System Improvement Charge (SIC)

Frequently Asked Questions About the SIC

The New York Public Service Commission approved the System Improvement Charge (SIC). Effective May 24, 2011, the SIC will be equivalent to 1.06% percent of the customer’s bill.

How does the increase affect my water bill?
The System Improvement Charge (SIC) is equivalent to 1.06 percent of the customer’s bill. For example, for a residential customer, using 9,000 gallons of water a month, this is $.45.

What is the purpose of the SIC Charge?
The System Improvement Charge (SIC) helps to fund improvements that have been made by Long Island American Water to its water treatment facilities. In this case, the key driver was the new 4 MGD (million gallons a day) iron removal facility located on the border of Lynbrook and Malverne.

The new state-of-the-art iron removal plant provides a much-needed solution to help continue to ensure a high-quality, reliable water supply for over 248,000 people the company serves. Iron intrusion is a challenge on Long Island, and this plant provides state-of-the-art technology and treatment capabilities to address that challenge.

Construction of the new $7.6 million iron removal plant began in October 2009 and consisted of demolition of the existing site buildings, construction of a new building, rehabilitation of both existing wells and the installation of three pressure filter vessels, new chemical treatment systems, a new plant electrical system, emergency power generator, a new Supervisory Control and Automated Data Acquisition (SCADA) and automatic filter controls.

Is this charge reviewed or approved by the state?
The assessment of the SIC surcharge has been authorized by the New York State Public Service Commission and is subject to the Commission's approval. The PSC audits all expenditures incurred under the program and must ultimately approve the investments before the company recovers the costs.

When did the new SIC rate become effective?
The new rates were effective May 24, 2011.