Virginia American Water seeks rate hike to fund infrastructure improvements
Alexandria customers could see $11 monthly increase for water service
Virginia American Water filed a rate increase request Monday with state regulators that would raise the average Alexandria residential customer’s water bill by about $11 per month.
The utility is seeking $21.9 million in additional annual revenue to fund more than $115 million in infrastructure investments, including water treatment plant updates, pipeline replacements, and upgrades to storage tanks and pumping stations.
If approved as requested by the Virginia State Corporation Commission, water rates would increase 26-29% depending on usage.
A household using 4,000 gallons of water monthly would see its water bills rise from $37.43 to $47.98.
Virginia American Water manages Alexandria’s drinking water system, sourcing water from the Potomac River and Occoquan Reservoir. The city’s wastewater is handled separately by the Alexandria Sanitation Authority and AlexRenew.
The utility serves about 384,000 customers statewide and is a subsidiary of American Water, which announced in October it is combining with Essential Utilities. The merged company will serve 4.7 million connections across 17 states and 18 military installations.
The commission will review the request and may approve all, some, or none of the increase. Interim rates are expected to take effect around May 1, with any difference between interim and final approved rates subject to refund.
The commission’s review process includes public input hearings and written comment periods.
Virginia American Water last filed a general rate case in November 2023.
The utility offers assistance programs, including grants up to $500 annually for income-eligible customers and payment plans for those with past-due balances.
For more information, click here.