Letter to the Editor

Legislator Rhoads opposes water rate hike

Posted

To the Editor:

I was pleased that the Herald recently joined in my effort to bring attention to New York American Water’s proposed rate hike, which has been submitted to the Public Service Commission for consideration.

The proposed 8.1 percent increase in rates would generate an additional $8.3 million in revenue for the private company, which already charges its customers substantially more for water than public water districts in surrounding communities. At the July 13 public hearing held by the PSC in Oceanside, I testified in opposition to this rate hike to help protect consumers, many of whom reside in my district.

While the company’s president, Brian Bruce, seeks to downplay the effect of another rate increase by claiming that water bills “are among the lowest of their household utilities,” his comments ring untrue, particularly in the summer, when consumers’ bills often exceed $300, while neighbors outside the company’s service area are paying one-tenth of that.

A comparison to other utilities is also inappropriate. Unlike an electric company, which must generate the product that it sells, New York American Water is a treatment and delivery system, pumping a product from aquifers that are already owned by the public and delivering it to our taps for use. It should charge less than other utilities, because the company is physically and financially responsible for doing less to deliver its product.

I understand the need to maintain facilities. Infrastructure improvement as a justification for a rate hike, however, rings hollow after the company’s decision to spend $4 million to build a corporate headquarters on Brooklyn Avenue in Merrick.

As I have continued to argue to PSC officials, under these circumstances it is incumbent on them to require American Water to open its books and demonstrate a financial need for a rate increase before one can be considered. The PSC’s primary responsibility is to protect consumers, who are forced to deal with a monopoly that is providing a vital natural resource that no one can live without.

The PSC wants to hear from consumers. I have mailed an information card to households throughout my district detailing how you can file your comments opposing the rate hike, and I would urge you to do so today. You can register your comments by phone at (800) 335-2120, by email to Secretary Kathleen Burgess at secretary@dps.ny.gov, or on the PSC’s website, on.ny.gov/2c4UoA4.

Additionally, my office has been in talks with the PSC to finalize plans for another hearing to give residents the chance to voice their concerns. We are awaiting an announcement by the PSC; however, the Wantagh High School auditorium has been booked for a hearing on Thursday, Oct. 6, at 7 p.m. Once the date is confirmed, I will send out meeting notice cards to my constituents. Meantime, if you are interested in speaking at the hearing, or if you have any questions, contact me at (516) 571-6219.

Steve Rhoads
Nassau County legislator,
19th District