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

On 8/9/18, the PSC adopted an order adopting the Department of Public Staff's (Staff) calculation of $2,323,762 as the net amount New York American Water, Inc. (NYAW) over-paid in taxes due to filing errors.

Property tax expenses and refunds of over-collections.

To adopt Staff's calculation of NYAW's over-payment in taxes.

The Commission, on August 9, 2018, adopted an order adopting the Department of Public Staff's (Staff) calculation of $2,323,762 as the net amount New York American Water, Inc. (NYAW) over-paid in taxes due to filing errors. The Commission approves the calculation for the Rate Year 1 reconciliation of $37,105 owed by customers to NYAW, and the adjusted reconciliation formula proposed by Staff for Rate Year 2, estimated to be a $7,800 under-collection, as detailed in the Staff Interim Report on its Investigation into NYAW’s Property Tax Overcharges Hold Harmless Calculation filed on April 30, 2018. The Commission also approves Staff’s Option 2 sur-credit calculation, as detailed in the body of this Order. The terms of the rate plan adopted in Case 16-W-0259 are modified to set the Sea Cliff Rate Year 2 property tax target at $2,608,119, Rate Year 3 property tax target at $2,712,444, and Rate Year 4 property tax target at $2,820,941. The related surcharges to collect the estimated benchmark in Staff’s Report is corrected for RY3 from 32.21 cents to 33.77 cents, per 100 gallons; and the RY 4 surcharge is corrected from 32.90 cents to 34.49 cents, per 100 gallons. NYAW is directed to file a revised Incremental Property Tax Surcharge Statement and Revenue and Production Cost Reconciliation Adjustment Clause and Property Tax Clause Statement to be consistent with the figures in Ordering Clause 4, to become effective on not less than one day's notice. NYAW is also directed to inform ratepayers of its Sea Cliff district of the changes in Ordering Clause No. 4 by bill insert within 60 days of the issuance of this Order, subject to the terms and conditions set forth in the order.

No changes.

John Pitucci, Public Service Commission, Three Empire State Plaza, Albany, New York 12223, (518) 486-2655, email: [email protected] An IRS employer ID no. or social security no. is required from firms or persons to be billed 25 cents per page. Please use tracking number found on last line of notice in requests.