Last November, Virginia American Water submitted a request to the State Corporation Commission to raise water rates — but City of Alexandria officials are not about to let that request be water under the bridge.
Virginia American Water is the privately-owned, for-profit company that provides drinking water in Alexandria. At the direction of City Council, city officials submitted an objection to the rate increases arguing that the company’s profit margin should be lower; the rate of bill increases should be gradual and representative of national averages; and costs of serving customers should be appropriately and fairly allocated among residential, commercial and industrial customers
“While Virginia American Water is an important partner in Alexandria’s water system, the City has a responsibility to the community to speak up when rate increases are too aggressive,” said City Manager James Parajon in a press release. “Increases are needed from time to time in order to maintain and improve aging infrastructure, but they must be structured and paced fairly and equitably.”
Virginia American Water has requested an increase in rates that will produce additional annual jurisdictional sales revenues of $14,317,277, or 27.6%. The rate request is based on a 10.9% proposed return on equity, which is the rate of profit the company desires to achieve.
The company says it will not change monthly meter charges or monthly fixed charges for wastewater service in Alexandria.
So what could this mean for your water bill? The rate increase would be based on water usage. For example, a residential household that uses 4,000 gallons of water per month would see a nearly 36 percent increase in the cost of their bill. Those who use more than that could see increases as high as 40 to 50 percent. Residents who use less than 2,000 gallons of water a month will not see a change in their rates.
Residents can submit their comments on the proposed rate increases with the State Corporation Commission online on or before Sept. 20 or by calling 804-371-9141.
The Commission will hold a public hearing starting Sept. 23 at 10 a.m. by telephone. The hearing will continue Sept. 27, at 10 a.m. where participants may join via telephone, webcast or in-person in the second-floor courtroom located in the Tyler Building (1300 E. Main St., Richmond). The Commission will hear from the public, the company and other stakeholders at the meeting before making its decision.
