The Newport Water Division (NWD) is a division of the City of Newport's Department of Utilities and is responsible for the operation and maintenance of the system. The NWD operates as an enterprise fund and is responsible for its own financial accounting independent of the overall City budget. NWD revenue is generated by water bills charged to customers based on individual consumption. NWD revenue is used to cover the costs of continuous operation and maintenance of the water system: surface reservoirs providing our raw water supply, advanced water treatment plants, water storage facilities, raw and treated water booster pump stations, fire hydrants, water meters, and about 200 miles of water distribution pipes. Additionally, revenue is used in part to cover the costs of large-scale capital improvement projects (CIPs). Due to the age of the system, increased population, urbanization, and climate impacts, the existing system infrastructure requires intensive repairing, replacing, and improving to ensure the system continues functioning as necessary and water is delivered to customers. These larger-scale projects, identified as CIPs, tend to be more costly than typical operational expenses. NWD is regulated by the Rhode Island Public Utilities (RIPUC). As such, RIPUC sets all water rates used to determine customer bills. Any proposed rate changes must be formally investigated and approved by RIPUC before they are implemented to ensure charges levied against a customer are proportional to the expense of serving that customer (cost-of-service).
Please see below for past RIPUC-NWD dockets and resulting changes to water rates.
On February 13, 2019 the Newport Water Division filed with the Rhode Island Public Utilities Commission (RIPUC) an application to increase rates as part of a multi-year rate plan in FY 2020 and FY 2022. The application resulted in Docket #4933. The proposed rates are designed to collect additional operating revenue in the amount of $2,432,021 to support the Water Division’s cost of service of $19,843,202. The requested increases are required for operation and maintenance expenses; capital expenses; and debt service. The Newport Water Division will be borrowing funds for water transmission main improvements. The proposed rates are based on an update to our Cost of Service Study which determines the amount each customer class (Residential, Non-Residential, Wholesale, Fire Service) should contribute to the overall total revenue collected by the Water Division. The RIPUC has conducted a full investigation with hearings on the application. At an Open Meeting on November 22, 2019 the Commission approved the new rate schedule effective for water consumed on and after December 1, 2019. The Commission also approved the multi-year rate plan to support debt service for the water transmission main improvements. The FY 2022 rate increase which is solely for debt service is subject to change and therefore requires in early 2021 a separate compliance filing before the Commission prior to implementation of any rate change. The following are the rates effective as of December 1, 2019: RETAIL Residential- $10.40 / 1000gallons Non-Residential- $11.22/ 1000gallons WHOLESALE Portsmouth Water & Fire District- $6.1387/ 1000 gallons Naval Station Newport- $7.5620/ 1000 gallons BASE CHARGE Meter Size Monthly Charge 5/8” $ 5.23 ¾” $ 5.48 1” $ 7.27 1.5” $11.64 2” $16.20 3” $42.06 4” $49.42 5” $59.22 6” $66.58 8” $86.19 10” $121.73 Portsmouth Water & Fire District $ 1.56 The following link provides all of the information filed with the RIPUC.
Docket No. 4933- Newport Water Division
RETAIL
Residential- $10.02/ 1000gallons
Non-Residential- $11.22/ 1000gallons
WHOLESALE
Portsmouth Water & Fire District- $5.2920/ 1000 gallons
Naval Station Newport- $6.5190/ 1000 gallons
BASE CHARGE
Meter Size
Monthly Charge
5/8”
$ 5.02
3/4"
$ 5.27
1”
$ 7.03
1.5”
$ 11.33
2”
$ 15.86
3”
$ 41.71
4”
$ 49.12
5”
$ 58.99
6”
$ 66.40
8”
$ 86.15
10”
$ 121.95
Portsmouth Water & Fire District
$ 1.36
The following link provides all of the filed information with the RIPUC.
Docket No. 4595- City of Newport Water Division
On March 4, 2014 the Newport Water Division filed with the Rhode Island Public Utilities Commission (RIPUC) the Multi Year Rate Plan Compliance Filing per the Order for Docket 4243 to increase rates to support the debt service requirements for the construction of the new Lawton Valley Water Treatment Plant and the improvements to the Station 1 Water Treatment Plant. This is the third and final request for rates increases associated with supporting the debt service for the Design Build Contract for the Water Treatment Plant Improvements. The revenue increase requested through rates for debt service requirements is $3,075,984.
The Newport Water Division requested the new rates and billing frequency to be effective for water usage after July 1, 2014. At open meetings on May 30, 2014 and June 10, 2014 the RIPUC approved the rates required for the increased debt service and the implementation of monthly billing for all customers.
The July 2014 quarterly water bill (water usage for March through June) represents the last quarterly bill for our quarterly customers. The new water rates will be reflected in August 2014 for all customers. The water rate used in the August 2014 bill will be prorated since a portion of the water usage will be prior to July 1st.
The water rates effective for water usage after July 1, 2014 are as follows:
Portsmouth Water & Fire District- $5.1507/ 1000 gallons
Naval Station Newport- $6.5189/ 1000 gallons
5/8’’
$4.89
¾’’
$5.01
$6.07
$8.78
$ 11.35
$ 25.22
$28.90
$33.80
$37.48
$47.29
$65.07
$ 2.86
The Department of Utilities, Water Division has updated its Rate Schedule per the Order for Docket 4243 & 4355 Compliance Filings.
Docket 4355 - Newport Water Division
On September 7, 2012 the Newport Water Division filed with the Rhode Island Public Utilities Commission (RIPUC) an application to change the existing rates it charges each of its customer classes through the filing of a Cost of Service Study. The application does not seek an increase in the operating revenues for the Water Division. However the rates proposed in the application are based on Phase Two of the multi-year increase granted by the RIPUC in Docket 4243 (December 1, 2011). The multi-year rate plan supports the debt service required for the Design Build Project for the Improvements to the Water Treatment Plants. The City Council awarded the Design Build Contract for the Water Treatment Plant Improvements in January 2012.
The Settlement Agreement was presented to the Commission at the April 2, 2013 hearing. At the Open Meetings on April 23rd and April 29th, the Commission approved the rates established per the Settlement Agreement. The new water rate schedule is effective May 1, 2013.
The water rate structure is a change from previous rate structures for Newport Water customers. Effective for water consumed after May 1, 2013, there will be two (2) retail water rates in addition to the wholesale rates:
Residential - $8.24/1000 gallons Non-Residential - $9.19/1000 gallons
Portsmouth Water & Fire District - $4.3135/1000 gallons Naval Station Newport - $5.4115/1000 gallons
In addition the previous "Billing Charge which was the same for all customer billings, is now a "Base Charge" which varies based on meter size and billing frequency (monthly vs. quarterly).
Monthly Bill
Quarterly Bill
$7.94
$11.47
¾”
$8.04
$11.79
$8.96
$14.54
$11.30
$21.55
$13.53
$28.25
$25.64
$64.57
$28.87
$74.27
$33.18
$87.20
$63.41
$96.90
$45.03
$122.76
$60.66
$169.63
The Department of Utilities, Water Division has updated its Rate Schedule per the Order for Docket 4355.
Docket No. 4355- City of Newport Water Division
On April 18, 2011 the City through the Newport Water Division filed with the Rhode Island Public Utilities Commission (RIPUC) an application to increase rates, as part of a multi-year rate plan, to our customers. The application resulted in PUC Docket 4243. The impact of the proposed rate increases on all our customers will vary based on consumption. The requested rate increase is required for debt service, capital projects and operation and maintenance expenses. The Newport Water Division will be implementing an extensive capital improvement plan over the next five years. The most significant component of the capital improvement plan is the construction of a new water treatment plant at Lawton Valley and the significant improvements to the treatment processes at the Station 1 water treatment plant on Bliss Mine Rd.
The Settlement Agreement was presented to the Commission at the November 1, 2011 hearing to take under advisement. At the Open Meeting on November 29, 2011 the Commission approved the revenue and rates per the Settlement Agreement. The City's original rate filing request and the agreed upon and approved rate increases are as follows:
Fiscal Year
Original Filing Additional Operating Revenue
Original Filing Proposed Water Rate Increase
Agreed Upon Additional Operating Revenue
Agreed Upon Water Rate Increase
FY12
$3,509,382
37.7%
$2,222,258
22.5%
FY13
$3,045,221
21.3%
$4,272,362
35.31%
FY14
$2,434,531
14.0%
$2,395,490
14.63%
FY15
$530,997
2.7%
$519,744
2.77%
The increase of 22.5% on existing water rates for FY 12 will be effective as of December 1, 2011. This results in a Billing Charge increase from $15.31 to $18.75. The retail water rate will increase form $5.25 per thousand gallons to $6.43 per thousand gallons. The retail water rate will be assessed for water usage on and after December 1, 2011.
It is important to note that the FY 13, 14 and 15 rate increases are subject to change. Multi- year plans are subject to further compliance filings. Approximately ninety (90) days before a rate increase is set to go into effect in FY 13, 14, and 15, the City must file notices with the Commission that include relevant information regarding the successive rate increases. Since the rate increases are solely for debt service, the City must provide the Commission with updated information regarding its borrowings such as anticipated interest rates, borrowing costs, draw schedules, dates of borrowing, and source of borrowing. After receiving the notice, the Commission can approve, or reasonably amend, the proposed rate increase.
The Department of Utilities, Water Division has updated its Rate Schedule per the Order for Docket 4243.
Docket No. 4243- City of Newport Water Division
Docket 4128- City of Newport Water Division
On December 9, 2008 the Newport Water Division filed with the Rhode Island Public Utilities Commission (RIPUC) an application to increase rates charged to our customers. The Water Division requested a 28.8% increase in rates. The evidentiary hearing was held on May 27, 2009 before the Commission of Public Utilities and Carriers on the request.
The Newport Water Division works very hard to provide a safe and sufficient water supply to all our customers. We are aware that any rate increase is a concern to our customers. However, the Newport Water Division requests the rate increase in order to continue our work with ongoing system maintenance and capital improvements so that we can assure a safe drinking water supply not only now but into the future.
Docket No. 4025 - City of Newport Water Division