Pandemic Delays Suez Water Rate Increases Till Fall

HUDSON VALLEY, NY — Setting SUEZ water rates for the next four years, the New York State Public Service Commission established a plan Thursday that delays any increase until October due to the financial impact the new coronavirus pandemic is having on customers.

Also, the Commission adopted the terms of the joint proposal signed by Department of Public Service staff, the company, the City of New Rochelle, the City of Rye, the Village of Port Chester, and the Village of Rye Brook and established a four-year rate plan for the period of Feb. 1, 2020 to Jan. 31, 2024.

SUEZ provides drinking water and water for fire protection to roughly 500,000 customers in Orange, Putnam, Rockland, Westchester and Tioga counties.

In 2019 the company sought an annual revenue increase of $31.5 million, a 19.8 percent increase, for the rate year ending Jan. 31, 2021, for all the combined New York operating units.

With the commission's decision, the average rate increase for Rockland County customers over the four-year period will be $4.05 annually, or 9.1 percent; for New Rochelle customers, the average rate increase will be $1.93 annually, or 3.6 percent; and for Rye and Rye Brook customers, it will be $1.73 annually, or 4.1 percent, the PSC said. SUEZ officials described it as a daily adjustment of $0.15 cents in Rockland and Orange counties; $0.11 cents in the City of Rye and the villages of Rye Brook and Port Chester in Westchester; $0.03 cents in other parts of Westchester and $0.04 cents in the former Forest Park system in Putnam County.

Customers in Tioga County will continue with their current rate plan with no additional adjustment.

"With this four-year plan, the company will be able to continue to provide New Yorkers with clean, safe water and to save money by promoting and encouraging conservation and reducing leakage, as well as providing relief for customers facing hardship by creating a shareholder-funded emergency grant program for customers in hardship, identifying customers for a low-income discount program, and delaying impacts on rates," Commission Chair John B. Rhodes said in an announcement. “Adoption of this rate plan ensure critical investments that are good for the rates customers will pay, and good for their assurance of safe and adequate service."

The Joint Proposal includes a comprehensive $440 million investment program that will help serve the needs of its customers, including the protection of health and safety for residents and businesses, Suez officials said. The plan represents an average investment of $3,667 per customer. It includes:

• $50 million to improve water quality and operations at the heart of the company’s Rockland County water system, the Lake DeForest Water Treatment Plant in West Nyack. This first phase of upgrades will include the installation of Ozone and Powder Activated Carbon. These treatments will address seasonal algae in the reservoir that can lead to taste and odor issues and will help to reduce unwanted disinfection by-products. New filter beds and electrical equipment will improve operational performance.
• More than $30 million in chlorine disinfection improvements will help maintain strong water quality for Westchester customers and meet changing regulations. Additional treatment will be installed at the Central Avenue and Troublesome Brook Pump Stations to ensure proper chlorine contact time is achieved prior to distribution.
• Over $80 million has been set aside for service line installations or replacements, meter replacements, emergency water main repairs and hydrant replacements.
• The company will invest more than $10 million to expand and enhance SCADA systems to secure water supplies and meet all cyber security requirements.
• Widespread upgrades to existing water storage tanks, booster pumps, wells, and water supply dams, and to renew some of the oldest pipes in the company’s New York service territory.

"New York is rebuilding after a difficult, often heart-breaking crisis, but the people of this state are driven and resilient. They will rise to this challenge,” said Chris Graziano, vice president and general manager. "These uniquely challenging times have reinforced the critical need for safe, reliable drinking water. Now is the time to invest in New York and its residents."

In terms of water conservation, the Commission approved a plan that includes multiple approaches including rebates, outreach and education and conservation-oriented rate design.

The company’s water conservation program helping customers achieve water savings and reduce unnecessary water usage originated in Rockland County and now will also be available to its customers in Westchester and Owego as a result of the Joint Proposal.

The program is focused on community outreach and education and features substantial monetary rebates for high-efficiency clothes washers, toilets, shower heads, smart irrigation controllers, rain barrels and more to homeowners and businesses.

To date, customers have redeemed more than 6,700 rebates, company officials said.

As the health crisis continues, SUEZ is available to provide assistance for those who need help paying their water bills. Customers can call their local customer service centers to discuss payment plans or contact the company’s financial assistance partner, SUEZ Cares, at suezcares.org.

The decision may be obtained by going to the Commission Documents section of the Commission’s Web site at www.dps.ny.gov and entering Case Numbers 19-W-0168 or 19-W-0269 in the input box labeled "Search for Case/Matter Number".