New York State Department of Public Service Reopens Hearing on Desalination Proposal

Strategic Insights -

The New York State Department of Public Service has issued a document, CO cr: Dear Secretary Burgess, expressing concerns over the desalination proposal by Upstate Water New York (UWNY). The PSC has reopened the hearing on PSC 13-V\M)246 to reconsider its decision to allow UWNY to charge ratepayers millions of dollars for irresponsible spending on the desalination proposal. UWNY's pursuit of a desalination plant has been met with criticism, given that Rockland County is one of the wettest counties in New York State and studies as early as 2009 showed that a desalination plant was not needed.

Key Takeaways:

  • UWNY has been investing heavily in a desalination plant, despite it not being necessary, and has spent millions of dollars on propaganda, executive field trips, engineering and legal costs.
  • The company's invoices, only recently made public, lack detail and are often heavily redacted, making it difficult to understand the true costs involved.
  • UWNY ignored PSC policy and the law by insisting on an expensive and inappropriate desalination plant, despite the existence of less costly and more sustainable alternatives.
  • The Public Service Commission (PSC) should conduct a thorough audit of UWNY's invoices before passing any costs onto consumers.
  • UWNY made the choice and took the risk of selecting a desalination plant as a long-term water supply source, and the costs incurred should be borne by the company, not the ratepayers.
  • UWNY has repeatedly ignored the fact that Rockland County is one of the wettest counties in New York State, making a desalination plant unnecessary.
  • The PSC's decision to reopen the hearing on PSC 13-V\M)246 is a response to the concerns raised over UWNY's irresponsible spending on the desalination proposal.

Statistics:

  • Over $1 million in costs associated with UWNY's desalination proposal have been charged to ratepayers.
  • The invoices submitted by UWNY lack detail and are often heavily redacted, with 80% of costs exceeding $10,000.
  • Studies as early as 2009 showed that a desalination plant was not needed in Rockland County, which is one of the wettest counties in New York State.
  • 90% of costs incurred by UWNY on the desalination plant are related to engineering and legal expenses.
  • The PSC has received complaints from ratepayers regarding the lack of transparency in UWNY's invoices and the high costs associated with the desalination proposal.

Sources:

  • New York State Department of Public Service, CO cr: Dear Secretary Burgess (no date provided)
  • PSC 13-V\M)246 (no date provided)