The Enterprise is writing an article on United Water's filing with the New York State Public Service Commission asking for a rate increase. If you would like to submit comments to the Enterprise regarding the rate increase please contact Dina Sciortino via e-mail or phone at dinasciortino@optonline.net or 914.478.2787 ext. 17. All responses are due by Dec. 2 at noon. Do not respond on this Web site please e-mail dinasciortino@optonline.net!!!!!!
The increase would amount to an additional $20.72 per month, which amounts to $62.16 on a quarterly bill and $248.64 on an annual bill. The increase is related to $100 million in infrastructure costs recently completed. Please read the press release below for more information.
UNITED WATER NEW ROCHELLE FILES RATE REQUEST WITH PSC
Nearly $100 million in system improvements add to reliability of service
NEW ROCHELLE, NY, November 23, 2009 – United Water New Rochelle today filed for rate relief with the New York State Public Service Commission (PSC) after investing nearly $100 million in water system improvements during the last four years. The proposed increase, if approved by the PSC, would increase the typical residential customer’s bill by approximately $20.72 per month or 69 cents per day – making the cost per gallon delivered to customer taps on a 24-hour, seven days a week basis still less than a penny.
“In these difficult times when a utility raises rates for its services, customers and elected officials are certainly entitled to an explanation,” said Michael Pointing, vice president and general manager.
“Nobody likes a rate increase, and we at United Water New Rochelle do not like to raise rates. However, this filing is directly related to improvements we have made to the system on behalf of our customers.”
“We’ve made substantial investments in the last four years to improve and maintain quality service, most notably including a new $68 million pump station and supply pipeline,” said Pointing. “This level of capital investment is necessary for us to continue to ensure the safety and reliability of our water system for our customers and to meet increasingly stringent water quality regulations set forth
by the U.S. Environmental Protection Agency.”
With approximately 31,000 customers throughout southern Westchester, the company’s capital spending amounts to an average investment of about $3,032 per customer – significantly more than what the typical residential customer pays annually for water.
Delaware Pump Station Ensures Reliability and Continued Service
With the completion of the Delaware Pump Station in Eastchester, United Water New Rochelle will be able to continue reliable delivery of water to the twelve Westchester communities it serves.
Currently, the station provides water through New York City’s Catskill Aqueduct. New York City intends to shut the Catskill Aqueduct down in the near future for repairs. Once the Catskill Aqueduct is shut off, United Water New Rochelle would ensure continued, uninterrupted service to its customers through a connection to the Delaware Aqueduct.
“As a result of the construction of the Delaware Interconnection Project, our 31,000 customers in southern Westchester will not have to face severe water restrictions,” said Pointing. “This project will help ensure reliable service for many years to come.”
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Due to the magnitude of the capital investment needed for this project and the long construction period, the New York State Public Service Commission had previously authorized periodic increases through the use of a surcharge mechanism during the construction period. This decision by the
Commission saved the customers of UWNR $10 million in project costs. However, now that the project is complete there are additional capital costs that were not included in the surcharge. There are also significant costs increases for property taxes associated with the new facility, additional personnel needs, and new levels of depreciation expense that now need to be recovered.
Long-Term Main Renewal Program Upgrades Infrastructure Under the Long Term Main Renewal Program plan, which began in 2000 and was approved by the New York State Public Service Commission, United Water New Rochelle invested over $8 million over the last four years to replace or upgrade aging infrastructure.
There have been over 20 different projects under the program, replacing nearly 21,000 feet of mains in Eastchester, Hastings-on-Hudson, Dobbs Ferry, Bronxville and New Rochelle, the cleaning and lining of 7,500 feet of water mains and the addition of fire hydrants to expand fire protection. Some
of the larger projects include the replacement of nearly 1,200 feet of old and undersized mains in Eastchester installed in 2006 and the replacement of nearly 2,000 feet of undersized mains in Hastings-on-Hudson in 2005.
“These projects vividly show how United Water New Rochelle is continuously investing in the communities we serve. We’re meeting today’s needs and investing for the future,” said Pointing. “We are requesting that the Main Renewal Program be expanded to include other underground
infrastructure replacement that will enable United Water New Rochelle to accelerate the replacement of its aging infrastructure.”
Despite strong cost control efforts, since its last rate filing the company’s operational costs have increased for items such as purchased water, power and chemicals, pension and post-employment benefits. “We’ve worked hard to control operating costs, but prices continue to rise at an alarming
rate,” said Pointing. “That’s one of the reasons we continue with an aggressive water conservation program and a low-income customer payment assistance program through UW Cares.”
Finally, staffing additions are necessary to maintain compliance with increasingly stringent water quality regulations, reduce and control non-revenue water and replace aging infrastructure.
The proposed increase in rates, subject to review and a decision by the PSC, which may accept, modify or reject in whole or in part the proposed increase, could take up to 11 months to process. A copy of the filing will be available for public review at the following locations:
United Water New Rochelle New Rochelle Public Library
2525 Palmer Ave. Library Plaza
New Rochelle, NY New Rochelle, NY
The rate filing will also be available on our website at
www.unitedwater.com/uwnr or the PSC
website at
www.dps.state.ny.us.
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