Orangetown, Clarkstown May Challenge United Water Rate Hike

Representatives of Rockland County's five town governments have discussed working together to challenge the United Water's proposed rate increase.

United Water filed an increase application with the New York State Public Service Commission (PSC) July 2 which would raise the average customer's bill by $12 per month. A month before that, United Water requested the right to add a surcharge covering costs related to the proposed Haverstraw Water Supply Project. Other public officials including State Senator David Carlucci have called for the PSC to deny the requests. 

Orangetown Director of Finance Jeff Bencik raised the issue at a special town council meeting Wednesday, saying that the five town supervisors have discussed hiring an attorney together to challenge what would be a 29 percent increase in water charges. This would apply only to the application filed with the PSC July 2. 

"As a town we paid $895,000 to United Water in 2012, so obviously this would be a big increase for us," Bencik said. "They are asking for a return on equity of 10.85 percent. The PSC recommended 8.7 percent. They are significantly higher than that. 

"If we get it down to the 8.7 percent the PSC recommends, it would save us $52,000."

The idea would be for the towns, possibly with other interested parties joining in, would pool their resources and hire an attorney to challenge the increase. They would cap the spending on attorney fees at $90,000 and the costs would be split among the towns at a ratio based on population size. For example, Orangetown would pay roughly one seventh of the fees.

"In my opinion, they are asking for too much," Bencik said. 

Erika Moschetti of Clarkstown Supervisor Alex Gromack's office confirmed that the Town of Clarkstown "is exploring joining other interested parties to collectively challenge United Water's rate hike before the PSC."

Orangetown Supervisor Andy Stewart and Councilmen Denis Troy and Paul Valentine all expressed interest in challenging the rate hike. Councilmen Tom Morr and Tom Diviny were not present at Wednesday's meeting. In response to a question from Valentine, Bencik said the move would have the added benefit of potentially keeping rates lower for all United Water customers in Orangetown.

"No one is speaking for the public at the Public Service Commission," Orangetown Attorney John Edwards said. "Without some advocacy up there, the likelihood of any reduction in the requested rate increase is almost null. The municipalities have to assume that role."

"We are clearly in support of advocating for rate payers and for the town as a rate payer," Stewart said.