Providence Water strives to provide service in the most efficient and cost-effective manner possible. We practice sound financial management whereby revenues and expenditures are carefully planned and monitored to ensure that customers pay the least possible amount for the highest quality water.
The following reports are provided to provide our customers with a glimpse of our financial condition:
Providence Water's strong financial position earned a AA- Issuer Credit Rating (ICR) from Standard & Poor's Rating Services with an outlook of "Stable-Strong".
Providence Water is audited annually by independent auditors to report on financial conditions, internal controls over financial reporting, compliance, and other matters in accordance with government auditing standards.
Providence Water's net total assets increased from $572 million in fiscal year 2021 to $507 million or 12.6% in fiscal year 2020. The increase in net assets is in line with the continued improvement and upgrade in the infrastructure. The improvements and upgrades include the distribution lines, the plant production capacity, aging pump stations, and other facilities.
Providence Water's revenue increased by $11.5 million in fiscal year 2021, mainly due to the full effect increase in rates which took effect in August 2020. As a non-profit enterprise, the total revenue realized is used to fund all the activities authorized by the Public Utilities Commission and mandated by state legislation. These include salaries, fringe benefits, retirement contributions, property taxes, services and materials, and restricted funds for infrastructure improvements and other operations. All combined, total revenue realized in fiscal year ending June 30, 2021 amounts to $81.3 million.
The Providence Water Net Position changed from $292 million in FY 2020 to $325 million in FY 2021. Part of this 11.3% increase is due to an increase in revenue, achieved through a rate increase approved in August 2020 and the January 2020 merger of the Johnston Water system with Providence Water.