New Jersey American Water has disclosed a deal to purchase the wastewater collection system of the Borough of Manville, N.J., for $6.5 million.
This system, owned by the municipality, caters to around 3,700 customers, many of whom are already receiving water service from New Jersey American Water. The acquisition comes after a voter referendum held in November 2023, where over 80% of voters sanctioned the sale of the system to New Jersey American Water.
Mark McDonough, president of New Jersey American Water, expressed gratitude to the residents and officials of Manville for entrusting them with the management and enhancement of their sewer utility. He emphasized the company’s vast experience in delivering drinking water and sewer services and reiterated their commitment to upgrading the sewer service to ensure safety, reliability, and affordability similar to their water service.
As per the acquisition agreement, contingent on approval from the New Jersey Board of Public Utilities (NJ BPU), New Jersey American Water will invest a minimum of $10 million in sewer system enhancements over the 10 years following the completion of the acquisition.
The planned upgrades encompass addressing inflow and infiltration issues, flood mitigation initiatives, as well as repairs and replacements of sewer mains. The agreement also includes proposals for short- and long-term rate stability.
“Selling the sewer system to New Jersey American Water provides a number of benefits to the Borough and our residents including stabilizing municipal property taxes and freeing up Borough resources to be dedicated to other responsibilities,” said Mayor Richard Onderko. “New Jersey American Water continues to put Manville customers first and I trust them to maintain our sewer system with the same level of responsibility and dedication which they do our water system.”
Customers stand to benefit from combined monthly billing for water and sewer services, along with extending the monthly water service charge discount to income-qualifying customers participating in the company’s H2O: Help to Others program.
New Jersey American Water is collaborating with the Borough to ensure a seamless transition for customers. The company anticipates finalizing the acquisition in the latter half of 2024, pending approval from the NJ BPU.
Source :New Jersey American Water
