May 14, 2001

Contact: (718/595-3601)

Public Hearing on Rate Increase Outside New York City

PUBLIC NOTICE IS HEREBY GIVEN that the New York City Water Board will consider an increase in the rate charged for water supply made available to customers outside of New York City by the Water and Wastewater System of the City of New York ( the "System"). The basis for this increase is contained in a report prepared by Black & Veatch, rate consultant to the Board, which sets forth the unit cost of water supply for facilities north of the City for the fiscal year beginning July 1, 2001.

Therefore, in accordance with Section 1045-j(3) of the Public Authorities Law, a public hearing will be held as follows:

Tuesday, June 12, 2001, at 2:00 P.M., in Room 102 of the County Office Building, located at 148 Martine Avenue, White Plains, New York.

Specifically, it is proposed that the following rate changes become effective as of July 1, 2001:

• The regulated rate for water supply provided to users outside the City, from either the Croton or Catskill/Delaware systems, be increased from $414.37 per million gallons ("MG") to $448.83 per MG.

• The rate for water supply provided in excess of the allowance quantities set forth in Section 24-360 of the Administrative Code of the City of New York be continued at a level equal to the in-city metered rate which, as of July 1, 2001, will be increased from $1,751.34 to $1,804.81 per MG.

Interested parties who wish to obtain copies of the Rate Consultant's report concerning the cost of supplying water to upstate customers or who wish to give comments to the Board should contact Kevin Kunkle, New York City Water Board, One Lefrak City Plaza, 59-17 Junction Boulevard, 8th Floor, Corona, New York 11368-5107, telephone (718) 595-3601. Oral testimony will be limited to five (5) minutes duration.