How Rates Are Adopted
Bottom line. Newport’s water, sewer, and stormwater rates are initiated by the Newport City Council and adopted through a defined public process, with water rates subject to final determination by the Rhode Island Public Utilities Commission. Customers can submit comment, attend public hearings, and challenge their bills through documented procedures. This page explains who has authority over each rate, how the process works, and what rights customers have.
Authority by Service Type
Different utility services follow different adoption paths because of how each service is regulated under Rhode Island law.
| Service | Rate Setting Authority | Public Hearings Required | State Oversight |
|---|---|---|---|
| Drinking water | Newport City Council, then filed with the Rhode Island Public Utilities Commission (RIPUC), which conducts an independent review and establishes final rates | Public hearings at the Council level; separate RIPUC docket process with intervenor rights | RIPUC under RIGL Title 39 |
| Sewer use charges | Newport City Council | Two public hearings under City Code Section 13.12.010 | None |
| Stormwater fee (proposed) | Newport City Council | Two public hearings (proposed framework) | None |
| CSO Annual Fixed Fee | Newport City Council | Per City Code Section 13.12.015 | None |
| Industrial Pretreatment Program fees | Newport City Council | Per existing fee schedule | RIDEM permit oversight |
Newport Water Division operates as a regulated public utility because it provides multi jurisdictional service to customers in Middletown, parts of Portsmouth, and on a wholesale basis to the Portsmouth Water and Fire District and Naval Station Newport. That service triggers RIPUC oversight under Rhode Island General Law Title 39. Sewer and stormwater service is provided within municipal boundaries and is not subject to RIPUC review.
Cost Recovery Framework
Rates recover the rate supported portion of system cost, not total system cost. Capital investments may be funded through bonds, reserves, grants, or other external sources and may not be fully reflected in rates in the year the cost is incurred. Operating costs, debt service, and capital reinvestment are recovered from rates over time according to the cost of service methodology approved at adoption. This distinction is important when evaluating proposed changes, because the rate change in any given year reflects the rate supported share of cost, not the full cost of operating, maintaining, and renewing the system. Rates are structured to maintain financial stability, meet regulatory obligations, and support long term system reliability.
The Adoption Process
The full path from proposal to implementation typically ranges from several months to over a year depending on scope, public engagement, and regulatory review.
Step 1. Cost of service study. The Department engages an independent rate consultant to evaluate the cost of providing each service, the existing rate structure, and recommended adjustments. The current study is being conducted by Raftelis Financial Consultants and Jacobs Engineering.
Step 2. Public engagement. The Department holds public workshops to present the study findings, gather feedback, and refine the proposed structure. Workshop materials are published on this site. Written comments are accepted at any time during the engagement period.
Step 3. Council direction. The City Council provides policy direction on rate structure and implementation based on public input and staff recommendations. This step may involve one or more Council work sessions before formal action.
Step 4. First public hearing. A formal hearing is noticed and held before the City Council. Members of the public may comment in person or in writing.
Step 5. Second public hearing. A second hearing is noticed and held under City Code Section 13.12.010. Both hearings are required before any change to the sewer use charge takes effect. The same two hearing framework is proposed to be applied to the stormwater fee.
Step 6. Council adoption. The Council votes on the rate ordinance.
Step 7. RIPUC filing (water rates only). For water rates, the adopted ordinance is filed with the Rhode Island Public Utilities Commission, which conducts its own docket review with separate notice, hearing, and intervenor rights. RIPUC establishes the final rates, which may differ from the rates adopted by Council.
Step 8. Implementation. Following final approval, the Department updates billing systems, notifies customers in writing, and applies the new rates on the published effective date. Customer notification is provided in advance of the effective date, typically aligned with at least one billing cycle where practicable.
Public Participation
Members of the public have multiple opportunities to engage in the rate setting process.
Public workshops
Open to all and include presentation of the study findings, question and answer periods, and written comment opportunities. Workshop dates are posted on the Public Workshops page.
Written comments
Accepted at any time and become part of the public record. Submit by email to ratestudy@NewportRI.gov, by phone to 401-845-5600, or by mail to Newport Department of Utilities, 70 Halsey Street, Newport, RI 02840.
Public hearings
City Council hearings are noticed in advance and posted on the City Council meeting calendar. Speakers may comment in person or submit written testimony to be entered into the record.
RIPUC participation (water rates only)
When water rates are filed with the Rhode Island Public Utilities Commission, the docket is open for public comment and formal intervention. Information on RIPUC dockets is available at ripuc.ri.gov.
Customer Rights
Customers have rights at the bill and account level under Rhode Island law and City policy, and may participate in the rate setting process as described above.
Billing disputes
Customers who believe their bill is incorrect can request a formal review through the Billing Office at 401-845-5604 or utilitybilling@NewportRI.gov. The dispute process and timelines are documented on the Pay My Bill page.
Service termination protections
Residential water service termination is governed by Rhode Island General Law Title 39 and the rules of the Rhode Island Public Utilities Commission. These protections include advance notice requirements, restrictions on termination during severe weather, and special protections for households with seriously ill or elderly residents.
Senior Water Quality Protection Surcharge Exemption
Eligible homeowners age sixty five or older may apply for an exemption from the Water Quality Protection Surcharge under Rhode Island General Law Section 46 15.3 5. Application information is available through the Billing Office.
Hardship and payment plans
Customers experiencing financial difficulty may request a payment plan on past due balances. Contact the Billing Office to discuss eligibility.
Stormwater fee impervious area review (when adopted)
If the proposed stormwater fee is adopted, property owners will receive an impervious area assessment statement and will have a defined window to request review of the assigned impervious area. The formal correction process will be published before billing begins.
Rate challenges
Sewer and stormwater rates adopted by the City Council are subject to applicable legal challenge mechanisms for municipal ordinances under Rhode Island law. Water rates established by RIPUC are subject to RIPUC’s reconsideration and appeal procedures.
Where Current Rates Are Published
Adopted rates currently in effect are published on the Rates and Charges page. Rates currently under public review as part of the active rate study are published on the Rate Study and Fees page with explicit “proposed” status until adoption.
Contact
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