Listen to this articleMore than 100,000 Long Island customers of a private water company will soon be paying more for water, though the increase will be less than was sought by the utility.
The New York State Public Service Commission established a new three-year rate plan for customers of Liberty Utilities Corp., for two of its service territories, which includes customers in the Town of Hempstead, Massapequa, Merrick and the Village of Sea Cliff, according to a PSC statement.
In service area 1, primarily in the Town of Hempstead, the revenue increases for the first, second and third years will be $13.7 million, which equates to a 17 percent increase in the first year, a 15 percent increase in the second year and a 13 percent increase in the third year.
In service area 2, which includes water supply districts serving Merrick, Massapequa and the Village of Sea Cliff, the revenue increases for the first, second and third years will be $3.5 million, $1.8 million, and $1.8 million, respectively, which equates to a 9.2 percent increase the first year, a 4.5 percent increase the second year, and a 4.5 percent increase the third year.
Depending on the service area, a typical residential customer using 8,000 gallons of water per month will pay between $54.51 to $87.32 in the first year, according to the PSC, which attributed most of the increase to higher property taxes, in addition to higher infrastructure and operating and maintenance costs.
The new rates go into effect on Sept. 1.
The water utility initially sought a $39.7 million revenue increase in the first year across both service territories. But the PSC says it cut the rate hike by 56 percent, approving a first-year delivery revenue increase of $17.24 million across both service territories.
“With this three-year plan, the company will be able to continue to provide its customers with clean, safe water and to save money by promoting and encouraging conservation and reducing leakage,” Commission Chair Rory Christian said in the statement. “Adoption of this rate plan ensures critical investments that are good for the rates customers will pay, and good for their assurance of safe and adequate service.”
The approved agreement includes health and safety provisions related to lead service line replacement and the funding of capital programs pertaining to the water system, implements a customer assistance program and an arrears management program to address affordability concerns for low-income customers, according to the statement.
The potential for municipalization of at least part of Liberty’s system remains a possibility, after PSC staff issued a report in March 2021 saying that municipalization was both feasible and in the public interest. In Nov. 2021, Gov. Kathy Hochul signed legislation establishing the North Shore Water Authority and the South Nassau Water Authority to pave the way to municipalize parts of the water system, but next steps are up to local officials, the PSC says.