Listen to this articleNew Jersey American Water continues to expand its customer base across the state, with its latest system acquisition planned for Hopewell Borough.
A representative for the Camden-based utility company said more than 58% of Hopewell voters approved a Nov. 4 referendum to sell the borough’s water system to NJ American Water. The representative noted Nov. 5 that the tally was based on unofficial results.
According to the announcement, the company will pay Hopewell $6.4 million and invest about $7 million in infrastructure during the first five years of ownership.
In March, Hopewell announced that the borough council passed a resolution approving a proposed contract with NJ American Water and that residents would have the opportunity to weigh in on the sale.
Hopewell will use the proceeds of the sale to pay down municipal debt, help stabilize property taxes, and free up resources for services such as public safety, parks and roads, according to the media representative.
NJ American Water President Mark McDonough thanked residents and community leaders who supported the referendum and “for entrusting us with the water system.”
“We will be working with the Borough to begin integration efforts and will be ready to get to work the day we transfer ownership,” McDonough added. The statement was also posted to a dedicated webpage for the transaction. “We look forward to fulfilling our promises and providing safe, affordable, and reliable service to all of Hopewell Borough.”
According to the Mercer County website, the borough has a population of roughly 1,900, as of 2019.
Flowing across NJ
The company also recently announced it would acquire the privately owned Gordon’s Corner Water Co., which serves about 15,000 customers in Colts Neck, Manalapan and Marlboro townships.
The Gordon’s Corner deal follows several acquisitions by NJ American Water over the past five years. The transactions have added more than 26,000 new water and/or wastewater customers to its service area, including:
The subsidiary’s parent company, American Water, also announced Oct. 27 that it will merge with Bryn Mawr, Pa.-based Essential Utilities Inc. in a deal valued at $40 billion.
