Liberty Utilities customers speak out at public hearings

A pair of virtual Public Service Commission hearings was held on Sept. 15 giving the public an opportunity to voice concerns about Liberty Utilities’ proposal to increase water rates in the Long Island communities it serves by a cumulative 34.2 percent.

Liberty filed a notice with the commission on May 5, seeking a proposed rate increase of 13 percent in the Sea Cliff service area, which covers the village, Glenwood Landing and parts of Glen Head. The company also requested a 42 percent and 39 percent in the Merrick and Lynbrook service areas, respectively.

Some 120,000 residents of Nassau County receive water from the privately owned utility company. Liberty purchased previous water provider, New York American Water, in January 2022, and agreed to a two-year rate freeze.

The company is seeking the rate change to offset the cost of “necessary plant investments, high tax burdens, the installation of advanced metering infrastructure, proposed low-income and arrearage management programs, and a fee-free program for electronic payment of Liberty NYW invoices,” according to the filing.

Liberty added that the rate hike would also help cover the cost of 17 new jobs that were created at its Merrick offices, as well as “the implementation of a low-income program” to provide aid to certain customers.

Any type of rate increase approved by the state would go into effect next year.

During the Sept. 15 hearings, those wishing to comment by pre-registering could either call in on the phone, or take part in the meeting via Zoom. Those choosing to only watch the meeting could do so on YouTube, where it was live-streamed.

Administrative law judges Tara Kersey and Dakin Leakes presided over the hearings. A court reporter was also present, to provide a thorough transcript of the hearing to each commissioner.

The Public Service Commission, led by chairperson and chief executive officer Rory Christian, comprises six commissioners.

“My role here today (is) really to be an active listener,” Commissioner Diane Berman said. “I appreciate everyone participating, and I look forward to hearing your comments.”

The consensus of meeting participants was the Public Service Commission should not agree to any rate increase for Liberty Utilities — especially one that could nearly double some customers’ bills.

Speaking out against the rate increase was Agatha Nadel, a Glen Head resident who has been outspoken against Liberty and a supporter of the municipalization and establishment of the Water Authority of North Shore.

“Another day, another rate hike request from a private water company,” Nadel said during the meeting. “It is unconscionable to me that this 13 percent rate hike in Sea Cliff district comes after an approximate 120 percent rate hike for the last four-year rate in the Sea Cliff district.”

Several participants of the hearings asked that the decision on the rate increase be delayed until it is known if the public entity can properly execute a takeover. Joseph Saladino, supervisor for the Town of Oyster Bay, referred to the hikes as “outrageous” and urged the Public Service Commission to oppose the proposal.

“The consumers of Liberty Utilities continue to be overburdened, overcharged and asked to pay astronomically greater amounts than those who reside within the boundaries of municipal water districts,” Saladino said. “(Liberty) cannot be allowed to gouge their consumers with another rate hike, especially one as outrageously large as this.”

Several public entities have been created in Liberty-run districts over the past few years, so customers in these areas can facilitate takeovers of the portions of Liberty that serves them.
These include the Water Authority of North Shore, the South Nassau Water Authority and the Massapequa Water District.

Along with comments made during the meeting, the commission is also accepting written statements. Town of Hempstead officials, who played a role in establishing the water authority, said, “they implore the decision to reject this proposal.”

“We are calling for the New York State Public Service Commission to reject this proposal,” read a letter to the commission, signed by Hempstead Supervisor Don Clavin, Councilman Chris Carini and Councilwoman Laura Ryder. “Furthermore, we are asking Governor Kathy Hochul and New York state to initiate a fully state-funded public takeover of Liberty Water assets. "Additionally, we are calling on New York state to reintroduce the previously stalled franchise tax exemption that would further provide relief to ratepayers. By following through on these solutions, we can ensure that local residents are provided with the highest quality of water service at the lowest possible cost.”

The commission will be accepting public comments through Oct. 18 regarding the Liberty rate hike before a decision is reached.

Comments can be submitted through mail, on the phone or electronically (see box). For the most up to date information, visit DPS.NY.gov and search case No. 23-W-0235.

Additional reporting by Will Sheeline