State Investigating Water Company After Bill Spikes

New York American Water is now under investigation by the New York State Public Service Commission after politicians and customers complained to the organization about huge rate increases that seemed to come from nowhere.

Sen. Todd Kaminsky and Town of Hempstead Supervisor Laura Gillen wrote a letter to the PSC late last week calling for an investigation into the spikes. The two said they had received numerous complaints from constituents in southwestern Nassau County who saw huge increases in their water bills after new meters were installed. Some residents saw their bills more than double or increase by triple digits.

"When residents have reported these increases to American Water, the company told them that they must have a leak or other faulty mechanisms," the letter reads. "In almost every case, upon inspection, no leak or faulty mechanism was discovered. When pressed for an explanation, American Water told our offices that these customers must be increasing their water usage. However, in nearly every case, constituents contend that they use automated sprinklers and their water usage has remained flat."

According to Newsday, the PSC received complaints and is investigating the utility company.

There are many public comments on the PSC's website angry with New York American Water and its prices. Many called for the company to be done away with and for a public water utility to take its place. You can read the comments here.

New York American Water was already in trouble with the PSC. Earlier this month, the commission filed a lawsuit against the company claiming that employees intentionally withheld information from the PSC that caused rates to go up for Sea Cliff residents.

“Regulated utilities in New York are expected to conduct themselves with honesty and integrity,” said Commission Chair John B. Rhodes about the Sea Cliff case. “However, our staff’s investigation into New York American Water’s property tax errors revealed that this most basic standard was not met. Staff’s review found that employees had intentionally withheld material facts from the commission ... that would have resulted in substantially lower water rates for customers in the Sea Cliff area, which is clearly unacceptable.”

Newsday reported that New York American Water President Carmen Tierno said the company is performing a detailed review of customer's meters to find while bills went up so much.

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