Commission Approves LIAW Rate Increase

The New York State Public Service Commission approved a joint proposal this week to raise rates for customers of Long Island American Water.

"The annual bill for a residential customer with a 5/8 inch meter using 72,000 gallons per year would increase 2.45 percent, to $391.73, in the fiscal year ending March 2013; then by 2.63 percent, to $402.05, the following year, and by 2.17 percent, to $410.78, in the third," according to the 149-page order released Tuesday by the commission, which can be accessed here.

A spokesman for LIAW said the roughly $5.5 million increase averages out to an initial increase of less than 3 cents per day for the typical residential customer.

But on top of that, villages will also be charged by LIAW to maintain their fire hydrants.

According to LIAW, much of the rate increase was driven by capital investments of more than $50 million put into service since the company’s last rate case in 2007.  This included an $8 million iron removal treatment facility in the Town of Hempstead, the replacement and rehabilitation of more than 16 miles of aging water main, and "upgrading pipes, pumps and treatment plants to ensure that our water service meets or exceeds all state and federal quality standards,” said LIAW President William Varley. “We are grateful that the Public Service Commission has recognized our investment.”

In the March 20 order, the commission recognized the steps that LIAW has taken so far to improve the aesthetics of the tap water it supplies, mainly the installation of iron removal plants in recent years. However, it states that the company "must accelerate its efforts to determine the reasons for instances where discoloration, from iron or other possible sources, persists despite the company’s filtration plants, so that additional remedies can be implemented where needed."

Citing feedback collected from customers across several months, the commission said a main issue that was raised was the "the quality of water provided by LIAW, primarily in the Village of Malverne." It writes, "Customers complain of brown discoloration, seemingly caused by iron content, which they say permeates bath water; damages laundry, appliances, heating systems, and exterior grounds; and reduces property values as customers post complaints on the internet."

Residents of the Five Towns have also complained of brown water.

Based on resident testimonials, the commission is directing LIAW to "collaborate with [its] staff as well as interested customers and community representatives, initially in Malverne and then elsewhere as appropriate, to clarify exactly when and where discoloration is a problem and thus identify reasonable and effective remedies."

The company will be required to initiate the collaborative efforts within 30 days of the March 20 order and to submit written reports so that customers and the commission's staff can analyze and comment on whether adequate progress is being made. LIAW will also have to provide cost-effective means for customers to alert the company when they spot problems with their tap water.

"We seek to ensure that any costs ultimately borne by customers are reasonably necessary for the provision of service," the report states.

What do you think of the commission's decision? Post your thoughts in the comments section below.