New Jersey American Water acquires Manville sewer system for $6.5M

New Jersey American Water announced an agreement to acquire the wastewater collection system of the Borough of Manville, N.J. for $6.5 million.

This municipally owned system serves approximately 3,700 customers, most of whom already receive water service from New Jersey American Water. The agreement follows a voter referendum that took place in November 2023, in which more than 80% of voters approved the sale of the system to New Jersey American Water.

“I want to thank the residents and elected officials of Manville for entrusting us to manage and improve their sewer utility and help safeguard the Borough and the environment from the many risks associated with operating a sewer collection system,” said Mark McDonough, president of New Jersey American Water. “We have extensive experience and expertise in providing drinking water and sewer service. As Manville’s longtime water company, we remain 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, and subject to 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 improvements in the 10 years following completion of the acquisition.

The system upgrades include addressing inflow and infiltration, flood mitigation efforts, and sewer main repairs and replacements. The agreement also includes short- and long-term rate stability proposals.

“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.”

Additional customer benefits include combined monthly billing for water and sewer, and extending the monthly water service charge discount to the monthly sewer service charge for income-qualifying customers who participate in the company’s H2O: Help to Others program.

New Jersey American Water is working with the Borough to help ensure a smooth transition for customers. The company anticipates completing the acquisition in the second half of 2024, pending approval from the NJ BPU.