United Water New York today filed for rate relief with the New York State Public Service Commission (PSC) requesting a $9.92 per month or .33 cents per day increase in rates for a typical residential customer using 30 ccf or 22,400 gallons a quarter. The proposed increase, if approved by the PSC, would raise the average residential customer’s annual bill from $573 (including surcharges) to $692. The PSC last approved a three-year rate plan for United Water New York in December 2006.
“In these difficult times when a utility raises rates for its services, customers and elected officials are certainly entitled to an explanation. Nobody likes a rate increase, and we at United Water New York do not like to raise rates,” said Michael Pointing, vice president and general manager of United Water New York. “However, simply put, it costs more today to provide reliable water service than when United Water New York’s current rates were set.”
Over the last three years, United Water New York has made more than $80 million in investments and improvements to the water system serving the majority of Rockland County’s residents and a portion of Orange County.
“We’ve made substantial investments in the last three years on behalf of our customers to improve service and maintain water quality,” said Pointing. “This rate filing is necessary for us to continue to ensure the continued safety and reliability of our water system, to meet increasingly stringent water quality regulations, and to develop future supplies for the ever-rising demand for water.”
These significant investments have provided improved pressure and fire flows, auxiliary power to ensure uninterrupted service in the event of a power failure and improve the reliability of the system, additional short term water supply for reliability and continuation of service and additional treated water storage.
The company has also developed new, sustainable sources of water to meet the short-term supply goals of the Joint Proposal, an agreement that was adopted as part of the New York State Public Service Commission rate order in December 2006 and signed by United Water New York, PSC Staff, the Town of Ramapo, the County of Rockland, the Rockland County Fire Chiefs, then Rockland County Legislator and now New York State Assemblywoman Ellen Jaffee, and the Woodlands at Tuxedo Homeowners Association, and has proposed a viable solution to the long-term water issue – the Haverstraw Water Supply Project.
Of the total capital invested, $1.5 Million has been used to replace or raise hydrants to the new American Water Works Association standard M17. In addition, United Water serviced over 6,500 hydrants during the 3 year period. UWNY’s priority is to provide reliable value for its services. To achieve this priority, UWNY stringently controls operation and maintenance expenses so that the Company runs as efficiently as possible.
Investment in infrastructure will continue in the future through programs such as the Underground Infrastructure Renewal Program (UIRP) and the Short Term Water Supply Program providing additional supply and enhancing reliability of service.
“These projects vividly show how United Water New York is continuously investing in the water system,” Pointing said. “We’re meeting today’s needs and investing for the future.”
Despite strong cost control efforts, since 2006 the company’s operational costs have increased for items such as real estate taxes, medical benefits, post-employment benefits and outside contractors necessary to sustain our groundwater supplies. “We’ve worked hard to control operating costs, but prices continue to rise at an alarming rate,” said Pointing. “That’s one of the reasons we continue with an aggressive water conservation program and a low-income customer payment assistance program through UW Cares.”
Finally, there is a need for additional employees, largely due to requirements of the New York State Sanitary Code clarifying the licensing requirements and operation of public water systems and new Environmental Protection Agency rules for groundwater monitoring.
MTBE settlement would yield $3.2M customer benefit
Over the past several years, United Water New York was a party to extensive national litigation against major oil companies for contamination or potential contamination of the water supply by the gasoline additive MTBE.
This litigation produced a substantial award of damages and United Water New York has recommended that the PSC return the award back to customers. “We have taken up the fight for our customers and have emerged victorious,” said Pointing. “This is a significant sum that should be returned to the customers.”
Under a settlement with the PSC, United Water New York proposes that over $3.2M of the litigation proceeds be used to benefit customers by offsetting any rate increase resulting from the current rate filing.
In addition, the litigation produced a Future Treatment Obligation under which the oil companies will underwrite the costs of future contamination of the water supply by MTBE, which would further reduce costs for customers.
The proposed increase in rates, subject to review and a decision by the PSC, which may accept, modify or reject in whole or in part the proposed increase, could take up to 11 months to process. Customers can view the rate case filing in person by visiting United Water New York’s offices at 360 West Nyack Road, West Nyack, NY, by visiting various libraries throughout Rockland and Orange, our website by clicking here or the PSC website at www.dps.state.ny.us.
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United Water Rate Filing Impact Chart
Average Residential Customer Quarterly Amount
Current $143 (including current surcharges)
Proposed $173
Net Percent Increase 20.77%