New Jersey American Water Signs Agreement to Purchase Hopewell Borough Water System

American Water (NYSE: AWK) signed an agreement to acquire the Hopewell Borough water system for $6.4 million, following a November 2025 referendum where 58% of voters approved the sale.

Rhea-AI Summary

American Water (NYSE: AWK) signed an agreement to acquire the Hopewell Borough water system for $6.4 million, following a November 2025 referendum where 58% of voters approved the sale. The system serves over 880 customer connections. The company expects completion in H1 2026, subject to New Jersey Board of Public Utilities approval, and plans $7 million in infrastructure investments in the first five years, including lead service line replacements by 2031 and water main replacements.

Positive

• Acquisition price set at $6.4 million
• Planned $7 million infrastructure investment in five years
• 880+ customer connections added to regulated base
• Targeted lead service line replacements completed by 2031

Negative

• Transaction completion subject to NJ BPU approval
• Upfront capital needs may pressure near-term cash deployment

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New Jersey American Water to Invest $7 Million in Infrastructure in First Five Years

CAMDEN, N.J., Dec. 18, 2025 /PRNewswire/ -- New Jersey American Water announced today it signed an agreement to acquire the water system in Hopewell Borough for $6.4 million. This announcement follows a referendum vote in November of 2025 in which 58% of Hopewell voters approved the sale of the system. The Hopewell water system serves over 880 customer connections.

"We are honored to earn the trust of Hopewell Borough and its residents," said Mark McDonough, president of New Jersey American Water. "Because we have supplied a significant portion of Hopewell's water for many years through a bulk water agreement, this transition will be seamless for our future customers. We are committed to investing in the system to replace aging infrastructure, remove lead service lines, and enhance reliability, all while keeping rates affordable and delivering the high-quality service our customers expect and deserve."

As part of the agreement, New Jersey American Water will invest $7 million in infrastructure improvements within the first five years of ownership. Anticipated improvements to the system include:

• Identifying and replacing all utility-owned and customer-owned lead and galvanized steel service lines by 2031
• Replacing aging water mains

Additional improvements will be identified through a comprehensive analysis of the system which New Jersey American Water will conduct upon taking ownership. 

"After over two years of analysis, planning, and community engagement by Borough Council and our town's dedicated professionals, I am excited for this transformative step forward that our voters chose this November," said Hopewell Mayor Ryan Kennedy. "Moving forward with this agreement with New Jersey American Water allows our community to receive the critical investments we need to modernize our water infrastructure and help ensure safe, reliable service for every resident while reducing our water rates. It also allows us to retire our municipal debt and reinvest those funds in priorities that strengthen our community. This is not just progress, it's the start of our ongoing commitment to sustainability and affordability for our entire community."

New Jersey American Water is working with Hopewell to help ensure a smooth transition for customers. Subject to approval from the New Jersey Board of Public Utilities (NJ BPU), the company anticipates completing the acquisition in the first half of 2026.

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, providing safe, clean, reliable and affordable water and wastewater services to approximately 2.9 million people.

For more information, visit www.newjerseyamwater.com and follow New Jersey American Water on LinkedIn, Facebook, X, and Instagram. 

View original content:https://www.prnewswire.com/news-releases/new-jersey-american-water-signs-agreement-to-purchase-hopewell-borough-water-system-302646253.html

SOURCE American Water

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did American Water announce about Hopewell Borough on December 18, 2025?

American Water announced an agreement to acquire Hopewell Borough's water system for $6.4 million.

How many customers does the Hopewell Borough water system serve for AWK?

The Hopewell system serves over 880 customer connections.

What infrastructure investment did American Water commit to for AWK after the acquisition?

American Water committed $7 million in infrastructure improvements within the first five years.

When does American Water expect the AWK acquisition of Hopewell to close?

The company anticipates completing the acquisition in the first half of 2026, subject to NJ BPU approval.

What regulatory step is required before the AWK acquisition closes?

The acquisition is subject to approval from the New Jersey Board of Public Utilities.

What specific system upgrades did American Water highlight for AWK customers?

Planned upgrades include replacing utility and customer-owned lead and galvanized service lines by 2031 and replacing aging water mains.