March 31, 2003

Contact: (718/595-3601)

Public Hearings on Proposed Rates and Changes

PUBLIC NOTICE IS HEREBY GIVEN THAT in accordance with Section 1045-j(3) of the Public Authorities Law, public hearings will be held on April 22, 23 and 24, 2003, concerning proposed rates and charges to be effective July 1, 2003, for the use of, or services furnished, rendered or made available in New York City by the Water and Wastewater System of the City of New York (the "System") and concerning changes to certain billing policies and miscellaneous fees and charges to be incorporated into the New York City Water Board's Rate Schedule effective July 1, 2003. The hearings will be held as follows:

1. It is anticipated that there will be a change from currently effective water and wastewater rates for services provided during the fiscal year commencing July 1, 2003.
   1. Metered and unmetered water rates will increase by 6.5%.
   2. The minimum charge for water and wastewater services may be reduced by approximately 15%.
   3. The regulated rate for water provided to municipalities and water districts outside of the City which does not exceed the allowance quantities set forth in Section 24-360 of the Administrative Code of the City of New York will increase by 12% to $544.00 per million gallons, and 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, currently anticipated to be $2,045.45 per million gallons.
2. It is also anticipated that changes to certain billing policies and miscellaneous fees and charges will be considered.
   1. Multiple Family Conservation Program (MCP) Application Extension - the deadline for filing an application for the MCP, currently set forth as 12/31/03, will be extended by one year to 12/31/04. Other billing programs due to expire 06/30/04 also will be extended by one year.
   2. The standard sewer allowance for Air Conditioning and Refrigeration (Cooling Towers) will be reduced from 99% to 85%.
   3. Sewer use fees for miscellaneous sewer discharges (Dewatering) will be restructured.
      • A minimum charge of $300 will be applied to all approved discharges;
      • A rate of 38% of water charges will be applied to discharges that will not flow to a wastewater treatment plant.
   4. Selected Miscellaneous Fees for services will be revised as follows:
      • Tap installation fee will be increased from $115 to $250;
      • Tap location fee will be increased from $150 to $375;
      • Hydrant flow test fee will be increased from $150 to $250;
      • Wet connection fees will be revised to reflect a flat rate of $1,200 for labor and OTPS.
   5. Eligibility for Billing Programs will be revised by modifying Part VI of the Board's Rate Schedule to provide that eligibility for discretionary billing programs will be conditioned on a premises account being paid current or a valid payment agreement being executed.
   6. Requirements for Letters of Authorization will be revised to establish time limits and expiration dates for valid owner designations of an Authorized Representative.
   7. The Board's Back Billing Limitation Policy will be revised to:
      • Provide that the reinstatement of so called "erroneously canceled" or "erroneously adjusted" charges will be subject to applicable back billing limitations; and,
      • Iterate that backbilling limitations do not apply in cases of billing adjustments involving multiple bills and multiple billing periods provided that the total rebilling that results from the billing adjustment is less than the total amount that was billed prior to such billing adjustment.
   8. The Regular Bill Cap and Renovation Bill Cap Programs will be revised to specify:
      • Program will not be available to properties with substantial leaks; and,
      • Program will not be available for multifamily buildings with six or more units.
   9. The Board's Innocent Purchaser Program will be revised to provide that a purchaser will be protected against previously unbilled charges if a special or final meter reading is requested and paid for at least 30 days prior to the closing date of the property transfer, but that the program will not apply where DEP is denied access to the property.

All members of the public who wish to obtain copies of the Water Board's Information Booklet describing the proposed rates, and changes to billing policies and miscellaneous fees and charges, or who wish to testify at a hearing should contact Kevin Kunkle, New York City Water Board, 59-17 Junction Boulevard, 8th Floor, Flushing, NY 11373, Telephone (718) 595-3601 not later than April 17, 2003. Oral testimony will be limited to five (5) minutes duration. A copy of any prepared or written statement may be submitted for consideration by the Water Board to the above address by the close of business April 25, 2003.