City questions bid to hike wholesale water rates 20%

By JOHN HOWELL
Posted 2/6/20

By JOHN HOWELL The city has filed as an intervenor in the Providence Water Supply Board's application to increase the wholesale cost of water by more than 20 percent. Warwick is served by both the Warwick Division of Water, with more than 25,000

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City questions bid to hike wholesale water rates 20%

Posted

The city has filed as an intervenor in the Providence Water Supply Board’s application to increase the wholesale cost of water by more than 20 percent.

Warwick is served by both the Warwick Division of Water, with more than 25,000 customers, and Kent County Water Authority, serving more than 4,000 customers in the western section of the city including Apponaug, Natick and Cowesett. The city division is entirely dependent on Providence for water, whereas Kent supplements its aquifer supply, especially during the summer when demand spikes, with purchases from Providence.

Mayor Joseph Solomon questioned Wednesday why Providence is seeking to increase rates and whether those additional revenues might be used for programs and improvements of no benefit to Warwick. He said as an intervenor, he expects the city would get those answers.

William DePasquale, chief of staff, added that the administration has been in contact with Kent and Bristol County Water that have also filed as intervenors. He said the three could possibly share in the cost of consultants to analyze the proposed increase in rates – the Providence filing also includes increases for its retail customers – and what it would mean to retail Warwick customers as well as those served by Kent and Bristol Water Authorities.

However the wholesale rate plays out, DePasquale is also looking at the Warwick retail rates as they relate to addressing the infrastructure that is showing its age and is facing deteriorating pipes.

“We have to look at the infrastructure needs in the future,” DePasquale said Wednesday. Mayor Solomon agreed.

“That’s the life line to the city,” Solomon said.

On the top of the agenda is the 24-inch Lincoln transmission line that ruptured in December 2018, a major supply line of the Warwick system. The line goes under the Pawtuxet River, Route 95 and Route 37. The break was alongside Routes 37 and 95.

Fortunately, when the system was designed, a parallel 24-inch line was installed under the highways. That line has fed the Warwick system since the break.

On Monday, the City Council approved a $241,250 contract for R.P. Iannuccillo & Sons Construction to conduct a television inspection of the Lincoln Transmission to determine the overall condition of the line and help determine how best to repair it. Some variation of the method used to repair a broken sewer interceptor beneath Sandy Lane last year is likely to be favored. A fiberglass lining to the deteriorating sewer pipe was installed using a felt-like “sock” impregnated with resin that was fitted into the pipe. The “sock” was then pressurized with hot water that not only caused the “sock” to conform to the pipe but also hardened it.

The method of repair is a fraction of what it would have cost had the sewer authority had to excavate and replace the entire line.

According to the filing, this would not be a one-time rate increase. Providence water is looking for a 20.7 percent increase in Fiscal Year 2021 followed by a 7.3 percent increase the next year and a 3.9 percent hike in FY23.

David Simons, executive director of the Kent County Water Authority could not project the impact of a 20.7 percent increase on wholesale rates on the retail rate. He said that is part of what consultants will determine in preparing to appear before the Public Utilities Commission.

In good news to Kent County Water Authority customers, Simons said the authority has applied to the PUC to lower its rates now that it has completed a meter replacement program costing about $6 million. He thought the decrease would be in the range of 5 percent, but was unable to be more specific at the time.

The PUC has scheduled testimony by the division and intervenors on April 10 with rebuttal testimony from Providence on May 22. The division and intervenors would get to respond on June 26. If a settlement is not reached by July 8, hearings would recommence on July 13.

Comments

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  • davebarry109

    The Prov water supply board is terrible. They are no better than the Warwick Sewer Authority. They wait until their system is in crisis and make everyone pay.

    Thursday, February 6, 2020 Report this

  • bendover

    Dave, this goes back to Cianci, or perhaps before him...Someone got the neat idea the PWSB would be a good place to create and hide patronage jobs. Of course, now you need a revenue stream for the increase in payroll so rates increase...The excuse for the increase, we have "infras-strucure projects"...HENCE, infrastructure falls by the wayside and now, much like Warwick's infrastructure, things are falling apart....They are racketeers.

    Thursday, February 6, 2020 Report this

  • Warwick_Resident1998

    So once then20% increase occurs the rest of the city will be paying what customers of the Kent County Water Authority currently pay.

    I'm ok with this. Why is there 2 different rates for citizens of the same city?

    Thursday, February 6, 2020 Report this

  • thepilgrim

    The head of the Warwick water system is Dan O’Rourke. He is so dumb that he couldn’t tell you what H2O was. But his family has been in bed with the Democratic Party for decades.

    Saturday, February 8, 2020 Report this

  • Happy

    Robert,

    What is wrong with the Democratic Party? They take care of their own and we the voters don't have a problem with that!

    You need to get on board with the rest of us!

    Monday, February 10, 2020 Report this

  • patientman

    Don't Feel Bad,

    I think 20% of your fees go into a maintenance account. Your rate is higher because your water supply has better management. The rest of us are in trouble.

    Monday, February 10, 2020 Report this

  • thepilgrim

    Happy, my point is that O!Rourke is the Head of the Water Dept only because his family has been sycophants for the Democratic Party and not because he is the slightest bit qualified. The Democratic Party takes care of its own as you say. But its own are too dumb to take care of the citizenry.

    Tuesday, February 11, 2020 Report this