Veolia Files Plan For $473 Million in Customer Improvements in its New York State Water Systems

WEST NYACK, NY (March 4, 2023) —Veolia today filed a $473 million plan with the New York State Public Service Commission that will directly enhance water service for customers in the state.

It will feature a new rate design and programs aimed at improving the affordability of essential water services. The plan would allow the replacement of nearly $300 million worth of infrastructure, such as water mains, service lines and hydrants. If approved, over 500,000 homes and businesses in most of Rockland and parts of Westchester, Orange, Putnam and Tioga counties will benefit from a multitude of service reliability, water quality, supply and security projects.

Veolia and its predecessor companies have been trusted and reliable operators of New York water systems as far back as the late 19th century, and the company continues to build on its strong record of performance by keeping its systems in good repair and adapting to changing needs. By the end of 2023, the company is expected to have invested over $440 million in its local water systems in New York since the last rate filing in 2019. Since that time, Veolia has also reduced its operating costs by $1 million by consolidating its utilities in the state.

Affordability a Key Factor in Rate Design

Veolia continues to pursue fair and equitable rates for all of its customers. The $473 million of improvements represents an average investment of approximately $4,000 per customer. If the Commission grants the request in full, the average residential water bill in Rockland and Orange counties would be adjusted by 19 cents per day or $5.64 per month, approximately 39 cents per day or $11.80 per month in Westchester, 51 cents per day or $15.60 per month in Tioga and 20 cents per day or $5.99 per month in Putnam.

In its rate filing, Veolia also proposes a low-income discount program with initial funding of $1.5 million In parallel, Veolia will contribute $4 million to help lessen the impact of rate adjustments for all its New York customers.

By the end of 2022, Veolia helped customers across the country with nearly $10 million in bill relief, including $3.75 million in New York. Veolia continues to promote financial assistance programs that are still available to New York residents.

Veolia’s $473 million proposal to enhance service reliability, water quality, supply, safety and sustainability features sweeping customer improvements that would be implemented across the company’s New York service territory:

Water Main Replacements: Over $180 million to replace water mains – the critical arteries of drinking water systems – to enhance service reliability and water quality.

Service Lines, Hydrants and Meters: Over $115 million to replace underground infrastructure to improve reliability, safety and billing accuracy.

Water Treatment Plant Upgrade: Continued work on a multi-year, $47 million treatment upgrade at the Lake DeForest Water Treatment Plant in Rockland County to eliminate taste and odor issues and an upgrade to the plant’s electrical system will increase efficiency and reduce greenhouse gas emissions.

Water Supply: Over $20 million to replace production wells in Rockland County, install additional water treatment that will enhance water supplies and rehabilitate or construct new storage tanks to improve water pressure and flow.

Safety and Security: Over $11 million in Supervisory Control and Data Acquisition (SCADA) system upgrades at multiple sites to ensure continued water system monitoring and resistance to cybersecurity threats. Safety improvements at numerous facilities, including additional cameras and access systems, the replacement of fencing, and lighting improvements.

Environmental Health: Replacement of system pumps, motors, and power meters to increase energy efficiency and reduce greenhouse gas emissions.

What they are saying:

Karine Rouge, CEO of Veolia North America’s Municipal Water division: “Veolia is the world’s leader in helping communities provide water to their people, with the highest standards for water treatment, a demonstrated commitment to customer service, and a strong emphasis on ensuring everyone has equitable access to water resources. We are devoted to this challenge here in New York, and our investment plan is designed to meet those goals with the full dedication of all Veolia’s resources.”

“When we plan necessary investments in our water system, affordability for all our customers is a chief concern, and that’s reflected in the plan we have put forward. Water is an essential resource and we must do our part to help those who need it most.”

In addition, in order to meet new New York State standards that require the company to further reduce levels of PFOA and PFOS, chemicals that are found in many drinking water supplies in the United States, Veolia is proposing a surcharge mechanism to pay for the cost of treatment. The surcharge would lessen the impact of rate increases, as it would not be applied until the company is able to obtain necessary local and state permits for necessary infrastructure and water quality treatments.