The Overlook Civic Association condemns the actions of New York American Water (a subsidiary of American Water), specifically, the charging of outrageous fees and base charge increases since they assumed control of Sea Cliff Water District. Residents have presented bills in excess of $500 for six months of water, many times the cost of neighboring districts with similar population sizes and usages.
American Water is an incredibly profitable company, with a current profit margin above 14%. Gross profit rose 10% from 2013 to 2015, and a staggering 24% from 2015 Q4 to 2016 Q3. Since 2015, the stock PPS has risen almost 43%. This growth has been driven largely by increased revenue (in 2015, operating income rose more than 7%, while expenses grew at less than 4%), and has benefited shareholders exclusively. The company estimates 5-year growth rates of 7-10%, twice or more than the average EPS growth rate of 4.2% for utilities.
Across the US, private utilities charge on average 33% to 59% more for water service than publicly-owned utilities, with no evidence of cost savings. Glen Head, Glenwood Landing, and Sea Cliff will not tolerate American Water holding hostage such a basic necessity as our water supply in the name of corporate profits. We implore our Oyster Bay legislators to defend us in our struggle for fair water costs.