersey American Water offers payment assistance for income-eligible customers, along with budget billing and flexible payment plans. Details are available on the company's website.
The company 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.
The company said future PFAS settlement proceeds beyond the initial $79 million would be returned through the PLUS mechanism as one-time credits after the BPU verifies the calculations.
