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For Immediate Release: 05/16/2024 Rory M. Christian, Chair and Chief Executive Officer Contact:
James Denn | James.Denn@dps.ny.gov | (518) 474-7080 24042/23-W-0111 May 16, 2024
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PSC Substantially Reduces First Year Rate Increase for Veolia Water |
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Adopted Rate Plan Reduces Company’s Request by 58 Percent in First Year Rate Plan Creates State’s First Low-Income Discount Program for Private Water Company
ALBANY — The New York State Public Service Commission (Commission) today adopted the terms of a joint proposal, subject to minor modifications, that establishes a four-year rate plan from February 1, 2024, to December 31, 2027, for the more than 120,000 customers of Veolia Water New York Inc. (Veolia), which serves parts of Rockland, Orange, Westchester, Putnam, and Tioga counties, and substantially lowered the company’s initially requested rate increase.
“With this four-year plan, the company will be able to continue to provide its customers with clean, safe water,” said Commission Chair Rory M. Christian. “Adoption of this rate plan ensures critical investments are made and ensures the continued provision of safe and adequate water service.”
In its decision, the Commission substantially adopted the terms of a joint proposal signed by Veolia and Department of Public Service trial staff, the Rockland Business Association, and Laborers' Local 754. The Public Utilities Law Project, Inc., and jointly the City of Rye, the Village of Port Chester, and the Village of Rye Brook supported the joint proposal in part.
The company initially proposed to increase its delivery revenues by approximately $18.4 million, or 14.1 percent, in Orange and Rockland counties, and by $14.1 million, or 16.8 percent, in the Westchester district, for a total of $32.5 million in the first year. The joint proposal that was adopted allows for a first-year overall rate increase of just $13.6 million, or 58 percent less than the original request.
The adopted joint proposal includes a New York Rate District, which includes the customers of the former SUEZ Water New York, Forest Park, SUEZ Water Owego-Nichols, and Heritage Hills districts, and a Westchester Rate District, which includes the customers of the former SUEZ Water Westchester district. In the New York Rate District, levelized revenue increases for the first through the fourth year would be approximately $8.7 million, $9.3 million, $9.9 million, and $9.7 million, respectively, equating to a 6.7 percent increase in each rate year. In the Westchester Rate District, levelized revenue increases for the first through the fourth year would be approximately $5 million, $5.3 million, $5.6 million, and $5.4 million, respectively, equating to a 5.9 percent increase in each rate year.
The company said the increases were needed due to increases in various costs outside of its control, and to ensure that it can continue to deliver safe, adequate, and reliable water service. The drivers of the rate increase include capital improvements, chemical and energy costs, purchased water costs, and increased water treatment costs associated with new water quality regulations. The rate plan also creates a low-income discount program for water — the first of its kind in New York State for a private water company.
To ensure the public was heard during the ratemaking process, the Commission held six public comment hearings and received well over 250 public comments. Veolia provides drinking water and water for fire protection to approximately 122,500 customers in Rockland, Orange, Westchester, Tioga, and Putnam counties.
Today’s decision may be obtained by going to the Commission Documents section of the Commission’s Web site at www.dps.ny.gov and entering Case Number 23-W-0111 in the input box labeled "Search for Case/Matter Number". Many libraries offer free Internet access. Commission documents may also be obtained from the Commission’s Files Office, 14th floor, Three Empire State Plaza, Albany, NY 12223 (518-474-2500). If you have difficulty understanding English, please call us at 1-800-342-3377 for free language assistance services regarding this press release.
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