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Sea Cliff Settlement

August 28, 2019

 

The Village of Sea Cliff has reached a settlement with New York American Water. Here in part is a press release issued on August 8th.

 

“After 23 months of litigation and complete vindication of the claims by the ratepayers against New York American Water a settlement offer is on the table. This proposed settlement would require approval of the Supreme Court Judge presiding over the case as well as the Public Service Commission.  The proposed settlement would also be subject to a minimum of a 30-day public comment period by the PSC. These punitive measures are in accord with the recommendations of Governor Andrew Cuomo.

 

In September 2017, in response to extraordinary and unreasonable rate increases granted to the New York American Water Company (NYAW) by the New York Public Service Commission (PSC), the Village of Sea Cliff brought an Article 78 proceeding against NYAW and the PSC. During the early pendency of our legal proceeding, NYAW acknowledged that certain specific internal errors and omissions were made by them in preparing their rate request to the PSC. Those errors then were conveyed to PSC as factual data intended to support the proposed rates. These misrepresentations by NYAW resulted in the ratepayers in the Sea Cliff Water District experiencing the aforementioned unusually high rates for theirwater supply. 

 

In furtherance of this contemplation and after considerable negotiations, NYAW has agreed to sell the property they currently own at 325 Prospect Avenue to the Village of Sea Cliff at a $1 million discount. Subject to the approval of the PSC, the Village of Sea Cliff can take ownership of that 2.5 acre lot including improvements for $600,000. In addition, all ratepayers throughout the district will receive and share a $1.6 million credit on their future water bills.

 

“I am pleased that Sea Cliff took the lead on this issue and with the village’s progress throughout these proceedings,” Mayor Lieberman said in a statement.

 

The initiation and settlement of this specific Article 78 proceeding has and will bring many crucial benefits to the rate payers. It is important to recognize that the board of trustees of the Village of Sea Cliff continues to work diligently to become part of a municipal water district, which will end the dominance of a private water company’s control of our natural resource, water.” On August 28th an update on efforts to obtain affordable public water will be at the North Shore High School auditorium at 6:30 PM. North Shore Concerned Citizens and Glen Head-Glenwood Civics Council www.americanwatermustgo.com

 

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