Our water utilities should put ratepayers first

Families across Long Island are feeling the strain of inflation and rising bills for energy, water and other essential utilities. Unfortunately for many South Shore homeowners and businesses, the burden of rising utility costs has been particularly severe — especially for those whose water service is provided by a private company. As these companies impose steep rate increases, it becomes even more critical for utility providers to prioritize the needs of ratepayers.

In these challenging times, ensuring that all residents receive reliable service at a fair cost is paramount. Water, a vital public resource, should not be used as a tool for profit. Instead, it must be managed with the sole purpose of serving our communities’ best interests.

Most Long Islanders receive their water from a public utility. Suffolk County is almost exclusively covered by public water. In Nassau County, however, we have a patchwork system mixing private and public water, depending on where you live. This creates a convoluted system in which neighbors find themselves in different water districts, paying vastly different amounts for water.

Some residents pay up to four times as much for private water than those who have public water. This discrepancy raises the question of whether private water utilities charging much higher rates are fit for purpose if their service is only on par with — or worse than — public water providers.

The problem of rising water bills has become even more pressing due to recent exorbitant post-pandemic increases, proposed rate hikes, and the added costs of removing dangerous per- and polyfluoroalkyl substances — PFAS, or so-called “forever chemicals” — from our water. But the cost increases implemented by private water companies have far exceeded the rate of inflation, and often don’t correspond to the rate increases or quality of service provided by public water utilities.

Public and private water systems differ mainly in ownership and operation. Public systems are managed by government entities such as towns or regional authorities, with the goal of providing reliable and affordable service to everyone. Their rates and operations are overseen by public regulators to ensure fairness and transparency. These systems can also access government grants and funding for infrastructure improvements, which helps keep costs down for consumers.

In contrast, private water systems are operated by private companies focused on making a profit. While they may offer competitive services, their pricing is often influenced by business goals and shareholder interests, which can lead to higher costs for consumers. Private companies typically do not have access to government funds, and often pass the costs of repairs and infrastructure improvements directly on to ratepayers. As a result, private systems can be more expensive and less transparent, operating primarily based on market forces and business strategies rather than community needs.

In 2021, the State Legislature established the South Nassau Water Authority to improve water service for Town of Hempstead residents now served by Liberty Water, the major private water utility in our area. The SNWA is now considering municipalizing water service, which would involve acquiring Liberty’s assets and transitioning the service to a public water authority. To facilitate this process, the SNWA has held several public meetings to engage with the community and to adhere to the guidelines set by the state Public Service Commission, which regulates utilities and approves or rejects any proposed rate increases.

I strongly encourage anyone who is currently a Liberty Water customer to get involved in this process. While learning the intricacies of utility regulation and keeping track of these proceedings may not be the most exciting endeavor, it is vitally important for every household that has to pay these water bills. Input from ratepayers is invaluable for the key decision-makers moving this process forward.

The SNWA’s meetings are open to the public, and notices are posted on its website. I will continue to advocate for fair and reliable utilities for my constituents through this process, and ask that you add your voice as next steps are considered. I also encourage you to stay updated on proceedings brought before the Public Service Commission. Its meetings are also open to the public, and it accepts public comments on the cases before it.

Regardless of your views on public or private water utilities and the course of action that should be followed, we can all participate in these proceedings to bring accountability to our utility providers, and urge them to prioritize the best interests of ratepayers over shareholders.

Michaelle Solages represents the 22nd Assembly District, and chairs the Black, Puerto Rican, Hispanic & Asian Legislative Caucus.