Case 14-W-0006 Merger & Rate Increase for United Water
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Case 14-W-0006 United Water New Rochelle and United Water Westchester Proposed Merger & Rate Increase
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In November, 2013, United Water New Rochelle (UWNR) and United Water Westchester (UWW) filed a request with the New York State Public Service Commission (Commission) to increase their delivery rates for water service in Westchester County. The two affiliated companies then filed a joint petition in January 2014 seeking Commission approval to merge UWW into UWNR, with UWW customers subsequently billed at the proposed UWNR rates. The companies’ updated one-year rate change proposal would increase the revenues by $14.5 Million (23%).
Staff of the Department of Public Service (DPS Staff) and other parties in the case examined the Companies’ merger and rate request and put forth counter proposals. On July 3, 2014, following negotiations, a Joint Proposal was filed with the Commission in resolution of the issues in the pending cases. The Joint Proposal is signed on behalf of UWNR, UWW, DPS Staff, the Villages of Port Chester and Rye Brook and the City of Rye. A summary of several Joint Proposal provisions can be found on the reverse side of this sheet.
Public Statement Hearings
The Commission will hold two public statement hearings to seek public comment on the Joint Proposal. Interested members of the public are invited to attend and provide their comments regarding the proposed rate increase and merger.
It is not necessary to be present at the start of the hearings, or make an appointment in advance, or present written material in order to speak at the hearings. All comments given at the hearing will be transcribed and become part of the Commission's formal record. The hearings will adjourn no earlier than 7:00 p.m. and will remain open until everyone wishing to speak has been heard or other reasonable arrangements have been made. Please join us at the following locations:
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Public Statement Hearings
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| Date: |
August 5, 2014 |
Date: |
August 6, 2014 |
| Time: |
6:00 PM |
Time: |
6:00 PM |
| Location: |
New Rochelle City Hall 515 North Avenue New Rochelle, NY 10801
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Location: |
Rye City Hall 1051 Boston Post Road Rye, NY 10580
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Disabled persons requiring special accommodations may place a collect call to the DPS's Human Resources Management Office at 518-474-2520. TDD users may request a sign language interpreter by placing a call through the New York Relay Service at 711 to reach the Department of Public Service’s Human Resource Office at the previously mentioned number. If you have difficulty understanding English, please call the Department at 1-800-342-3377 for free language assistance services.
Summary of Joint Proposal
Rate Increase:
Under the Joint Proposal (JP), a set of terms and conditions were developed for a three year rate plan for the Company’s water service. The parties agreed that the proposed rates are just and reasonable, and the proposed merger is the best public interest.
The three year plan runs from November 1, 2014 through October 31, 2017. The proposed rate increases are listed in the chart below. In addition, the JP explores the option of levelizing the rate increase across the three years to reduce the increase that otherwise would have been required for Rate Year One. The levelized option is also included in the chart:
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Proposed Rates |
Levelized Option |
| Rate Year |
Percentage Increase |
Base Rate Increase |
Percentage Increase |
Base Rate Increase |
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One (Nov. 1, 2014 - Oct. 31, 2015)
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10.9 %
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$6.81 million
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6.8 %
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$4.25 million
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Two (Nov. 1, 2015 - Oct. 31, 2016)
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2.00 %
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$1.38 million
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6.4 %
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$4.25 million
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Three (Nov. 1, 2016 – Oct. 31, 2017)
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2.81%
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$1.99 million
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6.0%
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$4.25 million
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Merger:
The proposed merger will result in one surviving entity operating as United Water Westchester. The parties to the JP state that customers will benefit from the merger by increased operational efficiencies and service improvements. The JP includes a provision to establish a collaborative for developing ways to incentivize customers to conserve water such as rebate programs, sprinkler head replacement programs, and partnering with other utilities to provide information and education to consumers.
Copies of the JP and other case documents can be found by locating the case via the home page of the Commission’s website, www.dps.ny.gov, clicking on “Search,” and entering any one of the following case numbers: 13-W-0539, 13-W-0564 or14-W-0006 in the “Search by Case Number” field.
Commission Action
The JP and public comment on the case will be presented to the Commission for consideration. The Commission may accept, reject or modify, in whole or part, the proposal.
Methods for Commenting on the Case
All comments can be submitted at the public statement hearing listed above or through the methods below:
- Via the Internet or In Writing: Submit comments electronically to Kathleen H. Burgess, Secretary, at [email protected] or by mail or delivery to Secretary Burgess at the Department of Public Service, Three Empire State Plaza, Albany, New York 12223-1350. Comments may also be entered directly on the Commission’s www.dps.ny.gov website by opening the page for Case 14-W-0006 and clicking on the “Post Comments” link located at the top of the page.
- Toll-Free Opinion Line: Individuals may choose to submit comments by calling the Commission’s toll-free Opinion Line at 1-800-335-2120. This line is set up to receive in-state calls 24-hours a day. Callers should press “1” to leave comments about “Case 14-W-0006 United Water Westchester/United Water New Rochelle Merger ”
Comments submitted via these alternatives are requested by August 1, 2014.
If you would like a printable version of this fact sheet, you can click here.