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.

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.

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.

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.

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?”

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.

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.

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.

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.

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.

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, the cost basis expands beyond CSO work alone to reflect broader sewer system fixed costs, and the total amount collected does not change at adoption) 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, and CSO Long-Term Control Plan obligations under the federal Consent Decree continue to be funded. See Wastewater Rate Restructuring for the full rate table and explanation.

Yes. When the fee is implemented, property owners will receive an impervious area assessment statement and will have a defined window to request review. The formal correction process will be published on this site before billing begins.

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 $18.65 per 1,000 gallons because stormwater cost is being moved to a dedicated fee. Together, these changes shift the share of revenue from fixed charges from about 15 percent to about 25 percent. Total cost recovery is preserved dollar-for-dollar at adoption; the changes restructure how cost is allocated, not how much is collected.

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.

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. Total cost recovery is preserved dollar-for-dollar at adoption; the line item on the bill is restructured to reflect the broader cost basis. 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.

No. The sewer base charge restructures the CSO Annual Fixed Fee. It is not an additional charge. Total cost recovery is preserved dollar-for-dollar at adoption; the line item is restructured, not augmented.

No. Industrial Pretreatment Program fees are unchanged by this study.

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 $8.07 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. A parcel level lookup tool is in development and will allow customers to estimate the change for their own property when it is published.

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 $18.65 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 actual driver of the cost. 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.

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 $97.99 (sewer base charge $27.31, plus 3 Kgal at $18.65 = $55.95, plus stormwater fee $14.73). The monthly change for this specific representative case is a decrease of $8.07. 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.

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.

The Department is developing an affordability framework alongside the rate study. Specifics will be published on this site as they are finalized.

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.

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.

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.

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.

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.

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.

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.

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.

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.