New Jersey American Water is finalizing its acquisition of Salem’s water and sewer utility

Acquisition adds 2,300 new customers; The company welcomes six Salem employees

CAMDEN, New Jersey, June 25, 2024–(BUSINESS WIRE)–New Jersey American Water today completed its acquisition of Salem, New Jersey’s water and sewer systems for $18 million. These former municipally owned systems serve over 2,300 water customers and 2,300 wastewater customers. On May 22, 2024, the New Jersey Board of Public Utilities (NJ BPU) approved a municipal consent permitting New Jersey American Water to provide service to Salem City customers upon closing of the transaction.

“We are honored and grateful to the residents and elected officials of the City of Salem who, starting today, entrust us with the ownership, improvement and operation of their water and wastewater systems. We are ready to begin implementing our commitment to make the necessary investments in these systems to ensure clean, safe, reliable and affordable service to all residents,” said Mark McDonough, president of New Jersey American Water. “We are also thrilled that six Salem City utility employees became New Jersey American Water employees today and joined our South Operations team and Local 99 Water Workers.”

The agreement to purchase the systems was signed following a referendum held on November 7, 2023, in which more than 60 percent of voters approved the sale of the systems to New Jersey American Water. As part of the agreement, New Jersey American Water committed to investing more than $50 million in improvements over the first 10 years. These investments include a robust capital improvement plan, including modernizing critical systems, implementing PFNA treatment, and repairing the city’s aging water and wastewater infrastructure.

“The sale of our systems to New Jersey American Water is the right decision for our community because it allows our municipal water and sewer utilities to be managed by a professional company whose sole purpose is to focus on making appropriate, efficient investments and ensuring that these critical services are safe, reliable and affordable for our residents,” said Salem Mayor Jody Veler. “The sale will also eliminate $11 million in utility debt and pay down a portion of the municipal debt, as well as enable us to contribute more than $1 million to the city budget each year.”

Residents will receive additional information in the mail from New Jersey American Water in the next 3-7 days, and this information is also now available on the company’s new dedicated website at www.newjerseyamwater.com, under Customer Service and Billing, select the City of Salem .

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Additionally, the company will host a community open house on Saturday, July 13 from 12:00 p.m. to 3:00 p.m. at the Amy “Hetty” Reckless Center at 116 West Broadway, Salem, NJ. Employees will be there to provide information and answer questions about infrastructure investments, water quality, environmental protection and other topics, as well as help customers register for the MyWater online customer portal and the H2O Help to Others bill payment assistance program. For more information about Bill Payment Assistance program eligibility requirements, visit www.newjerseyamwater.com under Customer Service and Billing, Customer Assistance Programs.

This is New Jersey American Water’s sixth acquisition in the last six years. In June 2023, New Jersey American Water completed its acquisition of Egg Harbor City’s water and wastewater system under the state’s Water Infrastructure Protection Act, adding more than 1,500 water providers and 1,500 wastewater service providers. The company also completed four wastewater acquisitions across its water footprint, adding a total of more than 11,300 new wastewater customers. In 2023, the company acquired Somerville’s wastewater treatment system from 3,800 customers; Bound Brook sewer with 2,800 customers in 2022; the Long Hill Township Wastewater Treatment System with 2,900 customers in 2020 and the Mount Ephraim Wastewater Treatment System with 1,800 customers in 2019.

Additionally, New Jersey American Water signed an agreement earlier this year to purchase the 3,700-customer Manville wastewater system, which was approved in a ballot referendum in November 2023. The company expects to complete this acquisition in the second half of 2024, pending N.J. approval BPU.

About American Water

American Water (NYSE: AWK) is the largest regulated water and wastewater company in the United States. With a history dating back to 1886, We Keep Life Flowing® provides safe, clean, reliable and affordable drinking water and wastewater services to more than 14 million people with regulated operations in 14 states and 18 military installations. American Water’s 6,500 talented professionals leverage their significant expertise and the company’s national size and scale to achieve superior results for the benefit of customers, employees, investors and other stakeholders.

For more information, visit amwater.com and connect with 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 high-quality and reliable 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, Xand Instagram.

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Communication

Contact with the media:
Denise Venuti free
Senior Director of Communications and External Affairs
American water from New Jersey
[email protected]