Use of Escrow Funds for Repairs
NY-ADR
11/2/16 N.Y. St. Reg. PSC-44-16-00010-EP
NEW YORK STATE REGISTER
VOLUME XXXVIII, ISSUE 44
November 02, 2016
RULE MAKING ACTIVITIES
PUBLIC SERVICE COMMISSION
EMERGENCY/PROPOSED RULE MAKING
NO HEARING(S) SCHEDULED
I.D No. PSC-44-16-00010-EP
Filing Date. Oct. 13, 2016
Effective Date. Oct. 13, 2016
Use of Escrow Funds for Repairs
PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following action:
Proposed Action:
The Commission, on October 13, 2016, adopted an order restricting the use of Arbor Hills Waterworks, Inc.’s escrow account without the prior approval of the Director of the Office of Electric, Gas and Water; and requiring the submission of a plan to supplement the Company’s water supply.
Statutory authority:
Public Service Law, sections 89-b and 89-c
Finding of necessity for emergency rule:
Preservation of public health, public safety and general welfare.
Specific reasons underlying the finding of necessity:
On July 27, 2016, the Commission ordered Arbor Hills Waterworks, Inc. (the Company) to show cause why, under PSL § 112-a, the Commission should not appoint a temporary operator to manage the system, given the owner’s failure to adequately address ongoing infrastructure failures. On August 26, 2016, the Company filed a response, largely blaming the system’s current operator, JCO, Inc. (JCO), for the recent service failures and unaddressed repairs. The Commission found the Company’s response inadequate and that the public health and safety continued to be threatened by the owner’s inaction. For this reason, the Commission restricted use of the Company’s escrow account and required the Company to submit a plan to increase its water supply.
Subject:
Use of escrow funds for repairs.
Purpose:
To condition the use of escrow account funds for repairs.
Substance of emergency/proposed rule:
The Commission, on October 13, 2016, adopted an order restricting the use of Arbor Hills Waterworks, Inc.’s escrow account without the prior approval of the Director of the Office of Electric, Gas and Water; and requiring the submission of a plan to supplement the Company’s water supply.
This notice is intended:
to serve as both a notice of emergency adoption and a notice of proposed rule making. The emergency rule will expire January 10, 2017.
Text of rule may be obtained from:
John Pitucci, Public Service Commission, 3 Empire State Plaza, Albany, New York 12223-1350, (518) 486-2655, email: [email protected]
Data, views or arguments may be submitted to:
Kathleen H. Burgess, Secretary, Department of Public Service, 3 Empire State Plaza, Albany, New York 12223-1350, (518) 474-6530, email: [email protected]
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 amended rule is within the definition contained in section 102(2)(a)(ii) of the State Administrative Procedure Act.
(16-W-0415EP2)
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