Virginia American Water, the drinking water utility for Alexandria, has agreed to a settlement that sets a lower rate increase than originally proposed.
The June 5 settlement with the State Corporation Commission, City of Alexandria, City of Hopewell and Prince George County allows Virginia American Water to increase its revenues by $16 million annually, which is less than the $22 million the utility requested.
According to the SCC filing, monthly bills would increase by an average $9 (21.7%) for an average residential customer using 4,183 gallons. The original proposal would have hiked monthly bills by $11, or 27.6%.
The utility cited $115 million in ongoing capital projects between May 2025 and April 2027 as a reason for requesting the revenue increase.
The wastewater rates set in Virginia American Water’s settlement do not affect Alexandria, as AlexRenew is the city’s wastewater utility.
Virginia American Water had filed the rate increase last November and implemented interim rates on May 2 while the SCC case was progressing. The utility says it will refund the difference between interim and approved rates once the SCC issues its final rate order. Customers will be notified about the final rate via email and the Virginia American Water website and can apply for bill assistance if they meet income eligibility.
This isn’t the first time the City of Alexandria has joined opposition to Virginia America Water’s rate increase requests with the SCC. The city last argued against rate increases in 2021 and was able to get a $420,000 refund for customers despite water rates going up.
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