May 4, 2009
I would just like to quickly clarify something about the relationship between conservation, water rates and water bills.
Conservation necessitates higher water rates. There is no way around it: If we consume less of a product (in this case, water) then the product’s variable costs go down. But its fixed costs remain the same which equals a higher cost per unit.
But there is another thing to take into account. If we are conserving water, if we are truly using less of it, then even at a higher cost per unit, our total cost should go down.
Now let’s evaluate the opinion of Coucilman Vacca in the previous post, an opinion shared by many who spoke at last week’s City Council hearing. How can New Yorkers who are conserving water be seeing their water bills go up even as they are dying of dehydration?
The answer is that approximately one-third of the percentage points of the rate hike (4-5%) is going to fund things that are only remotely related to the cost of water, like the unfair rental agreement!
So to conclude: The DEP must stop blaming their rate hikes on conservation. Sure, conservation contributes but if you’re conserving water and your bill is too high, conservation is not to blame. Economics has proven that. The fault lies with the DEP and their enormous budget that continues to spiral out of control.
April 28, 2009
City Council Member James Vacca
There was a lot of outrage directed toward the DEP and the Water Board at the recent City Council hearing over numerous issues that we have discussed at length on this blog. Among the more prominent issues were the lease agreement, a lack of accountability and the new “Denial of Access” and “Theft of Services” charges.
One member who I would like to single out (in a good way) for his comments is Council Member James Vacca from the Bronx. His questions were tough, direct and well-researched. He called out Acting DEP Commissioner Lawitts regarding his claim that the DEP has been supporting the efforts of conservation for years. The essence of his question boiled down to the fact that the DEP blames much of the need for such a high rate increase on the fact that revenue has gone down 6% because of conservation. How can you claim support for conservation when your answer to those that conserve is to go ahead and charge them more for it?
Councilman Vacca put it more succinctly: A New Yorker could be saving water to the point where they’re dying of dehydration and their water bill would still go up.
Well said, Councilman. Well said.
November 18, 2008
While the mayor has said that he would renegotiate the rental agreement with the Water Board, the current fiscal crisis facing the city is making that scenario seem quite unlikely. This means that the Water Board is going to continue paying the city exorbitant fees for the use of the reservoirs and subsequently, New Yorkers’ water rates are going to continue to climb astronomically.
Former Water Board Chairman Jim Tripp set a bold precedent recently when he resigned his post in protest of the mayor’s intransigence. Since then, two more members have left the Water Board, Marilyn Gelber and Maria Santos Valentin. It seems that no one wants to be the bad guy blamed for New York’s upcoming rate increases.
Meanwhile, the Water Board is holding a public hearing on Thursday, November 20, most likely to announce three new members. (The new members are appointed by Mayor Bloomberg and will no doubt support his position on the lease agreement.) Details can be found on the Water Board website.
With three of the board’s members expected to join this week, a majority of its seven members will have been sitting on the board for less than two years. (Current chairman Alan Moss was elected in early 2007.)