ALBANY – The state Public Service Commission on Tuesday approved a new rate schedule for Suez Water New York, Inc. customers in Rockland County that reduces the rate increase from what the company sought. Suez had applied for a three-year proposal that would have raised rates by more than $5 million annually. The PSC’s modified plan reduces the proposed rate increase by $960,000 over the next three years.
The commission also strengthened conservation and leak-reduction programs, and created a first-of-its kind rebate program to assist low-income water customers.
PSC Chairwoman Audrey Zibelman said the plan the agency adopted “strikes a better balance for customers.” She said it encourages Suez “to improve system efficiency by implementing cutting-edge, pro-active water-loss and conservation management practices.”
The modified three-year plan implements annual revenue increases of $4.87 million to fund investments that will facilitate better management and control of water supplied and distributed by Suez to more than 290,000 people located mostly in Rockland.
In the first year of the plan, the average customer’s water bill will increase by 51-cents per month. In the second and third year, the rates for usage will increase with the average monthly bill increased by $3.80 and $4.87 respectively.
The modified plan needs to be accepted by the company by Friday, January 27 in order for it to take effect on February 1.
Rockland County Executive Edwin Day said the PSC did not go far enough to protect water consumers. “This is a dent in the costs. It’s certainly not a victory for the ratepayers of Rockland County.” Day also noted that ratepayers “are on the hook for $31 million in costs associated with a desalination plant that was never built – $8 million less than what Suez requested.” Rockland ratepayer should not have to pay expenses related to the water plant that was never built. “The ratepayers in Rockland did nothing to deserve these costs.”
Rockland has a legal action pending that challenges the expenses and cites the failure of the PSC to protect consumers from exorbitant charges related to the failed desalination plant.
There was no immediate comment from Suez. “We have not yet received the order. We understand it may be approximately 100 pages in length. This is a very complex and lengthy ruling that deserves very careful consideration. We will analyze the order thoroughly before we respond to the PSC and our customers,” said William Madden, Suez director of external affairs.
