ALBANY- The New York State Public Service Commission (Commission) will hold virtual public statement hearings on Wednesday, February 21, 2024, concerning a joint proposal filed in the above-captioned proceeding.
On January 4, 2024, a joint proposal was filed proposing a new rate plan for Veolia Water New York, Inc. (Veolia or the company) for four years from February 1, 2024, through December 31, 2027, with Rate Year 1 (RY1), Rate Year 2 (RY2), and Rate Year 3 (RY3) defined as the 12 months ending on January 31, 2025, January 31, 2026, and January 31, 2027, respectively. Rate Year 4 (RY4) will reflect the 11-month period commencing on February 1, 2027, and ending on December 31, 2027, thus allowing the company to synchronize its rate year with the calendar year in its next rate filing. The signatories to the joint proposal are Veolia; staff of the Department of Public Service; the City of Rye, the Village of Port Chester, and the Village of Rye Brook (collectively, the Westchester municipalities); the Public Utility Law Project of New York, Inc. (PULP); the Rockland Business Association; and Laborers’ Local 754. The Westchester municipalities and PULP support the joint proposal in part.
Pursuant to the joint proposal, Veolia’s existing New York (Rockland and Orange counties), Owego-Nichols, and Heritage Hills operating units would be consolidated into one “New York Rate District” subject to a single revenue requirement. The company’s Westchester Rate District 1 and Westchester Rate District 2 (the Westchester rate district) will likewise be subject to a single revenue requirement. Rates in the Westchester rate district would continue progressing toward harmonization with the other divisions.
Rates would be levelized to moderate rate increases for customers in the New York rate district, resulting in an $8,678,019 increase in RY1 (6.7 percent), a $9,258,535 increase in RY2 (6.7 percent), a $9,877,884 increase in RY3 (6.7 percent), and a $9,660,442 increase in RY4 (6.1 percent). In the Westchester Rate District, levelized increases would result in a $4,961,865 increase in RY1 (5.9 percent), a $5,253,693 increase in RY2 (5.9 percent), a $5,562,684 increase in RY3 (5.9 percent), and a $5,399,027 increase in RY4 (5.4 percent).
The proposed revenue requirements reflect a common equity ratio of 48 percent and a return on equity of 9.10 percent. The proposed rate plan would also include an earnings-sharing mechanism pursuant to which customers would share annual earnings that exceed 9.6 percent. Among other things, the joint proposal would continue the company’s conservation and efficiency program, establish a water affordability program, and require that the company take certain actions related to climate change and the environment.
The full text of the joint proposal, a summary of its key provisions (prepared by Veolia), and other filings in this proceeding may be reviewed online at the Department of Public Service web page at www.dps.ny.gov (please click “File Search” under the “Commission Files” heading, then enter “23-W-0111” in the “Search by Case Number” field).
The Commission may adopt, adopt with changes, or reject, in whole or in part, any of the terms proposed in the joint proposal. The Commission may also adopt terms other than those proposed.
Any person wishing to provide a public statement on the record must pre-register by 3:00 p.m. on Friday, February 16, 2024.
To pre-register and to participate electronically participants must visit www.webex.com, where they should click “Join” at the top right-hand corner of the screen, enter the appropriate event number listed above, and then provide all requested information.
