Your Water Rates
New York American Water is regulated by the New York State Public Service Commission (PSC), and rates are established based upon the cost of providing service. This includes construction, maintenance, operation, administration and financing. Periodically, the company will file with the PSC for updates to its rates based on new infrastructure investments and any changes in the costs to operate the water system. This is referred to as a base rate case.*
As part of the rate filing, New York American Water must submit to the PSC extensive financial and operational data documenting its cost of doing business. The PSC then scrutinizes information provided by the company in an open and thorough process. Public hearings are held around the state to obtain customer input. And, after examining all the information, the PSC may grant all, some or none of the company’s request.
*Costs of certain large system improvements can be recovered between base rate cases through System Improvement Charges (SIC), a program that was approved by the PSC and has allowed the company to implement several critical projects, such as iron removal treatment facilities and well and storage tank rehabilitations. Each completed SIC project is thoroughly reviewed by the PSC before a charge is implemented.
New York American Water Receives Rate Order from PSC
The New York State Public Service Commission (PSC) approved a four-year rate plan for New York American Water beginning June 1, 2017.
Conservation Rate Structure
The approved four-year rate plan includes a conservation rate structure for our customers. The New York State Department of Conservation (NYSDEC) has established a goal for all Long Island water suppliers to reduce water consumption by 15 percent to help ensure the long-term sustainability of our water source, the Long Island Aquifer. According to the conservation rate structure, the more water customers use, the more customers will pay per gallon. This rate structure encourages efficient use of water by our customers.
In order to maintain the long-term sustainability of the Long Island Aquifer and guarantee the provision of clean, high quality water service for Long Island residents, New York American Water is encouraging all of its customers to consider conservation.
Key Drivers of the Rate Plan
The need for a rate change was driven primarily by the more than $130 million New York American Water spent on replacing, rehabilitating and upgrading its treatment and distribution facilities after its last rate change was approved. These improvements helped to enhance water quality, service reliability and fire protection. Upgrades included:
- Replacing and rehabilitating aging water pipelines, as well as valves, service lines and other parts of its more than 1,200-mile distribution system.
- Source of supply/capacity projects
- Groundwater well station improvements
- Updated storage facilities to enhance service reliability
- Pump stations to improve water pressure
- New or replaced fire hydrants to enhance fire protection
- New meters and services
Even with the rate change, 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.
Did You Know?
Depending on your service area, between 31 and 55 percent of your water bill is pass-through taxes, including the special franchise tax that only private water utility customers are charged. New York American Water continues to advocate for removal of this tax burden unfairly placed on our customers.
On September 1, 2020, after discussions with the New York State Public Service Commission, New York American Water postponed our previously-approved Rate Year 4 increase, scheduled for April 1. Per the Order, the increase will be postponed nine months, until January 1, 2021, at which time the previously approved rate increase will go into effect. The System Improvement Charge, normally scheduled for August 1, and the Revenue Adjustment Clause/Property Tax Reconciliation charge, normally scheduled for November 1, will also be postponed and will be applied to bills starting January 1, 2021. New York American Water was granted a “make whole” provision and a surcharge will be applied to customers’ bills in Rate Year 5, effective April 1, 2021 through March 31, 2022, to recover any revenue under-collections during the nine month postponement period. Access the Order here.
Rate Year 3: About Your Rates Effective April 1, 2019 - December 31, 2020
Below are the rates as approved by the NYPSC, effective April 1, 2019 for Rate Year 3.
- Service Area 1: For the average residential customer who uses 8,000 gallons per month, the bill would change from $56.17 to $60.64 for Rate Year 3. To see more examples of what a monthly bill would cost at different usage levels, click here.
- Service Area 2 --Merrick District: For residential customers using 8,000 gallons per month, the bill would change from $43.85 to $47.15 for Rate Year 3. To see more examples of what a monthly bill would cost at different usage levels, click here.
- Service Area 2 - North Shore (Sea Cliff) District: For residential customers using 8,000 gallons per month, the bill would change from $72.85 to $74.17 for Rate Year 3. To see more examples of what a monthly bill would cost at different usage levels, click here.
Water Service Charge
This fixed charge represents the costs of meter reading, customer billing, accounting and maintaining the meter and service line to your property. The water service charge is based on the size of the water meter and is due with every bill. Most residential customers have 5/8” meters. Some also have a separate meter for their lawn sprinkler service, many of which are 1”. These rates apply to all service areas. Please refer to New York American Water’s tariff for charges related to larger meter sizes.
Water Usage Charge
This charge represents the cost related to operating and maintaining source of supply, pumping, treatment and transmission and distribution facilities, as well as the capital costs related to upgrading these facilities. This charge is based on the amount of water you use. The charge is based on a four-tier increasing conservation water rate structure, meaning the cost per gallon increases with each rate block as shown below. By conserving water and keeping your water use within the lower blocks, you pay less per gallon. Reducing your water consumption will also ensure the long-term sustainability of our water source, the Long Island Aquifer. It really can make a difference. NOTE: Rates vary based on the service area. To determine which service area you’re located in, see Service Area Descriptions below.
For more information:
- NY Public Service Commission - Rate Filing Documents and PSC Order
- Customers can also contact our Customer Service Center at 1-877-426-6999, M-F, 7 a.m. to 7 p.m.
- You can learn more about the rate setting process in our white paper: Challenges In The Water Industry: The Rate Approval Process .
Service Area Descriptions
Service Area 1
Applies to customers in the following districts:
- Beaver Dam Lake, New Vernon, Whitlock Farms Districts: New Windsor* and Cornwall*, Orange County.
- Cambridge District: Cambridge, Jackson* and White Creek*, Washington County.
- Dykeer District: Lincolndale and The Willows (development), Westchester County.
- Hoey-DeGraw District: Forestburgh*, Sullivan County.
- Kingsvale District: Ulster and the developments of Whittier, Deer Run and Kuku Ln.*, Ulster County.
- Long Island District: Atlantic Beach, Baldwin, Cedarhurst, East Rockaway, Hempstead*, Hewlett, Hewlett Bay Park, Hewlett Harbor, Hewlett Neck, Island Park, Lawrence, Lynbrook, Malverne, Mill Neck*, Oceanside, Roosevelt, Valley Stream, Woodsburgh, Woodmere, Nassau County; Mamakating*, Sullivan County; and Rochester*, Ulster County.
- Lucas Estates: Rochester, Ulster County.
- Mt. Ebo District: Southeast*, Putnam County.
- Spring Glen Lake: Mamakating, Sullivan County.
- Waccabuc District: Lewisboro and Indian Hill (development), Westchester County.
- West Branch Acres District: Carmel*, Putnam County.
- Wild Oaks District: Lewisboro, developments of Wild Oaks Park in Goldens Bridge, Katonah Close Guilford Circle, The Glen at Lewisboro, Cedar Woods and Deer Tract Lane and Nash Road, Westchester County.
Service Area 2
- Merrick District: Applies to customers in Merrick, North Merrick, Bellmore, North Bellmore, Wantagh, North Wantagh, Seaford, Massapequa*, Massapequa Park*, Levittown*, Hempstead* and Oyster Bay*, Nassau County
- North Shore (Sea Cliff) District: Applies to customers in Sea Cliff, Glen Head, Glenwood Landing, Old Brookville*, Roslyn Harbor* and Glen Cove*, Nassau County
* Partially served