New York American Water Receives Rate Order from Public Service Commission
May 19 2017 - 3:31PM
Business Wire
Adjusted rates reflect $136 million in water
infrastructure investments since 2012 and a reduction of
approximately $2.7 million in operating expenses
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.
New 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.
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version on businesswire.com: http://www.businesswire.com/news/home/20170519005700/en/
New York American WaterGail Driscoll,
908-295-6380Gail.Driscoll@amwater.comorGreg Gordon,
516-829-8374ggordon@zimmed.com
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