Politics & Government

Orangetown Joins Challenge of United Water Rate Hike Request

The Orangetown council voted unanimously Tuesday to retain of attorney Daniel P. Duthie to represent the town in challenging United Water's request for a rate increase, which was filed with the Public Service Commission in July. 

Orangetown officials expect to be joined by the other towns in Rockland County as well as other local entities in paying what they expect to be $90,000 in legal fees. Tuesday's resolution capped Orangetown's contribution at $15,000. The Solid Waste Auuthority and Village of Grand View are already taking part. Stewart said he has reached out to local school districts as well.

Part of the reason for including more local entities is to reduce the cost for each participant, but that is not the only way it could help.

"You want to show that they are involved," Orangetown Supervisor Andy Stewart said. "I think that helps. If the Public Service Commission sees that there are aw hole bunch of municipal groups and others supporting it, I'm sure it weighs a little more heavily."

The issue was previously raised at a special meeting July 25, when Orangetown Finance Director Jeff Bencik explained that United Water is asking for a return on equity of 10.85 percent, well above the PSC's recommendation of 8.7 percent. Orangetown paid $895,000 to United Water in 2012, so a proposed 29 percent increase would be a large expense for the town.

"A rate increase would hit the town pretty hard," Stewart said. "This is the resolution to add our bit in with the other towns and districts to share the costs of having an attorney go to bat for all of us."

Pearl River resident Michael Mandel not only supported the town's action, he called for a look into the investment portfolios of members of the Public Service Commission to ensure they do not include United Water.

"I hope the board will vote unanimously for the retention of outside counsel," Mandel said. "The United Water request for a 10.5 percent return on equity is outrageous. If it was a little higher, it would be junk bonds. the PSC suggestion of 8.7 is ludicrous, also."


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