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General News: Beaver Dam Lake Water Assets
July 01, 2016
The letter State Assemblyman James Skoufis sent to the Public Service Commission regarding concerns over the pending sale of the Beaver Dam Lake Water Corporation's assets.
June 23, 2016
Hon. Kathleen H. Burgess
Secretary to the Commission
New York State Public Service Commission
Empire State Plaza
Agency Building 3
Albany, NY 12223-1350
Re: Case Number 16-W-0284
Dear Secretary Burgess:
I am writing to request your specific attention to a number of concerns regarding the proposal to
sell the assets of the Beaver Dam Lake Water Corporation (Water Corporation) to New York
American Water; the sale is currently pending approval by the Public Service Commission
(PSC).
The Beaver Dam Lake community is comprised of about 800 households which have access
rights to Beaver Dam Lake – residents are able to access the lake through a number of points
called “reserves.” The sale of the Water Corporation includes the transfer of ownership of
Reserve 3 and another waterfront parcel (“the peninsula”) as well as unrestricted easements on
Reserves 1, 2, and 4. Since 1931, per official meeting minutes, these reserves, while deeded
to the Water Corporation, were always intended to remain community access points to the lake.
Residents could always rest assured that these intentions were maintained because the Water
Corporation was comprised of local residents who valued the reserves themselves.
If the sale to New York American Water is approved, this non-local company may construct
wells and structures on these access points. As such, these reserves and the peninsula should
be excluded from the sale. Alternatively, I urge the PSC to require, as a condition of sale, the
transfer of Reserve 3 and the peninsula to the Beaver Dam Lake Protection and Rehabilitation
District administered by Orange County. I also urge the PSC to impose strict restrictions on the
Reserve 1, 2, and 4 easements so as to protect the integrity of these access points.
The Water Corporation is in the midst of a 30-year, 0% interest loan repayment to the
Environmental Facilities Corporation (EFC); the Water Corporation currently adds a surcharge
to homes it serves in order to repay the loan. My understanding is the 0% interest loan cannot
be transferred to New York American Water; instead, they will effectively need a refinanced
loan to pay back the EFC. Unless addressed, the surcharge, however, will likely be higher
since there will be significant interest to pay on the refinanced loan. I urge the PSC to prohibit
New York American Water from passing along the additional costs associated with interest; the
customers should not be considered at fault for losing the EFC’s 0% interest rate.
There is also a legitimate concern among residents of the Beaver Dam Lake community not
serviced by the Water Corporation that, should New York American Water look to expand,
these residents will be forced to hookup into the system; these residents presently receive
water from private wells.
Section P2602.1 of the 2010 NYS Residential Code states, “The water-distribution and
drainage system of any building or premises where plumbing fixtures are installed shall be
connected to a public water supply or sewer system, respectively, if available.” This regulation
threatens the independence of these private well homeowners, an independence that has long
been respected by the community-owned Water Corporation. As a condition of sale, I urge the
PSC to require protections be put in place for these homeowners, many of which would like to
maintain use of their private wells.
Given the concerns iterated in this letter as well as other issues raised by residents of the
Beaver Dam Lake community, I respectfully request the PSC extend this case’s public
comment period an additional 45 days.
I would like to close by emphasizing I do not conceptually oppose the sale of the Water
Corporation’s assets to New York American Water provided that the above concerns are
addressed. Thank you for your attention and consideration to the matters presented in this
letter.
Sincerely,
James Skoufis
Member of Assembly
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