New Jersey American Water has officially completed its purchase of Salem City’s water and wastewater systems for $18 million. This acquisition, which was approved by the New Jersey Board of Public Utilities, allows the company to start providing services to Salem’s residents right away.
Previously managed by the city, these systems serve more than 2,300 customers. With the acquisition now finalized, New Jersey American Water plans to enhance and manage the infrastructure, including bringing on six Salem City utility employees to its team. This move is part of a broader strategy to improve water and wastewater services in the area.
Mark McDonough, the president of New Jersey American Water, expressed appreciation for the community’s support. “We are honored to take on the responsibility of operating and improving Salem’s water and wastewater systems. We’re also excited to welcome the Salem City utility employees to our team,” McDonough said.
The decision to sell the systems followed a successful referendum on November 7, 2023, where over 60% of voters approved the transfer. Under the terms of the agreement, New Jersey American Water has committed to investing more than $50 million into system upgrades over the next decade.
This investment will focus on implementing PFNA (perfluorononanoic acid) treatment and addressing the city’s aging infrastructure to ensure safe and reliable service. Salem City Mayor Jody Veler emphasized the positive impact of the sale. “This sale is a significant step forward for our community.
It ensures that our utilities will be managed by a professional company, which will help in making the systems more efficient and reliable. Additionally, the sale will eliminate $11 million in utility debt and contribute over $1 million annually to the city’s budget,” Veler noted.
The acquisition is part of New Jersey American Water’s ongoing expansion efforts. This deal marks the company’s sixth acquisition in the past six years, reflecting its commitment to improving water services across the state.
By integrating new systems and investing in infrastructure, New Jersey American Water aims to provide enhanced service and support to more communities throughout New Jersey.
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