Adjusted rates reflect $136 million in water infrastructure investments since 2012 and a reduction of approximately $2.7 million in operating expenses
MERRICK, N.Y.--(BUSINESS WIRE)--The New York State Public Service Commission (PSC) has approved new
rates for New York American Water, effective June 1, 2017. The PSC’s
rate order reflects an annual revenue increase of $3.6 million for New
York American Water’s service areas in Long Island and the Hudson Valley
after a 13-month review of the company’s rate request filed in April
2016. Even with the increase, the cost of water service for customers
remains about a penny per gallon.
The main driver of the company’s rate request was the more than $136
million New York American Water invested to replace, rehabilitate and
upgrade its treatment and distribution facilities over the last five
years, including over 33 miles of water main, four iron removal
treatment plants, and numerous valves, service lines, and hydrants.
These improvements helped to enhance water quality, service reliability
and fire protection for the communities served by the company. The
company also reduced its operating expenses by approximately $2.7
million in the same timeframe.
“Over the last five years, New York American Water has made significant
improvements to replace aging infrastructure and improve water quality
for customers throughout our service areas,” said Carmen Tierno,
president of New York American Water. “We remain committed to making
needed investments in our water treatment and delivery systems to better
serve our customers, while continuing to control our operating costs to
help manage the impact to customers’ bills.”
Customers will receive additional information regarding rate details and
the change to monthly billing in a future mailing from the company, as
well as with their next bill. Beginning in June, New York American Water
is transitioning customers who were formerly billed on a bi-monthly or
quarterly basis to monthly billing. Monthly billing helps promote
conservation and provides customers with more frequent and timely
information about their water usage.
New York American Water also included in its filing a request to
implement a low-income customer assistance program. The PSC stated in
its order that they have initiated a collaborative process on developing
a uniform program for the regulated water industry.
New York American Water’s capital spending program is aligned with the
federal government’s focus on the need for significant, ongoing
investment to address the country’s aging water infrastructure. The U.S.
Environmental Protection Agency reported that the nation’s water
utilities need $384 billion in infrastructure investments over the next
20 years to replace aging water infrastructure and comply with stricter
water quality standards. This includes more than $22 billion in the
state of New York alone. Proactive capital investment saves money in the
long term by making sure that water systems do not fall into serious
disrepair and put public health at risk.
York American Water, a subsidiary of American Water, is the largest
investor-owned water company in New York, providing high-quality and
reliable water and/or wastewater services to approximately 350,000
people. With a history dating back to 1886, American Water (NYSE: AWK)
is the largest and most geographically diverse publicly traded U.S.
water and wastewater utility company. The company employs 6,800
dedicated professionals who provide regulated and market-based drinking
water, wastewater and other related services to an estimated 15 million
people in 47 states and Ontario, Canada. More information can be found
by visiting www.amwater.com.