Rate Study

Department of Utilities

Rate Study and Fees

Newport is modernizing how water, sewer, and stormwater services are funded so that charges align with the actual cost of service. This page is the single source of information on the current rate study, proposed changes, public workshops, and how to participate.

Under public review. No rate change has been adopted. Any change to utility rates and fees requires two public hearings before the Newport City Council. Documents and figures on these pages are drafts and will be updated as the study progresses. Current rates in effect are published on the Rates and Charges page.

What This Is, and What This Is Not

What this is

  • A reallocation of stormwater costs that are already being paid today, moved from the sewer rate to a dedicated stormwater fee billed based on hard surface area.
  • A restructuring of the CSO Annual Fixed Fee into a sewer base charge tied to meter size, with total cost recovery preserved dollar for dollar at adoption.
  • A reduction in the volumetric sewer rate from $25.97 to $18.65 per 1,000 gallons, because stormwater cost is no longer embedded in it.
  • A proposal that requires two public hearings before any change takes effect.

What this is not

  • Not a new tax. Stormwater service is funded today through the sewer rate. The proposal changes how the cost is divided, not how much is collected.
  • Not a double charge. The CSO Annual Fixed Fee is being restructured into the sewer base charge, not added on top of it.
  • Not a change to water rates. Water rates are regulated separately by the Rhode Island Public Utilities Commission and are not part of this study.
  • Not a guarantee that every bill will decrease. Bill impacts vary by property characteristics; some properties will see increases.

What Stormwater Service Includes

Stormwater service is work the City already performs to manage rainfall and runoff across Newport. The cost is currently embedded in the sewer rate. The rate study moves that cost to a dedicated fee billed based on impervious area. The work itself is the same:

Catch basin cleaning and inspection

The City maintains 3,291 catch basins. Without regular cleaning, basins clog, streets flood, and pollutants enter Narragansett Bay.

Drainage pipe inspection and repair

55 miles of storm drain, with components dating to the 1870s, require ongoing condition assessment and replacement.

Outfall maintenance and monitoring

161 outfalls discharge to surface waters. Each requires inspection, maintenance, and reporting under federal and state permits.

Flooding response

Crews respond to storm events, neighborhood drainage complaints, and emergency blockages year round.

MS4 permit compliance

Federal Clean Water Act obligations, implemented through the Rhode Island MS4 permit, require monitoring, reporting, and pollutant reduction.

Flood mitigation and water quality projects

Capital investment in drainage capacity, green infrastructure, and water quality improvements as the system ages and storm intensity increases.

This work is not optional. It is performed today, it has a real annual cost, and that cost is currently recovered through the sewer rate. The rate study makes the cost visible on the bill and assigns it based on the actual driver, which is impervious area.

What This Supports in Newport

The rate study and the stormwater fee support specific, visible outcomes that residents and businesses experience every day:

  • Cleaner streets and catch basins. Routine cleaning so that storm drains work when it rains.
  • Reduced roadway flooding. Maintenance and capacity upgrades on drainage segments that flood during heavy rain.
  • Drainage response during storms. Crews available to clear blockages and respond to neighborhood drainage complaints year round.
  • Water quality protection. Reducing pollutants that reach Newport Harbor, Easton Bay, and Narragansett Bay.
  • Regulatory compliance. Meeting the City’s obligations under the federal Clean Water Act and the Rhode Island MS4 permit, which are not optional.
  • Long term infrastructure replacement. Funding the replacement of drainage components that are at or past the end of their service life.
  • More transparent utility billing. A bill that shows what you pay for stormwater service separately from what you pay for sewer service.

These outcomes are the reason the fee exists. The structure of the fee determines who pays what share, but the work itself is what the money funds.

Explore the Rate Study

Stormwater Fee

Why Newport is proposing a dedicated stormwater fee, how it would be calculated based on impervious area, and how it appears on the bill.

Learn more

Wastewater Rate Restructuring

Proposed changes to the wastewater rate: adding a fixed charge component, reducing the volumetric rate, and how it interacts with the stormwater fee.

Learn more

How Rates Are Adopted

Authority by service type, the eight step adoption process, public participation opportunities, and customer rights.

Learn more

Public Workshops

Meeting schedule, presentation slides, meeting summaries, and public comment opportunities.

View materials

Rate Study FAQs

Straightforward answers to the questions the Department hears most often.

Read FAQs

Why a Rate Study, Why Now

Three operational realities have changed since Newport’s current wastewater rate was set, and together they make the existing rate structure unsustainable:

  • Regulatory obligations have grown. The City operates under a Rhode Island MS4 permit issued by RIDEM under federal Clean Water Act authority, and under a long-standing federal Consent Decree addressing combined sewer overflow control. Both require ongoing operational and capital investment that the current rate structure does not transparently fund.
  • The system is aging. Components of the storm drain system date to the 1870s. Catch basins, drainage pipes, and outfalls require condition assessment, repair, and replacement at a pace the embedded cost approach was never designed to support. Deferred maintenance does not reduce cost. It compounds it.
  • Cost drivers are now measurable. Flow monitoring, improved system controls, and better asset and parcel data make it possible to identify what actually drives cost. The current rate distributes stormwater cost based on water use because that was the only practical measure available when the rate was set. Better data is now available.

The current structure has two specific weaknesses that follow from these changes:

  • Stormwater cost is not driven by water use. It is driven by the hard surfaces on a property that generate runoff, such as roofs, driveways, and parking lots. Billing stormwater service by water use distributes the cost unevenly across customers whose water use and impervious area do not match.
  • Revenue from a primarily volumetric sewer rate is unstable. Wet weather, conservation, and seasonal occupancy shift revenue year to year, while the cost of operating and maintaining the system is largely fixed. A revenue structure that does not match the cost structure creates planning and rate stability problems over time.

The rate study responds to both findings. It is also the mechanism for delivering fairer billing for residents, businesses, and institutions that have historically subsidized, or been subsidized by, other customers under the existing structure. Total cost recovery is preserved dollar for dollar at adoption; what changes is how the cost is divided across properties.

Rate Study Status: Final vs Pending

This table shows the current status of each element of the active rate study. It is published so customers, Council members, and members of the public can see at a glance what is settled, what is moving toward adoption, and what is being actively refined. The status of each element is updated as the study progresses and Council direction is received.

Status as of: May 20, 2026
Final  Adopted and currently in effect Pending  Proposed at workshop, awaiting public hearings and Council adoption Under Revision  Actively being refined by the rate consultant or staff
Rate Element Status Notes
Current water rates Final Adopted by City Council, established by RIPUC under RIGL Title 39. Published on Rates and Charges.
Current sewer use charges Final Adopted under City Code Section 13.12.010. Published on Rates and Charges.
CSO Annual Fixed Fee restructuring Pending Currently adopted under City Code Section 13.12.015 at $337.84 per year for a 5/8 inch meter ($28.15 per month). The rate study proposes to restructure the CSO Annual Fixed Fee (a renaming of the current CSO fixed charge into a broader sewer base charge tied to meter size, with the total amount collected from the system held constant at adoption) into a sewer base charge tied to meter size through an ordinance amendment at the same Council action that adopts the new sewer rate structure. Total cost recovery is preserved dollar-for-dollar at adoption; the line item on the bill is restructured to reflect the broader operational and capital cost basis of the sewer system. CSO Long-Term Control Plan work continues to be funded under the federal Consent Decree.
Proposed sewer base charge by meter size Pending Presented at the April 1, 2026 public workshop. Replaces the CSO Annual Fixed Fee. Subject to two public hearings before adoption.
Proposed sewer volumetric rate ($18.65 per 1,000 gallons) Pending Reduction from current $25.97. Reflects move of stormwater cost into a dedicated fee.
Proposed stormwater ERU rate ($14.73 per ERU per month) Pending Equivalent Residential Unit defined as 2,400 square feet of impervious area. Adjusted from initial $14.62 to maintain system level revenue neutrality after Tier 3 ERU value refinement.
Proposed Tier 1 (residential, 400 to 1,500 sq ft impervious) Pending 0.5 ERU, $7.37 per month. Approximately 945 parcels.
Proposed Tier 2 (residential, 1,500 to 4,200 sq ft impervious) Pending 1.0 ERU, $14.73 per month. Approximately 4,394 parcels (median Tier 2 = 2,404 sq ft).
Proposed Tier 3 (residential, 4,200 to 7,555 sq ft impervious) Pending 2.2 ERU, $32.41 per month. Approximately 625 parcels. Adjusted from initial 2.5 ERU based on rate consultant review of the impervious area distribution within the tier.
Proposed cap threshold (greater than 7,555 sq ft impervious) Pending Above the cap, billing per ERU at $14.73. Approximately 379 parcels.
Proposed non-residential rate Pending $14.73 per ERU based on measured impervious area, no tier structure. Applies to all non-residential parcels with impervious area of 400 sq ft or more.
Bill impact examples on Stormwater Fee and Wastewater Rate Restructuring pages Under Revision Examples are being refreshed to reflect the finalized per ERU rate of $14.73, the CSO Annual Fixed Fee to sewer base charge transition, and the underlying calculation methodology.
Stormwater Fee Credit Program Under Revision Program structure under development. Detailed credit manual will be published before the fee takes effect and will be the subject of a dedicated public workshop.
System level revenue neutrality summary Under Revision Before and after revenue summary by customer class is being prepared by the rate consultant for publication on this site.
Stormwater web viewer (parcel level fee lookup) Under Revision Map based tool in development with the rate consultant. Initial version will be marked as draft and will display one address per parcel.
Effective date for any adopted change Pending No effective date has been set. Adoption requires two public hearings before the City Council. Implementation typically requires several months for billing setup, customer notification, and credit program rollout.

For information on the rate adoption process, public participation opportunities, and customer rights, see How Rates Are Adopted.

What This Means for a Typical Household

Bill impacts vary by property. The example below shows how the bill changes for a representative single family household with a 5/8 inch meter, 3,000 gallons of monthly water use, and one ERU of impervious area. Customers with different water use or impervious area will see different results. Some properties will see decreases, some will see increases, and the size of the change depends on the relationship between a property’s water use and its impervious area. A parcel level lookup tool is in development and will allow customers to estimate the change for their own property when it is published.

Bill Today

  • CSO fixed charge$28.15
  • Sewer volumetric (3,000 gal at $25.97)$77.91
  • Stormwaterembedded in sewer rate
  • Total monthly$106.06

The CSO fixed charge is established under City Code Section 13.12.015 at $337.84 per year ($28.15 per month) for a 5/8 inch meter. See Rates and Charges for the full meter size schedule.

Bill Under Proposed Structure

  • Sewer base charge$27.31
  • Sewer volumetric (3,000 gal at $18.65)$55.95
  • Stormwater fee (1 ERU)$14.73
  • Total monthly$97.99

The proposed sewer base charge replaces the CSO fixed charge. Total cost recovery is preserved; the line item is restructured to reflect the broader operational and capital cost basis of the sewer system. CSO Long-Term Control Plan obligations under the federal Consent Decree continue to be funded.

Three changes appear on the bill at once: the CSO fixed charge is retired and replaced with a sewer base charge tied to meter size, a stormwater fee appears as a separate line based on impervious area, and the volumetric sewer rate decreases because stormwater cost is no longer embedded in it. Total cost recovery for the system is preserved. For this specific representative household, the combined bill decreases by $8.07. The change for any specific customer depends on their meter size, water use, and impervious area.

Same cost, different allocation. The total stormwater cost in the system does not change. What changes is how that cost is assigned. Today it is assigned by water use, embedded in the sewer rate. Under the proposed structure it is assigned by impervious area, the actual driver of stormwater service cost.

Bill impacts vary by property. The direction and size of the change depend on each property’s specific combination of water use and impervious area. Properties with higher water use relative to impervious area generally see decreases. Properties with substantial impervious area relative to water use generally see increases. See the Stormwater Fee page for additional impact examples and the Wastewater Rate Restructuring page for the full rate table. A parcel level lookup tool is in development and will allow customers to estimate the change for their own property when it is published.

What Is Under Review, and What Is Not Changing

Under review

  • A dedicated stormwater fee based on impervious area
  • Replacement of the CSO Annual Fixed Fee with a sewer base charge tied to meter size
  • A reduction in the wastewater volumetric rate once the stormwater fee takes over its share of cost
  • A credit program for properties that reduce runoff with green infrastructure or best management practices

Not changing

  • The Industrial Pretreatment Program fee schedule
  • Water rates, which are regulated by the Rhode Island Public Utilities Commission
  • The Senior Water Quality Protection Surcharge Exemption (Rhode Island General Law §46-15.3-5)
  • Use of property tax revenue (the Department is and remains fully rate funded)

Guiding Principles

Fairness Transparency Revenue stability Affordability Regulatory compliance Service reliability

Every design choice in the rate study is tested against these principles. Where a tradeoff exists, for example between a simpler bill and a more precisely fair fee, the Department and the City Council weigh it openly rather than defaulting to a single answer.

Timeline

November 20, 2025 Complete
Public Workshop 1: Understanding the Need
Overview of stormwater challenges, funding rationale, community feedback. Survey launched.
April 1, 2026 Complete
Public Workshop 2: Stormwater Rate Restructuring Framework
Rate framework discussion. Meeting materials available in the Workshops section. Rate values presented at this workshop have been refined as the rate study progressed; see the status table above for current proposed rates.
Fall 2026 (date to be announced) Scheduled
Public Workshop 4: Billing and Program Features
Credit program, bill presentation, and community feedback summary.
Late 2026 to 2027 Future
Council Review and Public Hearings
Two public hearings required prior to adoption. Implementation follows adoption.

How to Participate

  • Attend a public workshop. Check the Public Workshops page for upcoming dates, locations, and registration.
  • Submit a comment. Email ratestudy@NewportRI.gov or call 401-845-5600.
  • Take the survey. Share your priorities through the community survey (link posted during active survey windows).
  • Subscribe to updates. Request email notifications when meeting materials, reports, or hearing notices are posted.

Document Library

All published rate study documents are listed below. Each document is dated. When a document is revised, the prior version is retained so the record stays complete.

DocumentTypeDateLink
Public Workshop 1 Presentation Slides November 20, 2025 Download PDF
Public Workshop 2 Rate Framework Presentation Slides April 1, 2026 Download PDF
2025 CSO Program Reassessment Report Report June 20, 2025 Download PDF
Rate Study Program Overview (One Page Fact Sheet) Fact sheet Expected May 2026
Rate Study Interim Findings Report Expected June 2026

Questions About the Rate Study

Email: ratestudy@NewportRI.gov

Phone: 401-845-5600 (Monday to Friday, 8:00 AM to 4:00 PM)

Mail: Newport Department of Utilities, 70 Halsey Street, Newport, RI 02840