NJ American Water to Purchase Long Hill Township Sewer System

(UC) — New Jersey American Water said it has signed an agreement to acquire the wastewater assets of the Township of Long Hill, N.J. for $12.7 million. 

The municipally owned sewer system serves approximately 2,800 customers, most of whom already receive water service from New Jersey American Water. The agreement follows a voter referendum that took place in November, in which voters approved the sale of the system to New Jersey American Water by a two to one margin.

“The proceeds from the sale will eliminate our debt, freeing up over $1 million in our annual budget," said Long Hill Township Mayor Matthew Dorsi.

Under the terms of the acquisition agreement, New Jersey American Water will invest more than $13 million in critical sewer system improvements over the next five years while freezing current sewer rates for residents for two years and increasing rates no more than 3 percent annually for the three years after that.

Planned improvements include pump station upgrades, sewer main lining and replacements to reduce the infiltration of stormwater and treatment plant upgrades to reduce and ultimately eliminate the release of partially treated wastewater during heavy rain events. Additionally, the company said it will coordinate sewer and water pipeline replacements with the Township’s road paving schedule to minimize disruption.

New Jersey American Water anticipates completing the acquisition in summer 2020, following approval from the New Jersey Board of Public Utilities.

New Jersey American Water, a subsidiary of American Water, is the largest investor-owned water utility in the state, providing service to approximately 2.7 million people.

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