Nassau water customers protest proposed 34% Liberty rate increase request
Liberty Utilities is seeking to increase water rates for Nassau customers in its service areas by a cumulative 34.2% starting next year, according to a state filing Friday. Credit: Newsday/Steve Pfost
Nassau County water customers who had expected relief after years of soaring rates under New York American Water on Wednesday pounced on a proposed 34% rate hike by its successor, Liberty Utilities, and asked the state to reject it pending plans to convert the service territory to public water.
At a rate hearing held by the state Public Service Commission Wednesday, groups formed to take over the Hempstead portion of the former New York American Water territory asked the PSC to delay or reject the rate increase to allow for full consideration for three separate proposals to take the service territory under municipal water utility control.
John Reinhardt, a board member of one of the groups, the South Nassau Water Authority, told the PSC the group had recently submitted an offer letter to Liberty about a potential takeover of a portion of the service territory and is “awaiting a response.”
He and others asked for a delay in approving any rate hike “while we continue to negotiate in good faith.” A separate North Shore Water Authority and the Massapequa Water District are negotiating for smaller portions of the Liberty-owned Nassau service areas.
Liberty’s proposed rate hikes, which would take effect next spring, would add $18.32 for Lynbrook-area customers, $15.74 a month to average Merrick-area customers’ bills, and $7.37 for those in the Sea Cliff area. Total monthly bill impacts are proposed to be 39%, 42% and 13%, respectively, the PSC said.
The PSC says Liberty needs the increases to pay for infrastructure investments since the last rate hike under American Water and other cost increases beyond Liberty’s control. Liberty purchased New York American Water with the PSC’s blessing for $608 million in January 2022.
Liberty at the time promised to hold rates at least through 2023, while bringing its customer service function “back to Long Island,” thereby increasing local employment and “improving the quality of service provided to customers.”
Rate-weary Nassau residents say the average 34% increase is too much, particularly with other bills soaring from years of record inflation.
“It’s outrageous that Liberty can purchase New York American Water, promising to freeze rates for two years, only to petition to get back all the profit they believe their shareholders are entitled to while we are struggling through a pandemic, with high unemployment and rising costs,” said Merrick resident Claudia Borecky, co-director of an activist group, Long Island Clean Water, Air and Soil.
Liberty declined an interview request but in a prepared statement, Deborah Franco, president of Liberty’s New York Water division, said the proposed rate hike “is consistent with the commitments made during the acquisition.”
She said the company has replaced “miles of infrastructure, opened new treatment plants, and created a local call center, staffed with local residents,” and that a walk-in customer center is “coming soon.”
Water conservation programs, Franco said, “ensure our customers are informed about water-saving technologies and programs that can lower their bills.” Liberty is also working to cut taxes that comprise up to a third of every customer’s bill, an amount that “does not go toward the customer’s water service but is directed back to local governments,” Franco said.
Nassau County Legis. Carrié Solages (D-Lawrence) said clients in the Liberty district are already struggling through an affordability crisis for all sorts of expenses. “The one thing they don’t need is an increase in their water bill.”
Laurie Wheelock, executive director of the New York Public Utility Law Project, which advocates for low-income ratepayers, said her group has seen an increase in residents who are asking for help to deal with threatened water-utility shut-offs. She noted Liberty’s rate plan includes a new program for low-income customers but expressed dismay that it will take three to four years to roll out.
She also noted that the Liberty increases need to be considered in light of other area utilities, including National Grid, which are also seeking “significant” increases through the PSC. “The increase Liberty is proposing is real money to real people,” she said.
Mark Harrington, a Newsday reporter since 1999, covers energy, wineries, Indian affairs and fisheries.
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