The state's Board of Public Utilities is considering New Jersey American Water's request to raise water and wastewater rates by 12% amid growing concerns about water affordability in New Jersey.
Only a small share of households eligible for New Jersey American Water's low-income discount are enrolled, even as the state's Board of Public Utilities reviews the company's request to raise water and wastewater rates by 12% and shutoffs continue to climb.
What's happening?
According to State Broadcast News, New Jersey American Water has asked state regulators to approve a 12% increase for water and wastewater service. The proposal arrives as concerns about water affordability in New Jersey intensify.
The company has a discount program for low-income customers, but only about 4% of eligible households participate. As a result, many residents who might qualify for help are still paying full price — or falling behind on their bills — while the utility seeks higher rates.
Updated 2025 figures on the Natural Resources Defense Council's New Jersey Water Shutoff Dashboard show that NJ American Water carried out 18,074 shutoffs across the state in 2025, a 106% increase from 2024.
Measured against the company's full customer base, those shutoffs represented 3% of accounts, State Broadcast News reported, citing NRDC data. That was higher than the rates reported by major electric providers such as Atlantic City Electric, at 2.8%, and JCP&L, at 1.3%.
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Salem saw 124 shutoffs in the year following New Jersey American Water's acquisition of the system in June 2024. That amounted to 8.3% of the city's residential customers.
Why does it matter?
Water is not optional, and unlike some other utilities, New Jersey does not have a state-run water bill assistance program.
That leaves many families relying on company-run discounts that may be hard to find, hard to apply for, or simply underused.
The shutoff data also suggests the burden is not being felt evenly. Some communities saw steep year-over-year increases, with shutoffs rising 73,200% in Irvington, 610.9% in West Orange, and 489.4% in Pleasantville.
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ZIP codes in Atlantic, Camden, Essex, Union, and Ocean counties were among the top 10 areas for NJ American Water shutoffs.
What's being done?
The Natural Resources Defense Council has joined the rate case and is supporting two New Jersey Senate bills intended to make assistance easier for eligible customers to access.
Under S4374, many households that already receive state electric bill assistance would be automatically enrolled in NJ American Water's discount program. About 200,000 New Jersey households currently get that kind of energy aid, and many of them are also served by the company's water system.
Separately, S4373 would require the Department of Community Affairs to place NJ American Water's discount program on the state's online utility assistance application portal, according to State Broadcast News.
Larry Levine, NRDC's Director of Urban Water Infrastructure, has focused his work on "ensuring that water and sewer service is affordable for all households and communities, even as water infrastructure investment increases to meet clean water needs."
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