Water rates will rise 5.9% a year through December 31, 2027
May 29, 2024 at 10:39 p.m.
Your water bill will be going up 5.9% a year through Dec. 31, 2027—minimally.
That’s the word from attorney Joel Dichter, the water rate expert who keeps an eye on all things water before the New York State Public Service Commission (NYSPSC) on behalf of the Villages of Rye Brook and Port Chester and the City of Rye.
In a dialogue with the Westmore News, Dichter explained: “The 5.9% comes for two different reasons: a major one being additional investment by the water company (Veolia) in the infrastructure—hopefully stopping leaks and water main breaks from occurring, because the system is 100 years old. The second reason is the increase in the allowed return on equity.”
While the PSC has approved a four-year agreement between Veolia and the municipalities starting Feb. 1, 2024 and running through Dec. 31, 2027, the new rate structure won’t go into effect until June 1. Dichter explained how the retroactive increase will be made up.
“The PSC had until Feb. 1, 2024 to set rates. However, due to the settlement talks and subsequent proceedings, the PSC didn't approve the rate plan until May 23, 2024. By law, Veolia is entitled to be compensated for the period from Feb. 1 until the new rates are in effect. I have looked into it, and Veolia just made a filing to have this accomplished through a surcharge of 1.91% through Jan. 31, 2025. On Feb.1, 2025, the surcharge will be eliminated.”
“The annual investment commitment of Veolia in replacement of mains/infrastructure will increase from $22.5 million in the first rate year to $30 million in the last year of the four-year rate plan,” he added. “As for the bill impact, it varies by usage. For a residential customer using 7 ccf [centum or hundred cubic feet], the increase in the water bill would be $5.38.” That’s in the first year starting June 1, 2024. The increases will compound, so the succeeding hikes will be on top of the rates paid the year before.
The lead pipe conundrum
Veolia, the water distribution company for Port Chester and Rye Brook, has major infrastructure challenges in the area.
It must increase the flow of water to allow for new building construction, and it must replace lead pipes.
Bill Madden, a spokesman for Veolia, said they are still working on determining the extent of needed lead pipe replacement in Port Chester and Rye Brook, a process that won’t be complete until October.
Valve to turn off the water to the residence is painted blue to make it stand out in front of a house on Quintard Drive in Port Chester.By Jananne Abel
Replacement of lead pipes is a national priority, an impact that is felt not just by Veolia, but by the Westchester Joint Water Works (WJWW), which supplies 40% of Veolia’s water in Port Chester and Rye Brook. The remainder, some 60%, comes from Connecticut.
Explaining the lead pipe issue in greater detail, WJWW General Manager Paul Kutzy said in a statement to the Westmore News:
“On Nov. 30, 2023, USEPA (United States Environmental Protection Agency) proposed a new regulation under the Safe Drinking Water Act to achieve 100 percent lead service line replacement within 10 years. When finalized, this rule will apply to WJWW and other public water authorities.”
WJWW water—costs and history
The WJWW is in the final stages of getting permits from a variety of governmental agencies including the Town of Harrison for construction of its court-mandated water filtration plant on Westchester County Airport land—with an estimated cost of $140 million.
The costs of that plant will be passed on to water users.
That means Port Chester and Rye Brook will be paying WJWW’s increased charges to Veolia, which is mandated to use WJWW water and tasked for collecting its costs.
How did that 40% WJWW supply ratio come about?
The man responsible—and proud to take credit for it, is a former County legislator for Port Chester and Rye Brook and parts of Harrison, Democrat Marty Rogowsky.
Here’s how he tells the story:
“I live in Harrison, I work in Port Chester, and (in 1989, when he first ran for office) PC’s water rates were five times more than Harrison. I said, ‘What the hell is going on?’ So, what was happening, the New York-American Water Company (the name back then of what is now Veolia) was the biggest buyer of water from the Connecticut-American Water Company, a sister company. They were both owned by the same company. No one was doing anything about it.”
“I filed a petition to intervene in the rate case in Connecticut. New York-American was happy to pay high rates to a sister company. They were paying profits to themselves. No one was fighting it because nobody knew anything about it.”
Additionally, Rogowsky determined that one way or the other Port Chester and Rye Brook residents, his constituents, would get cheaper New York water, have it blended with Connecticut water, and thus lower water prices.
He recounted how Port Chester and Rye Brook, although they were eligible for New York water since a NYS law passed in 1905, weren’t getting it until he started investigating.
Then, to his astonishment, he discovered there was a pipe in the ground that would connect WJWW water to New-York American’s (now Veolia) distribution system.
And so, the “40% water from New York” deal was struck.
“I saved you money for the last 30 years,” mused Rogowsky. “Thirty years ago filtered water was not discussed by anybody. It was a non-issue. I was not looking at the health impacts. No discussion at all.”
Now, history and science have caught up with Rye Brook and Port Chester water users.
Back in the day, one additional reason Connecticut water cost more was because, collectively, Rye Brook and Port Chester water users were helping to pay off their share of building a Connecticut water filtration plant.
Where does that 60% of Connecticut water come from?
According to water attorney Dichter: “The water from Connecticut comes through the Bargh Reservoir in Greenwich. The reservoir is part of the Mianus watershed which includes land owned by Veolia in New York that is leased to Aquarion. There are also interconnections with water from elsewhere in Connecticut.”
Summing up, current Rye Brook and Port Chester water users will have to pay for their share of the costs for the WJWW filtration plant that will finally produce filtered water for WJWW users.
The question still on the table: how much will that share be and when will it go into effect?
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