How Your Utility Systems Are Funded
Rate restructuring is under public review
The rates shown below are the current rates in effect. A rate study is underway with three changes to the wastewater bill structure:
- Introduction of a dedicated stormwater fee based on impervious area
- Replacement of the CSO Annual Fixed Fee with a sewer base charge tied to meter size
- Reduction of the sewer volumetric rate from $25.97 to $18.65 per 1,000 gallons
No change has been adopted. Any rate change requires two public hearings before the Newport City Council. Total cost recovery is preserved under the proposed structure; the changes restructure how cost is allocated, not how much is collected.
For details on the proposal, the public workshop materials, and how to submit comments, visit the Rate Study and Fees page.
The Department of Utilities is fully funded through the rates and charges paid by its customers. No property tax revenue is used to support operations or infrastructure. Monthly rates and charges paid by customers directly support the operation, maintenance, repair, and replacement of each utility’s infrastructure.
The Newport Water Division (NWD) operates the public drinking water system that serves the City of Newport, the Town of Middletown, and a small portion of the Town of Portsmouth, as well as supplying water to the Portsmouth Water and Fire District and Naval Station Newport. Only residents, businesses, and industries that are NWD customers contribute to funding the water system.
The Water Pollution Control Division (WPC) manages the public sewer and stormwater systems that serve the City of Newport. The Water Pollution Control Facility also provides regional wastewater treatment to the Town of Middletown, Naval Station Newport, Naval Undersea Warfare Center, and septic and holding tank haul-in from the Town of Portsmouth. Only residents, businesses, and industries that are WPC customers contribute to supporting these systems.
Funds collected for one utility can only be used for that specific utility. For example, water funds cannot be used for sewer projects, and vice versa.
Oversight and Rate Setting
NWD is regulated by the Rhode Island Public Utilities Commission (RIPUC). RIPUC reviews and approves all water rates as outlined in the Rate Schedule to ensure they reflect the true cost of providing service (known as “cost of service” pricing). Any proposed rate changes must undergo a formal review and approval process before taking effect.
WPC rates and fees are recommended by the Department of Utilities and approved by the Newport City Council. These rates are structured to generate just enough revenue to cover system expenses.
The Department of Utilities does not make a profit. All revenue is reinvested into system maintenance, daily operations, and infrastructure improvements that benefit the community.
Current Rates and Charges
High Utility Bill Checklist
Have you received a bill that is higher than usual? An unusually high bill may be due to increased water usage, a plumbing issue, or an error with the meter reading. To investigate the cause of a high bill, use NWD’s High Utility Bill Investigation Checklist.
High Bill, Unpreventable Water Release?
The Department is unable to refund metered water charges. However, if a one-time unpreventable water release caused an extraordinarily high bill, you may qualify for a sewer charge abatement (once per ten-year period for Newport service area only). Review the Sewer Abatement Request Form to verify eligibility criteria before submitting.
Water Quality Protection Charge Exemption
The Water Quality Protection Charge is required under Rhode Island General Law ยง46-15.3-5 to help protect and preserve the State’s drinking water sources. Customers of the Newport Water Division (NWD) may qualify for an exemption from this charge if they meet all of the following conditions:
- The customer is 65 years of age or older.
- The customer is the property owner of record.
- The property is the customer’s primary residence.
- The property is not rented at any time during the year.
If you meet these requirements, complete and submit the Exemption Application to request the exemption.
