For Immediate Release: 7/16/20
John B. Rhodes, Chair
Contact:
James Denn | James.Denn@dps.ny.gov | (518) 474-7080
20061/19-W-0168; 19-W-0269 July 16, 2020
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PSC Substantially Reduces First Year Rate Increase for Suez Water |
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Rate Increase Delayed Until October Due to COVID-19 4-Year Rate Plan Supported by Several Municipalities, including City of New Rochelle, City of Rye, Village of Port Chester, Village of Rye Brook Allows Merger of Three Sister Companies to Create Greater Efficiencies Major Rate Drivers Include Taxes, Need for New Infrastructure Investments New Water Conservation Plan Created ALBANY — The New York State Public Service Commission (Commission) today adopted the terms of a joint proposal allowing Suez Water to merge three sister companies and establishes a four-year rate plan for the period of Feb. 1, 2020 to Jan. 31, 2024 while delaying any rate increase until October due to the financial impact COVID-19 is having on customers.
“With this four-year plan, the company will be able to continue to provide New Yorkers with clean, safe water and to save money by promoting and encouraging conservation and reducing leakage, as well as providing relief for customers facing hardship by creating a shareholder-funded emergency grant program for customers in hardship, identifying customers for a low-income discount program, and delaying impacts on rates,” said Commission Chair John B. Rhodes. “Adoption of this rate plan ensure critical investments that are good for the rates customers will pay, and good for their assurance of safe and adequate service.” In its decision, the Commission adopted the terms of the joint proposal signed by Department of Public Service staff, the company, the City of New Rochelle, the City of Rye, the Village of Port Chester, and the Village of Rye Brook and established a four-year rate plan for the period of February 1, 2020 to January 31, 2024.
On March 4, 2019, Suez sought an annual revenue increase of $31.5 million, a 19.8 percent increase, for the rate year ending January 31, 2021, for all the combined New York operating units. The company’s requested increases would have resulted in varying bill impacts to customers depending on their service territory.
With the Commission’s decision, after the October delay, the average rate increase for Rockland County customers over the four-year period will be $4.05 annually, or 9.1 percent; for New Rochelle customers, the average rate increase will be $1.93 annually, or 3.6 percent; and for Rye and Rye Brook customers, it will be $1.73 annually, or 4.1 percent.
To ensure public participation, the Commission held several public comment hearings and it received more than 100 public comments. Suez provides drinking water and water for fire protection to approximately 122,500 customers in Rockland, Westchester, Tioga, and Putnam counties.
In terms of water conservation, the Commission approved a plan that includes multiple approaches including rebates, outreach and education and conservation-oriented rate design.
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 Numbers 19-W-0168 or 19-W-0269 in the input box labeled "Search for Case/Matter Number". 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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