NEW ROCHELLE, NY — United Water today filed applications with the New York State Public Service Commission (PSC) requesting rate increases for its United Water New Rochelle and United Water Westchester operations. Should the PSC grant the entire increase, the average residential bill would increase $13.36 per month for United Water New Rochelle customers and $19.23 per month for United Water Westchester customers. Even with the proposed increase, tap water would remain at about one penny per gallon for a typical family of four using about 9,000 gallons a month.
The companies are separate businesses and currently have separate rate structures. In its filing, United Water has proposed a merger of the two companies. The merger would help streamline some administrative activities.
Investments Help Ensure Reliability
The company is filing the rate request to recover capital investments and increased operating costs since it was last granted a rate increase in 2010. Over the last three years, United Water has invested nearly $40 million in infrastructure in Westchester County. These investments have improved the resiliency of the water system and have been evident in the company’s reliable performance during severe weather events.
“The value of our infrastructure investments was unmistakable during recent severe weather events, including Hurricanes Sandy and Irene,” said Michael Pointing, vice president and general manager of United Water. “While residents experienced prolonged outages with other utilities, we were able to maintain uninterrupted water service for virtually all of our customers even though we lost power at nearly all of our facilities.”
Capital investments improved water supply, system resiliency, water quality, infrastructure reliability and fire protection. Examples include:
• Continuing the Underground Infrastructure Renewal Program to improve water pressure, fire flow and water reliability.
• Installing District Metered Areas to better monitor water usage and reduce water loss.
• Enhancing service reliability by improving storage tanks and adding backup generators at several facilities to improve water pressure and flow.
• Replacing booster stations to improve water pressure and flow.
• Upgrading booster pumps to reduce energy costs.
• Upgrading meter shop, warehouse and fleet facilities to improve customer service.
• Replacing a 40 year old customer interfacing billing system.
Cost Control Efforts
“We’ve worked hard to control costs but prices continue to rise, particularly for items beyond our control such as real estate taxes,” Pointing said. He noted that United Water New Rochelle currently pays approximately $8 million annually in real estate and franchise taxes, which are expected to increase by approximately $1.5 million at the time new rates are projected to go into effect. United Water Westchester expects its taxes to rise from $2 million per year to $2.2 million. At that time, the company is forecasting that about 27 percent of customers’ bills will go to pay state and local governments in real estate and franchise taxes as well as payroll and income taxes.
“We realize that this is a difficult economy and our customers are feeling squeezed in many ways. That’s why business efficiency is one of our core values and we instituted a rigorous program to drive productivity, monitor and control costs and improve customer service,” said Pointing. “In addition, customers who have difficulty paying their water bill can apply for a grant through the company’s UW Cares program.”
Monthly Billing Will Add Convenience, Help Identify Leaks
As part of the rate filing, United Water has proposed replacing current quarterly billing with monthly billing. “This change would enable our customers to more efficiently budget and plan for their water use and service, just like they do for their electric, gas and telephone bills,” said Pointing. “More timely bills will promote conservation and also help the company and customers to identify leaks and reduce theft of service, both of which increase costs to customers.”
Next Steps
The proposed increase in rates is subject to the detailed review and decision of the PSC. As the rate setting state agency, the PSC may accept, modify or reject in whole or in part, the proposed increase, and may take up to 11 months to process the company’s request.
Customers can view the rate case filing by visiting United Water’s office at 2525 Palmer Avenue, New Rochelle, NY. Customers can also view the filing on the PSC website at www.dps.state.ny.us.