Long Island Republicans Advocate for Public Water Utility Amidst Proposed Rate Hikes

Long Island Republicans are spearheading a push for a government takeover of Liberty Utilities, a private water company they accuse of seeking "outrageous" rate hikes that would significantly burden local residents. Hempstead Town Supervisor John Ferretti joined other Republican officials in criticizing the Canadian-based company, which acquired a portion of Nassau County's water system in 2022.

Liberty Utilities is reportedly seeking to increase rates by 22% and 30% in different areas of Hempstead. Ferretti stated, “People that have Liberty water are paying too much for water, and the idea that [company officials] are looking for even more is outrageous.” He urged the state's Public Service Commission to reject the proposed increases. According to town estimates, these hikes could cost residents an additional $30 per month, or over $360 annually.

![Hempstead Town Supervisor John Ferretti speaks at a podium holding a sign that reads "Long Island is NOT Your Money Tap!" with other officials standing behind him.]( "Hempstead Town Supervisor John Ferretti speaks at a podium holding a sign that reads "Long Island is NOT Your Money Tap!" with other officials standing behind him.")

Ferretti and his allies are advocating for the South Nassau Water Authority, a public entity established in 2021, to purchase Liberty Utilities' infrastructure. They contend that a publicly owned system would provide water at a significantly lower cost. Current estimates show that the average Liberty customer in Nassau County pays approximately $1,870 annually. This contrasts sharply with the estimated $600 average paid by customers of the publicly owned Suffolk County Water Authority.

Republicans leading this charge suggest that Liberty has rebuffed multiple buyout offers. Ferretti blamed the state for consistently approving Liberty's rate hike requests, which he argues removes any incentive for the company to sell. "The problem is, if the state continues to approve rate hikes, what’s the incentive for Liberty Water to sell if they’re going to continue making a profit?" Ferretti questioned, emphasizing the importance of opposing these hikes for municipalization.

This position represents a departure from the typical GOP platform, which often favors privatization of public services. However, Ferretti drew a parallel to figures like Sen. Bernie Sanders, arguing that access to clean water should not be driven by profit motives. "Private companies exist because they make a profit. When you have municipal water, there’s no profit," he stated. "We’re not looking to make a profit, we are just looking to supply clean water to our residents."

Publicly managed water systems are common in New York, with only about 4% of the state's population receiving water from private, investor-owned utilities like Liberty, according to the state Department of Public Service. Efforts to transition Long Island utilities to public ownership have faced obstacles in the past. In 2023, a state commission recommended that the Long Island Power Authority take over its power grid operations from PSEG. However, this proposal stalled after significant lobbying efforts by the private company, ultimately failing to advance under Gov. Kathy Hochul's administration in 2024.

The potential cost savings for residents if Nassau County's water system were to become fully public remains unquantified.