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Rate Study and Fees

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.

Status: Under public review. No rate change has been adopted. For the current status of all rate study elements, including which figures are pending versus under revision, see Rate Study Status.

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.

I conserve water. How does the new structure affect me?

The answer depends on your specific combination of water use and impervious area. The proposed structure continues to reward water conservation on the sewer side, but the stormwater portion of your bill is calculated based on hard surface area rather than water use. See the full answer in the Bill impact section: “I conserve water. Will I pay more under the new structure?”

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 developed parcels that contribute runoff, directly or indirectly, to the stormwater system, including receiving waters, 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 at least 400 square feet of impervious area that contributes runoff, directly or indirectly, to the stormwater system, including receiving waters. A physical connection to a City storm drain is not required. Stormwater service benefits the property owner regardless of water source or sewer connection.

Do churches, schools, and nonprofits pay the stormwater fee?

Yes, for private tax exempt property. Tax exempt status does not by itself exempt a property, because the fee pays for a service the property uses; property exempted by state or federal law is the exception. Property owned by the State of Rhode Island is exempt to the extent required by state law (proposed Section 13.13.060(E)). Tax exempt entities are eligible for credits on the same terms as other customers.

How is the stormwater fee different from the CSO Annual Fixed Fee?

The two are distinct. The stormwater fee is a new line item that funds the stormwater system: drainage, flood mitigation, MS4 compliance, and water quality. It is billed based on impervious area. The CSO Annual Fixed Fee (City Code Section 13.12.015) is a separate line item that currently funds long term combined sewer overflow control work. Under the rate study, the CSO Annual Fixed Fee is proposed for restructuring into a sewer base charge tied to meter size (the line on the bill is renamed and the cost basis expands beyond CSO work alone to reflect broader sewer system fixed costs) through an ordinance amendment at the same Council action that adopts the new sewer rate structure. CSO Long-Term Control Plan obligations under the federal Consent Decree continue to be funded, and the final sewer base charge will be set through the FY2028 budget. See Wastewater Rate Restructuring for the full rate table and explanation.

Can I contest my impervious area measurement?

Yes, now and again before billing. Review your parcel’s mapped area in the Stormwater Parcel Viewer, then email ratestudy@NewportRI.gov with the property address, the account number if you have one, and what you believe is wrong: a sketch or plan with dimensions, photographs of the surfaces in question, or a survey or site plan on file. The Department compares the aerial measurement against what you send under the measurement standard; if that does not resolve the difference, a site visit is arranged. You receive a written result, and confirmed corrections are applied before any billing. The correction and appeal process that would apply after adoption is described under Process and timeline.

I received an estimate notice in August 2026. What is it?

The Department mailed individualized estimate notices dated August 25, 2026 to utility accounts and to parcels that would receive a stormwater only bill. A notice is not a bill. It shows how the proposed structure would apply using the proposed rates, historical water use, mapped impervious area, and preliminary links between accounts and parcels. If a notice looks wrong, email ratestudy@NewportRI.gov with the account number and property address. Every request is logged and answered, and confirmed corrections are applied before any billing.

I own a condominium unit. My notice showed the whole complex.

Some August notices for condominium units displayed the impervious area and estimated charge of the entire complex. Those notices are being corrected. A condominium or other common interest property is measured once for the whole property, and the same area is never billed twice. Condominiums with one to five units are billed by tier; six or more units are billed in measured whole ERUs. The Director assigns the total under a documented procedure, and the ordinance states who is responsible for payment (proposed Section 13.13.060(H)). Uniform written rules for condominiums must be in place before billing. When the charge is assigned to the association, the association allocates it under its own governing documents. Corrected figures are being sent to each association and to every owner who wrote to the Department.

Does a gravel, cobblestone, or permeable driveway count as impervious?

Under the proposed definition (Section 13.13.040), impervious surface includes roofs, buildings, asphalt, concrete, brick, paving, compacted gravel or stone, and areas used for vehicle travel, parking, loading, or outdoor storage. Landscape gravel and gravel walkways are not measured. Elevated open slat decks over ground are not measured. Har Tru and other clay courts are measured. Permeable pavement, green roofs, rain gardens and drywells stay in the measured area and may qualify for a credit when approved under the credit program. The full measurement standard is on the Stormwater Fee page. Request a review through ratestudy@NewportRI.gov if you believe a surface has been classified incorrectly.

I have more than one meter on my property. Is the charge on each bill?

No. The parcel is charged once in total, and the charge is assigned among linked accounts under uniform written rules adopted before billing (proposed Section 13.13.100). The owner remains responsible for the charge. If your notice showed the full parcel charge on more than one account, email ratestudy@NewportRI.gov with the account numbers and it will be corrected.

My property does not connect to a City storm drain. Why would I pay?

The proposed ordinance applies the fee to every developed parcel from which runoff enters or affects the City stormwater system, the combined sewer system, a public right of way, another drainage conveyance, or receiving waters, whether by direct connection, indirect conveyance, overland flow, or direct discharge. A physical connection to a City storm drain is not required (proposed Sections 13.13.030 and 13.13.060).

Wastewater rate restructuring

What is changing about the wastewater rate?

Three changes. First, stormwater costs are being moved out of the sewer rate into a dedicated stormwater fee billed against impervious area. Second, the CSO Annual Fixed Fee is proposed for restructuring 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. The line item on the bill is restructured to reflect the broader operational and capital cost basis of the sewer system. Third, the sewer volumetric charge is dropping from $25.97 to $19.00 per 1,000 gallons because stormwater cost is being moved to a dedicated fee. In the preliminary rate model these changes shift the share of retail wastewater revenue from fixed charges from roughly 15 percent to roughly 25 percent, pending Finance and rate consultant verification. The proposal moves documented stormwater costs out of the sewer rate. The final stormwater requirement, sewer offset, and total revenue requirement will be set through the FY2028 budget.

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.

What is happening to the CSO Annual Fixed Fee?

The CSO Annual Fixed Fee (City Code Section 13.12.015) is proposed for restructuring under the active rate study. The fee is replaced with a sewer base charge tied to meter size through an ordinance amendment at the same Council action that adopts the new sewer rate structure. The reason is that the current line item is structured around long term CSO control work alone, but the fixed cost basis of the sewer system is broader than CSO and includes operational readiness, regulatory compliance, capital reinvestment, and asset preservation. The new sewer base charge reflects that broader cost basis, and the final sewer base charge will be set through the FY2028 budget. CSO Long-Term Control Plan obligations under the federal Consent Decree continue to be funded. The restructuring will be addressed at the same two public hearings required under Section 13.12.010 for the sewer rate change. The proposed sewer base charge by meter size, alongside the current CSO fixed charge for comparison, is published on the Wastewater Rate Restructuring page.

Is the sewer base charge a new charge added on top of the CSO fee?

No. The sewer base charge restructures the CSO Annual Fixed Fee. It is not an additional charge. The line item is restructured, not augmented, and the final sewer base charge will be set through the FY2028 budget.

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?

Bill impacts vary by property. For a representative 5/8 inch household using 3,000 gallons per month with one ERU of impervious area, the combined sewer and stormwater bill decreases by $6.06 per month under the proposed structure. That example reflects one specific combination of water use and impervious area; customers with different characteristics will see different results. Single family residential properties show a mix of decreases and increases depending on the relationship between water use and impervious area. Non-residential properties also show variation, with the largest increases concentrated on properties that have substantial impervious area relative to water use. Seasonal properties tend to fall near parity at typical annualized usage. See the Stormwater Fee page for detailed bill impact examples across representative property types. The Stormwater Parcel Viewer is now available and allows customers to look up the mapped impervious area for their parcel and estimate the change for their own property. Estimates in the viewer are illustrative, reflect the proposed structure under public review, and are not an adopted fee or a bill.

I conserve water. Will I pay more under the new structure?

Possibly, depending on your property’s characteristics. The current rate structure rewards water conservation for both sewer and stormwater service, because both are billed through water use. The proposed structure continues to reward conservation on the sewer side: the volumetric sewer rate drops from $25.97 to $19.00 per 1,000 gallons, so reducing water use still reduces your sewer bill.

Stormwater service is not driven by water use. It is driven by the hard surfaces on a property that generate runoff: roofs, driveways, patios, and parking. A conserving household with significant impervious area still contributes runoff to the public system during every storm. Under the proposed structure, the stormwater fee reflects that contribution rather than the household’s water use.

Customers who conserve water and have small impervious area generally see the largest decreases. Customers who conserve water but have large impervious area may see increases, because the structure aligns the stormwater portion of the bill with the property’s runoff contribution. The credit program (under development) will provide reductions for properties that manage runoff on site through rain gardens, rain barrels, pervious pavement, or other qualifying practices.

What does a typical residential bill look like under the proposal?

For a 5/8 inch meter using 3,000 gallons per month with one ERU of impervious area, the current monthly bill is $106.06 (CSO fixed charge $28.15 plus 3 Kgal at $25.97 = $77.91). The proposed monthly bill is $100.00 (sewer base charge $28.00, plus 3 Kgal at $19.00 = $57.00, plus stormwater fee $15.00). The monthly change for this specific representative case is a decrease of $6.06. The change for any specific customer depends on their meter size, water use, and impervious area. Detailed bill examples for typical residential, seasonal residential, large non-residential, and small non-residential properties, all calculated from the published rate tables, are on the Stormwater Fee page.

What about seasonal properties?

Seasonal properties generally see roughly neutral impact at typical annualized usage because the volumetric reduction offsets the new stormwater fee. At very low annualized usage, the impact may be slightly positive (small monthly increase) because there is less volumetric charge to reduce. See the seasonal residential example on the Stormwater Fee page for the detailed calculation.

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?

Under the proposed ordinance (Section 13.13.060), the fee applies to every developed parcel (400 square feet or more of impervious surface) that contributes runoff, directly or indirectly, to the stormwater system, including receiving waters; a physical connection to a City storm drain is not required. Property owned by the State of Rhode Island is exempt to the extent required by state law. Private tax exempt property and City property pay on the same basis as other developed property, with access to the same credit program.

Does the Senior Water Quality Protection Surcharge Exemption still apply?

Yes. The senior exemption under Rhode Island General Law §46-15.3-5 applies only to the Water Quality Protection Surcharge on the water bill, which is not affected by this rate study. Eligible homeowners age 65 or older who meet all four criteria (age, owner of record, primary residence, not rented) continue to receive the exemption. See Rates and Charges for details.

Process and timeline

When will the new rates take effect?

No effective date has been set. Under the proposed ordinance (Section 13.13.066), fees could first accrue on July 1, 2027, and only if the FY2028 annual budget appropriates funding for the stormwater program and adopts a fee schedule. Adoption of the ordinance alone does not start billing or set a rate. Before billing, the Department must publish the credit manual, issue assessment statements, and submit a readiness certification to the City Manager and City Council.

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. For the full adoption process, including authority by service type and customer rights, see How Rates Are Adopted.

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 and disagreement is welcome. The rate study is refined 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.

What if I dispute my assessment?

Under the proposed ordinance (Section 13.13.080), property owners would receive an assessment statement before billing, with 30 days to request a correction from the Director of Utilities, a written decision within 30 days after the request is complete, and 30 days to appeal that decision to an independent Administrative Hearing Officer. A timely request or appeal suspends collection, penalties, and lien action on the disputed portion; the undisputed portion remains due. Approved corrections are applied by credit, refund, or rebilling.

What happens if a stormwater fee is not paid?

Under the proposed ordinance (Section 13.13.110), a penalty of 1.5 percent per month applies to an unpaid balance beginning 30 days after the billing date, and an unpaid amount can become a lien only after written notice to the owner and after appeal rights have expired. Water service cannot be shut off, limited, or threatened because of an unpaid stormwater fee. An undesignated partial payment on a combined bill is applied first to water, then to sewer and CSO charges, and last to stormwater (Section 13.13.100).

Where can I read the full rate study?

Workshop presentations are published on the Public Workshops page as each workshop is held. The proposed stormwater ordinances are posted in the document library on the Rate Study and Fees page: the Chapter 13.09 amendment, new Chapter 13.11, and new Chapter 13.13 (PDF). 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, closed daily 12:00 PM to 1:00 PM)

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