Public Service Commission seeks court order against New York American Water

Source: Chau Lam, Newsday, July 12, 2018

The New York State Public Service Commission on Thursday asked its chief lawyer to get a court order directing New York American Water to follow all its regulations, including providing accurate information during rate-hike proceedings. The commission, which regulates the state’s utilities, called for judicial intervention to “help restore consumer confidence” after its report last month revealed that the water company’s employees intended to deceive state regulators in 2016 when the company requested — and regulators approved — its increase to customers’ water rates. The report said company employees were aware of “material errors” in tax calculations starting in 2013, but failed to disclose those errors to state regulators at the time the company was seeking approval for rate hikes. The errors led to customers in the Sea Cliff water district being overcharged, state officials found. … In December 2017, after state regulators had approved the company’s request to hike rates, the company’s senior management and legal counsel admitted the errors to the Department of Public Service, the investigative arm of the PSC. … Assemb. Michael Montesano (R-Glen Head), who has called for criminal investigations into the water company, said that with a court order, New York American would face harsher penalties if it violated state regulations in the future. …