June 3, 2005

Contact: (718/595-3601)

Water Board: Water Rate Increase for Fiscal Year 2006

PUBLIC NOTICE IS HEREBY GIVEN THAT pursuant to Section 1045-j (9) of the Public Authorities Law, that after public hearings were held on May 2, 3 and 4, 2005, in accordance with the provisions of such law, the New York City Water Board (the “Board”) has, at its meeting held on May 13, 2005, adopted a resolution approving increases in water rates to users of the Water Supply System of the City of New York, for the fiscal year commencing July 1, 2005, from those rates currently in effect, and making certain customer service and billing policy changes, as follows:

I. There will be a change from currently effective water and wastewater rates for services provided during the fiscal year commencing July 1, 2005.

1. Metered and unmetered water rates will increase by 3%.
2. Wastewater charges will remain at 159% of water charges.
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 not more than 9.3% to $646.09 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, of $2,205.88 per million gallons.

II. There will also be changes to certain billing policies and miscellaneous fees and charges.

1. Comprehensive Water Reuse Program – The Board will extend this program to include graywater as well as blackwater systems.
2. Renovation Bill Cap Program – The Board will discontinue this program.
3. Title Meter Readings and Special Meter Readings – The Board will reduce the fee for title meter readings conducted in connection with property ownership transfers to $25, and will increase the fee for a Special Meter Reading, requested by an owner and unconnected with a property transfer, from $55 to $75.
4. Laundry Rate – The Board will establish an additional laundry fixture rate for clothes washing machines located within an individual apartment unit of $26.47 per fixture.
5. Multiple Family Conservation Program (MCP) - The deadline for filing an application for the MCP, currently set forth as December 31, 2005, will be extended by one year to December 31, 2006. Other billing programs due to expire June 30, 2006 will also be extended by one year.
6. Transition Program for Residential Premises with Six or More Dwelling Units – This program will be modified to exclude new construction from program eligibility. All new construction will be billed on the basis of metered consumption or on the MCP rate.
7. Cap on Metered Charges – Eligibility for this program will be limited to properties equipped with at least 70% low-consumption toilets.
8. Forgiveness Program for Extraordinary Leaks and Disasters – The minimum annualized threshold value used to determine program eligibility will be increased from $300 to $380 to account for previously adopted rate increases.
9. Billing Program Requests - Part VI Section 1.D will be modified by requiring that all Billing Program requests must be in writing and requests will no longer be accepted over the phone or by visiting a borough office.
10. 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. Exemptions – the existing statutory authorization of and DEP’s administrative policies and procedures for implementing exemptions will be incorporated by reference into the Board’s Rate Schedule.
    2. Forgiveness Program for Extraordinary Leaks and Disasters – a failure of a maintainable plumbing fixture such as a toilet or faucet is not an extraordinary leak or disaster and will not be eligible for the program.
    3. Part VII Section 3 – Billing based on a representative average daily flow may be calculated based on a representative period occurring prior to or after failure of the meter as reasonably determined by DEP.
    4. Part VII Section 4 – Estimated bills, if not paid when due, are subject to late payment charges.
    5. Election of Meter Based Billing
       1. Election must be made on a DEP Election of Meter Based Billing Form
       2. If a meter is not registering, meter billing will be prospective only from the date a working meter is installed and approved by DEP

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, Flushing, NY 11373.