Newport Water Council reviews sewer rate discrepancies affecting major customers

During a recent Newport City Council workshop focused on the budget overview for utilities, significant discussions emerged regarding the city's water and sewer revenue structure. The meeting highlighted the disproportionate impact of utility rates on different customer segments, particularly emphasizing the reliance on a small number of large customers for a substantial portion of revenue.

The Housing Authority of Newport was identified as the city's largest customer, accounting for 6.6% of water usage. The top twelve customers collectively contribute to 30% of the sewer income, revealing a skewed distribution of utility costs. This concentration raises concerns about the financial burden on smaller customers, with the bottom 45% of users paying significantly less than the state average. The disparity in rates, where some customers pay as little as $2.80 while others face charges exceeding $800, underscores the need for a comprehensive review of the current pricing structure.

Council members expressed apprehension about potential rate increases, particularly for non-profit organizations like Newport Hospital and the Marriott, which may face substantial hikes in their sewer fees. The discussion pointed out that these organizations are currently in the process of developing their budgets for the upcoming fiscal year, and any sudden changes in utility rates could necessitate significant adjustments to their financial plans.

The council acknowledged the importance of engaging with these major customers to ensure they are aware of potential rate changes. The need for a more equitable utility rate structure was emphasized, with the council expressing satisfaction in having engaged Raftelis, a consulting firm, to assist in overhauling the current system. This initiative aims to address the disparities in utility costs and ensure a fairer distribution of expenses among all users.

In conclusion, the workshop underscored the critical need for a reevaluation of Newport's utility pricing strategy. As the city prepares for potential rate increases, the implications for both large and small customers will require careful consideration to maintain financial stability and equity within the community. The council's proactive approach in seeking expert guidance reflects a commitment to addressing these pressing issues.