Your Water Rates

The cost of a gallon of New York American Water is a great value for the money.  Delivering high-quality water and service requires continued investment in treatment and distribution (pipeline facilities) to replace aging infrastructure and make the necessary system upgrades to meet drinking water standards. That’s why each year, we invest millions of dollars in improvement projects across the state. And, that’s just one example of the costs of doing good business.

We make the investments, but we don’t set our own rates. New York American Water is regulated by the  New York State Public Service Commission (PSC), and rates are established based upon the cost of providing service. This includes construction, maintenance, operation, administration and financing. Periodically, the company will file with the PSC for updates to its rates based on new infrastructure investments and any changes in the costs to operate the water system. This is referred to as a base rate case.*

As part of the rate filing, New York American Water must submit to the PSC extensive financial and operational data documenting its cost of doing business. The PSC then scrutinizes information provided by the company in an open and thorough process. Public hearings are held around the state to obtain customer input. And, after examining all the information, the PSC may grant all, some or none of the company’s request.

If an investment is deemed prudent and is approved, generally, the cost of that improvement is recovered over the life of the asset, not immediately in one shot. For example, if the company installs a pipeline at a cost of $1 million and the life of asset (the pipeline) is 100 years, it would take 100 years for the company to recover the costs related to that project.

*Costs of certain large system improvements can be recovered between base rate cases through System Improvement Charges (SIC), a program that was approved by the PSC and has allowed the company to implement several critical projects, such as iron removal treatment facilities and well and storage tank rehabilitations.  Each completed SIC project is thoroughly reviewed by the PSC before a charge is implemented.

New York American Water’s Rate Structure

There are two main components to rates: The cost per 100 gallons used and the monthly fixed service charge. When you put the two together, for most, our average residential customer pays about a penny a gallon. And, it’s delivered straight to your tap! NOTE: Rates can vary by district. Please refer the tariff below for more information about your rates.

You can learn more about the rate setting process in our white paper: Challenges In The Water Industry: The Rate Approval Process.

New York American Water Rates

 

New York American Water Files for Rate Change

 

 

On April 29, 2016, New York American Water filed an application with the New York Public Service Commission (PSC) for a rate increase to recover costs associated with providing reliable, high-quality water service and fire protection to its more than 124,000 customers in Nassau, Ulster, Washington, Sullivan, and Westchester Counties.  If approved as porposed, our water, delivered straight to your tap, would cost around a penny per gallon. With the system improvements included in this filing, the company will have invested approximately $150 million to improve water quality, service reliability and fire protection in the communities we serve since the last rate case went into effect. Capital investments include upgrades to water treatment facilities, storage tanks, wells and pumping stations to ensure that your drinking water meets all regulatory standards. This includes the construction of an $8 million iron removal treatment facility in the Town of Hempstead, $3.3 million for 3 portable iron removal filter units, and well replacements and rehabs in Malverne, Roosevelt, and Lynbrook. New York American Water also replaced and rehabilitated more than 33 miles of aging water main, as well as valves, service lines and other parts of its more than 1,200-mile distribution system. While customers are enjoying the benefits of these investments, only a portion of the costs to finance these are covered in current water rates.

For more information:

 

 

Sea Cliff RAC/PTR Surcharge