Water rate case proposal on the table for comment

In the Veolia Water New York Inc. rate case, a joint proposal calls for a four-year resolution from Feb. 1, 2024 through Dec. 31, 2027 to allow the company to synchronize its rate year with the calendar year in its next rate case filing.

Under the proposal, the rates for Westchester operations average out to a 5.9% increase per year, but less for Port Chester, Rye Brook and Rye City ratepayers, around 5.3%, said Port Chester Village Manager Stuart Rabin.

“There is a separation of rates between our area and New Rochelle rates that is more advantageous to our district,” said Rye Brook Village Administrator Chris Bradbury at the Jan. 23 Board of Trustees meeting.

“At one point they were seeking 16.9% for Westchester operations,” said Bradbury in a phone call this week. “They preferred having one rate (for Westchester), but Joel Dichter worked with the PSC (Public Service Commission) and Veolia to have a more reasonable rate. We have a different water source, half from Westchester Joint (Water Works) and half from Aquarion in Connecticut, so there are different circumstances.”

Attorney Dichter has been negotiating water rates for the three municipalities for many years. Bradbury said Dichter has been their attorney handling water issues since he was working for the City of Rye before he became Rye Brook village administrator.

Tied to the rate case is a plan for necessary water infrastructure upgrades related to Port Chester development projects, which are estimated at $48 million, to be funded 80% by developers and 20% by customers. That comes out to about $6,000 per residential unit for developers, up from a previous $4,700 per unit estimate when the total cost was $45 million.

The estimated 5.3% per year rate increase and breakdown for water capital costs are on the table for the PSC to approve as one action, said Rabin, and Port Chester, Rye Brook and the City of Rye have all agreed to be supportive of this plan.

“We believe this would set the formula for future developments when upgrades are needed,” said Bradbury, referring to potential developments such as on the former Doral Arrowwood or Hilton Westchester property in Rye Brook.

Comments on the proposal are requested by Mar. 1 but will continue to be accepted while this case remains pending before the PSC. Comments should refer to “Case 23-W-0111” and can be submitted online at www.dps.ny.gov, mailed to the Hon. Michelle L. Phillips, Secretary, Public Service Commission, Three Empire State Plaza, Albany, NY 12223-1350 or called in to the Commission’s Opinion Line at 1-800-335-2120. This line is set up to receive comments about pending cases 24 hours a day.