Virginia-American Water Agrees To Smaller Rate Increase After City, Public Pushback

ALEXANDRIA, VA – The Virginia-American Water Company has backed down on its proposed rate increases for water and wastewater services after pushback from the City of Alexandria and other local governments.

Virginia-American Water had attempted to raise annual water service rates by more than 27 percent and wastewater service rates by more than 25 percent, saying it needed the money for infrastructure investments. The increases would have tacked another $11 a month onto average residential water bills.

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The agreed-upon rates will raise the average water customer’s bill by about $9 a month and the average wastewater customer’s bill by about $7 a month.

The deal also sets the water company’s return on equity, the profit it is allowed, at 9.75 percent, less than it requested and less than it earned last year.

The City of Alexandria, the City of Hopewell and Prince George County joined to oppose Virginia-Water’s application to the state’s utility regulator, the State Corporation Commission, for higher rates. Dozens of comments were also submitted by members of the public.

Virginia-American Water originally applied to raise rates in November. The parties arrived at an agreement on Friday.