Portsmouth work session reviews consultant—lueprint to raise fixed charges, add sewer fee and reshape usage tiers

Portsmouth—ity Council members reviewed a consultant nalysis on March 2 that recommends overhauling the city—anking for water and sewer services to restore fund health and better align customer charges with the cost of service. The study—alls for higher water fixed charges, the addition of a sewer fixed charge, a new low-usage tier to protect basic indoor affordability, and increases to ancillary fees including capacity surcharges and wholesale rates.

The consultant, David Hyder, recommended a new rate design that would scale fixed charges by meter-equivalent capacity and move the water fixed-charge share of revenues from roughly 7% toward about 16% of water revenue. "Your current fixed charges are not scaled consistently with industry standards," Hyder said, and he urged adding a sewer fixed charge that would start at about $8 for a typical customer to stabilize revenues.

Al Pratt, Portsmouth's water resource manager, told councilors that the study responds to a decade-long shift in customer mix (fewer industrial users, more multi-unit and seasonal residences), rising regulatory costs such as PFAS treatment and several large capital projects. Pratt summarized the capital priorities and noted a PFAS treatment requirement for the Greenland well with a 2029 deadline.

Why it mat…