Hearings set on water rate hike plan

The New York State Public Service Commission will hold two hearings Tuesday on Long Island American Water's new bid for a 7.6 percent rate hike over three years.

The company's original proposal earlier this year called for a 19.59 percent increase to be imposed at one time, rather than spread over several years.

The company submitted the new rate proposal on Nov. 28.

American Water, the largest water supplier in Nassau County, provides service to more than 200,000 people in 31 communities in southern Hempstead Town.

Under the new proposal, the company would impose rate increases on April 1 in 2012, 2013 and 2014. Bills for a typical residential customer would increase 2.5 percent for the first year, 2.6 percent for the second year, and 2.2 percent for the third year, commission records show.

After reducing or eliminating various surcharges, the proposed rate changes would generate $6.5 million for the company -- a 13.2 percent increase.

American Water, based in Lynbrook, says it needs the additional revenue to get a fair return on plant investments after facing increased costs, primarily property taxes and depreciation and capital costs, commission records show.

The public hearings will be held in the Nathan L.H. Bennett Pavilion, adjacent to Hempstead Town Hall, at One Washington St. The first session will start at 3 p.m. The second session will start at 7 p.m. and will remain open until everyone wishing to speak has been heard.

The commission is required to decide on the case by March 27.