May 21, 2001

Contact: (718/595-3601)

Water Rate Increase for Fiscal Year 2002

PUBLIC NOTICE IS HEREBY GIVEN pursuant to Section 1045-j(9-a) of the Public Authorities Law, that after public hearings were held on April 23, 24 and 25, 2001, in accordance with the provisions of such law, the New York City Water Board ( the "Board") has, at its meeting held on May 3, 2001, adopted a resolution approving increases in water rates to users of the Water Supply System of the City of New York, including rates charged to users of the system within the City of New York, and rates charged to municipalities and water districts outside of the City for water provided which exceeds the allowance quantities of water set forth in Section 24-360 of the Administrative Code of the City of New York, for the fiscal year commencing July 1, 2001, from those rates currently in effect, and making certain customer service and billing policy changes, as follows:

Effective July 1, 2001, the water rate for all in-City customers, flat-rate and metered, will increase by 3.0 % over the rate in effect in Fiscal Year 2001, and the wastewater rate will remain at 159% of the applicable water charge.

Effective July 1, 2001, the rate charged for water provided to municipalities and water districts outside of the City which exceeds the allowance quantities of water set forth in Section 24-360 of the Administrative Code of the City of New York will be equal to the in-City metered rate of $1,804.81 per million gallons.

Certain customer service and billing policies have been changed or clarified, including the following:

(1) Multiple-Family Conservation Program Proposal

The program offers owners of multiple family housing consisting of six or more dwelling units, an option to elect billing based on a fixed charge per dwelling unit, if the owner invests in low-consumption plumbing hardware and fixtures, and cooperates with DEP in conservation efforts in their building. Under this program, the charge for each dwelling unit will be $436.72 per billable dwelling unit.

It is intended that as of July 1, 2004, the Multiple-Family Conservation Program will replace Frontage Billing, the Regular Bill Cap, the Renovation Bill Cap, the Transition Program and the Pre-Transition Program for Residential Premises with six or more dwelling units.

(2) Part IX - Customer Account Information and Complaint Resolution

The changes provide that a customer may request an explanation of a water and wastewater bill or charge by calling the DEP Customer Service Call Center at (718) 595-7000, by visiting a borough office of the Bureau of Customer Services (BCS), by writing DEP/BCS Customer Service, C.S. 739055, Elmhurst, NY 11373-9055 or by visiting DEP's website www.nyc.gov/dep. If a customer is not satisfied with the initial review of their bill, a complaint must be made in writing to DEP/BCS Customer Service, C.S. 739055, Elmhurst, NY 11373-9055. DEP will respond in writing within 90 days of receipt of the complaint. Should the customer wish to appeal this decision, a written appeal must be made within 90 days.

Copies of the New York City Water Board Water and Wastewater Rate Schedule are available for inspection by the public during regular business hours at the offices of the New York City Water Board, 59-17 Junction Boulevard, 8th Floor, Corona, New York 11368.