2018 -- H 7514

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LC004594

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2018

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A N   A C T

RELATING TO WATERS AND NAVIGATION -- PUBLIC DRINKING WATER SUPPLY

SYSTEM PROTECTION

     Introduced By: Representatives McLaughlin, Azzinaro, Johnston, McNamara, and
Corvese

     Date Introduced: February 08, 2018

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 46-15.3-21 of the General Laws in Chapter 46-15.3 entitled "Public

Drinking Water Supply System Protection" is hereby amended to read as follows:

     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.

     (e) Persons age sixty-five (65) years and over who have a surcharge or extra charge

(hereinafter a "surcharge") applied to their water bill on water used for personal use and

consumption shall receive a twenty-five percent (25%) discount on such surcharge. The

provisions of this subsection shall not be deemed to authorize the imposition of a surcharge on

any water supply bill where persons age sixty-five (65) years and over are already given an

exemption from a surcharge. Provided, the twenty-five percent (25%) discount for persons age

sixty-five (65) years and over shall be in addition to any partial exemption already given to such

persons for a water supply surcharge.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO WATERS AND NAVIGATION -- PUBLIC DRINKING WATER SUPPLY

SYSTEM PROTECTION

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     This act would provide that persons age sixty-five (65) years and over who have a

surcharge applied to water supplied to them for personal use and consumption would receive a

twenty-five percent (25%) discount on such surcharge.

     This act would take effect upon passage.

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