PSC-32-16-00009-P Proposed Acquisition of 100% of the Assets of New Vernon and Whitlock Farms by NYAW

8/10/16 N.Y. St. Reg. PSC-32-16-00009-P

NEW YORK STATE REGISTER

VOLUME XXXVIII, ISSUE 32

August 10, 2016

RULE MAKING ACTIVITIES

PUBLIC SERVICE COMMISSION

PROPOSED RULE MAKING

NO HEARING(S) SCHEDULED

 

I.D No. PSC-32-16-00009-P

Proposed Acquisition of 100% of the Assets of New Vernon and Whitlock Farms by NYAW

PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following proposed rule:

Proposed Action:

The Public Service Commission is considering a Joint Petition filed by New York American Water Company (NYAW) Inc. and the Estate of Edwin Silvers for the acquisition of all assets of both New Vernon Water Company and Whitlock Farms Water Company.

Statutory authority:

Public Service Law, sections 4(1), 5(1), 89-c(1) and 89-h(1)

Subject:

Proposed acquisition of 100% of the assets of New Vernon and Whitlock Farms by NYAW.

Purpose:

To consider the proposed acquisition of assets of New Vernon and Whitlock Farms by NYAW.

Substance of proposed rule:

The Public Service Commission is considering a joint petition filed on July 18, 2016 by the Estate of Edwin D. Silvers (Phyllis Silvers, Executrix) (the Seller) and New York American Water Company Inc. (NYAW) for approval of an Agreement of Sale under which seller will sell and NYAW will purchase 100 percent of the water supply assets of New Vernon Water Company (New Vernon) along with all stock and 100 percent of water supply assets of Whitlock Farms Water Company (Whitlock Farms) (collectively known as the Companies). New Vernon provides flat rate water service to approximately 72 customers in the Town of Mount Hope in Orange County and the Town of Mamakating in Sullivan County. Whitlock Farms provides flat rate water service to approximately 32 customers in Mount Hope, Orange County. NYAW proposes, upon the close of the transaction, the installation of commission approved meters at all customer connections, the implementation of a Supervisory Control and Data Acquisition (SCADA) system at each facility, the construction of a treatment plant to address Department of Health concerns at the Whitlock facility, replacement of the building which houses the chemical injection systems of New Vernon while upgrading the equipment within including the Hydro-pneumatic tank and pumps. NYAW would also update the electrical systems of New Vernon and install a back-up generator to continue service during outages. All these projects would be funded by the capital budget of NYAW. NYAW proposes that the current customers of New Vernon and Whitlock Farms would eventually be transitioned to the Lynbrook District Tariff. Additionally, NYAW requests the authority to maintain the books and records of New Vernon and Whitlock Farms outside the state, seeks recovery of certain environmental expenses related to the acquisition, and requests waiver of certain requirements of 16 NYCRR § 31.1 related to information to be provided in the petition. The Commission may adopt, reject, or modify, in whole or in part, the joint petition and may resolve related matters.

Text of proposed rule and any required statements and analyses may be obtained by filing a Document Request Form (F-96) located on our website http://www.dps.ny.gov/f96dir.htm. For questions, contact:

John Pitucci, Public Service Commission, 3 Empire State Plaza, Albany, New York 12223-1350, [phone], email: [e-mail]

Data, views or arguments may be submitted to:

Kathleen H. Burgess, Secretary, Public Service Commission, 3 Empire State Plaza, Albany, New York 12223-1350, [phone], email: [e-mail]

Public comment will be received until:

45 days after publication of this notice.

Regulatory Impact Statement, Regulatory Flexibility Analysis, Rural Area Flexibility Analysis and Job Impact Statement

Statements and analyses are not submitted with this notice because the proposed rule is within the definition contained in section 102(2)(a)(ii) of the State Administrative Procedure Act.

(16-W-0402SP1)