May 8, 2000

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 is considering an increase in the rate charged for water supply made available to customers outside of New York City by the Water 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 year beginning July 1, 2000.

It is proposed that the following rate increase will become effective as of July 1, 2000. Specifically, it is proposed that:

• The regulated rate for water supply provided to users outside the City from either the Croton or Catskill/Delaware systems will be increased from $383.78 per million gallons ("MG") to approximately $414.42 per MG, effective July 1, 2000.

• The rate for water supply provided in excess of the allowance quantities set forth in Section 24-360 of the Administrative Code of the City of New York shall be continued at a level equal to the in-city metered rate of $1,751.34 per MG as of July 1, 2000.

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

Tuesday, June 6, 2000, at 2:00 P.M., in Room 102 of the County Office Building, located at 148 Martine Avenue, White Plains, NY 10601.

Members of the public 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, Corona, NY 11368-5107, telephone (718) 595-3601. Oral testimony will be limited to five (5) minutes duration.