The Wantagh-Seaford Citizen, 2009 August 20, Residents to PSC and Aqua: Have a heart

Residents to PSC and Aqua: Have a heart
by Laura Schofer

Originally published in the 2009 September 10 edition of The Wantagh-Seaford Citizen.
Published online with kind permission from our friends at The Citizen.

Hundreds of residents expressed their anger and frustration over the proposed 12% increase to their water rates proposed by Aqua New York, the public water utility that serves approximately 45,000 residents in Bellmore, Merrick, Wantagh, Seaford and parts of Levittown and Massapequa, at two public hearings last week. Aqua New York is seeking to increase its revenue by $3.4 million.

Administrative law Judge Gerald Lynch, representing the New York State Public Service Commission (PSC), the state agency that regulates public utilities in New York, listened patiently as one resident after another bitterly complained about the cost and services provided by Aqua New York. Many also called for the takeover of the public utility.

“I assure you that all comments will be part of the complete record [for this case],” said Judge Lynch, who added at the opening of the first hearing that he had already received 1,000 comments from customers. “That is a lot,” he said. “I will read each and every comment and summarize it. Then I will make my recommendation.” Judge Lynch said that a five-member panel, appointed by Governor David Paterson with the approval of the state Senate, will ultimately decide how much, if at all, Aqua may raise its rates in order to provide “safe and adequate service at a just and reasonable rate,” said Judge Lynch.

Jerry Medowar Speaks Out

No Increase
“I don’t believe this company is entitled to anything,” said Howard Fishkin of North Bellmore. “I already pay the highest rates in the county.” He waved his bill from the podium at the Merrick Library. David Stemple of Merrick said, “Many people are on fixed incomes and they can’t afford to drink the water. It’s a disgrace.”

Local elected officials agreed. State Senator Charles Fuschillo Jr., state Assemblyman Dave McDonough, and county Legislators David Denenberg and Dave Mejias all urged Judge Lynch to oppose any kind of increase.

Fire Districts to See Largest Hike
Aqua has also petitioned the PSC for a 27% rate hike for fire hydrant rentals. The North Bellmore Fire District has 176 hydrants in Aqua New York’s service area. The hydrants are now being rented for $545.76 and could increase to $693.18. The Bellmore Fire District rents 368 fire hydrants from Aqua at approximately the same cost. The 27% rate hike will cost Bellmore an additional $42,000 in rental fees.

North Merrick, Merrick and Wantagh also face steep increases. North Merrick Fire Commissioner Enzo Lippolis said “the proposed increase will have a profound negative impact on the residents. If this rate increase is approved, not only will residents be facing higher water bills for their homes, they will also be forced to absorb the 27% increase in hydrant rental fees through an increase in fire district taxes.”

Municipal Water System vs. Public Utility
Residents questioned why Aqua’s water rates are so much higher than their neighbors in East Meadow, who are part of the municipal water system run by the Town of Hempstead. Aqua is a public utility regulated by the state. But municipal water districts such as the Town of Hempstead are not under the authority of the Public Service Commission.

“In East Meadow it costs $17 for 15,000 gallons of water in a three-month period,” said Legislator Denenberg. “In Merrick you pay $59 for 13,000 gallons of water or three-and-a-half times more money for less water.” He also pointed to the difference in the cost of hydrant rental. “In the Town of Hempstead water district, fire hydrant rental is $75 per hydrant,” said Legislator Denenberg. Judge Lynch said the water rates of Aqua, a public utility, and the Town of Hempstead’s municipal water district are difficult to compare.

“Municipal water systems have two sources of revenue – water rates and taxes. Also, municipal water systems don’t pay property taxes,” said Judge Lynch. He added that Aqua must pay $8 million in property taxes and is entitled to recoup “reasonable costs,” or “you will have the spiral of impossibility,” inferring that Aqua could go out of business.

But Senator Fuschillo pointed to the $98 million in profits Aqua America, Aqua New York’s parent company, made in 2008 and the $5 million it paid its executives. Anthony Vitale of Merrick said, “Corporations love to be treated as individuals. Let them tighten their belt like me. If you want this to be pure capitalism, then let them sink or swim. Corporations must produce profits while a municipal [facility] provides services for the lowest possible cost.”

Water is a necessity, not something for record profits.

David Denenberg
Nassau County Legislature

One District For All
“Aqua get out,” yelled one man from the audience Tuesday evening. He was given a round of applause. Joseph Post of Merrick said he called the Town of Hempstead and “I asked if I could switch water companies. I was told no. Now I want one unified district with one rate. Otherwise it’s not fair.”

Legislator Denenberg at the afternoon hearing, and then again that evening, said, “We are entitled to equal protection under the law. Water is a necessity, not something for record profits.” Merrick Chamber of Commerce Vice-President Randy Shotland said being a private water company customer is like having “taxation without representation.”

Dr. Robert Ackerberg of Massapequa explained that in 1991 state Senator Norman Levy introduced a bill to charter an authority [Water Authority of Southeastern Nassau County] to determine if a takeover was feasible and cheaper. But the study showed that taxes and debt would not bring down costs substantially.

North Merrick resident Claudia Borecky replied, “The Nassau County comptroller’s office did a study a few years ago that revealed we would realize a small savings at the beginning but a larger savings later on.”

Complaining About Services
In addition to rate hikes, residents voiced concerns about services including water pressure, rusty water, customer service and the “bullying tactics to get me to change my meter,” said one man. Frank Pedagno complained that when his meter was changed he was overcharged for months, and Laura Goodman of North Bellmore was angry about receiving solicitations for insurance on her pipes.

Finally, Laurie Tettenbaum inquired about the quality of the water. “The water chart is not up to date and I’m deadly afraid.” Gerald Lynch said he would look into all these matters. “This is not a dog and pony show.”

If you’d like to weigh in on the proposed increase you may write to: Hon. Jaclyn A Brilling; Public Service Commission; Three Empire State Plaza; Albany, N.Y. 12223-1350 e-mail secretary@dps.state.ny.us or call 800-335-2120.