Hon. Jaclyn A. Brilling, Secretary, New York State Public Service Commission Three Empire State Plaza, Albany, NY 12223 Re: Public Comment on Case 09-W-0731 United Water New York Rates Submitted by electronic filing via email to [email protected] on May 14, 2010 Comments of: Bob Dillon [email protected] Rockland R.A.F.T. (Rockland Residents Against Flooding Tomorrow) http://RocklandRaft.com Founding Member Rockland County Water Quality Committee Associate Member TAPPAN ZEE BRIDGE/I-287 ENVIRONMENTAL REVIEW Environmental Stakeholders’ Advisory Working Group Member Rockland Coalition for Sustainable Water Member The comments attached are my own and do not necessarily represent the views of others. To view previous comments made by Bob Dillon at the New York State Public Service Commission’s Public Statement Hearing held at Town of Ramapo town hall, April 22, 2010 click on View all Case Related Commission Documents for Case 09-W-0731 Scroll to and click on filing number 34, Transcript of Public Statement Hearing held April 22, 2010. Once in the file see pages 11 through 18. Document Filing On Filing Date Filed Document Title Type Behalf Of No 4/29/2010 Transcripts Transcript of Public Public Service 34 Statement Hearing held Commission April 22, 2010 1 Attachments Comments of Bob Dillon Case 09-W-0731 United Water New York Rates - PDF Spring Valley 1952 Decision (Lake DeForest) - PDF 1965 Lake Tappan Decision - PDF Discharges From Lake DeForest 1958-2007 - Excel Flow of the Hackensack River at West Nyack - Excel Excess Flow In Years of Mandatory Water Use Restrictions - Excel Email to Rockland County Executive C. Scott Vanderhoef 10/3/2007 Re: United Water Dumping to Atlantic Ocean - PDF Email to William C. Janeway, Regional Director – Region 3 NYS DEC 7/31/2009 Re: Discharges from Lake DeForest 12/1/1958 – 12/31/2008 - PDF UWNY DEC Scoping Comments by Bob Dillon - PDF Email reply to DEC 11/10/09 - PDF Dr. Dan Miller’s Testimony, United Water Rate Case 09-W-0731 - PDF Key dates in the history of United Water 1869: Hackensack Water Company is founded. 1874: Following an initial period of inactivity, company begins to offer service. 1889: Company is listed on New York Stock Exchange. 1890: Spring Valley Water Works Founded 1900: Hackensack Water Company acquires Spring Valley Water Works. 1957: Lake DeForest Reservoir in New York. 1966: Lake Tappan Reservoir in New York and New Jersey. 1983: Reorganization leads to United Water Resources, Inc. 1994: General Waterworks Corporation is acquired. 2001: Company becomes a subsidiary of Suez Lyonnaise des Eaux 2 Dear Ms. Brilling and members of the New York State Public Service Commission: The New York State Public Service Commission is currently considering a rate increase request by United Water New York. I respectfully submit that there are other important issues for the Commission to consider regarding United Water’s operations in Rockland County, NY. Is a desalination plant needed in Rockland County? Should Rockland County water ratepayers replace water that is being sent to New Jersey in violation of the operating permit for Lake DeForest? Can a company with a history of permit violations be trusted to safely operate a desalination plant that will draw water from the Haverstraw Bay in close proximity to the leaky Indian Point nuclear power plant? Should the New York State Department of Public Service reopen the rate cases that resulted in United Water being mandated to develop additional water supplies? (Water Rates and Merger Petition Cases 06-W-0131 & 06-W-0244 for United Water of New York and United Water South County) I respectfully request that the New York State Public Service Commission consider the information presented in this document and: 1. Deny any rate increase request by United Water New York 2. Reopen the Water Rates and Merger Petition Cases 06-W-0131 & 06-W- 0244 for United Water of New York and United Water South County Bob Dillon 3 The Economic Cost of Hudson River Desalination United Water’s proposal to construct a desalination plant to supply all of Rockland County with water drawn from the Hudson River comes with a substantial economic cost to all residents and businesses of Rockland. Construction costs are currently estimated by United Water to be $116,500,0001. The annual revenue required to support the operating expenses of the Hudson River desalination plant are currently estimated by United Water to be $25,000,0002. These are United Water’s cost estimates today. The actual financial cost of this project will certainly escalate in the future. Many proponents of Hudson River Desalination argue that United Water’s proposed project will provide $5,500,000 in property tax revenue to the now overtaxed residents of the north Rockland area. However, if the annual revenue requirement to support the operating expenses of the plant is $27,500,000 (instead of the estimated $25,000,000) the 20 percent of United Water’s Rockland County customers that reside in the north Rockland area will see their water bills increase by an equal amount of $5,500,000. The rest of United Water’s Rockland County customers can look forward to an increase of over $22,000,000. The best alternative to meet Rockland’s water needs Meeting the current and foreseeable future water needs of Rockland is simply a matter of United Water complying with the New York State Department of Environmental Conservation discharge permit for Lake DeForest. United Water New York has been exceeding the 9.75 million gallons per day minimum flow from Lake DeForest to satisfy the riparian rights of the Village of Nyack and the State of New Jersey and to protect the Hackensack River eco system. In 2007 United Water was fined by the New York State Department of Environmental Conservation for the excess releases of water from the Lake DeForest Reservoir that occurred that summer. As of October 2007, Lake DeForest was at 58 percent of its capacity, and officials were concerned that a lack of adequate rain and snow over the coming months could lead to water supply problems in the spring. United Water’s explanation for these excess releases was that a valve at the Lake DeForest Dam, used to adjust the amount of water discharged from the dam and to monitor the amount of water flowing from the dam, was malfunctioning. However, there are other mechanisms available to United Water for controlling the discharges such as a second valve and bascule gates located at the dam. The amount of water flowing from the dam can also be determined by using a United States Geological Survey river flow monitoring station just 1 mile downriver from the dam. 1 Clarkstown Town Board workshop meeting 1-12-10 2 United Water presentation to AARP of Rockland County 4-21-10 4 Updated data from that monitoring station is posted to an Internet web page every hour (See http://waterdata.usgs.gov/nwis/uv?01376800). After being fined by the New York State Department of Environmental Conservation (NYS DEC), United Water stopped the excess releases. The defective valve was not replaced until many months later. On August 19, 2008 a Journal News editorial stated, “Drive past Lake DeForest now, and it's brimming.” In only 10 months Rockland’s water supply was transformed from near crisis to abundance. Responding to data indicating that excess releases from Lake DeForest have been going on for decades3. United Water now claims that, “Water must be released from Lake DeForest in order to protect fish and wildlife farther downstream” and that “United Water cannot deprive New Jersey's ecosystem in order to retain more water for Rockland's residents4”. The NYS DEC Lake DeForest discharge permit was formulated not only to allocate to Rockland County its share of Lake DeForest water, but to also protect the Hackensack River ecosystem and provide New Jersey with its share of the river’s flow5. There is no authority for United Water to go beyond the limitations of that permit. The NYS DEC requires United Water New York to release 9.75 million gallons of water per day from the Lake DeForest Reservoir. The municipally owned Nyack Water Company is entitled to draw 2 million gallons per day from the river and the remaining 7.75 million gallons per day flows into Lake Tappan. Flow above 7.75 million gallons per day benefits United Water New Jersey and not the citizens of Rockland County. From Paragraph 37 of the July 23, 1952 New York State Department of Conservation decision authorizing the construction of Lake DeForest: “This Commission has the full power to see that this project is operated solely for the benefit of the citizens of Rockland County. The only benefit to the Hackensack Water Company” (United Water New Jersey) “and the people of New Jersey is the incidental benefit of a regulated flow in the river5.” (See attached PDF File or Spring Valley 1952 Decision at http://rocklandraft.com/Documents.htm). According to Dr. Dan Miller of the Rockland County Department of Health the average excess flow from Lake DeForest to New Jersey is 19.75 million gallons per day. (See Dr. Miller’s testimony to the PSC regarding the latest United Water rate increase request, especially page 22 lines 10 and 11 - PDF attached). Additionally, according to Dr. Miller’s testimony the current inter-company agreements between United Water New York and United Water New Jersey put a disproportionate financial obligation on the ratepayers of Rockland (See Pg. 26 of his testimony to the PSC). 3 See Attached: Reply to DEC 11-10-09 4 See Our Town - December 23, 2OO9 (Similar statements made at Town of Clarkstown workshop meeting 1-12-10) 5 See Attached - Spring Valley 1952 Decision (Lake DeForest) 5 It should also be noted that these commonly owned companies have entered into supply and cost sharing agreements that are not “arm’s-length transactions” and this inside deal making has been to the detriment of the citizens and ratepayers of Rockland County.