Carlucci: Public Service Commission Should Sink United Water Rate Hike

State Senator David Carlucci joined local residents Monday in New City to call for the Public Service Commission to reject United Water's proposed rate hike.

"This rate hike proposal has officially gone off the deep end, leaving customers to drown in skyrocketing costs that they cannot afford," Carlucci said. "It's outrageous that Rockland residents - who already pay some of the highest utility bills in the region - will be asked to fork over even more money during these tough economic times. I strongly urge the Public Service Commission to reject this request and urge United Water to reconsider this ill-advised plan of action.

"We're here to rally and say no. To say to the Public Service Commission that they can't have a rubber stamp. They have to stick up for the rate payers."

The two pending request from United Water would raise rates a average of $200 per year for customers. The first proposal was a surcharge on water rates that would cover costs related to the proposed Haverstraw Water Supply Project. That petition was filed June 14 and would cost approximately $4.96 per month beginning Aug. 1.

"I understand some of the reason for this increase is the Haverstraw water plant that they proposed," said Orrin Getz, whose New City home served as the location for Monday's gathering. "That hasn't been approved. To charge us an increase to pay for it before it has been approved is, I think, quite a bit outrageous."

United Water then filed a petition for a rate increase with the New York State Public Service Commission July 3. That one would raise the average customer's bill $12 per month.
"Right now I pay over $500 to United Water per year and it's just my wife and myself," Getz said. "We're retired. This rate increase could hit us with another $150, which would be a very steep increase. We'd like the Public Service Commission to really look into this rate increase to see if it's justified."

United Water spokesman Rich Henning stressed that the two requests are completely separate when he spoke with Patch for this report last week. He said United Water last raised rates in 2010, but has invested almost $80 million in infrastructure in Rockland and Orange Counties since then. 

“That petition last month was directly filed as a potential surcharge solely for costs associated with the Haverstraw Water Supply Project, for which we have accumulated roughly $50 million in expenditures,” Henning said. “This rate filing has absolutely no costs related to the project, but represents investments in our existing water system as well as the taxes we pay to communities in which we have real estate in or pay them a franchise tax.”

Carlucci said the increases are too much of a burden on residents and could be damaging to efforts to attract and keep businesses in Rockland County.

"This is about making sure people can live here in Rockland County and retire here in Rockland County," Carlucci said. "That we can raise a family here in Rockland County. But if we make the rates unaffordable, no one is going to be able to stay here. We are not going to be able to create jobs. We're not going to have the quality of life Rocklanders deserve.

"We pay some of the highest rates in the nation. I've been working with my colleagues in the Senate and Governor Cuomo to say Rockland is open for business, but if we have the highest rates in the nation, we're not going to be able to say Rockland is open for business."

Carlucci said he would have opposed the proposed rate increases at any time, but with the second one being filed right before the July 4 holiday, he felt it was more important to make sure that residents knew what was happening. 

Bob Dillon of New City, a member of the Rockland Water Coalition, said this is just a step on the way to even higher increases if the Haverstraw Water Supply project is approved. 

"There is not a lot of transparency when you have a public utility go and meet staff to staff with the Public Service Commission or the New York State DEC, and then they issue an edict that rates should go up so much," Dillon said. "The V0illage of Nyack and Village of Suffern have municipal water companies, if you want to talk to the water commissioners, you can talk to the water commissioner. They take your advice and criticism into account and consequently they have much lower water bills."

Carlucci pointed to legislation he has proposed to put a customer on the PSC.

"I proposed legislation that we have someone on the Public Service commission with the same authority to be an advocate for the rate payers," Carlucci said.
"From what I’ve seen through my service in the Senate and through being a rate payer myself,  the representation on the Public Service Commission is made up of people that understand the industry, which is important. However they don’t understand what it is to be a rate payer and pay these bills."

"They (United Water) send us four-color advertisements and propaganda that we have to pay for,"said resident Walter Fiedler. "The (Public Service) Commission neither serves nor helps the public. Maybe having a taxpayer be on the commission to represent the citizenship or have the people elected so they have some kind of constituency."