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New York American Water raises water costs to recoup $130Mn investment

New York American Water raises water costs to recoup $130Mn investment
New York American Water raises water costs to recoup $130Mn investment

U.S. water utility company, New York American Water Co. Inc., has reportedly raised water prices for its customers. This announcement comes as a result of approval of four-year rate plan by New York State PSC (Public Service Commission) in the year 2017.

With this price increase, which commences in the fourth year of the rate plan, the company is aiming to recover USD 130 million of capital investments or make over the life of the plan, ending March 31, 2021. As part of four-year rate plan, a conservation rate structure was incorporated in the year 2017 in line with the PSC support of the enduring sustainability of the Long Island Aquifer.

Sources cite that as per the conservation rate structure authorized by the PSC, water usage prices are based on an inclining block structure, making consumers pay water bills according to usage.

New York American Water has also announced an AMI (Advanced Metering Infrastructure) meter replacement program and H2O Control Conservation Program to assist consumers in decreasing their water use to meet the DEC (Department of Environmental Conservation) sustainability goals.

Reportedly, the company will be incorporating AMI as a part of their H2O Control Toolbox to help consumers, starting spring 2020.

Lynda DiMenna, President of New York American Water, said that the company is undertaking a comprehensive analysis of AMI ahead of its execution to ensure efficient and smooth operations and reduce long term prices. They would also involve in customer engagement to enhance consumers awareness about AMI to ensure limited water usage and protect the long-term sustainability of aquifer.

DiMenna added that the company understands the impacts of increasing water rates on customers, therefore it is taking active steps to offer them educational and effective tools to reduce water use ahead of summer.

Source Link- https://finance.yahoo.com/news/york-american-water-launches-advanced-213000963.html

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Bhushan Tambe

A qualified computer graduate, Bhushan Tambe always nurtured a passion for words. Post his education, he decided to transform his penchant of penning down poetry and stories into a full-time career. Presently, Bhushan writes numerous articles for cuereport.com and a few other websites, on subjects spanning business, finance, and the like.