New Jersey American Water Emergency Generator

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NJ I-Bank Project of the Week: New Jersey American Water receives $13,948,660 in Water Bank loans saving ratepayers approximately $7,799,196.

New Jersey American Water recently completed drinking water improvements that are being financed with approximately $13.9 million in loans from the NJ Water Bank, a low-rate funding program jointly administered by the DEP and the NJ I-Bank. Total savings for this project are estimated to be $7,799,196 over the 30-year term of the loan or 60% of the total project cost. In addition, this project created an estimated 168 direct construction jobs. For this loan, the I-Bank used $3,452, 638 of funds made available from the Water Infrastructure Finance and Innovation Act (“WIFIA”). By using lower cost WIFIA funds, the Water Bank does not require as large a commitment of state revolving funds (SRF), enabling these SRF resources to finance additional projects that may otherwise not receive funding from the Water Bank.

New Jersey American Water made Improvements to the emergency standby power system at the Raritan Millstone Water Treatment Plant (Plant) in accordance with the Facility Master Plan. A 10-megawatt gas turbine generator was replaced with smaller diesel-fueled generators. The emergency power transfer switch was automated, and the diesel fuel storage and supply systems were modified to connect with new diesel generators.

“This critical investment in our emergency power generation is part of a series of efforts to further strengthen this essential treatment plant against increasing climate impacts,” said New Jersey American Water President Mark McDonough. “Having access to strategic financing through the Water Bank supports this commitment to increased reliability and efficiency while saving our customers financially over time.”

This project was designed by New Jersey American Water’s in-house engineering staff, and constructed by Allied Construction Group, Inc.

Pictures Courtes of New Jersey American Water

Published 4/24/2023