Asbestos Project Notification and Inspection Report, Dec 2002

NYC 9/11 Public Portal Document

WTC Impact on Water System 4

total amount previously billed. It is anticipated that many businesses and residents will relocate entirely or partially to another location within the City while others will relocate entirely or partially outside of the City. If we assume that half of the activity will be relocated within the City and the consumption redistributed to other system accounts, the reduction in revenue would be less than $1 million.

Reduced Water Consumption Short-term All of the area below 14* street was minimally occupied for the week following the attack. The buildings south of Chambers and west of Broadway were unoccupied for the subsequent week. This impacted the City’s daily water consumption and will likely impact the subsequent billings to customers. In the 10 days prior to 9/11, daily water demand in the City averaged 1,247 mg; in the 9 days after the attack the daily demand was 1,193 mg. This is a decrease of about 4%. Assuming all revenues were related to metered consumption, which of course they are not, a 4% decline would equate to daily revenue decrease of about $144,000, or about $1.3 million for the 9-day period. By September 20*, daily demand approached pre-attack levels. We will continue to monitor system consumption and observe the track of daily water demand to consider whether any further revenue losses should be anticipated.

General Economic Weakness and Tourism Decline It is widely anticipated that the national and local economy will suffer a decline of some measure. It also can be anticipated that tourism in the City will suffer. A weak economy combined with tourism losses may lead to a decrease in hotel and commercial office occupancy levels as well as decreased manufacturing levels. All of these factors might contribute to lower water consumption. These impacts are difficult to predict. We are, however, comforted by the fact that only about 60% of the System’s revenues are based on metered billings, that the majority of NYC water demand is related to relatively inelastic residential usage, and that only a small fraction is related to manufacturing uses. In the meantime, as we view the progress of the national and local economies, we will consult other water utilities to seek their experiences during economic downturns.

Payment Delays by Customers It is anticipated that the interruption of billing caused by the disaster will cause a decrease in the flow of customer payments. Some bills may not have gone out on time and may have short payment return dates. We might also expect

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