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

The Commission adopted an order on an emergency basis on December 18, 2023, authorizing the transfer of the water supply assets of the Rural Atlantic Water Company, Inc. to the Town of Warwick.

Preservation of public health and public safety.

The Rural Atlantic Water Company, Inc. (Rural Atlantic) has lost one of its two owners and the remaining owner, who does not live locally, is having difficulty in maintaining operation of the system. The transfer of the Rural Atlantic ratepayers to the Town of Warwick municipal system, which will be made possible by the transfer of Rural Atlantic’s water supply assets, will ensure the uninterrupted provision of water service at a lower cost to the ratepayers.

Because of the need to issue tax bills that include the cost of the transfer at the start of 2024, the transfer of assets must be completed before December 31, 2023. Failing to do so will require the parties and ratepayers to wait a year before municipal water will be available to Rural Atlantic’s ratepayers, in which time it is possible that the Rural Atlantic system could suffer failure.

Therefore, action was necessary to protect the general health and safety of the Rural Atlantic ratepayers by authorizing the transfer of the company’s assets to the Town of Warwick.

Transfer of water assets from Rural Atlantic Water Company, Inc. to the Town of Warwick and dissolution of the company.

To ensure the continued supply of water service to the ratepayers of the Rural Atlantic Water Company, Inc.

The Commission is considering a joint petition filed by Rural Atlantic Water Company, Inc. (Rural Atlantic or the Company) and the Town of Warwick (the Town) on November 17, 2023, seeking authorization to transfer the Company’s water supply assets to the Town for $75,000 on an emergency basis. The joint petition also requests authority for the Company to dissolve itself after its business is wrapped up.

The joint petition states that Rural Atlantic has had difficulty in maintaining operations since the death of one of its owners in 2022. In order to ensure its ratepayers will have continuous water service, the Company has agreed to sell its water supply assets, which include a 2.2-acre parcel of land, buildings and improvements, two wells, an atmospheric storage tank, pumps, an electrical control panel, and a generator, to the Town, which will provide water service through its municipal water system.

The joint petition states that the transfer must be completed by December 31m 2023 to allow for the Town’s 2024 tax bills to include the transfer costs. If the transfer is not completed in 2023, the parties will have to wait until 2025 for the Town to take over the provision of water to the Company’s ratepayers. The joint petition also requests authorization for Rural Atlantic to dissolve itself once its business operations area complete and waiver of newspaper publication of notice requirements.

Given the Company’s uncertain continued operation, the Commission authorized the emergency transfer of the Rural Atlantic water supply assets to the Town on December 14, 2023 and waiver of notice requirements, requiring instead that the Company inform ratepayers through direct mailings. The Commission did not authorize the dissolution of Rural Atlantic because that action is not time sensitive. The Commission will consider this request after the comment period for this action is complete.

The full text of the joint petition and the full record of the proceeding may be reviewed online at the Department of Public Service web page: www.dps.ny.gov. The Commission may adopt, reject or modify, in whole or in part, the action proposed and may resolve related matters.

to serve as both a notice of emergency adoption and a notice of proposed rule making. The emergency rule will expire March 16, 2024.

John Pitucci, Public Service Commission, 3 Empire State Plaza, Albany, New York 12223-1350, (518) 486-2655, email: [email protected]

Michelle L. Phillips, Secretary, Department of Public Service, 3 Empire State Plaza, Albany, New York 12223-1350, (518) 474-6530, email: [email protected]

60 days after publication of this notice.