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Utilities staff: Newport's customer mix is skewed — a few accounts cover a large share of revenue
Summary
Staff said the top 5% of accounts generate about 51.5% of utility revenue and the top 12 accounts provide roughly 30% of sewer income, complicating rate design and equity choices for lifeline rates and fixed fees.
Utilities staff presented analysis showing that revenue is heavily concentrated among a small number of accounts. Schultz said the top 5% of accounts generate about 51.5% of revenue and that the top 12 accounts represent roughly 30% of sewer income; staff flagged the housing authority, Salve, Newport Hospital, the Newport Marriott and a few large institutions among them.
Because so many residential accounts are very low‑use or seasonal, average‑based rate designs can produce unexpectedly large increases for the bottom 45% of accounts. Schultz said the Raftelis engagement will provide the data and metrics (meter size, usage, and lifeline considerations) needed to craft an equitable rate structure that can be defended in PUC proceedings.
