Alexandria is in the midst of another water fight over a proposed rate increase by drinking water utility Virginia American Water.
The city is partnering with the City of Hopewell and Prince George County in arguing before the State Corporation Commission against a 27.6% rate increase, which Virginia American Water says will mean an average $11-per-month in extra charges. The utility filed the rate increase last November, and the city says it could have “devastating” consequences.
“We recognize that in these economic times, in these times of great uncertainty and unemployment, any increase is really hard for our families and our community right now,” Mayor Alyia Gaskins said in a recent video. “In this case, Virginia American Water is requesting a rate increase of over 25% for Alexandrians. This would represent a more than 260% increase for Alexandrians since 2022.”
The interim rates based on the utility’s proposed increase went into effect around May 1, according to Virginia American Water. Once the SCC makes a final decision on the rate, customers could receive a refund if the approved rate is lower than the interim rate. Customers will be informed about the final rate by email and the Virginia American Water website.
The city last argued against rate increases in 2021 and was able to get a $420,000 refund, despite water rates going up. The rate in early 2022 for Alexandria was $0.34833 per 100 gallons. The proposed rate in this case is $1.2616 per 100 gallons.
In testimony before the SCC, Alexandria climate officer Ryan Freed said the “impact of increased rates of the magnitude proposed by VAWC are significant.”
“For an already housing burdened family, the consequences of a significant increase in a non-optional bill will only increase the housing burden faced,” Freed said. “For those in multi-family structures that aren’t individually metered, they won’t even be able to make changes in their usage patterns to reduce costs. Simply put — Alexandrians will be paying considerably more for a vital service without seeing any improvement in service or increase in quality.”
Virginia American Water told ALXnow that the rates “reflect the true costs of providing high-quality water and wastewater services.”
“If the company’s proposed rates are approved as filed with the [SCC], the monthly water and wastewater bills for the average residential customer using 4,000 gallons per month would each increase by approximately $11 per month,” Virginia American Water said in a statement. “Virginia American Water recognizes that customers may be facing financial challenges and we offer several programs to support customers with their water and/or wastewater bills including our H20 Help to Others Program, which offers grants of up to $500 per year for customers who qualify.”
Additionally, starting July 1, the city’s stormwater utility fee rates will jump from $340.30 to $357.40 for a single-family home billing unit, resulting in a roughly $26 increase to tax bills. The city’s wastewater service AlexRenew will also implement a previously-approved rate increase of 5.7% starting July 1, 2026 and has proposed changes to the base rate.
The SCC will hold a public hearing in Richmond on the Virginia American Water rate increase at 10 a.m. Wednesday, June 10. The deadline to register to speak at the meeting is June 3.
