YOUR ONLY SOURCE FOR REGIONAL BUSINESS NEWS | westfaironline.com
September 1, 2014 | VOL. 50, No. 35
UNITED WATER COMPANIES SEEK MERGER, RATE HIKE
INSIDE
BY MARK LUNGARIELLO mlungariello@westfairinc.com
PLAYLAND CONTRACTS SIGNED • 4
SLICE OF
SWEET NEUROSCIENCE • 13
LIFE PAGE 2
Michael and Stephen DeRose at Sal’s Pizzeria. | Photo by Mark Lungariello.
NEWSMAKERS • 18
Credit survey: Small-business lending slow BY LEIF SKODNICK lskodnick@westfairinc.com DESPITE THE ECONOMY’S RECOVERY since the 2008 financial crisis, small businesses still have difficulty securing credit, according to a survey released by the Federal Reserve Bank of New York. The annual Small Business Credit Survey, released Aug. 12, polled businesses in New York,
New Jersey, Connecticut and Pennsylvania on their recent experiences in obtaining and utilizing credit. Survey results highlighted rising business costs, including the cost of financing and applying for credit. Despite growth in the lending industry for loans amounting to $1 million or more, loans below that threshold remain at 2005 levels. “It indicates that there’s a lack of confidence Credit survey, page 6
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WO SISTER COMPANIES that provide water in lower Westchester County are looking to merge, a move that will increase some customers’ bills by more than 15 percent over the next three years. The Public Service Commission, the agency that regulates utilities in the state, is considering a plan that would merge United Water New Rochelle Inc. and United Water Westchester Inc., both owned by the French conglomerate Suez Environnement. As sister companies, the two already share some services, but a merger would reduce administrative costs by $187,000 in the first year as a combined entity, according to the companies. A contingent of elected officials and residents have lined up against the proposal, though, questioning the rate increases tied to the merger. At a public hearing at New Rochelle City Hall on Aug. 5, city resident Joyce Furfero told commission representatives she didn’t understand why allowing a merger meant also raising rates. “If anything, we should be lowering rates as a result of a merger,” she said. United Water New Rochelle serves 144,000 customers in areas including New Rochelle, Eastchester, Tuckahoe, Pelham Manor and Ardsley. United Water Westchester has 54,000 customers in Rye, Rye Brook and Port Chester. The rate increases after the merger would weigh more heavily on ratepayers that are currently customers of the New Rochelle company, with a 14 percent increase in the first year and 1.6 and 2.7 percent increases in the second and third years, respectively. The average United Water, page 6