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R.I. considers water rate increase

Rise would hit heavy users

By Ray Henry
Associated Press / October 5, 2009

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PROVIDENCE - When pharmaceutical giant Amgen Inc. expanded a manufacturing plant in West Greenwich, it ran into a major problem: The local water company couldn’t guarantee the firm the supply it needed daily, up to 800,000 gallons.

Instead of solving the problem, state lawmakers eager to win jobs simply decreed three years ago that Amgen would get its water. They never explained how, since overuse has sometimes reduced the Hunt River, a regional water supply, into a warm, muddy trickle.

Now lawmakers worried about water shortages are on the verge of passing legislation that would force conservation by raising rates on those who use too much water. The bills won preliminary approval earlier this year and could get a final vote when the General Assembly meets later this month.

Supporters argue the proposal will protect waterways and eliminate barriers to economic growth in a state with 12.8 percent unemployment.

“What message does it send to companies that are looking to relocate to Rhode Island that we can’t make a commitment of adequate water supply to Amgen?’’ said Sheila Dormody, Rhode Island director of Clean Water Action, an environmental watchdog that backs the bill. “It’s not just environmental damage that we’re talking about.’’

Rhode Island has not had a serious drought in about a decade, said Alisa Richardson, an engineer who monitors water quality for the state Department of Environmental Management. Nevertheless, so much water already is drawn from two watershed basins that they are showing signs of depletion.

The Hunt River, which begins in East Greenwich and flows northeast into Narragansett Bay, is a water source for several surrounding communities and a business park. In 2005 and 2007, the river turned into a series of puddles because so much water was taken out of it, Richardson said.

“If it wasn’t for the dams, it would be dried up completely,’’ she said.

Investigators concluded that the river level plummeted because too many people were using water on their lawns. Without flowing water, rivers run low on oxygen, making it difficult for fish to survive and providing a climate for bacteria and algae.

Regulators also have noted low water in the Chipuxet River, which flows from Exeter into a South Kingstown pond. Municipal and private water suppliers, the University of Rhode Island, and turf farms all take water from the river system without returning it, Richardson said.

The legislation aims to ease pressure on rivers by increasing the cost of water.

It would allow the more than two dozen water suppliers in Rhode Island to set their rates based on usage.

People who conserve water could be eligible for discounts, while those who use a lot would see their bills rise. Water companies also could charge customers to help cover the long-term costs of repairing or replacing aging pipes that leak.

Under the legislation, the state Water Resources Board would advise water companies on how much a normal household should be expected to use.

The bill moved forward in the General Assembly after its sponsors agreed to exempt the agricultural industry.

Despite giving the bill an early approval, House and Senate lawmakers abruptly left for the summer without approving a final version. Senate President M. Teresa Paiva-Weed expects a final vote will be taken when the General Assembly meets for a special two-day session starting Oct. 28, her spokesman said.