Wastewater Rate Restructuring
Newport is proposing to modernize the wastewater rate so that the cost of service is recovered fairly, revenue is more stable, and stormwater costs are moved into a dedicated fee. This page explains what is changing, what it means for your bill, and why these changes are being considered.
Why the Wastewater Rate Is Being Restructured
The current wastewater rate has two 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 restructure does two things at once: it moves stormwater cost out of the wastewater rate into a dedicated fee, 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
Current structure
- Fixed charge scaled by meter size (all customers pay a flat charge to be connected)
- Volumetric charge of $25.97 per 1,000 gallons of metered water use
- Stormwater costs embedded in the rate
- Approximately 15 percent of revenue from fixed charges
Proposed structure
- Fixed charge scaled by meter size (rebalanced to reflect system readiness to serve)
- Volumetric charge of $18.65 per 1,000 gallons (a reduction of $7.32)
- Stormwater costs moved to a dedicated stormwater fee
- Approximately 25 percent of revenue from fixed charges, with anticipation of increasing over time
Proposed Monthly Sewer Rates by Meter Size
The table below shows the current and proposed monthly sewer fixed charge for each meter size. The volumetric charge applies separately at the rate noted above.
| Meter Size | Current Monthly | Proposed Monthly | Change |
|---|---|---|---|
| 5/8″ | $28.15 | $27.31 | −$0.84 |
| 3/4″ | $28.15 | $27.31 | −$0.84 |
| 1″ | $38.86 | $45.51 | +$6.65 |
| 1 1/2″ | $73.32 | $91.02 | +$17.70 |
| 2″ | $107.48 | $145.63 | +$38.15 |
| 3″ | $260.13 | $273.06 | +$12.93 |
| 4″ | $432.72 | $455.10 | +$22.38 |
| 5″ | $656.63 | $682.65 | +$26.02 |
| 6″ | $914.26 | $910.20 | −$4.06 |
| 8″ | — | $1,456.32 | New tier |
| 10″ | $894.44 | $2,093.46 | +$1,199.02 |
| Volumetric rate (per 1,000 gal) | $25.97 | $18.65 | −$7.32 |
Source: Raftelis and Jacobs rate modeling presented at the April 1, 2026 public workshop.
What This Means for Your Bill
Most single-family residential customers see a small decrease on the total monthly bill when the sewer restructure and the new stormwater fee are combined. The volumetric rate drop helps high-use customers, while the fixed charge adjustment keeps revenue stable across seasonal and low-use months.
Representative examples from the April 1 workshop:
- Typical residential (5/8″ meter, 3,000 gallons per month, 1 stormwater ERU): bill drops from $106.06 to $97.86 (a decrease of $8.20).
- Seasonal residential (5/8″ meter, near-zero winter and high summer use, 1 ERU, annualized): bill moves from $73.60 to $74.56 (an increase of $0.96).
- Large non-residential (1 1/2″ meter, 32,000 gallons per month, 5 ERUs): bill drops from $893.92 to $753.29 (a decrease of $140.63).
- Small non-residential with large footprint (5/8″ meter, 2,000 gallons per month, 3 ERUs): bill rises from $78.22 to $107.11 (an increase of $28.89).
Detailed bill impact cards and a distribution summary are published on the Stormwater Fee page.
What Is Not Changing
- The CSO Annual Fixed Fee (Ordinance Section 13.12.015) remains as currently structured.
- 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 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.
How the Decision Is Made
Public engagement
Workshops, surveys, and written comment periods inform the final proposal. Comments can be submitted anytime to ratestudy@NewportRI.gov.
Council direction
The City Council provides direction on the proposed structure based on public input and staff recommendations.
Two public hearings
Any change to the sewer use charge requires two public hearings before the City Council under Section 13.12.010.
Adoption and implementation
Upon adoption, the new structure is implemented with customer notification and billing system updates.
Questions or Comments
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