Lower Water Utility Rate Increase Approved For Alexandria, Credits Expected

ALEXANDRIA, VA — Water customers in Alexandria will be getting a smaller increase than the water utility provider was requesting. Bill credits are coming for customers who have paid a higher interim water rate since May 2022.

The Virginia State Corporation Commission ordered a settlement allowing Virginia American Water to overall increase rates by $10.75 million, which impacts customers in the City of Alexandria, part of Prince William County and several other Virginia localities. That's lower than the overall rate of $14.3 million the water utility provider had requested.

As a regulated utility, Virginia American Water must apply with the State Corporation Commission to set water utility rates and demonstrate the cost of service, including construction, maintenance, operation, administration, taxes and financing. After review, the State Corporation Commission sets the utility company's rates.

Virginia American Water implemented interim rates on May 1, 2022 but noted bills were "subject to refund" depending on the commission's decision on the final rate. The settlement means the final rates are lower than the interim rates the utility has been charging customers.

Customers can expect credits for the difference they paid between the interim and final rates within 90 days of the April 25 settlement. For example, a customer using 4,000 gallons of water per month in Alexandria will see a $2.54 decrease per month.

The City of Alexandria had voiced opposition to the full rate increase Virginia American Water first proposed in November 2021. Citing the impact on water customers' bills, the city government called for Virginia American Water's profit margin to be lower and for bill increases to be gradual and reflect national averages.

Patch has reached out to the City of Alexandria's communications office for comment on the approved water rate. This story will be updated if a comment is provided.

In a previous news release, Virginia American Water attributed its requested $14.3 million rate increase to the $137.6 million in infrastructure investments the company has been making from May 2020 through April 2023. In Alexandria, the infrastructure projects include the replacement of water main in Alexandria to improve water pressure for business and residential customers as well as for fire protection.

"Virginia American Water is committed to making the needed infrastructure improvements across our service areas so we can continue to provide the high level of safety, service, and reliability that our customers expect and deserve," said Barry Suits, president of Virginia American Water, in response to the settlement. "Even with these critical investments in our system that help maintain public health, our customers’ cost for water service remains around one penny per gallon, supporting our focus on affordability."

Customers who are having trouble paying their water bill can seek payment arrangements or budget billing options through virginiaamwater.com.