New Rates in Effect May 1 for Virginia American Water Customers

Rhea-AI Summary

Virginia American Water will implement interim water and wastewater rates starting May 1, 2022, following a rate application filed on November 15, 2021. The company seeks a total increase of $14.3 million due to $137.6 million in infrastructure improvements made since May 2020. Customers may receive bill credits if final rates are lower than the interim rates. The average residential customer will see monthly increases between $3.52 and $7.92 across different service areas. The company emphasizes commitment to affordability through payment assistance programs.

Positive

• Investment of $35 million in water system improvements in 2021.
• Infrastructure upgrades aimed at enhancing service reliability and quality.

Negative

• Overall rate increase of $14.3 million may burden customers.
• Interim rates remain until SCC's final decision, causing uncertainty for customers.

Interim rates implemented prior to State Corporation Commission’s final order

ALEXANDRIA, Va.--(BUSINESS WIRE)-- Virginia American Water announced today that interim water and wastewater rates will be implemented on May 1, 2022, for residential, commercial and industrial customers.

The company filed a general rate application with the State Corporation Commission (SCC) on November 15, 2021, requesting an overall increase in rates of $14.3 million driven by $137.6 million in infrastructure investments from May 2020 through April 2023. 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 rates determined by the SCC’s final order are lower than the rates Virginia American Water will put into effect on May 1, 2022.

“In 2021 alone, we invested more than $35 million in water system improvements statewide to continue to upgrade our infrastructure and deliver high-quality water, wastewater and fire protection service to approximately 339,000 people in Alexandria, Dale City, Hopewell and the Northern Neck,” said Barry Suits, Virginia American Water president.

Some of the company’s critical infrastructure projects in the rate request include:

• New intake, electrical and pumping structures and construction of an elevated tank that will allow for storage of an additional 2.5 million gallons of drinking water in Hopewell
• Replacement of 3,800 feet of water main in Alexandria, to improve water pressure for business and residential water service, as well as fire protection
• Replacement or rehabilitation of another 37,000 feet of aging water mains across its service areas
• Construction of 17,000 square foot Prince William Operations Center to enhance operational efficiencies
• Sewer main upgrades and improvements to the wastewater treatment plant in the Prince William District
• A new pump station in the Eastern District to improve system resiliency

Suits added that Virginia American Water is also focused on affordability. “Virginia American Water continually strives to find more efficient and cost-effective ways to operate,” he said. “We also have bill payment and other assistance programs available for customers who may need help.”

Interim rates for Virginia American Water’s average residential customer using 4,000 gallons of water per month will change in each service area as follows:

• Alexandria: $6.88 increase per month
• Hopewell: $7.92 increase per month
• Eastern: $3.52 increase per month
• Prince William: $4.71 increase per month for water service, and $5.98 increase per month for wastewater service

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. Additionally, customers can call Virginia American Water’s Customer Service Center at 800-452-6863.

Virginia American Water also wants to remind customers facing circumstances that are stretching their financial resources 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 by calling 1-800-452-6863. 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 Virginia American Water

Virginia American Water, a subsidiary of American Water (NYSE: AWK), is the largest investor-owned water utility in the state, providing high-quality and reliable water services to over 339,000 people. For more information, visit www.virginiaamwater.com and follow Virginia American Water on Twitter and Facebook.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220429005724/en/

Media Contact:

Marybeth Leongini

External Affairs Manager

571-344-0998

marybeth.leongini@amwater.com

Source: Virginia American Water

FAQ

What are the new interim rates for Virginia American Water customers?

Interim rates effective May 1, 2022, will increase an average residential customer's bill by $3.52 to $7.92 depending on the service area.

When did Virginia American Water file for a rate increase?

Virginia American Water filed for a rate increase on November 15, 2021.

How much is the total rate increase Virginia American Water is seeking?

The company is requesting a total increase of $14.3 million.

What infrastructure improvements are included in the rate application?

The application includes $137.6 million in improvements such as new pumping structures and water main replacements.

What assistance programs does Virginia American Water offer?

Virginia American Water offers bill payment assistance programs for customers facing financial difficulties.