New Jersey American Water customers will begin seeing higher water and wastewater rates beginning September 15 following approval by the New Jersey Board of Public Utilities.

The approved rate increase will generate approximately $68 million in additional annual revenue for the company and will support more than $1.4 billion in continued upgrades to water and wastewater infrastructure across the state.

For the average residential water customer using approximately 5,700 gallons per month, the increase will amount to about $4 per month. Residential wastewater customers will also see an average increase of approximately $4 per month.

Customers receiving both water and wastewater service will see their bills increase by nearly $8 per month on average.

However, eligible water customers will receive a separate $9.88 monthly credit for 12 months through a newly approved PFAS Litigation Universal Surcredit, known as PLUS.

According to the company, the credit will more than offset the average water rate increase for eligible customers, resulting in an average net reduction of nearly $6 per month for water customers during the 12-month period. Customers receiving both water and wastewater service could see an average net reduction of nearly $2 per month during that time.

The PLUS credit is funded through more than $79 million in PFAS litigation settlement proceeds and interest, which will be returned directly to eligible customers. The credit will appear as “PLUS” on qualifying customers’ bills beginning in September.

The newly approved rates will also support the replacement or rehabilitation of nearly 120 miles of aging water mains, continued lead service line replacement and treatment upgrades related to PFAS and other emerging contaminants.

Actual bill impacts will vary depending on water usage, service type and service area.

New Jersey American Water says customers will receive additional information about the new rates in upcoming bill communications.