Merrick-based New York American Water has entered an agreement to...

Merrick-based New York American Water has entered an agreement to sell itself to Liberty Utilities for $607 million. Credit: Newsday/Steve Pfost

The state Assembly passed a bill Tuesday that would create a North Shore Water Authority that could eventually take on North Shore customers currently served by New York American Water.

The measure, sponsored by Assemb. Charles Lavine (D-Glen Cove), doesn’t provide any immediate path for rate relief, as had legislation pushed by Gov. Andrew M. Cuomo’s administration. A companion bill addressing the North Shore service area also passed the Senate last week. The bill awaits Cuomo's signature.

Sen. Jim Gaughran (D-Northport), sponsor of the Senate version, said the bill, if signed by Cuomo, would also provide annual state funding for the authority of $1 million, starting this year. It creates a new structure for board of directors from the operating districts currently served by New York American Water, including Sea Cliff, Glen Head, Glenwood Landing, Glen Cove, Old Brookville and parts of Roslyn Harbor, Gaughran said.

Gaughran acknowledged the bill "does not touch on the issue of immediate rate relief" for New York American Water customers, who in May began seeing rate hikes of 26% to 30%. But he said the bill is an important first step to public water for the North Shore region that could lead to "significant rate relief."

Cuomo spokesman Rich Azzopardi didn’t respond to a request for comment about whether the governor would sign the legislation.

Separate bills to create a South Shore Water Authority, meanwhile, passed the state Senate on Wednesday, according to sponsor Sen. John Brooks (D-Seaford), and it’s expected to come up for a vote in the Assembly on Thursday.

New York American Water has entered an agreement to sell itself to Liberty Utilities for $607 million, and the company has said it believes the sale is the best way to move forward for its 124,000 Nassau ratepayers, from Lynbrook to Sea Cliff. Entities such as Sea Cliff, the Massapequa Water District, the Town of Hempstead and the state Department of Public Service have each conducted studies finding that a public takeover of all or part of the service area was feasible.

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