Newport, City of
RFC has performed analyses and prepared information that was included in the City of Newport’s (Newport) six most recent General Rate Filings to the Rhode Island Public Utilities Commission (RIPUC Docket Nos. 3578, 3675, 3818, 4025, 4128, and 4243). For these engagements, RFC calculated retail rates for the City’s retail customer and wholesale rates for the City’s two wholesale customers, the Portsmouth Water and Fire District (PWFD) and the U.S. Navy. RFC staff provided both pre-filed testimony and direct testimony in support of Newport’s requests. In Docket No. 3675, the RIPUC granted the City a water rate increase of approximately 20%. In Docket 3818, Newport was allowed an 11% increase and Docket No. 4025 resulted in a 15% increase in rates. In Docket No. 4128, no revenue increase was requested and the docket focused on cost of service assigned to be used in future filings. Docket No. 4243 was a request for a multi-year rate plan under new PUC regulations allowing for such. Newport was granted an immediate 22.5% increase in FY 2012 and preliminary approval for increases of 35.3%, 14.6%, and 2.7% in FYs 2013-2015, respectively.
RFC also provided services for the City’s process to select a private partner to operate their wastewater treatment and collection facilities. For this engagement, RFC participated in the preparation of the Request for Proposals and the Service Agreement and lead the development of an economic baseline as well as the creation of a financial model that was used to calculate the long-term economic impact of each proposal. We also played an active role in the contract negotiation process. As a result of the procurement process, the City entered into a 20-year contract for the operation, maintenance, repair and replacement of their wastewater system. The contract is expected to save the City $22 million over the term of the contract.