PSC grants Liberty Utilities 3-year water rate increase for Nassau customers

The state Public Service Commission on Thursday granted Liberty Utilities’ request for a three-year rate hike that will increase water bills for more than 120,000 Nassau customers by up to $19 a month starting next month.

The rates, which take effect Sept. 1, will impact customers to varying degrees from Sea Cliff to Merrick to Atlantic Beach. Many will see a $19.25 jump in their September bills. Liberty Utilities bought the system from New York American Water in 2022 for $608 million, following years of customer complaints over rates.

Public Service Commission chairman Rory Christian, in a statement, said the approved rate plan "ensures critical investments that are good for the rates customers will pay, and good for their assurance of safe and adequate service."

But longtime water-company critic David Denenberg called the rate hike "disgusting," and said it confirms his belief that fully public water entities are the only way to bring down rates and increase quality.

"We need tax-free, high-quality public water service instead of high-cost, poor quality, investor-owned monopoly water," said D enenberg, co-chair of activist group Long Island Clean Air, Water, Soil.

Newly formed water authorities on the North and South Shores in Liberty’s territories are seeking to take over parts of its system, including the largest swath in Hempstead town, but the efforts have been slow going and experienced mixed success. 

The PSC in a statement noted the potential for fully public water utilities of "at least part of Liberty’s system remains on the table." Newsday last month reported the South Nassau Water District recently tendered an offer for the largest part of the system, in Hempstead. 

"Water is a public resource, and companies shouldn't be making a profit off of water," said Assemb. Michaelle Solages (D-Elmont), who has been advocating to take the Liberty territories public. 

Deborah Franco, president of Liberty New York Water, said in a statement the company is "continuously working to ensure the delivery of safe, reliable water to our customers" and is "excited about the new program benefits that will help our low-income customers.”

The rate hikes approved Thursday were part of a settlement reached with the PSC’s administrative arm, the Department of Public Service, earlier this year. They would hike bills by a combined 45% over three years in its Lynbrook area as well as some upstate service areas, and a combined 18% in the Merrick and Sea Cliff areas beginning in September.

Customers in Service Area 1 will see increases starting this year of 17%, 15% next year and 13% in 2026, according to the state. That area encompasses customers in Atlantic Beach, Baldwin, Cedarhurst, East Rockaway, Hempstead, Hewlett, Hewlett Bay Park, Hewlett Harbor, Hewlett Neck, Island Park, Lawrence, Lynbrook, Malverne, Mill Neck, Oceanside, Roosevelt, Valley Stream and Woodmere. Customers with current average bills of $66.48 will see an increase to $85.73 this year, $98.84 next year and $105.85 in 2026, the state said.

Customers in the Merrick and Sea Cliff regions will see a rate hike of 9.2% this year, 4.5% next year and 4.5% in 2026, according to the DPS. The plan includes a catch-up surcharge for the delay in the 2024 increase, which Liberty had originally sought to begin in April.

Merrick customers with current bills of $50 will see their bills increase to $54.91 this year, $57.56 next year and to $58.47 in 2026. In Sea Cliff, average monthly bills of $77.98 would rise to $87.72 this year, $90.56 next year and $92.34 in 2026.

The new rate plan will be effective through March 31, 2027, the PSC said, noting that property taxes are among the top three drivers of the increase in Service Area 1, after infrastructure upgrades and operating and maintenance costs.

Liberty had originally sought a stiffer rate hike that would have collected $39.7 million from customers in the first year across all territories. The PSC-approved hike trimmed that figure to $17.24 million.

The PSC said the hike includes health and safety provisions to pay for replacing lead service lines; creates new customer assistance and arrears management programs, and allows Liberty to launch an enhanced water conservation program.

By Mark Harrington

mark.harrington@newsday.comMHarringtonNews

Mark Harrington, a Newsday reporter since 1999, covers energy, wineries, Indian affairs and fisheries.