DEP Proposes Water Rate Hike
Increase would pay for stormwater resilience and infrastructure upgrades.
The NYC Department of Environmental Protection (DEP) recently proposed increasing the city’s water and sewer rates by 4.42 percent to the NYC Water Board. Water Board rates are based on the cost of providing utility services and servicing outstanding debts that relate to water and wastewater assets.
According to DEP, the proposed rate would keep the cost of water in New York City well below the national average, increase by less than inflation, and would be used to help fund critical infrastructure and resilience projects. The proposed rate is subject to review and approval by the Water Board.
Among major projects being funded to increase resilience include the $1.6 billion Combined Sewer Overflow Retention Tanks for the Gowanus Canal, the $1 billion repair of the Delaware Aqueduct, the buildout of a comprehensive drainage system for Southeast Queens, the construction of thousands of additional Green Infrastructure installations, and the excavation of the final shafts for the Brooklyn/Queens leg of City Water Tunnel No. 3.
DEP estimates the typical multifamily unit with metered billing will see an increase from $773/year/unit to $808/year/unit—an increase of $2.85/month (based on an average consumption of 52,000 gallons of water per year).
The Water Board is scheduled to meet on June 6 to consider and adopt an FY24 budget and water and wastewater rates; the new rates would become effective on July 1, 2023.