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Commission notes Supreme Court rejection of appeal; PUC's 15% rate increase will be applied retroactively
Summary
The commission said its appeal of Providence Water's 15% rate increase failed in the Supreme Court, the increase is likely to be applied retroactively to July, and the authority to set rates rested with the PUC; the commission does not plan further appeal given legal costs.
The commission discussed the financial impact of a Public Utilities Commission decision and the commission's unsuccessful appeal to the Supreme Court, noting the likely retroactive application of the PUC's 15% increase.
Why it matters: A retroactive rate increase affects prior billing and the commission's budgetary buffer. Staff and commissioners said the commission had budgeted for a reasonable increase but that the PUC's decision reduces discretionary funds for projects.
The chair summarized events: the PUC granted a 15% rate increase for Providence Water in the system this year and the next; the commission appealed and the Supreme Court did not rule in the commission's favor. "So we will be at some point in the near future here receiving notification and, typically, the way it works is that we will be retroactive back to July," he said, describing how the increase may be applied to previously sold water and noting the impact on available budget buffer.
When asked about further appeals, counsel said an appeal to the First Circuit was theoretically possible but he would not recommend it due to prior losses and legal fees. The commission indicated it will monitor notifications from legal counsel and the PUC before making further decisions.
Next steps: Staff will notify members when official notices arrive and will present budget adjustments as needed.
