American Water subsidiary New Jersey American Water receives NJBPU approval for $68M annualized rate increase

Executive Summary

On September 9, 2026, the New Jersey Board of Public Utilities (NJBPU) issued an order approving without modification the stipulation of settlement in the general rate case for New Jersey-American Water Company, Inc., a wholly owned subsidiary of American Water Works Company, Inc. ($AWK).

Key Rate Order Parameters

• Annualized Revenue Increase: $68 million in water and wastewater revenues, effective September 15, 2026 (revised down from the original request of ~$146 million filed in January 2026).
• Authorized Return on Equity (ROE): 9.5%
• Authorized Rate Base: $6.06 billion
• Capital Structure: 54.0% common equity and 46.0% long-term debt.
• Primary Driver: Recognition of approximately $1.4 billion in capital investments completed since the prior general rate case.

PFAS Settlement Credit (PLUS Mechanism)

• In a related action, the NJBPU approved the PFAS Litigation Universal Surcredit (PLUS) mechanism.
• Will return over $79 million in PFAS settlement proceeds and interest to eligible water customers via a $9.88 monthly credit over 12 months starting in September 2026, offsetting rate adjustments for retail customers.