PSC OKs SUEZ Sale, To Study Taking Rockland's Water Supply Public

ROCKLAND COUNTY, NY —The New York Public Service Commission approved SUEZ's merger with Veolia North America last week, which Rockland's water activists did not want — but it also agreed to study whether the county should take its water system public, which they did.

SUEZ Water NY, a subsidiary of French Suez Environnement, a multinational company, is being sold to another French multinational company, Veolia North America, a division of Veolia Environnement S.A.

"The New York Public Service Commission’s approval of our merger with Veolia is actually good news for our customers," said Bill Madden, SUEZ' New York director for communications and government affairs. "The merger brings together the two world leaders in environmental services and this combined experience and intellectual capability will bolster our ability to provide solutions for our customers in Rockland and Westchester counties."

But while the PSC approved the sale, it also directed the Department of Public Service to assess whether Rockland’s water would be better managed by a public water authority. The report has a provisional deadline of June 30.

That part of the decision was hailed as a victory by water activists. They said they were concerned in the abstract about private control of water. They cited concerns about Veolia’s global work record and about SUEZ, which they claimed provided poor water quality, lacked commitment to watershed planning and source water protection and transparency. They questioned SUEZ's stewardship, saying that in the past, the company ignored the effectiveness of conservation through limiting water loss from its pipes.

Peggy Kurtz, one of the leaders of the Rockland Water Coalition, said SUEZ's failed plan to build a desalination plant on the Hudson River to expand the county's limited water supply was a sign that the company was biased toward projects that drive new revenue for the company through capital improvements.

"A municipal authority, on the other hand, has access to public funding, and a mandate to serve the public interest and protect our water resources," she said.

Rockland does have the highest water rates in the state.

"According to a 2017 report by Comptroller DiNapoli, Suez’ Rockland customers pay the highest water rates in the state," said Terri Thal, a member of the Rockland Water Study Committee. "That’s in addition to the $54 million surcharge for money SWNY spent planning and promoting a desalination proposal that was defeated and never broke ground."

The request for the feasibility study was supported by many of Rockland’s elected officials, including Congressman Mondaire Jones, NYS Senator Elijah Reichlin-Melnick, NYS Senator, James Skoufis, NYS Assemblyman Ken Zebrowski, Rockland County Executive Ed Day, and Rockland County Legislator Harriet Cornell, who chairs the Rockland Task Force on Water Resources Management.

Scenic Hudson, and more than 100 others who submitted written comments to the PSC, also advocated the study.

There's recent precedent. New Yorkers voted to make access to potable water a right in 2020. In November, Gov. Kathy Hochul signed legislation establishing two new public water authorities in Nassau County, re-municipalizing water systems that had been owned and operated by a private company. SEE: State Finds Public Takeover Of NYAW Would Lower Rates

“Nothing in today’s decision prevents a municipality from attempting to acquire the assets of SUEZ within its municipal footprint either by negotiation or by eminent domain proceedings,” the PSC noted in its news release.

The feasibility study will compare private management to management by an independent, public water authority.

"More than 96 percent of the entities that manage water in New York State are publicly operated; fewer than 4 percent are private companies,” Thal said.

Veolia and Suez are two of the largest water and waste companies worldwide. The two companies reached an agreement in April after months of fighting over a hostile acquisition bid.

Madden noted that the NYPSC chairman, Rory M. Christian, said "With this decision, SUEZ can access much-needed capital and managerial resources that will allow it to provide better service to its customers in Rockland County. Given those facts, this decision is squarely in the public interest.”

When the PSC rejected the desalinization plant in 2015, the commissioners warned that given the limits of Rockland's water supply and its growth and development trends, the county would need to find additional sources of water by 2020.

In the past decade, Rocklanders have explored and debated ways to conserve water so that they will not need new sources. The county received a $250,000 grant to help pay for a water conservation study in 2016 and a $100,000 planning grant in 2017. The Task Force on Water Resources Management, formed in 2014, presented possibilities for a conservation plan in 2020 before the pandemic began.

The Comprehensive Water Conservation and Implementation Plan forecasts Rockland's population to increase to more than 409,000 by 2050 from 338,329 in 2020.

The County Executive said he sees many pitfalls and wants the study to explore the pros and cons thoroughly.

"I have specific concerns about this possibility related to the impact on municipal and school property tax bills, the cost of future infrastructure improvements including the cost of meeting PFOA/PFOS drinking water standards and the total cost of purchasing Suez Water NY assets," Day wrote on Patch in October.

Assemblyman Ken Zebrowski called the announcement by the Public Service Commission a necessary step in identifying possible ways to reduce costs and improve service.

"One thing is for sure, we have the highest water rates in the State and they are unaffordable for Rocklanders. Perhaps municipalization is the answer, but even if it is not, rates must be reduced and quality improved," he said.

SEE ALSO:

• Rockland Water Task Force To Present Conservation Plan
• Rockland Residents Urge NY To More Cleanup Of 'Forever Chemicals' In Drinking Water