New Jersey American Water closes Mount Ephraim Sewer System acquisition

New Jersey American Water has closed its acquisition of the wastewater assets of the Borough of Mount Ephraim, New Jersey, for around $1.4m.

This sewer system serves around 1,800 customers. Most of these customers have been receive water service from New Jersey American Water.

The New Jersey Board of Public Utilities approved the acquisition of the municipal-owned sewer system on 21 June.

New Jersey American Water president Cheryl Norton said: “As Mount Ephraim’s water company for more than a decade and a water provider to the area for over 90 years, we are pleased to expand our relationship with residents as their sewer service provider. Water and sewer is all we do, and we are deeply committed to making improvements to ensure the community’s sewer service is as clean, safe, reliable and affordable as the water service we provide.”

This deal followed a voter referendum in November 2018, which saw around 80% of voters approving the divestment of the sewer system to New Jersey American Water.

Under this agreement, New Jersey American Water will invest over $4m in sewer system improvements in the next four years. It will freeze current sewer rates for residents for two years and increase rates no more than 3% annually for the three years following that.

Mount Ephraim Mayor Joseph Wolk said: “The sale of our sewer system to New Jersey American Water is a big win for the residents of Mount Ephraim. By selling the system, we are eliminating uncontrollable sewer costs which have been a major uncertainty in our budget, the company is committed to making $4 million in investments into necessary system upgrades, and the $1.4 million purchase price will be used to reduce the Borough’s municipal debt. This is a great outcome for our residents.”

Employees working on the sewer system and part of the Borough’s Department of Public Works will be reassigned within the department for other critical functions.

A subsidiary of American Water, New Jersey American Water provides water and wastewater services to around 2.7 million people.