New Jersey American Water Implements Lead Service Line Replacement Surcharge for Customers Statewide

New Jersey American Water is taking steps to replace customer-owned lead and galvanized service lines across the state, starting from February 13, 2023. 

The company plans to recover $7.3 million in costs associated with the replacement of these lines, dating from July 1, 2020, through October 31, 2022. To achieve this, the company has been granted permission by the New Jersey Board of Public Utilities to implement its first Lead Service Line Replacement (LSLR) Charge for all water and fire service customers statewide.

The LSLR surcharge will cost residential customers, who use an average of 5,520 gallons of water per month, an estimated $0.91 per month. Under the LSLR Plan, the company will submit semi-annual LSLR Charge filings to the NJ BPU every six months with the resulting surcharge based on a fixed charge per customer or volume of water used. The actual impact on the monthly bill will depend on the amount of expense incurred during each recovery period.

In order to inform customers about this initiative, New Jersey American Water has created an interactive webpage where customers can view the service line material of their property or any property in its service areas in the state. The company will also share its lead service line replacement plans for 2023 in the coming weeks with customers, county and municipal officials, and other stakeholders.

More information about the LSLR surcharge and New Jersey American Water's approach to lead service line replacement can be found on the company's website. The implementation of this surcharge follows a petition, review by the NJ BPU and Rate Counsel, and a public hearing, notice and comment period.

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