Case Study: New York American Water improves billing transparency and customer satisfaction with PA Consulting

Using data to independently review rates and bills

New York American Water, a Long Island utility serving 120,000 people, faced customer backlash after introducing an inclining block rate structure meant to encourage conservation. Many customers saw higher-than-expected bills, leading to more than 1,700 formal complaints and additional criticism on social media. PA Consulting was brought in as an independent billing monitor to help investigate why communications and billing practices had not prevented the issue.

PA Consulting used data analytics, stakeholder interviews, document reviews, process observation, and modelling to identify the root causes of bill complaints and communications breakdowns. The firm delivered a Billing Independent Monitor Final Report with 23 recommendations, including shortening billing cycles and improving customer communications; New York American Water implemented all of them, temporarily removed the tier four rate, saved customers $2.5 million, and later launched a stronger communications program before reinstating the rate.

New York American Water

John T. Dillon

Vice President And General Counsel