Frequently Asked Questions
Straightforward answers to the questions the Department hears most often about the rate study, the proposed stormwater fee, and the wastewater rate restructuring. If your question is not answered here, please email ratestudy@NewportRI.gov.
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General rate study
Why is Newport conducting a rate study?
The current rate structure was developed decades ago. Since then, flow monitoring, system controls, and asset data have improved to the point where the Department can measure what actually drives cost. Two findings stand out: stormwater cost is driven by impervious area, not water use, and wastewater revenue is unstable because it relies almost entirely on a volumetric charge. The rate study responds to both findings with a fairer and more stable structure.
Who is conducting the rate study?
The Department of Utilities is leading the study, with technical support from Raftelis (financial analytics) and Jacobs Engineering (public engagement and stormwater methodology). The City Solicitor and Finance Department review all recommendations before they reach the City Council.
Does this affect my water bill?
No. Water rates are regulated separately by the Rhode Island Public Utilities Commission and are not part of this study. The rate study covers only sewer and stormwater charges.
Is any of this funded by property taxes?
No. The Department of Utilities is and remains fully rate-funded. No property tax revenue supports utility operations, and utility fees cannot be used for non-utility purposes.
Stormwater fee
Is the stormwater fee a new tax?
No. It is a service fee tied to the City’s operation and maintenance of the stormwater system. It is billed only to properties that drain to the public stormwater system and it can only be used for stormwater work.
Why is my impervious area being used instead of my water use?
Water use does not cause stormwater runoff. Hard surfaces such as roofs, driveways, patios, and parking lots do. Billing stormwater service by impervious area matches the cost to the cause, which is the fairer basis.
What is an ERU?
ERU stands for Equivalent Residential Unit. It is the typical impervious area of a single-family home in Newport. The rate study has set one ERU at 2,400 square feet of impervious area. The monthly stormwater fee is calculated from the number of ERUs on each property.
I have a private well and no sewer connection. Will I still pay?
Yes, if your property has impervious area that drains to the City stormwater system. Stormwater service benefits the property owner regardless of water source or sewer connection.
Do churches, schools, and nonprofits pay the stormwater fee?
Yes. Tax-exempt status does not exempt a property from stormwater fees, because the fee pays for a service the property uses. Tax-exempt entities are eligible for credits on the same terms as other customers.
How is this different from the CSO Annual Fixed Fee?
The CSO Annual Fixed Fee (Ordinance Section 13.12.015) funds the City’s Long-Term CSO Control Plan and is restricted to CSO work. The stormwater fee funds the stormwater system itself: drainage, flood mitigation, MS4 compliance, and water quality. The two fees are legally and operationally separate.
Can I contest my impervious area measurement?
Yes. When the fee is implemented, property owners will receive a measurement statement and will have a defined window to request review. The formal correction process will be published on this site before billing begins.
Wastewater rate restructuring
What is changing about the wastewater rate?
Two changes. First, stormwater costs are being moved out of the sewer rate into a dedicated stormwater fee. Second, the sewer rate itself is being rebalanced: the volumetric charge is dropping from $25.97 to $18.65 per 1,000 gallons, and the fixed charge by meter size is being adjusted. Together, these changes shift the share of revenue from fixed charges from about 15 percent to about 25 percent.
Why add more fixed charge to the sewer rate?
The cost of operating a wastewater system is largely fixed. Pumping stations, the treatment plant, collection system maintenance, and regulatory compliance cost about the same whether a customer uses 1,000 gallons or 10,000 gallons in a month. A rate that is 100 percent volumetric creates revenue volatility that makes long-term planning and rate stability difficult. Moving a modest share of revenue to fixed charges improves stability without abandoning the principle that higher users pay more.
Does the CSO Fixed Fee change?
No. The CSO Annual Fixed Fee (Ordinance Section 13.12.015) remains as currently structured. It is a separate, ordinance-restricted charge that funds the City’s Long-Term CSO Control Plan.
Does the Industrial Pretreatment Program change?
No. Industrial Pretreatment Program fees are unchanged by this study.
Bill impact
Will my total utility bill go up?
Based on the rate study’s April 2026 modeling, most single-family residential customers see a small decrease (most commonly $0 to $25 per month lower). Most non-residential customers see a small increase (most commonly $0 to $25 per month higher), concentrated on properties with large impervious area relative to water use. Seasonal properties see roughly neutral impact. See the Stormwater Fee page for detailed bill impact examples across representative property types.
What does a typical residential bill look like under the proposal?
A representative single-family home with a 5/8-inch meter using 3,000 gallons per month and falling in the typical impervious area tier would see the bill move from $106.06 to $97.86 per month, a decrease of $8.20. Your actual result depends on your water use and the impervious area on your specific property.
What about seasonal properties?
Seasonal properties generally see roughly neutral impact because the fixed charge increase is offset by reduced volumetric charges during high-use months. A representative seasonal property (5/8-inch meter, near-zero winter use, high summer use, 1 ERU) moves from $73.60 to $74.56 on an annualized monthly basis, a $0.96 increase.
Will low-income customers receive assistance?
The Department is developing an affordability framework alongside the rate study. Specifics will be published on this site as they are finalized.
Credits and exemptions
Can I get a credit for managing stormwater on my property?
Yes. The Department is developing a credit program that recognizes on-site runoff reduction. Credits will be available to both residential and non-residential customers for qualifying practices such as rain barrels, rain gardens, pervious pavement, green infrastructure, detention, and water quality treatment. A detailed credit manual will be published before the fee takes effect.
Will credits fully offset the stormwater fee?
No. Even a property with significant on-site controls still benefits from the public stormwater system during large storms and during emergencies, so credits reduce but do not eliminate the fee.
Are there any exemptions?
The fee applies to all properties with impervious area that drains to the public stormwater system. Tax-exempt status does not exempt a property. Specific exemption rules (for example, for public streets) will be defined in the adopting ordinance.
Process and timeline
When will the new rates take effect?
No effective date has been set. Adoption requires two public hearings before the City Council under Ordinance Section 13.12.010. Following adoption, implementation typically requires several months for billing system updates, credit program rollout, and customer notification.
How are these decisions being made?
The City Council holds the authority to adopt or modify utility rates. The Department of Utilities, with support from Raftelis and Jacobs, conducts the technical study and the public engagement process that informs the Council’s decision. Public input is collected through workshops, surveys, written comment, and direct outreach.
How can I provide input?
Email ratestudy@NewportRI.gov, call 401-845-5600, or attend an upcoming public workshop. All comments become part of the public record. See the Public Workshops page for scheduled meetings.
What if I disagree with the proposal?
Public comment is open throughout the process. The rate study evolves in response to input, and the Council has the authority to modify or reject any proposal at the public hearing stage. Every comment submitted to ratestudy@NewportRI.gov is retained as part of the public record and shared with Council prior to adoption.
Where can I read the full rate study?
Workshop presentations are published on the Public Workshops page as each workshop is held. Interim findings and the final rate study report will be posted on the Rate Study and Fees overview page when available.
Have a Question Not Listed Here?
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

