Infrastructure Upgrades Help Virginia American Water Receive Rate Increase

Following a 19-month review, the Virginia State Corporation Commission has issued an order that approves new rates for Virginia American Water. The new rates are for the company’s 60,000 drinking water and 20,000 wastewater 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. Across Virginia American Water’s service districts, the cost of a gallon of water will remain about a penny per gallon.

The need for increased rates is based primarily on the approximate $53 million in infrastructure improvements Virginia American Water has made since its last rate request in 2012. These improvements to help ensure high-quality, reliable service include pipe replacements, system reinforcement projects, equipment purchases and replacements and plant upgrades. The company also continued its efforts to manage costs, showing a 2 percent decrease in operation and maintenance expenses since the last filing four years ago. This savings offsets some of the revenue requirement requested for capital improvements.

“We appreciate the transparent and thorough SCC review process and the opportunity for the public to provide input,” said Barry Suits, president, Virginia American Water. “We are committed to providing a high level of service to our customers through investing in our infrastructure and treatment plants to maintain the capacity and reliability. Even with the rate increase approved by the SCC, our water services remain a remarkable value.”

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