§ 46-15.3-21. Fees, rates and charges. (a) The fees, rates, and charges for drinking water are a mandatory component of water supply system management.

(b) The following factors shall be considered in setting fees, rates, and charges:

(1) Recovery of all capital and operating costs, fixed and variable of production, conservation, use, management, protection, obtaining, development, procuring, and/or transporting water, and its sale at wholesale or retail;

(2) Marginal cost pricing;

(3) Emergency and drought period surcharges;

(4) Seasonal price structures;

(5) Difference in costs based upon different points of delivery;

(6) The effect of fees, rates, and charges on use of water and, where applicable, on wastewater costs and charges;

(7) The effect of reducing leakage to levels consistent with stated goals;

(8) Preparing, maintaining and implementing water supply system management programs; and

(9) Notwithstanding any other provisions of law, the Providence water supply board shall transfer to the general fund of the city of Providence an amount equal to five percent (5%) per annum times the annual gross revenues of the Providence water supply board for the fiscal year ending June 30, 2004, and for the next two (2) succeeding fiscal years. This transfer shall not be included as part of the Providence water supply board's rates approved by a final unappealable order of the public utilities commission for the same three (3) fiscal years.

(c) Notwithstanding the provisions of §§ 39-2-2 and 39-2-5, all rates and charges made by water suppliers which decline as quantity used increased are hereby declared to be no longer conducive to sound water supply system management designed to properly conserve, develop, utilize, and protect this finite natural resource. The public utilities commission may order rates for suppliers of water which either do not vary with quantities used or when there is evidence of increasing costs to either the utility or to society, rates which increase as the quantity used increases. If the commission finds that changing rates to comply with this section will cause a hardship to a class of customers, the commission may order that rates for that class of customers be changed to comply with this section over a period of time not to exceed five (5) years.

(d) Notwithstanding the provisions of §§ 39-2-2 and 39-2-5, the public utilities commission may order a reduction in rates consistent with the amount by which a supplier exceeds the stated goals for leakage.

History of Section. (P.L. 1997, ch. 360, § 4; P.L. 2003, ch. 376, art. 7, § 13; P.L. 2009, ch. 288, § 8; P.L. 2009, ch. 341, § 8.)