CAMDEN, N.J. – New Jersey American Water announced its $18 million purchase of Salem City’s water and sewer systems, serving over 2,300 customers. The acquisition, supported by a November 7, 2023, referendum with 60% voter approval, promises significant investment and rate stabilization.
Mark McDonough, President of New Jersey American Water, expressed gratitude to Salem’s community for their trust. The company’s sole focus on water and sewer services underpins its commitment to enhancing these utilities.
The agreement includes a $50 million infrastructure investment plan within the first decade post-acquisition. This plan, pending New Jersey Board of Public Utilities (NJ BPU) approval, encompasses system upgrades, PFNA treatment implementation, and repairs to the city’s aging water and sewer infrastructure. Additionally, the rate plan will freeze current sewer rates for two years, followed by a maximum 3% annual increase over the subsequent three years.
Salem City Mayor Jody Veler highlighted the sale’s benefits, including professional management of the utilities, debt reduction, and financial gains for the city budget. The transition aims to ensure reliable and affordable services for Salem residents.