Interim Rates in Effect May 1 for Virginia American Water Customers

Rhea-AI Summary

Virginia American Water has implemented interim water and wastewater rates for customers in the state following a rate application filed with the SCC, requesting an increase of $19.7 million driven by infrastructure investments. The company will issue bill credits if final rates are lower. Consolidated rates are proposed to stabilize costs, and a new affordability tariff for eligible households is being introduced.

Positive

• Consistent investment in infrastructure to enhance water and wastewater service

• Proposed consolidated rates to stabilize future costs and maintain affordability

• Introduction of a new affordability tariff to provide bill discounts for eligible households

Negative

• Interim rate increase of $19.7 million may impact customer bills

• Final rate order after public review process could result in adjustments to rates

• Potential delays in the SCC issuing the final rate order may prolong uncertainty for customers

ALEXANDRIA, Va.--(BUSINESS WIRE)-- Virginia American Water announced that interim water and wastewater rates have been implemented today for customers throughout the state as outlined in the company’s general rate application filed with the State Corporation Commission (SCC) on November 1, 2023.

In the filing, Virginia American Water requested an overall increase in rates of $19.7 million driven by $110 million in infrastructure investments from May 2023 through April 2025. The interim rates will remain in place until the SCC issues its final rate order after a thorough public review, which could take several months. The company will issue bill credits with interest to all customers if the rates determined by the SCC’s final order are lower than the rates Virginia American Water put into effect on May 1, 2024.

“Virginia American Water continues its approach of consistent investment to maintain and improve our water and wastewater systems. These critical investments help to enhance water and wastewater service and in 2023 alone, we invested more than $53 million in water system improvements throughout the Commonwealth,” said Barry Suits, Virginia American Water president.

In the rate application, the company proposed the third and final step toward consolidated rates. Once rates are fully consolidated, all of Virginia American Water’s customers will have the same base rates. Consolidated rates allow costs associated with infrastructure investment to be allocated statewide among Virginia American Water’s growing customer base helping to stabilize future rates and maintain affordability.

Recognizing that affordability may still be an issue for some customers, the company is proposing a new universal affordability tariff to help families experiencing hardship with their water bills as part of this filing. The new affordability tariff, if approved by the SCC, would be available to qualified residential customers. Under this expanded tariff, eligible households would receive monthly bill discounts of between 20 and 80 percent for water and wastewater service. This would be in addition to the company’s existing customer assistance programs.

Additional notice regarding the new rates has been included in customer bills. Customers seeking further information can visit virginiaamwater.com. Under Customer Service & Billing, choose “Your Water and Wastewater Rates” under the Customer Service & Billing menu.

Final rates are subject to the SCC’s final decision, which includes a thorough public review of Virginia American Water’s rate application. The SCC’s rate review process offers multiple opportunities for customer involvement. Customers can participate through written comments, attendance at public input hearings, and consumer advocacy organizations that participate in the proceedings.

Virginia American Water also reminds customers about its bill paying assistance programs. Customers who are having difficulty paying their water and/or wastewater service bills are encouraged to contact the company for payment arrangements or budget billing. Customers who meet certain eligibility requirements may also apply for assistance through the company’s H2O Help to Others program. More information can be found on www.virginiaamwater.com under Customer Service & Billing, Customer Assistance Programs.

About American Water
American Water (NYSE: AWK) is the largest regulated water and wastewater utility company in the United States. With a history dating back to 1886, We Keep Life Flowing® by providing safe, clean, reliable, and affordable drinking water and wastewater services to more than 14 million people with regulated operations in 14 states and on 18 military installations. American Water’s 6,500 talented professionals leverage their significant expertise and the company’s national size and scale to achieve excellent outcomes for the benefit of customers, employees, investors and other stakeholders. For more information, visit amwater.com and join American Water on LinkedIn, Facebook, X and Instagram.

About Virginia American Water
Virginia American Water, a subsidiary of American Water, is the largest investor-owned water utility in the state, providing high-quality and reliable water services to approximately 350,000 people. For more information, visit www.virginiaamwater.com and follow Virginia American Water on X and Facebook.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240501934718/en/

Marybeth Leongini

Manager, External Affairs

571-344-0998

Marybeth.leongini@amwater.com

Source: Virginia American Water

FAQ

What interim rates have been implemented for Virginia American Water customers?

Interim water and wastewater rates have been implemented following a rate application filed with the SCC, requesting an increase of $19.7 million driven by infrastructure investments.

What is the purpose of the proposed consolidated rates by Virginia American Water?

The proposed consolidated rates aim to stabilize future costs and maintain affordability by allocating infrastructure investment costs statewide.

What is the new universal affordability tariff proposed by Virginia American Water?

The new affordability tariff offers monthly bill discounts of between 20 and 80 percent for water and wastewater service to eligible residential customers.

How can customers learn more about the new rates and programs offered by Virginia American Water?

Customers can visit virginiaamwater.com under Customer Service & Billing to access information on rates, assistance programs, and customer involvement opportunities.