During their November 20 budget workshop, Board of Public Utilities’ (BPU) staff detailed the growing impact of deferred maintenance across key parts of the utility, especially in the water treatment system. Multiple departments reported that several years of flat capital funding have made it challenging to keep pace with aging equipment and long term repair needs.
Staff described how some facilities are now due for major upgrades after years of postponements. In the water division, necessary maintenance has accumulated over several budget cycles, increasing both cost and urgency. A major boiler cleaning, recommended every ten years, must be completed in the upcoming year, and additional rehabilitation projects are expected to follow.
Across the electric system, challenges are similar. Some transformers scheduled for replacement are more than half a century old, including units aged 51 and 62 years at one location. Staff said that while the equipment has lasted far longer than industry expectations, replacements can no longer be delayed.
The budget also includes several large capital requests that reflect this growing backlog. Staff emphasized that while operating budgets have remained fairly flat, capital costs continue to rise due to inflation, supply chain delays, and the long lead times required for specialized utility components.
These pressures tie directly to the broader conversation about BPU’s use of debt financing in the upcoming budget. Staff noted that several major projects cannot be paid for with available cash, especially given the need to address deferred maintenance that affects every operational area. They said these challenges reinforce the importance of long-range planning and the need to maintain reliable service for customers.
The discussion around aging systems, water treatment maintenance, and the cost of overdue repairs is expected to remain central as BPU finalizes its priorities for 2026.
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