Hempstead Officials Call For New York American Water Takeover

MERRICK, NY — Hempstead Town officials on Thursday called for a New York State-financed takeover of New York American Water which has drawn criticism for water quality issues and usage rate hikes for years now.

The rallying cry follows a recent announcement by Gov. Andrew Cuomo that he appointed special counsel to examine the utility in a study to consider a possible takeover, while the state’s Public Service Commission reviews the company’s $600 million purchase by the Canada-based Liberty Utilities.

“Now is the opportunity; the stars are aligned,” said Town Supervisor Donald Clavin, citing the recent attention at the state level, as well as a previous proposal by State Sen. Todd Kaminsky for the state-financing of any public takeover. He noted the state could use Jamaica Water, which was also taken over by the state, as a model to build on.

Clavin said the state is the right entity to take over the company given its estimated cost of $500 million, which is over the town’s $454 million budget.

New York American Water services 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.

Councilman Bruce Blakeman said that if the state “can’t regulate” American Water, it should take the company over.

Councilman Christopher Carini said ratepayers have heard enough “rhetoric” and the burden is on the state to “protect the taxpayers.”

Assemb. Dave McDonough criticized the quality of the water provided to residents.
“It’d be better taking a handful of snow and melting it down — it’s cleaner,” he said.

Clavin called on Kaminsky to make good on his 2019 proposal of a state-financed takeover for any public takeover. His office did not respond to requests for comment by deadline.

Kaminsky recently told Patch that he supported the idea of a feasibility study.

“Long Islanders have been forced to live with American Water’s ridiculously high rates and poor service for too long,” said Kaminsky. “It is past time for an impartial study to determine how clean, affordable water can best be provided to our communities. I applaud the governor for making this a priority, and will continue to lead the fight for utility transparency and affordability. Ratepayers deserve nothing less.”

Rory Lancman, special counsel overseeing the study, rejected the idea of a state takeover, calling it “infeasible” to expect the state to run the company when the town’s own expert suggested it should be run by the town itself in a Newsday interview.

Lancman told the paper that the pols should not be “standing in front of a bank of microphones and TV cameras calling for a solution that does not exist,” but a “gigantic mirror” instead. “The governor is committed to achieving rate reform while maintaining logical oversight of water service delivery, and our study will produce a plan to do just that,” he’s said.

In a statement to Patch, New York American Water spokeswoman Lee Mueller said “the fastest way to provide meaningful rate relief is immediately eliminating the special franchise tax that unjustly penalizes New York American Water customers.”

She went on to say that a public takeover “would take years to accomplish” and it would “saddle taxpayers with hundreds of millions of dollars of debt.”

Instead, she urged the passage of tax relief legislation, which “would save customers up to 50% on their water bills.” “We urge our elected officials to act to help customers and to support the essential employees at New York American Water that are working hard for our customers and for their families,” she concluded.

Alex Costello contributed additional reporting to this story.