Liberty Utilities Nassau rate hike faces buyout push

Hempstead Town Supervisor John Ferretti said Liberty is seeking increases of 22% and 30% in different parts of Nassau County, and called on the state Public Service Commission to reject the filing. He argued the South Nassau Water Authority, a public entity created by state law in 2021, should buy the system and operate it as a municipal utility instead.

Ferretti’s case is grounded in the widening gap between private and public water costs on Long Island. The average Liberty customer in Nassau County already pays about $1,870 a year, more than three times the roughly $600 average paid by customers of the publicly owned Suffolk County Water Authority, according to figures cited by The Post.

For investors, the episode is a reminder that regulated water utilities face not only rate-case risk but also political risk, especially where affordability becomes a public flashpoint. Liberty’s ability to earn on its Nassau assets depends on continued regulatory approval, while repeated rate requests can strengthen the argument for municipalization and threaten the long-term value of the franchise.

The dispute also lands in a state where privately owned water systems are rare, serving only about 4% of New Yorkers, and where a separate effort to take Long Island power infrastructure public failed after heavy lobbying. That history suggests any move against Liberty would face major legal and political hurdles even if local officials build momentum.

The next catalyst is the New York Public Service Commission’s ruling on the requested hike. If regulators approve even part of the increase, it would likely intensify pressure for a buyout campaign; if they reject it, the company’s growth outlook on Nassau could narrow quickly.