July 9, 2003

Contact: (718/595-3601)

Water Board: Water Rate Increase Outside of New York City

PUBLIC NOTICE IS HEREBY GIVEN THAT, pursuant to Section 1045-j(3) of the Public Authorities Law, after a public hearing was held on June 12, 2003, in accordance with the provisions of such law, the New York City Water Board ( the “Board”), at its meeting held on June 19, 2003, adopted a resolution approving an increase in the rate charged for water provided and made available to customers of the Water Supply System of the City of New York (the “System”) that are located outside of the City. The basis for this increase is contained in a report prepared by Black & Veatch, Rate Consultant to the Board, which report sets forth the unit cost of water based on the costs of water supply works and facilities located north of the City for the fiscal year commencing July 1, 2003. The following rate changes became effective as of July 1, 2003:

• The regulated rate for water provided to users outside the City from either the Croton or Catskill/Delaware systems which does not exceed the allowance quantities set forth in Section 24-360 of the Administrative Code of the City of New York has been increased from $485.71 per million gallons (“MG”) to $542.36 per MG ; and

• The rate for water supply provided in excess of the allowance quantities set forth in the Section 24-360 of the Administrative Code of the City of New York is continued at a level equal to the in-city metered water rate which also has been increased from $1,925.13 to $2,032.09 per MG.

Any member of the public who would like additional information regarding this matter should contact Kevin Kunkle, New York City Water Board, 59-17 Junction Boulevard, 8th Floor, Flushing, New York 11373, (718) 595-3601.