Rate hike approved for Liberty Water customers in Nassau County

The state’s public service commission has approved a rate increase for Liberty Utilities, which provides water services to some 120,000 customers in Nassau County. 

In May of last year, Liberty filed a notice with the commission, seeking a proposed rate increase of 42 percent and 39 percent in 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 numerous hamlets, villages and communities in the Town of Hempstead, the commission approved a 17 percent rate hike in the first year, a 15 percent increase in the second year, and a 13 percent increase in the third year. 

Communities in the Merrick service area include Bellmore, East Massapequa, Merrick, North Seaford, North Wantagh, Levittown, North Bellmore, Massapequa, Seaford and Wantagh. The Sea Cliff service area encompasses Sea Cliff, Glen Head, Glenwood Landing, and parts of Roslyn, Old Brookville, and Glen Cove.  

In these areas, the commission approved a rate increase of 9.2 percent in the first year, 4.5 percent in the second year, and 4.5 percent in the third year.  

The new rates go into effect Sept. 1, 2024. 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 to $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 the company sought the hike 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 said 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 provide to aid to customers in need.  

During negotiations for the rate proposal, two public entities, the South Nassau Water Authority and the Water Authority of the North Shore, have been working towards 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 that considered the rate proposal 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 municipal takeover. Ultimately, the commission agreed to pause its decision on the increase.  

Another set of hearings were held in July, and the decision involving the increase came at last week’s public service commission session on Aug. 15.  

Ultimately, the commission agreed 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 the session, Commissioner David Valesky said he found “no evidence” that a rate increase would prohibit the public authorities from continuing to work towards municipalization.  

“I also found no evidence in this record that would show a potential rate increase... would impact any municipalization negotiations in any way,” he 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.”