The State Corporation Commission has approved a rate increase for customers of Virginia-American Water Company that is $3.5 million less than the company originally requested. Customers served by the company in Alexandria, Hopewell, Prince William County and parts of the Northern Neck have been paying higher interim rates since April 1, 2016, and are due a refund, with interest, as a result of the SCC’s final order.
The company originally sought an increase of nearly $8.7 million, an annual operating revenue increase of 18.4 percent. Each of the company’s operating districts experienced varying rate adjustments.
The SCC has determined that an increase of approximately $5.2 million is just and reasonable. The company will promptly refund, with interest, all revenues collected under the interim rate based on the company’s original request.
Typically, refunds appear as a credit on the bills of current customers. The company has until August 31 to complete the refunds.
For the Alexandria system, the Commission is permitting the company to submit an application to implement a three-year pilot program to establish a special service charge for water system infrastructure improvements. If approved, the so-called Water and Wastewater Infrastructure Service Charge would appear as a separate line item on the monthly bill. The company can file for such a rate rider on or after June 1.
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