Closing in on eleventh hour, new bills in Albany proposed on NY American Water

With time running out in their current session, the state Assembly is attempting to pass a bill that would establish a new public water authority to partly or fully replace New York American Water in Nassau, but it's uncertain whether the effort will result in short-term rate relief.

The Merrick-based water company's 124,000 Nassau customers began receiving bills with rate hikes of up to 30% beginning May 1, after the Assembly balked at a plan by the Cuomo administration to exempt New York American Water from a property tax that makes up a large part of customer bills. The state Senate had passed the measure.

Last week, Assemb. Charles Lavine (D-Glen Cove) introduced an amendment to a bill that's similar to the one passed by the Senate. It faces an uncertain future, Lavine said, because certain "environmental advocates" oppose it. Lavine then worked with Sen. Jim Gaughran (D-Northport) on the second bill that appears to have a better chance — one that would create a North Shore Water Authority and exempt it from paying taxes.

"Opposition by environmental advocates to the establishment of a Nassau County Water Authority as presented in A1204a and S989A represented a challenge to passage in the Assembly," he said in a written statement. Lavine said his version of the North Shore Water Authority bill "is the subject of continuing discussion at the highest levels in the Assembly. I am optimistic that it will pass in the Assembly."

The session ends June 10.

It's the third attempt by the Assembly to pass a bill with a chance of getting Senate approval and Gov. Andrew M. Cuomo's signature. A previous bill passed earlier this month would create a North and a South Shore Water Authority and prevent any private water company in Nassau from raising rates more than 2%. State officials blasted the bill as unconstitutional and "illegal," and the Senate never took it up.

Ratepayers are losing patience.

"Doing nothing is not an option," said Agatha Nadel, who heads North Shore Concerned Citizens, a ratepayer group that is seeking public water, either for all 124,000 Nassau customers, or at the very least, the 4,500 North Shore customers in NY American Water's service area.

"It must be completely resolved, this legislative session," Nadel said. "The bottom line is that a bill must pass in both houses of the legislature that the governor will sign. Otherwise, it is meaningless."

James Denn, a spokesman for the state Department of Public Service, noting the agency's previous work to lower the rate hike and create a new authority, said: "If the Assembly passes the tax relief included in legislation already passed in the Senate, the May 1 increase can be reversed. We continue to be ready to work with the Legislature on this issue."

Lynda DiMenna, president of New York American Water, noting the May rate hike, said: "Our customers need the Assembly to approve legislation that eliminates the unjust and unfair special franchise tax from their bills. We have been advocating for legislation that would accomplish that and lower customer bills for two years."

She said the company was "grateful for the governor’s leadership on this issue, the Senate for passing two bills that eliminate the special franchise tax and urge the Assembly to act to provide tax relief to our customers."

By Mark Harrington

mark.harrington@newsday.comMHarringtonNews

Mark Harrington, a Newsday reporter since 1999, covers energy, wineries, Indian affairs and fisheries.