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For Immediate Release: 12/16/21 Rory M. Christian, Chair Contact:
James Denn | James.Denn@dps.ny.gov | (518) 474-7080
21128 / 21-W-0338 December 16, 2021
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PSC Approves Sale of SUEZ Water |
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Agreement Includes $4 Million Shareholder Contributions to Rate Relief
$1.5 Million in Shareholder Money for New Low-Income Discount Program Plus $750,000 in Overall Community Support
Staff Directed to Conduct Municipalization Study of SUEZ
ALBANY — The New York State Public Service Commission (Commission) today adopted the terms of a joint proposal regarding the sale of SUEZ Water, a private water company in Rockland County, to Veolia North America, Inc. The joint proposal — signed by the companies, Department of Public Service staff, and the Utility Intervention Unit of the Department of State — provides for shareholder contributions to arrears relief and to a new low-income discount program, a $4 million regulatory liability for future rate relief, and $750,000 in community support. No changes to personnel, management, and operations will be made to any SUEZ employees in New York for at least 18 months.
“With this decision, SUEZ can access much-needed capital and managerial resources that will allow it to provide better service to its customers in Rockland County,” said Commission Chair Rory M. Christian. “Given those facts, this decision is squarely in the public interest.”
In addition to the joint proposal requirements, the Commission requested that Department staff conduct a study of the feasibility of municipalities in the SUEZ service territory municipalizing the company and its assets, and to provide the information to the Commission and affected municipalities by June 30, 2022.
Under the joint proposal, company shareholders will donate an amount equivalent to 30 percent of the total residential customer arrears more than 60 days overdue, measured at the time of Commission approval of the transaction, designated as COVID-19 relief. The joint proposal also commits the merged company to accelerate the development of a low-income discount program and includes a commitment to a shareholder contribution of $1.5 million towards the initial costs of that low-income discount program.
The joint proposal states that the company will collaborate with staff and other interested parties regarding the Low-Income Household Water Assistance Program funded by the American Rescue Plan and Consolidated Appropriations Act of 2021. This agreement will accelerate the process of identifying and providing needed relief to low-income customers in SUEZ service territory.
Finally, to demonstrate its commitment to improving SUEZ’s customer service, the joint proposal requires Veolia to file a customer service improvement plan within 120 days from the date of the sale. The plan will be based on an in-depth review of SUEZ’s customer service operations to identify changes to customer service that will benefit customers, allowing for the identification of any customer service areas that need improvement.
Nothing in today’s decision prevents a municipality from attempting to acquire the assets of SUEZ within its municipal footprint either by negotiation or by eminent domain proceedings. The transaction simply changes the controlling company that serves as the ultimate parent to SUEZ. The company serves 500,000 residents in Rockland, Westchester, Tioga, Putnam, and Orange 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 21-W-0338 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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