Back Billing Limits Don't Apply to Landlord's Building

Landlord appealed from a Water Board ruling that permitted back billing to landlord for more than two years. The court and appeals court ruled against landlord and found the Water Board's ruling reasonable. The Water Board's rules in effect in 1996 limited certain forms of back billing to two years for residential customers and six years for commercial customers. The Board applied the six-year limit to landlord because its residential property received a commercial benefit from the operation of a power plant, even though most of the water that flowed into the plant was used for residential purposes. Landlord's power plant had a commercial use, since it was located in a building that was separate from the residential buildings, and sold surplus electrical power, when available. The meter in question monitored only water used by the power plant and was separate from other meters that measured use in the residential buildings.

Amalgamated Warbasse Houses, Inc. v. New York City Water Board: NYLJ, 12/5/05, p. 26, col. 3 (App. Div. 1 Dept.; Mazzarelli, JP, Friedman, Nardelli, Sweeny, McGuire, JJ)