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The new rates are effective June 1, 2017. Please note your first bill with the new rates will be prorated and water use prior to June 1 will be billed at the former rates, and water use starting June 1 and thereafter will be billed at the new rates.
Our water rates are based on the actual cost of providing water service. The price that customers pay is driven by the amount of the company’s capital investments, which amounts to over $150 million to improve water quality, service reliability and fire protection in the communities we serve since the last rate case went into effect. High-quality, reliable water service is key to meeting our customers needs and necessary for the economic well-being of a community. The Company has also been significantly impacted by rising property tax levels in much of its service territory, while aggressively challenging the legality of its tax assessments. The Company has been able to obtain significant efficiencies in its operations over the past several years, resulting in operating expenses $2.7 million lower than previously authorized levels.
Capital investments include upgrades to water treatment facilities, storage tanks, wells and pumping stations to ensure that your drinking water meets all regulatory standards. This includes the construction of an $8 million iron removal treatment facility in the Town of Hempstead, $3.3 million for 3 portable iron removal filter units, and well replacements and rehabs in Malverne, Roosevelt, and Lynbrook. Liberty also replaced and rehabilitated more than 33 miles of aging water main, as well as valves, service lines and other parts of its more than 1,200-mile distribution system. While customers have enjoyed the benefits of these system improvements, only a portion of the costs to finance these are covered in current water rates.
Even with the rate increase, our water, delivered straight to your tap, still costs around a penny per gallon. With few exceptions, water will remain one of the lowest utility bills that a household pays.
Water is free. Why should I have to pay for it?
Providing high-quality, reliable water service to customers requires investment in our facilities and operations to treat and deliver the water to your tap. The need for the rate change was driven by the over $150 million the company spent in its treatment and distribution facilities to help provide safe and reliable water service since the last rate increase. Also included in the charge are expenses associated with such tasks as:
What has Liberty done to control costs?
Liberty employs best management practices and cost containment techniques, while taking advantage of economies of scale to enhance efficiencies and reduce operational costs. As compared to the company’s last rate case, this case includes less operations and maintenance expense – approximately $2.7 million. Many of these enhancements have been in place for a number of years, such as: