Anthony P. Terracciano was named to the New Jersey State Investment Council by Gov. James E. McGreevey. He replaced Robert T. Hoffman, who resigned in November, said Orin S. Kramer, investment council chairman. The 11-member council oversees the seven state pension funds that make up the $57 billion New Jersey Division of Investment, Trenton. Mr. Terracciano is vice chairman of American Water Works Co. Inc., Voorhees, N.J., past chairman of Dime Bancorp FSB and former president of First Union Corp.