State approves NYAW credit plan

The state Public Service Commission on Dec. 13 approved $6.2 million in credits that will be issued to New York American Water ratepayers who saw their monthly bills skyrocket earlier this year, part of a deal reached between New York and the private utility in August. “This is a fair and equitable decision to ensure just and reasonable rates for the company’s customers on Long Island,” PSC Chairman John Rhodes said in a statement.

There is no average amount each customer will receive, according to PSC spokesman James Denn. The individual credits will be based on each customer’s water usage, he said. The money will come from a property tax refund the private utility company received earlier this year.

The credits will be applied to bills of customers in the Lynbrook and Merrick service areas — Baldwin is in the Lynbrook service area.

“New York American Water would like to thank the New York State Public Service Commission for its action directing over $6 million in funds be returned to customers and ensuring that those customers receive the full benefit of the federal tax changes,” the company said in a statement.

Additionally, NYAW will use $1.01 million to fund a conservation study and rebate program — details on the study and program were not available by deadline.

Residents and officials have criticized NYAW in recent months after hundreds of ratepayers saw their monthly bills skyrocket. Under a billing system approved by the PSC in 2016, customers are divided among four billing tiers — the Lynbrook service area is in the highest one.

William Varley, deputy chief operating officer for NYAW, admitted in August that customers in that tier could use less water than in previous years and still pay more under the new system. Utility officials said base rates (excluding taxes and surcharges) were only supposed to increase by 5 percent, but elected officials said they have heard from constituents who have seen rates jump as much as 135 percent. State Sen. Todd Kaminsky, a Democrat from Long Beach, received dozens of complaints.

“American Water customers have been abused and taken advantage of and this appropriate measure is but a small compensation for what they have endured,” Kaminsky, the newly selected chairman of the Environmental Conservation Committee, said in a statement. “The upcoming session in Albany must involve more reforms so that customers do not see similar bills next year.”

Anger over the rate hikes has led to a push for a public takeover of the company. The PSC in June also found that NYAW intentionally deceived the agency by filing falsified information when seeking approval for the tiered-rate system.

The federal Government Accountability Office recently announced it will investigate how NYAW uses federal funds, as requested by U.S. Sen. Charles Schumer in August. Specifically, investigators will look into federal funding that the senator contends NYAW and its parent company, American Water Co., are seeking from the Environmental Protection Agency.

NYAW could apply for up to $20 million through the Drinking Water State Revolving Fund, which is sustained through federal monies, to pay for water main replacements, upgraded distribution systems and new water treatment facilities. NYAW President Lynda DiMenna said the company will cooperate with any investigation, but denied that it is seeking federal money.