New York Laws
Article 4-B - Provisions Relating to Water
89-C - General Powers of Commission in Respect to Water Supply.

(b) No change shall be made in any rate or charge, or in any form of
contract or agreement or any rule or regulation relating to any rate,
charge or service, or in any general privilege or facility, which shall
have been filed by such a corporation, in compliance with an order of
the commission, except after thirty days' notice to the commission and
to each county, city, town and village served by such water-works
corporation which had filed with such corporation, within the prior
twelve months, a request for such notice and which shall be affected by
such change and publication of a notice to the public of such proposed
change once in each week for four successive weeks in a newspaper having
general circulation in the county or counties containing territory
affected by the proposed change, which notice shall plainly state the
changes proposed and when the change will go into effect. The commission
for good cause shown may, except in the case of major changes, allow
changes to take effect prior to the end of such thirty-day period and
without publication of notice to the public under such conditions as it
may prescribe. The commission may delegate to the secretary of the
commission its authority to approve a change to a schedule postponing
the effective date of such schedule previously filed with the commission
and to allow for good cause shown the postponement to take effect prior
to the end of such thirty-day period and without publication of notice
to the public.
(c) For the purpose of this subdivision, "major changes" shall mean an
increase in the rates and charges which would increase the aggregate
revenues of the applicant more than the greater of three hundred
thousand dollars or two and one-half percent, but shall not include
changes in rates, charges or rentals allowed to go into effect by the
commission or made by the utility pursuant to an order of the commission
after hearings held upon notice to the public.
(d) No such corporation shall charge, demand, collect or receive a
greater or less or different compensation for any service rendered or to
be rendered than the rates and charges specified in its schedule filed
and in effect; nor shall any such corporation refund or remit in any
manner or by any device any portion of the rates or charges so
specified, nor extend to any person any form of contract or agreement,
or any rule or regulation, or any privilege or facility, except such as
are regularly and uniformly extended to all persons under like
circumstances.
(e) The commission shall have power to prescribe the form of every
such schedule and from time to time prescribe by order such changes in
the form thereof as may be deemed wise. The commission shall also have
power to establish such rules and regulations to carry into effect this
subdivision as it may deem necessary, and to modify or amend such rules
or regulations from time to time.
(f) Whenever there shall be filed with the commission by any
water-works corporation any schedule stating a new rate or charge, or
any change in any form of contract or agreement or any rule or
regulation relating to any rate, charge or service, or in any general
privilege or facility, the commission may, at any time within sixty days
from the date when such schedule would or has become effective, either
upon complaint or upon its own initiative, and, if it so orders, without
answer or other formal pleading by the interested corporation, but upon
reasonable notice, hold a hearing concerning the propriety of a change
proposed by the filing. If such change is a major change, the commission
shall hold such a hearing. Pending such hearing and decision thereon,
the commission, upon filing with such schedule and delivering to the
corporation affected thereby a statement in writing of its reasons
therefor, may suspend the operation of such schedule, but not for a
longer period than one hundred and twenty days beyond the time when it
would otherwise go into effect. After a full hearing, whether completed
before or after the schedule goes into effect, the commission may make
such order in reference thereto as would be proper in a proceeding begun
after the rate, charge, form of contract or agreement, rule, regulation,
service, general privilege or facility had become effective. If any such
hearing cannot be concluded within the period of suspension as above
stated, the commission may extend the suspension for a further period
not exceeding six months.
(g) The commission may, as authorized by section eighty-nine-j of this
article, establish temporary rates or charges for any period of
suspension under this section.
(h) At any hearing involving a rate, the burden of proof to show that
the change or proposed change if proposed by the corporation, or that
the existing rate, if it is proposed to reduce the rate, is just and
reasonable shall be upon the corporation; and the commission may give to
the hearing and decision of such questions preference over all other
questions pending before it.
(i) The schedule, rates, charges, form of contract or agreement, rule,
regulation, service, general privilege or facility in force when the new
schedule, rate, charge, form of contract, rule, regulation, service,
general privilege or facility was filed shall continue in force during

the period of the suspension unless the commission shall establish a
temporary rate or charge as authorized by section eighty-nine-j of this
article.
11. In case any water-works corporation is engaged in carrying on any
business other than owning, operating or managing a water system, which
other business is not otherwise subject to the jurisdiction of the
commission, and is so conducted that its operations are to be
substantially kept separate and apart from the owning, operating,
managing or controlling of such water system, said corporation in
respect of such other business shall not be subject to any of the
provisions of this chapter and shall not be required to procure the
assent or authorization of the commission to any act in such other
business or to make any report in respect thereof. But this subdivision
shall not restrict or limit the powers of the commission in respect to
the owning, operating, managing or controlling by such corporation of
such water system, and said powers shall include also the right to
inquire as to, and prescribe the apportionment of, capitalization,
earnings, debts and expenses fairly and justly to be awarded to or borne
by the ownership, operation, management or control of such water system
as distinguished from such other business. In any such case, if the
owning, operating, managing or controlling of such water system by any
such corporation is wholly subsidiary and incidental to the other
business carried on by it and is inconsiderable in amount and not
general in its character, the commission may by general rules exempt
such corporation from making full reports and from keeping of accounts
as to such subsidiary and incidental business.
12. The commission shall have power to require each water-works
corporation to establish classifications of service based upon the
quantity used, the time when used, the purpose for which used, the
duration of use and upon any other reasonable consideration, and to
establish in connection therewith just and reasonable graduated rates
and charges; and it shall have power, either upon complaint or upon its
own motion, to require such changes in such classifications, rates and
charges as it shall determine to be just and reasonable.
13. The commission, of its own motion or upon complaint of any person
or corporation aggrieved, may investigate and determine whether the
property of any corporation or person actually used within the state in
the business of the distribution, sale or furnishing of water for
domestic, commercial or public uses, exclusive of property used solely
for or in connection with the business of bottling, or selling,
distributing or furnishing bottled water, is of a value exceeding ten
thousand dollars. Where such value is ten thousand dollars or less, the
commission may require such persons and corporations to file with the
commission simplified annual reports, in a form and containing such
matters as the commission shall prescribe, and may prescribe simplified
forms of accounts to be kept by them.
14. (a) Notwithstanding any other provision of law to the contrary,
whenever real property owned by a water-works corporation is exempted
from taxation pursuant to the provisions of section four hundred
eighty-five-d of the real property tax law the rate or charge imposed by
such corporation within the taxing jurisdiction providing for such
exemption shall be set by the commission so as to reflect fully the
reduction in cost of service resulting therefrom.
(b) Notwithstanding any other provision of law to the contrary,
whenever a water-works corporation is the recipient of operating
assistance provided by a city pursuant to the provisions of section
twenty-one-e of the general city law, the rate or charge imposed by such

corporation within such city shall be set by the commission so as to
reflect fully the revenues to such corporation resulting therefrom.
15. The commission shall provide for management and operations audits
of water-works corporations having annual gross revenues in excess of
ten million dollars. Such audits shall include, but not be limited to,
an investigation of the corporation's construction program planning in
relation to the needs of its customers for reliable service and an
evaluation of the efficiency of the company's operations. The commission
shall have discretion to have such audits performed by its staff, or by
independent auditors.
In every case in which the commission chooses to have the audit
provided for in this subdivision performed by independent auditors, it
shall have authority to select the auditors and to require the
corporation being audited to enter into a contract with the auditors
providing for their payment by such corporation. Such contract shall
provide further that the auditors shall work for and under the direction
of the commission according to such terms as the commission may
determine are necessary and reasonable.
The commission shall have authority to direct the corporation to
implement any recommendations resulting from such audits that it finds
to be necessary and reasonable.
Upon the application of a water-works corporation for a major change
in rates as defined in subdivision ten of this section, the commission
shall review the corporation's compliance with the directions and
recommendations made previously by the commission, as a result of the
most recently completed management and operations audit undertaken
pursuant to the provisions of this subdivision. The commission shall
incorporate the findings of such review in its opinion or order.
16. Notwithstanding any general or special law, rule or regulation,
the commission shall have the power to provide for the refund of any
revenues received by any water-works corporation which cause the
corporation to have revenues in the aggregate in excess of its
authorized rate of return for a period of twelve months. The commission
may initiate a proceeding with respect to such a refund after the
conclusion of any such twelve month period.
17. The commission shall have power to require each water-works
corporation to establish a process for residents of any cooperative,
condominium or multi-family dwelling with five or more residential
units, which uses a master meter to distribute water to such residents,
to obtain non-billing related information regarding the delivery of
water including but not limited to service updates, water quality
notices and other information deemed essential to water consumers.