WARWICK – Residential and municipal customers of the Providence Water Supply Board will soon see their monthly bills increase.
The R.I. Public Utilities Commission on Tuesday approved a series of amendments to Providence Water’s proposed rate increases. They will take effect if the water supply board and its affected municipal customers sign off on the changes, expected by noon on Wednesday. The commission’s unanimous decision came after several hours of discussion regarding Providence Water’s proposal, which calls for a three-year series of incremental rate hikes, with the first round of increases starting no later than Sept. 2.
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As proposed, residential customers will see monthly bills go up by $5.69, or 18%, under the first round of increases, based on 100 hundred cubic of water use per year, according to commission filings.
Monthly rates will again increase in July 2021 by $3.02, or 7.36%, and in July 2022 by $1.76, or $3.94, although the second and third-year rate increases would also require commission review.
Rates charged to wholesale users, which include several municipalities that buy from Providence Water and resell to their own customers, will also increase. Rather than the proposed uniform 20.7% rate increase, from $1,805 per million gallons to $2,179 for all wholesale buyers, the commission in a series of separate motions required that wholesale rates be set individually based upon peaking factor – a measurement which estimates system capacity based on the maximum water flow compared to the average daily flow.
The first-year rate increase will bring in an estimated $13 million more for Providence Water Supply Board, aimed to cover increased costs associated with salary increases for union workers, according to earlier testimony submitted by Providence Water General Manager Ricky Caruolo. He also cited decreasing water usage as a result of conservation efforts and more-efficient systems as reasons for increased revenue needs.
The Providence Water Supply Board did not immediately respond to requests for additional comment.
The proposed water rate increases were set to take effect in January, but were delayed after the public hearing had to be rescheduled due to the COVID-19 pandemic.
In addition to rejecting uniform rates for wholesale customers, the commission is also providing funding for Providence Water to study alternative ways to meet the city’s renewable energy goals without passing costs on to customers.
