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 tariff

Service Area Descriptions

Service Area 1
  • Nassau County: Lynbrook District: Applies to customers in Atlantic Beach, Baldwin, Baldwin Harbor, Barnum Island, Bay Park, Cedarhurst, East Atlantic Beach, East Rockaway, Harbor Isle, Hewlett, Hewlett Bay Park, Hewlett Harbor, Hewlett Neck, Inwood, Island Park, Lakeview, Lawrence, Lynbrook, Malverne, Malverne Park-Oaks, Meadowmere, Mill Neck, North Lawrence, North Lynbrook, North Woodmere, Oceanside, Roosevelt, South Hempstead, Valley Stream, West Hempstead*, Woodmere and Woodsburgh (*Partially Served)
  • Upstate Water Systems: This applies to customers in the following areas:
    • Ulster County: Kingsvale District, which serves Kingston
    • Washington County: Cambridge District, which serves Cambridge
    • Westchester County: Waccabuc District, which serves Goldens Bridge and Katonah
    • Westchester County: Dykeer District, which serves Somers
    • Westchester County: Wild Oaks District, which serves Goldens Bridge
    • Putnam County: Mt. Ebo District, which serves Town of Southeast/Brewster

Service Area 2
  • Nassau County: Merrick District: Applies to customers in Merrick, Bellmore, N. Bellmore, Wantagh, Seaford, Massapequa, Massapequa Park, Levittown, S. Farmingdale
  • Nassau County: Sea Cliff District: Applies to customers in the Village of Sea Cliff, Glen Cove, Glen Head, Glenwood Landing, Old Brookville and Roslyn Harbor.

New York American Water Receives Rate Order from PSC

The New York Public Service Commission (PSC) recently approved new rates as part of New York American Water’s rate case that was filed on April 29, 2016. 

The need for a rate change was driven primarily by the more than $150 million New York American Water spent on replacing, rehabilitating and upgrading its treatment and distribution facilities. These improvements helped to enhance water quality, service reliability and fire protection. Upgrades included:
  • Replacing and rehabilitating 33 miles of aging water pipelines, as well as valves, service lines and other parts of its more than 1,200-mile distribution system. 
  • Source of supply/capacity projects
  • Groundwater well station improvements
  • Updated storage facilities to enhance service reliability
  • Pump stations to improve water pressure
  • New or replaced fire hydrants to enhance fire protection
  • New meters and services

Even with the rate increase, our water, delivered straight to your tap, still costs around a penny per gallon. With few exceptions, water will remain one of the lowest utility bills that a household pays.

In addition, beginning in June, New York American Water is transitioning customers who were formerly billed bimonthly or quarterly to monthly billing. NOTE: All fire service customers will be billed quarterly in arrears.

For more information:

Sea Cliff RAC/PTR Surcharge