New Jersey American Water company hiking rates by 12 percent

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(AP) - New Jersey's largest water company will increase its customer rates by 12 percent starting next month.

New Jersey American Water says the rate increases amount to about $6 more each month for water bills and about $4 for wastewater bills. It says the increase will help pay for an $868 million system overhaul.

The New Jersey Board of Public Utilities must still review the rate increases. If that panel approves a lower rate, New Jersey American Water says it will refund the excessive rates, with interest.

The rate hike follows a 6 percent drop in bills in April. New Jersey American Water attributed those drops to the federal tax overhaul.

New Jersey American Water serves more than 670,000 customers overall.

(Copyright 2018 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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