Virginia American Water Rate Increase Opposed In Alexandria

ALEXANDRIA, VA — The City of Alexandria has taken a stance against proposed rate increases by Virginia American Water, the drinking water utility provider in the city. The State Corporation Commission must approve any water rate increase.

The privately-owned company requested a 14.48 increase in the water service rate, or $6,024,248, as well as a wastewater service rate decrease of or 3.73 percent, or $409,739. For an average customer using 4,500 gallons per month, that would cause a monthly water bill increase of $75 in the first year and around $39 each in the next two years, says a city press release.

Virginia American Water cited more jurisdictional sales revenues as a reason for the proposed rate hikes. The company noted this rate is based on a 10.8 percent proposed return on equity, the rate it wants to meet.

Alexandria officials believe the proposed return on equity should be lower, rate increases be gradually phased in and represent national averages, and costs be fairly allocated between residential, commercial and industrial customers.

"While Virginia American Water is an important partner in Alexandria's water system, the City has a responsibility to the community to speak up when rate increases are too aggressive," said City Manager Mark Jinks in a statement. "Increases are needed from time to time in order to maintain and improve aging infrastructure, but they must be structured and paced fairly and equitably."

The State Corporation Commission is holding a public hearing on the water rate increase on Aug. 27. It will be held at 10 a.m. in the Tyler Building at 1300 East Main Street in Richmond. Residents can attend the meeting or submit comments by Aug. 13 online. On the page, find case PUR-2018-00175 and select "submit comments."