United Water Customers Hit With $30 Surcharge

The New York State Public Service Commission today approved letting United Water New York charge all of its Rockland customers an extra $30 - adding up to $3.11 million - to cover lower revenues.

The 12.5 percent surchage will start appearing on water bills July 1 and will continue to Dec. 31, according to today's decision.
 
United Water provides water service to approximately 70,240 customers in Rockland County, primarily in the towns of Ramapo, Clarkstown, Orangetown, Stony Point and Haverstraw. The company's affiliate provides water service to approximately 486 customers, in portions of the towns of Tuxedo, Warwick, and Monroe, in Orange County. 
 
As part of United Water New York's existing three-year rate plan (Case 06-W-0131), the commission examined United Water's financial records. The commission found that  for the rate year ended Dec. 31, 2009 the total net metered revenues and production costs under-collection with interest was $2.58 million, combined with the property tax under-collection with interest of $524,130. 
 
Based on this decision, an average annual usage residential customer would pay about an additional $30 for the period July 1 to Dec. 31. Today's decision is separate from the Commission's pending decision in the ongoing United Water New
York's rate case (Case 09-W-0731).

The company is proposing a rate increase of about 21 percent that would increase customer costs by about $119 a year.

The PSC, which oversees utilities in New York, will allow the water company to collect $3.11 million by applying a 12.5 percent surcharge on its customers starting July 1 and continuing through Dec. 31. The overall cost to customers will amount to about $30 for the six-month period, according to the PSC.

The surcharge "reflects  costs the company hadn't been collecting, but was eligible for," PSC spokesman James Denn said.

United Water provided financial records to the PSC and stated it was entitled to collect the surcharge due to higher production costs and property taxes, as well as the need to reconcile the difference between what was collected from customers versus their actual meter readings.

The surcharge is to cover costs incurred during 2007-2009 as part of a rate case decided in 2006.

State Assemblyman Kenneth Zebrowski, D-New City, who represents Clarkstown, Haverstraw and part of Ramapo, criticized the PSC decision.

"The Public Service Commission's decision to allow United Water to impose a 12.5% surcharge to cover its shortfall is disappointing," Zebrowski said. "This is not the time to pinch customers with an exceedingly high surcharge that will only exacerbate the financial burden on Rockland residents. We need an affordable and consistent water supply that we can rely on; one that will only present nominal rate increases that are commensurate with services.

"I will continue to work with all parties to prevent these types of increases and find a long term sustainable solution to our water supply problems," Zebrowski said.