The state Public Service Commission on Thursday approved $6 million in bill credit for New York American Water's 120,000 customers.
The settlement also calls for the utility to contribute $1 million to fund a water conservation study.
New York American Water has been under intense scrutiny since this summer, when
rates soared for many customers.
State Sen. Todd Kaminsky says the settlement is a step in the right direction but scrutiny over the water utility will continue.
He says passing legislation to ensure fair billing practices by the water utility will be the focus of the next legislative session.