June 12, 2000

Contact: (718/595-3601)

Water Rate Increase for Fiscal Year 2000

PUBLIC NOTICE IS HEREBY GIVEN pursuant to Section 1045-j(9-a) of the Public Authorities Law, that after public hearings were held on May 1, 2, 3 and 4, 2000, in accordance with the provisions of such law, the New York City Water Board ( the "Board") has, at its meeting held on May 12, 2000, adopted a resolution approving increases in water rates to users of the Water Supply System within the City of New York for the fiscal year commencing July 1, 2000, from those rates currently in effect, and approving certain customer service and billing policy changes, as follows:

Effective July 1, 2000, water rates for all in-City customers, metered and unmetered, will increase by 1.0 % over the rates in effect during Fiscal Year 2000. The wastewater rate will remain at 159% of the applicable water charge.

The following changes to the billing policy provisions and procedures of the Rate Schedule were approved:

I. Multiple Family Conservation Proposal

This proposal to promote greater water conservation and ensure the installation of water meters in multiple unit apartment buildings will replace the existing Transition Program, Retroactive Transition Program and Meter Billing Cap Program for residential buildings consisting of six or more dwelling units. It provides that owners of multiple family residential buildings of six or more units who replace or have replaced at least 70% of the toilet, sink and showerhead fixtures in a building with low flow water consuming fixtures may elect to be billed on the basis of a fixed charge per dwelling unit per year. The proposal provides for implementation over a 3 year period, and the earliest date on which the charge will be effective is July 1, 2001.

II. Charges for Steam Condensate Discharges to Sewer System

The Board approved explicit charges for Steam Condensate discharges into the wastewater system contingent upon Consolidated Edison of New York executing a Memorandum of Understanding ("MOU") with the City. The MOU was executed in May 2000 and steam condensate charges will go into effect, as follows:

1. In the case of End of System Condensate Discharges:
1. Retail Steam Customers identified as Steam Classification-1 (SC1- Small Users), the wastewater rate shall be applied to the amount of water equal to 90% of the HCF Equivalent of its steam consumption as determined by the steam provider.
2. Retail Steam Customers identified as Steam Classification-2 (SC2- Large Commercial), the wastewater rate shall be applied to the amount of water equal to 67% of the HCF Equivalent of its steam consumption as determined by the steam provider.
3. Retail Steam Customers identified as Steam Classification-3 (SC3- Large Residential), the wastewater rate shall be applied to the amount of water equal to 76% of the HCF Equivalent of its steam consumption as determined by the steam provider.
2. In the case of steam condensate discharges into the wastewater system from any point along the Steam System up to the property line of properties receiving steam from such System, the steam provider shall pay a wastewater charge equal to 6.3% of all amounts billed to Retail Steam Customers.

The steam provider will compute steam usage by retail steam customers and issue bills for condensate discharges on behalf of the Board.

III. Other Billing Policy Changes

Certain billing and customer service policies have been changed or clarified, including the following:

1. Dwelling Units - as applied to various billing policies and programs, the definition is modified from the number of units shown on the records of the Real Property Assessment Division to the number of units according to the Certificate of Occupancy. An equivalent will be accepted in instances where no Certificate of Occupancy exists.
2. Retroactive Transition Program - renamed Pre-Transition Flat-Rate Charge; eligibility changed to commence as of the application date rather than the beginning of the fiscal year in which the application was submitted.
3. Miscellaneous Fees and Charges - price adjustments to various miscellaneous service fees, including the renaming of the "Service Inspection Fee" to the "Water Connection Fee" and increasing the fee amount from $32 to $200.
4. Flat Rate Account Reconciliation Fee - new miscellaneous fee of $25 to provide a mechanism, similar to the final meter reading for metered accounts, where purchasers of real property billed on the frontage system to ensure that the account will not be backbilled prior to their ownership.
5. Refunds - credit balances will be applied against other accounts of the same owner prior to a refund being issued.
6. Wastewater Allowance - applicants requesting more than one Standard Wastewater Allowance per meter are required to file an engineer's report; accounts with delinquent charges will, upon notice, have Wastewater Allowances revoked.
7. Meter Surcharge - annual surcharge to be imposed when a customer fails to install a meter.
8. Permanent Boiler - defines instances where this existing frontage charge may be applied.
9. Backbilling Limitation - definition of culpable conduct to specifically include situations where a plumber fails to secure or return a permit, or where customer fails to provide access to premises.