SUEZ announced last week that it has filed an application with the New York State Public Service Commission (PSC) for rate relief. The company is seeking an additional $600,000 in revenues to cover the costs associated with investments made on behalf of its customers that are necessary to maintain safe and reliable water service.
In Tioga County, the company serves residential homes and workplaces and supplies ample water for fire protection for approximately 5,500 people in Owego, Nichols and Tioga.
The company’s request would be the first increase in water service rates in four years. Should the PSC approve the entire amount requested in the proposal, the average residential customer’s water bill would go up by $12.08 per month in August 2018.
“SUEZ has invested in projects that will directly benefit customers to the tune of $3.7 million,” said Chris Graziano, vice president and general manager. “These investments will help to ensure reliable water service and water quality 24 hours a day, 365 days a year.”
In this filing, SUEZ is seeking to recover approximately $3.7 million in infrastructure improvements made over the last five years and others to be made over the next two years, including the following.
Water main, service line and fire hydrant improvements. As an example, the company replaced 700 feet of water main on Lake Street in Owego. The original pipe was installed in 1892. A similar project is planned for Main Street.
Well site improvements. Well #4 in Owego, which had been flooded out following Tropical Storm Lee, is back online with new equipment. The upgrades meet new requirements related to water quality and service reliability. In addition, the changes help safeguard the well from flooding in the future.
Equipment upgrades. This includes a new generator, pumps and motors used to deliver water to homes and businesses. Improvements were made to comply with codes and regulations.
Water meter replacements. New meters ensure greater accuracy and can be used to detect household water leaks.
As part of the rate filing, SUEZ has proposed replacing current quarterly billing with monthly billing. This change would enable customers to more efficiently budget and plan for their water use, just like they do for their electric, gas and telephone bills. 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.
The company is also proposing a change to its residential rate design. This would encourage water conservation by charging higher rates for customers who use significant amounts of water.
“We work hard to provide service in a cost-effective manner. In fact, since the last rate case, the cost of operating and maintaining our system has remained relatively flat,” said Graziano. “At the same time, we must continuously make investments to ensure water quality and reliable service for our customers.”
The company’s investments of $3.7 million represent an average of $672 per customer. This is greater than the average proposed increase of $12.08 per month.
In a press release received by SUEZ, that stated that despite the proposed rate adjustment, customers would continue to pay about a penny a gallon for high-quality water and reliable service. That is less than $1.40 for a day’s worth of water. Water service remains a strong value, especially when compared with other utility bills.
Customers who need assistance paying their water bill may be eligible for a grant through the SUEZ Cares program. Customers can learn more by visiting suezcares.org.
The proposed increase in rates is subject to review, analysis and decision by the PSC, which may accept, modify or reject it in whole or in part, including the possibility of ordering a multi-year rate plan to lessen the immediate impact to customers. It may take up to 11 months for the agency to render its decision.
Customers can view the rate case filing by visiting the SUEZ office at 575 East Main St., Owego, N.Y. Customers can also view the filing on the PSC website at www.dps.state.ny.us.
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