Virginia American Water Granted New Rates by Virginia State Corporation Commission
Virginia American Water has received approval from the Virginia State Commission for new water and wastewater rates, resulting in a total annualized revenue increase of $14.6 million. The rate adjustment follows over $110 million in infrastructure investments in treatment system and distribution upgrades.
The new approved rates, effective May 1, 2024, actually represent a decrease from interim rates. Customers using 4,000 gallons monthly will see their water bills decrease by approximately $2.00 per month, while wastewater customers will experience roughly a $1.50 monthly decrease. The company serves approximately 350,000 people and will issue credits to customers for the difference between interim and permanent rates within 90 days.
Virginia American Water ha ricevuto l'approvazione dalla Commissione dello Stato della Virginia per nuove tariffe idriche e fognarie, comportando un aumento totale delle entrate annuali di 14,6 milioni di dollari. L'aggiustamento delle tariffe segue oltre 110 milioni di dollari di investimenti infrastrutturali in aggiornamenti del sistema di trattamento e distribuzione.
Le nuove tariffe approvate, in vigore dal 1 maggio 2024, rappresentano in realtà una diminuzione rispetto alle tariffe interim. I clienti che utilizzano 4.000 galloni al mese vedranno le loro bollette dell'acqua diminuire di circa 2,00 dollari al mese, mentre i clienti delle acque reflue sperimenteranno una diminuzione di circa 1,50 dollari al mese. L'azienda serve circa 350.000 persone e emetterà crediti ai clienti per la differenza tra le tariffe interim e quelle permanenti entro 90 giorni.
Virginia American Water ha recibido la aprobación de la Comisión del Estado de Virginia para nuevas tarifas de agua y aguas residuales, lo que resulta en un aumento total de ingresos anualizado de 14.6 millones de dólares. El ajuste de tarifas sigue a más de 110 millones de dólares en inversiones en infraestructura en actualizaciones de sistemas de tratamiento y distribución.
Las nuevas tarifas aprobadas, que entrarán en vigor el 1 de mayo de 2024, representan en realidad una disminución respecto a las tarifas interinas. Los clientes que utilizan 4,000 galones mensuales verán disminuir sus facturas de agua en aproximadamente 2.00 dólares al mes, mientras que los clientes de aguas residuales experimentarán una disminución de aproximadamente 1.50 dólares mensuales. La empresa atiende a aproximadamente 350,000 personas y emitirá créditos a los clientes por la diferencia entre las tarifas interinas y permanentes dentro de los 90 días.
버지니아 아메리칸 워터는 버지니아 주 위원회로부터 새로운 수도 및 하수도 요금에 대한 승인을 받아 연간 총 수익이 1460만 달러 증가하게 되었습니다. 요금 조정은 1억 1000만 달러 이상의 인프라 투자에 따른 것으로, 정수 및 배급 시스템의 업그레이드가 포함됩니다.
2024년 5월 1일부터 시행되는 새로운 승인 요금은 실제로 임시 요금보다 감소한 것입니다. 매달 4,000갤런을 사용하는 고객은 수도 요금이 약 2.00달러 감소하며, 하수도 고객은 약 1.50달러 감소를 경험할 것입니다. 이 회사는 약 35만 명에게 서비스를 제공하며, 임시 요금과 영구 요금의 차액에 대해 90일 이내에 고객에게 크레딧을 발행할 것입니다.
Virginia American Water a reçu l'approbation de la Commission de l'État de Virginie pour de nouveaux tarifs d'eau et d'eaux usées, entraînant une augmentation totale des revenus annuels de 14,6 millions de dollars. L'ajustement tarifaire fait suite à plus de 110 millions de dollars d'investissements dans les infrastructures pour la modernisation des systèmes de traitement et de distribution.
Les nouveaux tarifs approuvés, qui entreront en vigueur le 1er mai 2024, représentent en réalité une diminution par rapport aux tarifs intérimaires. Les clients utilisant 4 000 gallons par mois verront leurs factures d'eau diminuer d'environ 2,00 dollars par mois, tandis que les clients des eaux usées connaîtront une baisse d'environ 1,50 dollar par mois. L'entreprise dessert environ 350 000 personnes et émettra des crédits aux clients pour la différence entre les tarifs intérimaires et permanents dans un délai de 90 jours.
Virginia American Water hat die Genehmigung der Kommission des Bundesstaates Virginia für neue Wasser- und Abwassergebühren erhalten, was zu einem jährlichen Einnahmenanstieg von 14,6 Millionen Dollar führt. Die Gebührenerhöhung folgt auf Investitionen von über 110 Millionen Dollar in Infrastrukturen zur Modernisierung von Behandlungs- und Verteilungssystemen.
Die neuen genehmigten Gebühren, die ab dem 1. Mai 2024 in Kraft treten, stellen tatsächlich eine Senkung im Vergleich zu den vorläufigen Gebühren dar. Kunden, die monatlich 4.000 Gallonen verbrauchen, werden eine Senkung ihrer Wasserrechnungen um etwa 2,00 Dollar pro Monat feststellen, während Abwasserkunden einen Rückgang von etwa 1,50 Dollar pro Monat erleben werden. Das Unternehmen bedient etwa 350.000 Menschen und wird innerhalb von 90 Tagen Gutschriften an Kunden für die Differenz zwischen vorläufigen und dauerhaften Gebühren ausstellen.
- Revenue increase of $14.6 million annually
- $110 million infrastructure investment strengthens service reliability
- Serves 350,000 customers, maintaining strong market presence
- Lower rates than interim pricing benefits customer retention
- Monthly revenue per customer decreasing ($2.00 water, $1.50 wastewater)
- Required to issue refunds to customers for interim rate difference
Insights
Virginia American Water's $14.6 million revenue increase approval represents a constructive regulatory outcome for American Water Works (AWK), though with a lower return profile than initially requested. The approved rates will actually decrease monthly bills for customers compared to the interim rates implemented in May 2024, indicating regulators balanced infrastructure investment needs with affordability concerns.
The $110 million infrastructure investment that drove this rate case translates to approximately a 13.3% return on capital deployment before accounting for operating expenses, which appears reasonable in the current regulatory environment. This continues AWK's successful strategy of deploying capital into its regulated base and securing recovery through rate cases across its multi-state footprint.
For investors, this outcome reinforces AWK's reliable business model of steady infrastructure investment followed by regulated returns. The Virginia case demonstrates the company's ability to maintain constructive regulatory relationships while addressing aging water infrastructure needs - a nationwide issue creating long-term investment visibility for water utilities.
While this single rate case represents a modest contribution to AWK's overall operations, the pattern of successful regulatory outcomes across jurisdictions supports the company's 7-9% long-term earnings growth targets and by extension, its dividend growth potential. The retroactive implementation and customer credits reflect a typical regulatory process rather than any concerning regulatory pushback.
The Virginia outcome aligns with AWK's capital deployment strategy focused on system reliability and regulatory compliance, providing the predictable returns that make regulated water utilities attractive in uncertain economic environments.
Increase Driven by
The company’s rate request was filed on November 1, 2023, and was primarily driven by more than
“We are committed to making the necessary investments to continue to provide the high-quality service our customers expect and deserve and ensuring compliance with state and federal regulations,” said Laura Runkle, President, Virginia American Water. “Our effective capital planning helps keep water and wastewater services reliable and affordable for the 350,000 people we serve.”
The new approved rate order represents a reduction from the interim rates that became effective on May 1, 2024. The average bill for most water customers using 4,000 gallons per month will decrease by approximately
The new rates will be retroactive to May 1, 2024, and the company will issue credits to customers for the difference between interim and permanent rates, including interest, within 90 days of the final order. Credits will appear as two separate line items labeled “Rate Refund” and “Interest on Rate Refund.”
Virginia American Water wants to remind customers about its existing bill paying assistance programs, payment arrangements or budget billing options available on the customer MyWater portal at virginiaamwater.com. Income-eligible customer 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 at virginiaamwater.com under “Customer Service & Billing”, “Customer Assistance Programs.”
Customers will receive information about the new rates in their next Virginia American Water bill. Information will also be available on the company’s website at www.virginiaamwater.com under Customer Service & Billing, Your Water and Wastewater Rates.
About American Water
American Water (NYSE: AWK) is the largest regulated water and wastewater utility company in
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 over 350,000 people. For more information, visit www.virginiaamwater.com and follow Virginia American Water on Twitter and Facebook.
AWK-IR
View source version on businesswire.com: https://www.businesswire.com/news/home/20250226991274/en/
Media Contact:
Marybeth Leongini
External Affairs Manager
(703) 706-3871
marybeth.leongini@amwater.com
Source: Virginia American Water
FAQ
How much will Virginia American Water customers save under the new rates in 2024?
What is the total infrastructure investment driving Virginia American Water's rate adjustment?
When will Virginia American Water customers receive rate difference credits?
What is the total revenue increase approved for Virginia American Water in the new rate settlement?
