Acquisition will add 2,900 new wastewater customers.
New Jersey American Water, a subsidiary of American Water, has sealed an agreement to acquire the wastewater collection system of the Borough of Bound Brook, New Jersey, for US$5 million. This municipally-owned system serves approximately 2,900 customers, most of whom already receive water service from New Jersey American Water.
Mark McDonough, president of New Jersey American Water, commented: “Providing water and wastewater service is all we do, and as Bound Brook’s water company for over a hundred years, we are committed to making the needed improvements to provide the community with sewer service that is as safe, reliable and affordable as the water service we provide.”
As part of the acquisition agreement, New Jersey American Water will invest more than $11 million in critical sewer system improvements in the next 10 years, while freezing current sewer rates for residents for two years and increasing rates no more than 3% annually for the three years after that.
Bob Fazen, Mayor, Bound Brook Borough, added: “The sale proceeds will enable us to pay down the Borough’s municipal debt and stabilise, or even potentially reduce, property taxes for our residents. Additionally, New Jersey American Water will be adding the sewer charges onto the existing water bills, which removes the significant burden of customer billing from the Borough’s finance department.”
This announcement marks New Jersey American Water’s third wastewater acquisition within the company’s water footprint in the last three years, adding a total of more than 7,500 new wastewater customers. The company acquired Mount Ephraim wastewater system in 2019 and the Long Hill Township wastewater system in 2020.