Rate hike approved for MAlverne, W.H. Liberty Water customers

Malverne and some West Hempstead neighbors can expect a bigger water bill starting this September.
The New York State Public Service Commission has approved a rate increase for Liberty Utilities, which provides water service to some 120,000 customers in Nassau County.
In May 2023, Liberty filed a notice with the commission, seeking rate increases of 42 percent and 39 percent in its Merrick and Lynbrook service areas, respectively. The company also requested a 13 percent rate hike in the Sea Cliff service area on the North Shore.
In the Lynbrook service area, which includes Malverne and parts of West Hempstead, the commission approved a 17 percent rate hike in the first year, 15 percent in the second year and 13 percent in the third year.
In those areas, the commission approved a rate increase of 9.2 percent in the first year, and 4.5 percent in both the second and third years.

The new rates go into effect on Sept. 1, and the rate plan will be effective through March 31, 2027. Depending on the service area, a typical residential customer using 8,000 gallons of water per month will pay between $54.51 and $87.32 in the first year.
Last year’s proposal came after a rate freeze, which Liberty had agreed to after it purchased New York American Water, the previous water service company, in January 2022. The proposal stated that the company sought the rate hikes 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.”
Liberty’s proposal also stated that the rate hike would 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 aid customers in need.
While rate proposal negotiations were under way, two public entities, the South Nassau Water Authority and the Water Authority of the North Shore, have been discussing the possibility of municipalizing Liberty’s Long Island districts. The SNWA includes the Lynbrook and Merrick service areas, while WANS includes the Sea Cliff service area. The public authorities were created by Gov. Kathy Hochul in November 2021.
Virtual hearings at which the rate proposal was discussed began last fall, and those who spoke against the increase asked that it be delayed until it was known if the public entities could properly execute a public takeover of Liberty, which is a private company. Ultimately, the commission agreed to delay its decision on the increase.
Another set of hearings were held in July, and the decision came at last week’s PSC session on Aug. 15.
The commission decided that the rate increase would benefit Liberty Water’s customers.
“With this three-year plan, the company will be able to continue to provide its customers with clean, safe water and to save money by promoting and encouraging conservation and reducing leakage,” Commission Chair Rory Christian said. “Adoption of this rate plan ensures critical investments that are good for the rates customers will pay, and good for their assurance of safe and adequate service.”
At last week’s session, Commissioner David Valesky said he found “no evidence” that a rate increase would prohibit the public authorities from continuing to work toward municipalization.
“I also found no evidence in this record that would show a potential rate increase … would impact any municipalization negotiations in any way,” Valesky added. “So to those who continue to be interested in municipalization in Nassau County, I see nothing in this order that will impede those efforts.”
Assemblywoman Michaelle Solages, who represents areas in Liberty’s jurisdiction, noted that the increases that were approved last week are significantly lower than those Liberty originally sought. The company was initially seeking a cumulative 34 percent increase across its Long Island water districts.
Even though the approved hikes are lower, Solages said, the fight for public water is not over.
“Liberty Water customers will still have hundreds of dollars added onto their bills over the next few years, and will continue to pay considerably more than neighbors serviced by public water,” Solages said in an emailed statement. “Now, we must press the South Nassau Water Authority to expedite their efforts toward a public takeover of Liberty Water. Our community deserves an affordable, reliable water service — not the current system where rates are dictated by a private company beholden to shareholders.”
“It is long past time for the South Nassau Water Authority’s board members to do their jobs by breaking Liberty’s monopoly on this essential resource,” Nassau County Legislator Seth Koslow said, “and delivering on our collective demands for affordable, high-quality public water.”
For more on the rate increase case, and to see the public filings related to the decision, visit DPS.ny.gov, and search case No. 23-00979.