April 2, 2004

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 23, 26 and 27, 2004, concerning proposed rates and charges to be effective July 1, 2004, for the use of, or services furnished, rendered or made available 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, 2004. 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, 2004.

1. Metered and unmetered water rates will increase by 5.5%.

2. 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 not more than 10.6% to $600.00 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 $2,139.04 per million gallons.

2. It is also anticipated that changes to certain billing policies and miscellaneous fees and charges will be considered.

3. 1. Multiple Family Conservation Program (MCP) Application Extension - the deadline for filing an application for the MCP, currently set forth as 12/31/2004, will be extended by one year to 12/31/2005. Other billing programs due to expire 06/30/2005 also will be extended by one year.
   2. Exceptions to Standard Wastewater Allowances – the approved allowance percentage will be rounded to the nearest 5% to facilitate regular and timely billing to customers.
   3. Comprehensive Water Reuse Program – The Board will establish a billing program to encourage the reuse of water and wastewater within newly developed properties. The proposed incentive is anticipated to include a 25% reduction in water charges and eligibility for an Exception to the Standard Wastewater Allowance for properties that meet specific requirements, including but not limited to the following:
      1. Have an on-site wastewater treatment system(s)
      2. Capture and reuse of stormwater
      3. All water uses are metered
      4. Fully equipped with low-consumption water fixtures, including ultra low-flow toilets, low-flow showerheads and faucets, and high efficiency clothes washing machines
      5. Demonstrates an aggregate annual reduction in demand for drinking water of at least 25% as compared to buildings of comparable type and size, and
      6. Are in compliance with all governmental requirements including the acquisition of any required operating permits.
   4. Dishonored Check Charge – increased from $15 to $20 to conform to the recent increase approved by the City of New York.
   5. Frontage Charge for Hose Bibs – modified so that all hose bibs will incur a fixture charge rather than the current Board policy of exempting from fixture charges hose bibs in excess of one per property.
   6. Existing Board and Department of Environmental Protection (“DEP”) policies and procedures will be reiterated in the Rate Schedule to provide a more complete source of information to the Board’s customers including the following:
      1. Frontage Fixture Charge Adjustments – adjusted on a prospective basis only from the date of discovery by DEP.
      2. Installation, Repair and Maintenance of Meters – DEP is not responsible for the installation or maintenance of any meter required to be installed by a customer in order to be eligible for a reduction in charges pursuant to a Billing Program.
      3. Part IX, Section 2.D.3 relating to the disposition of interest for non-meritorious appeals will be deleted as it is inconsistent with other sections of the Rate Schedule and is not representative of DEP or Board practice or policy.

All members of the public who wish to obtain copies of the Board's Information Booklet describing the rate proposal, and changes to billing policies and miscellaneous fees and charges, or who wish to testify at the 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 21, 2004. Oral testimony will be limited to five (5) minutes duration. A copy of any prepared or written statement may be submitted to the Water Board at the above address at least two days prior to the meeting.