New Jersey American Water Signs Agreement to Purchase Somerville Sewer System

Acquisition Will Add 3,800 New Wastewater Customers

CAMDEN, N.J. (FEB. 13, 2023) – New Jersey American Water announced today it has signed an agreement to acquire the wastewater collection system of the Borough of Somerville, N.J. for $7 million. This municipally owned system serves approximately 3,800 customers, most of whom already receive water service from New Jersey American Water. The agreement follows a voter referendum that took place in November 2022, which passed in a landslide fashion with 75 percent of the voters approving the sale of the system to New Jersey American Water. The ballot measure was supported by a bipartisan coalition of elected officials, small business owners and community leaders in Somerville.

“I want to thank the elected officials and residents of Somerville for entrusting us to manage and improve their sewer utility and help protect the town and the environment from the many risks associated with running a sewer collection system,” said Mark McDonough, president of New Jersey American Water. “Providing water and wastewater service is all we do, and as Somerville’s longtime water company, we are deeply committed to making the needed improvements to provide the community with sewer service that is as safe, reliable and affordable as the water service we provide.”

As part of the acquisition agreement, and subject to approval from the New Jersey Board of Public Utilities (NJ BPU), New Jersey American Water will invest a minimum of $9.5 million in sewer system improvements in the ten years following completion of the acquisition. In addition, New Jersey American will implement a rate plan that will hold current sewer rates for two years following closing, then increase rates no more than 3 percent annually for the next three years, and then no more than 4 percent annually for the following two years.

“New Jersey American Water has the expertise, equipment, manpower, and financial capability needed to maintain and improve this important part of our town’s aging infrastructure,” said Somerville Mayor Dennis Sullivan. “With private ownership of the system, the borough will eliminate the need for significant rate increases going forward and borrowing money for future improvements will end. Somerville will then be able to fund other needed projects, the sewer system will be maintained and improved on a consistent basis, and sewer rates will remain stable.”

New Jersey American Water is working with the borough to help ensure a smooth transition for customers. The company anticipates completing the acquisition in the second half of 2023, pending approval from the NJ BPU.

About New Jersey American Water
New Jersey American Water, a subsidiary of American Water (NYSE: AWK), is the largest investor-owned water utility in the state, providing high-quality and reliable water and/or wastewater services to approximately 2.8 million people. For more information, visit www.newjerseyamwater.com and follow New Jersey American Water on Twitter,  Facebook, Instagram, and LinkedIn.

About American Water
With a history dating back to 1886, American Water is the largest and most geographically diverse U.S. publicly traded water and wastewater utility company. The company employs more than 6,500 dedicated professionals who provide regulated and regulated-like drinking water and wastewater services to more than 14 million people in 24 states. American Water provides safe, clean, affordable and reliable water services to our customers to help keep their lives flowing. For more information, visit amwater.com and diversityataw.com. Follow American Water on Twitter, Facebook and LinkedIn.