Water rate hike OKd for Hempstead area

The New York State Public Service Commission has established a rate hike of more than 7 percent over three years for Long Island American Water customers.

Under the new plan, which starts April 1, the annual bill for an average metered residential customer using 72,000 gallons per year will increase 2.48 percent to $391.73 in the first year. In the second year, the average residential rate will grow 2.63 percent to $402.05; in the third year, it will rise 2.17 percent to $410.78, commission records show.

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

The commission adopted the rate increase on March 15. It had to reach a decision by yesterday.

The company's original proposal last April called for a one-time 19.59 percent increase. The company submitted a new rate proposal in late November after complaints from village officials and residents that the proposed one-time increase was too large.

The company has proposed $15.8 million in plant improvements, including the completion of a new iron filtration plant by the end of 2013.

In response to customer complaints about water discoloration, the commission has directed the water company to work with customers and staff of the county Department of Public Service to address the issue. Officials have said the discoloration most likely is caused by high iron levels.

The commission also ordered the company to develop outreach efforts that include a process to encourage customers to report water quality issues, documents show.