Virginia American Water Granted New Rates by State Corporation Commission
The Virginia State Corporation Commission (SCC) approved new rates for Virginia American Water effective retroactively from May 1, 2019, impacting residential, commercial, and industrial customers in several areas. The rate changes reflect approximately $98 million in infrastructure investments since 2017. Average monthly increases include $3.64 in Alexandria and $0.63 in Prince William, while a decrease of $14.43 is noted in the Eastern area. Consolidated tariffs are being gradually implemented to stabilize future rates for all customers.
- Approval of new rates reflects $98 million infrastructure improvements.
- Consolidated tariffs will help stabilize future rates across service areas.
- Rate increases for residential customers in specific areas may lead to customer dissatisfaction.
ALEXANDRIA, Va.--(BUSINESS WIRE)--On November 6, 2020, the Virginia State Corporation Commission (SCC) issued an order that approves new rates for Virginia American Water. The new rates are for the company’s residential, commercial and industrial customers in the City of Alexandria, the City of Hopewell, a portion of Prince George County, in the Hopewell District, a portion of Prince William County and the Eastern District service area in and around Virginia’s Northern Neck.
The increased rates reflect approximately
“Virginia American Water regularly invests in our infrastructure throughout the state to continue to provide the high level of service our customers expect and deserve,” said Barry Suits, president, Virginia American Water. “Our customers cost for tap water will remain around a penny per gallon.”
Under the order, rates for Virginia American Water’s average residential customer using 4,500 gallons of water per month will change in each service area as follows (amounts include purchased water surcharge):
-
Alexandria –
$3.64 increase per month -
Hopewell –
$1.47 increase per month -
Eastern –
$14.43 decrease per month -
Prince William –
$0.63 increase per month for water service, and$2.67 decrease per month for wastewater service
Interim rates became effective on May 1, 2019 and remain in place until the SCC approves the Company’s updated tariff with rates approved in the rate order. The new rates will be retroactive to May 1, 2019 and the company will issue credits, including interest using the Federal Reserve’s “bank prime loan” rate, to customers within 90 days of the final order.
As noted in the general rate application filed November 2, 2018, Virginia American Water is incorporating consolidated tariff pricing in a gradual manner consistent with Senate Bill 1492, which was signed into law in 2017. Once rates are fully consolidated, all water customers in the company’s residential districts will have the same base rates and cost of water. Consolidated rates will allow costs associated with infrastructure investment to be allocated statewide among Virginia American Water’s customer base helping to stabilize future rates.
Customers seeking further information regarding rates for their specific usage should go to virginiaamwater.com, under “Customer Service & Billing”, choose “Your Water and Wastewater Rates”. Additionally, customers can call our 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 bills are encouraged to contact the company for payment arrangements or budget billing by calling 1-800-452-6863. Customers who meet low-income requirements may also apply for assistance through the company’s H2O Help to Others program, administered by Dollar Energy Fund. More information can be found on www.virginiaamwater.com under “Customer Service & Billing”, “Bill Paying Assistance”.
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 approximately 325,000 people. For more information, visit www.virginiaamwater.com and follow Virginia American Water on Twitter and Facebook.
