Why the Wastewater Rate Is Being Restructured

The current wastewater rate has three structural weaknesses that the rate study is addressing:

• Stormwater costs are embedded in the sewer rate. This distributes stormwater cost based on water use rather than on the amount of hard surface that generates runoff. The result is cross subsidies between customers whose water use and impervious area do not match.
• Revenue is unstable. The current rate structure collects most revenue through a volumetric charge tied to water consumption. When customers conserve, when weather shifts usage patterns, or when seasonal occupancy drops, the revenue needed to operate a largely fixed cost system fluctuates. The cost of providing wastewater service is not volumetric; it is the cost of keeping the system available and in compliance year round.
• The CSO Annual Fixed Fee understates what it funds. The current CSO Annual Fixed Fee (City Code Section 13.12.015) is structured around long-term CSO control work. The fixed cost basis of the sewer system is broader than CSO alone, including operational readiness, regulatory compliance, capital reinvestment, and asset preservation. The rate study proposes to restructure the CSO Annual Fixed Fee 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 this broader cost basis. CSO Long-Term Control Plan obligations under the federal Consent Decree continue to be funded.

The restructure does three things at once: it moves stormwater cost out of the wastewater rate into a dedicated fee, it restructures the CSO Annual Fixed Fee into a sewer base charge that reflects the broader fixed cost basis of the system, and it shifts a modest share of wastewater revenue from the volumetric charge to the fixed charge to better match the way the system actually incurs cost.

What Is Changing

Proposed Sewer Base Charge by Meter Size

The table below shows the current CSO fixed charge and the proposed sewer base charge for each meter size. The proposed sewer base charge is a cost-of-service result that restructures, rather than escalates, the CSO Annual Fixed Fee. The current column reflects the existing charge under City Code Section 13.12.015. The proposed column is derived from the cost-of-service study and is not a markup of the current charge, which is why the change varies by meter class. Total cost recovery is preserved dollar-for-dollar at adoption. The volumetric charge applies separately at the rate noted above.

Source: Raftelis and Jacobs rate modeling presented at the April 1, 2026 public workshop, with refinement through May 6, 2026. The proposed sewer base charge restructures the CSO Annual Fixed Fee (City Code Section 13.12.015) through ordinance amendment at the same Council action that adopts the new sewer rate structure. The 10 inch meter tier adjustment reflects corrected cost of service allocation; the current 10 inch rate was set below the calculated cost during prior rate adoption. [CONFIRM 10-INCH SOURCE: verify $894.44 is a current billed rate with an ordinance or rate-schedule citation; if 10″ is not a current billed tier, change the current cell to — and mark the proposed value as a new tier.]

What This Means for Your Bill

Bill impacts vary by property. The direction and size of the change depend on each property’s specific combination of meter size, water use, and impervious area. Some properties will see decreases, some will see increases. A parcel level lookup tool is in development and will allow customers to estimate the change for their own property when it is published.

The examples below show the proposed monthly bill for representative customers under the new rate structure, with comparison to the current bill under the existing rate structure. Each example is fully calculated from the published rate tables so that any customer can reproduce the math for their own property.

Source: Calculations performed using the proposed sewer base charge by meter size (which restructures the current CSO Annual Fixed Fee under City Code Section 13.12.015), the proposed sewer volumetric rate of $18.65 per 1,000 gallons, and the proposed stormwater ERU rate of $14.73, all of which are pending two public hearings before the Newport City Council. Current bill components reference the rate schedule in effect as of [CONFIRM SCHEDULE DATE] published on the Rates and Charges page. Bill example components are subject to verification by the rate consultant.

Across all property types, the rate study found

• Residential: Single family properties show a mix of decreases and increases depending on the relationship between water use and impervious area. Properties with typical water use and typical impervious area generally see modest decreases. Properties with low water use and large impervious area generally see increases.
• Non residential: The most common change is a modest increase, with the largest increases falling on properties that have substantial impervious area relative to their water use. Properties with high water use and modest impervious area generally see decreases.
• Seasonal residential: Bills remain near parity at typical annualized usage because the fixed charge increase is offset by reduced volumetric charges during high use months.
• Revenue distribution: The residential share shifts slightly from 34 percent to 37 percent of total utility revenue, reflecting the cost reallocation tied to impervious area.

Source: Raftelis and Jacobs rate modeling presented at the April 1, 2026 public workshop, with refinement through May 6, 2026. Per-property dollar ranges will be published with the system level revenue neutrality and distribution summary now in preparation; see the Rate Study and Fees page for current status of all rate study elements.

What Is Not Changing

• The Industrial Pretreatment Program fee schedule remains unchanged.
• Water rates are regulated by the Rhode Island Public Utilities Commission and are not part of this study.
• The Senior Water Quality Protection Surcharge Exemption (Rhode Island General Law §46-15.3-5) on the water bill remains in effect for eligible homeowners age 65 or older.
• The Department remains fully rate funded; no property tax revenue supports utility operations.
• The growth capacity of the wastewater system is not changed by the rate restructure.
• CSO Long-Term Control Plan obligations under the federal Consent Decree continue to be funded under the proposed sewer base charge structure.

How the Decision Is Made

For full detail on rate setting authority, the eight step adoption process, public participation opportunities, and customer rights, see How Rates Are Adopted. A summary of the next steps for the wastewater rate restructure follows.