New Jersey American Water Files Rate Request Driven by More Than $1.4 Billion in Ongoing Investment to Provide Safe, Clean, Reliable and Affordable Service

Rhea-AI Summary

New Jersey American Water (NYSE: AWK) filed for new rates on Jan 16, 2026 to support more than $1.4 billion of water and wastewater investments through December 2026. The request would fund nearly 120 miles of replacement/rehabilitation work, ongoing lead service line replacements, and investments to address emerging contaminants such as PFAS. If approved, the typical residential water customer would pay about $10 more per month and sanitary wastewater customers about $8 more per month. The filing also seeks approval to expand monthly bill discounts tied to LIHEAP/USF recipients and to pass back a Gross Receipts Tax refund to customers. The BPU review process, including public hearings, can take nine months or more and all rate changes require BPU approval.

Positive

• Committed $1.4 billion for water and wastewater system investments through Dec 2026
• Plans to replace/rehabilitate nearly 120 miles of aging infrastructure
• Ongoing lead service line replacements and investments targeting PFAS
• Proposes expanded bill discounts for customers receiving LIHEAP/USF
• Seeks to return Gross Receipts Tax refund savings directly to customers

Negative

• Proposed average residential water bill increase of $10/month
• Proposed average sanitary wastewater bill increase of $8/month
• Rate changes subject to regulatory review that can take nine months or more

Key Figures

Planned investments: over $1.4 billion Population served: approximately 2.9 million people Infrastructure replaced: nearly 120 miles +2 more

5 metrics

Planned investments over $1.4 billion Water and wastewater system investments through December 2026

Population served approximately 2.9 million people Customers served statewide by New Jersey American Water

Infrastructure replaced nearly 120 miles Aging water and wastewater infrastructure to be replaced or rehabilitated

Water bill increase approximately $10 per month Typical average residential water customer if rate request approved

Wastewater bill increase $8 per month Typical sanitary wastewater customer if rate request approved

Market Reality Check

Price: $133.34 Vol: Volume 1,636,313 vs 20-da...

normal vol

$133.34 Last Close

Volume Volume 1,636,313 vs 20-day average 1,408,615 (relative volume 1.16x) ahead of this rate filing news. normal

Technical Shares at $133.35 are trading below the 200-day MA of $138.88, and about 14.24% under the 52-week high of $155.50.

Peers on Argus

AWK was up 0.68% with several regulated utility peers also modestly positive (e....

AWK was up 0.68% with several regulated utility peers also modestly positive (e.g., WTRG +1.01%, FE +0.69%), but no names appeared in the momentum scanner, suggesting stock-specific drivers rather than a strong sector rotation.

Common Catalyst Only one peer, Essential Utilities, had same-day news (executive appointment), with no broad regulatory or macro theme visible across the group.

Historical Context

5 past events · Latest: Jan 12 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 12	Customer savings initiative	Positive	+1.8%	Kentucky unit highlighted $70M 2025 upgrades and customer-saving tips.
Jan 07	Infrastructure investment update	Positive	-1.3%	Missouri unit promoted >$450M 2025 upgrades and conservation tools.
Dec 19	ESG recognition	Positive	-2.1%	Named to Newsweek’s 2026 America’s Most Responsible Companies list.
Dec 18	Small system acquisition	Positive	-0.7%	Agreed to buy Hopewell Borough system for $6.4M with planned $7M capex.
Dec 17	Rate case approval	Positive	-0.7%	Kentucky PSC approved new rates adding about $18.2M in revenue.

Pattern Detected

Recent company news has been largely positive, but share reactions often leaned flat-to-negative: 4 divergence events vs 1 aligned, indicating good headlines have not consistently produced upside moves.

Recent Company History

Over the past month, AWK subsidiaries have emphasized capital investment and regulatory outcomes. Kentucky and Missouri American Water highlighted 2025 system upgrades of about $70 million and more than $450 million, respectively, alongside customer savings tools. Kentucky also secured new water rates, adding roughly $18.2 million in annualized revenue tied to over $212 million of improvements. Corporate-level recognition on Newsweek’s 2026 responsibility list and a New Jersey system acquisition underscored growth and ESG positioning. Today’s New Jersey rate request extends this pattern of infrastructure-driven regulatory filings.

Market Pulse Summary

This announcement describes a New Jersey rate case aimed at supporting over $1.4 billion of water an...

Analysis

This announcement describes a New Jersey rate case aimed at supporting over $1.4 billion of water and wastewater investments through December 2026, including nearly 120 miles of infrastructure work and PFAS-related treatment. It also outlines proposed bill increases and expanded access to assistance programs for roughly 2.9 million customers, plus plans to pass back a Gross Receipts Tax refund. In context of AWK’s recent rate approvals and ongoing merger-related filings, investors may watch regulatory timelines, allowed returns, and customer affordability measures closely.

Key Terms

pfas, liheap

2 terms

pfas medical

"investments to address emerging contaminants such as PFAS in drinking water."

PFAS are a group of human-made chemicals used in many everyday products, such as non-stick cookware, water-repellent clothing, and food packaging, because they resist heat, water, and grease. They are often called "forever chemicals" because they do not break down easily in the environment or the human body, potentially leading to health concerns. For investors, the presence of PFAS-related risks can impact companies’ reputations, legal liabilities, and future costs.

liheap regulatory

"customers who already receive energy assistance through LIHEAP and USF."

Liheap is a government program that provides financial assistance to help low-income households pay their heating and cooling bills. For investors, it highlights the importance of energy affordability and can influence energy demand and utility company performance, especially in regions where many residents rely on such aid. Understanding liheap helps gauge the social and economic factors that can affect energy consumption and related markets.

AI-generated analysis. Not financial advice.

Request supports continued infrastructure investments, expanded customer assistance, and a plan to return tax-related savings to customers

CAMDEN, N.J., Jan. 16, 2026 /PRNewswire/ -- New Jersey American Water today filed a request with the New Jersey Board of Public Utilities (BPU) for new rates to support over $1.4 billion in ongoing water and wastewater service system investments through December 2026. The request reinforces the company's commitment to implementing critical system upgrades and continuing to improve water quality and reliability for approximately 2.9 million people served statewide.

"As we continue to invest in our infrastructure, we're strengthening our systems, enhancing reliability, and improving water quality from treatment to the tap for the communities that count on us," stated New Jersey American Water President Mark McDonough. "These improvements reflect our commitment to providing our customers with affordable, high-quality service – made possible by our dedicated employees, who remain focused on protecting the health and safety of the people and communities we serve."

The proposed request will support the company's continued investment to modernize and strengthen its water and wastewater systems in communities across New Jersey, including the replacement or rehabilitation of nearly 120 miles of aging infrastructure, the ongoing replacement of lead service lines, and investments to address emerging contaminants such as PFAS in drinking water.

Under the company's proposal, if approved, the typical average residential water customer would see an increase of approximately $10 per month. Customers served by sanitary wastewater systems would see an average increase of $8 per month.

Expanding Access to Customer Assistance
New Jersey American Water is seeking approval to make monthly bill discounts more accessible for customers who already receive energy assistance through LIHEAP and USF. If approved, this would make New Jersey American Water the only water utility in New Jersey to offer this level of support. "Our customers deserve reliable, affordable water service," shared McDonough. "We're proud to build on our assistance programs so more families can get the help they need."

New Jersey American Water remains committed to affordability and offers programs to assist income-eligible customers, including its H2O Help to Others assistance program, budget billing options and flexible payment plans. More details can be found at www.newjerseyamwater.com/h2oprogram.

Proposed Gross Receipts Tax Refund Pass-Back
Additionally, New Jersey American Water is seeking permission to return savings from a Gross Receipts Tax (GRT) refund directly to customers. The company is seeking approval to offset other regulatory expenses with the refund, then spread the remaining balance back to customers.

"This proposal will help ensure that customers benefit from tax-related savings," added McDonough. "By passing back the GRT refund through our rates, we're helping to keep water service affordable and fair for our customers."

To learn more about New Jersey American Water's rate filing and the regulatory process behind it, visit newjerseyamwater.com/fromtreatmenttotap. For details on infrastructure investments in your community - including upgrades to treatment plants, water mains, and service lines - explore its Infrastructure Investment page.

The company's request for new rates undergoes extensive scrutiny by the BPU, the New Jersey Division of Rate Counsel, and the Office of Administrative Law. This robust review process includes examinations, public hearings and evidentiary hearings and can take nine months or more. This review process offers opportunities for customer involvement through written comments and attendance at public input hearings. All rate changes require BPU approval. If approved, the company's new rates would take effect the second half of the year.

About American Water 
American Water (NYSE: AWK) is the largest regulated water and wastewater utility company in the United States. With a history dating back to 1886, We Keep Life Flowing® by providing safe, clean, reliable and affordable drinking water and wastewater services to more than 14 million people with regulated operations in 14 states and on 18 military installations. American Water's 6,700 talented professionals leverage their significant expertise and the company's national size and scale to achieve excellent outcomes for the benefit of customers, employees, investors and other stakeholders.

For more information, visit amwater.com and join American Water on LinkedIn, Facebook, X and Instagram.

About New Jersey American Water
New Jersey American Water, a subsidiary of American Water, is the largest regulated water utility in the state, with over 950 dedicated employees working to provide safe, clean, reliable and affordable water and wastewater services to approximately 2.9 million people.

AWK-IR

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SOURCE American Water

FAQ

What did New Jersey American Water (AWK) file with the BPU on January 16, 2026?

AWK filed a rate request to fund over $1.4 billion in water and wastewater investments through December 2026.

How much would the typical New Jersey residential water customer pay if AWK's rate request is approved?

The company projects an average increase of about $10 per month for a typical residential water customer.

What infrastructure work does the AWK rate filing cover for New Jersey through 2026?

The filing covers nearly 120 miles of replacement or rehabilitation, lead service line replacements, and investments to address PFAS.

How does the AWK filing affect customer assistance programs in New Jersey?

AWK seeks approval to expand monthly bill discounts to customers who receive LIHEAP and USF support, aiming to increase access to assistance.

Will New Jersey American Water return tax savings to customers under the filing?

The company is requesting permission to pass back a Gross Receipts Tax refund to customers after offsetting certain regulatory expenses.

When would new rates take effect if the BPU approves AWK's request?

If approved, the company's new rates would take effect in the second half of the year following regulatory approval.