May 17, 2004

Contact: (718/595-3601)

Water Board: 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 from either the Croton or Catskill/Delaware systems of the Water Supply 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, 2004.

Specifically, it is proposed that the following rate changes become effective as of July 1, 2004:

• The regulated rate for water supply provided to users outside the City that is within the allowance quantities set forth in Section 24-360 of the Administrative Code of the City of New York, will be increased from $542.36 per million gallons (“MG”) to an amount not to exceed $600.00 per MG.

• The rate for water supply provided to users outside the City that is in excess of the allowance quantities set forth in Section 24-360 of the Administrative Code of the City of New York will be continued at a level equal to the in-city metered rate which, as of July 1, 2004, has been increased from $2,032.09 to $2,139.04 per MG.

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

Monday, June 14, 2004, at 2:00 P.M., in the 2nd Floor Training Room of NYCDEP’s Bureau of Water Supply Sutton Park Office, located at 465 Columbus Avenue, Valhalla, New York 10595.

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, Flushing, New York 11373-5108, telephone (718) 595-3601.