The state’s Public Service Commission claims that New York American Water Company employees intentionally withheld information from the commission that caused rates to be set artificially high.
The PSC says bad tax calculations resulted in American Water overcollecting $281,000 from residents in and around the Sea Cliff area over the last four years.
Some activists say the PSC should have been on top of the issue. They're calling for the state comptroller to conduct his own study.
New York American Water Company did admit to and apologize for its error. It said that the company did not financially benefit from the error.
The company also said it would give a $65 credit to all of their ratepayers as compensation.