Court Sustains Developer’s Utility Rates

On February 2, 2012, Keane & Beane, P.C. obtained a favorable decision from the Third Department, Appellate Division, on behalf of a private water utility of a large shopping center located in Putnam, New York, confirming that water rates charged by the water utility to tenants of a retail shopping center, were rational and reasonable and that no reductions to the water rates were required. After approximately five years of litigation before the Public Service Commission, the Albany County Supreme Court and the Appellate Division, the Third Department’s Order rejected the claim made by certain tenants that provisions in contracts between the developer of the shopping center and two of the tenants precluded the private water utility from obtaining a fair return on capital extended to construct the water utility. Richard L. O’Rourke, Esq. and Eric L. Gordon, Esq., represented the private water utility. The decision is Matter of Home Depot U.S.A., Inc., et al. v. State of New York Public Service Commission, et al., Docket Number 512846 (3d Dep’t February 2, 2012).