This is not a decision that the company reached lightly; however, it has been seven years since the company last filed a new rate plan. Since then, the company has made significant and necessary investments in its infrastructure and plans to invest approximately $116 million in capital projects, including main replacements, treatment facilities, well upgrades, and smart meter installations through the end of our proposed rate year (i.e., March 31, 2025). These investments are necessary to ensure Liberty can continue providing customers with reliable, quality service.

In addition to capital investments, like everyone, the company has been impacted by rising costs. For example, the cost of materials used to treat your water to ensure it is safe and compliant with governing laws and regulations—which continue to become more onerous—increased, on average, 18%. Distribution and supply materials have similarly increased in price.

The company has also proposed to recover on several important initiatives that directly and positively impact you. For example, we created 17 new local customer service positions at the company’s offices in Merrick, New York, and are planning to open a walk-in center for customers this calendar year. We also proposed a low-income program and an arrearage management program to assist our neighbors in need and a fee-free program to eliminate separate fees being charged when you elect to pay your bill electronically.

It has been seven years since the company filed its last rate plan. Rates from that approved rate plan took effect in 2017.

The New York State Public Service Commission (PSC) is ultimately responsible for establishing and approving the rates customers pay. Liberty provides the PSC with full transparency into the company’s financials, which indicate the overall costs for providing water service as well as the amount needed to invest in the system in the coming years. Liberty pledges to do our part to seek a new rate plan that balances the need for investment while keeping customer rates as low as possible.

If you are an average user of water (approximately 6,000 gallons per month), our proposal is estimated to impact your bills as shown below: 

    *After factoring in the elimination of your separate property tax charge

Approximately 28% of the Company’s costs to provide service to customers is associated with property taxes Liberty is assessed by the municipalities that we serve and required to collect from customers. 

Yes, customers will have many opportunities to provide comments. For more information about the filed rate adjustment request, please visit the PSC’s website and search for Case 23-W-0235. Once dates are determined, we will announce opportunities for public comment.

Municipal government taxes make up approximately 28% of Liberty customers’ water bills, depending on the community. Liberty’s rates, once taxes are removed, represent the true cost of supplying water service.

Click the image below to view an infographic demonstrating how every dollar you spend towards your water is allocated. 

The main reason Liberty customers’ water bills are higher than others is due to the taxes Liberty is required to collect on behalf of other entities.

As a privately-owned investor utility company, Liberty is subject to many taxes, including property taxes and a Special Franchise Tax (SFT), that municipally owned water systems are not required to pay. These taxes imposed on Liberty and recovered through customers’ rates go to local jurisdictions to support many municipal services, such as schools, emergency services, highways, etc. Furthermore, a significant portion of the system investments made by municipal water suppliers are supported by grant programs, which can fund up to 60 percent of each project.

As a company, we strongly oppose the tax rate that we are required to collect from customers in the form of Special Franchise Taxes (SFT). Liberty continues to meet with elected officials to explore the possibilities of having the SFT reduced or eliminated altogether. In addition, the Company is working to secure eligibility for State grant funding that only municipal water suppliers currently have access to. As with the SFT, we continue to advocate with our State representatives to change the State law that would allow us to apply for infrastructure improvement grants you, as a Liberty water customer, are helping to fund.