Cuomo Bill Examines Public Takeover Of New York American Water

NEW YORK STATE — Gov. Andrew Cuomo today proposed new legislation that, in part, calls for a study into New York American Water and its practices on Long Island, and possibly revoking its franchise. It would also make the state's utility providers more accountable and face steeper penalties for poor service after storms.

Cuomo's proposed legislation directs the Public Service Commission to study New York American Water to determine whether the utility should be municipalized or if it should have its franchise revoked. It also would extend the state's current enforcement measures to more utility companies, require companies to have better plans for communication during outages and let the state levy larger penalties on utilities for failed services.

New York American Water services more than 100,000 customers in Merrick, North Merrick, Bellmore, North Bellmore, Wantagh, North Wantagh, Seaford, Sea Cliff, Glen Head, Glenwood Landing, and parts of Massapequa, Massapequa Park, Levittown, Hempstead, Oyster Bay, Old Brookville, Roslyn Harbor and Glen Cove. It is currently in the process of being sold to Canadian company Liberty Utilities Co. for more than $600 million.

"The abuse of the utilities has to end," Cuomo said. "They're not too big to fail. They're not going to bully consumers. It's over."

New York American Water has come under increasing scrutiny over the last few months, as complaints about water quality have increased, and so have the rates the company is charging its customers.

Cuomo's order will have the Public Service Commission (PSC) investigate to determine if the public would be better served by a municipal entity instead of a private one. The bill requires the PSC to issue a report by April 1, 2021.

In announcing the measure, Cuomo pointed out how much New York American Water's rates vary across areas. A home in Jericho could be paying $500, while a similarly sized home and property in Glen Head could be charged $2,400.

"Public water is a human right. For years, New York American Water has exploited Long Islanders with outrageously high rates and shameful business practices," said Sen. Jim Gaughran, who represents the North Shore communities serviced by the company. "I thank Gov. Cuomo for his leadership and partnership in the fight to stop private water companies from profiting off the backs of Long Islanders, and I look forward to swiftly passing this legislation. All Long Islanders are entitled to safe, clean public water."