Hopewell Borough residents recently became New Jersey American Water customers are seeing new rates take effect, but a temporary credit tied to PFAS litigation settlements is expected to more than offset the increase for a typical residential customer during the next year.
New Jersey American Water confirmed to MercerMe that the average residential water customer in Hopewell using approximately 5,700 gallons per month will see a monthly bill increase of about $4 under rates approved by the New Jersey Board of Public Utilities.
Those customers are also eligible for a separate $9.88 monthly credit that New Jersey American Water will provide to eligible water customers for 12 months.
That means a typical Hopewell residential customer using 5,700 gallons per month would see a net reduction of about $5.88 per month while the credit is in effect, despite the underlying rate increase.
The new rates took effect Sept. 15.
Credit comes from PFAS settlements
The temporary credit is separate from the company’s rate case and comes from money New Jersey American Water received through litigation over contamination from per- and polyfluoroalkyl substances, commonly known as PFAS.
The BPU approved what the company calls its PFAS Litigation Universal Surcredit, or PLUS, which will return more than $79 million in PFAS litigation proceeds and interest to eligible water customers.
Customers will receive a $9.88 monthly credit for 12 months beginning in September, with the credit appearing as “PLUS” on their bills, according to the company.
New Jersey American Water told MercerMe that the credit applies to all of its water customers in Hopewell.
Future PFAS settlement proceeds are expected to be returned through the same mechanism as one-time bill credits after calculations are reviewed by the BPU.
Higher rates support system investments
The BPU-approved rate increase will generate approximately $68 million in additional annual revenue for New Jersey American Water, according to the company.
New Jersey American Water said the rates support more than $1.4 billion in ongoing investments in its water and wastewater systems, including the replacement or rehabilitation of nearly 120 miles of aging water main, continued lead service line replacement and treatment upgrades related to PFAS and other emerging contaminants.
New Jersey American Water acquired Hopewell Borough’s municipal water system earlier this year following voter approval of the sale in November 2025.
