Virginia American Water Receives New Rate Order
May 25 2017 - 9:15AM
Business Wire
Infrastructure improvements drive new rates;
Water service costs remain about a penny per gallon
Following a 19-month review, the Virginia State Corporation
Commission (SCC) has issued an order that approves new rates for
Virginia American Water. The new rates are for the company’s 60,000
drinking water and 20,000 wastewater customers in the City of
Alexandria, the City of Hopewell, a portion of Prince George County
in the Hopewell District, a portion of Prince William County and
the Eastern District service area in and around Virginia’s Northern
Neck. Across Virginia American Water’s service districts, the cost
of a gallon of water will remain about a penny per gallon.
The need for increased rates is based primarily on the
approximate $53 million in infrastructure improvements Virginia
American Water has made since its last rate request in 2012. These
improvements to help ensure high-quality, reliable service include
pipe replacements, system reinforcement projects, equipment
purchases and replacements and plant upgrades. The company also
continued its efforts to manage costs, showing a 2 percent decrease
in operation and maintenance expenses since the last filing four
years ago. This savings offsets some of the revenue requirement
requested for capital improvements.
“We appreciate the transparent and thorough SCC review process
and the opportunity for the public to provide input,” said Barry
Suits, president, Virginia American Water. “We are committed to
providing a high level of service to our customers through
investing in our infrastructure and treatment plants to maintain
the capacity and reliability. Even with the rate increase approved
by the SCC, our water services remain a remarkable value.”
The order approved an additional $5.2 million in annualized
revenue. As permitted by SCC regulations, on April 1, 2016,
Virginia American Water put into effect the rates it proposed when
it filed the rate request on October 30, 2015. The rates the SCC
has approved are lower than those requested and put into effect on
an interim basis in April 2016. As a result, most Virginia American
Water customers will now see a lower rate on their water bills. The
company will refund the difference from their current bill amount
to the final rate set by the SCC. Refunds will include interest
using the Federal Reserve’s “bank prime loan” rate and will be
credited to customers’ bills within 90 days.
Virginia American Water, a subsidiary of American Water (NYSE:
AWK), is the largest investor-owned water utility in the state,
providing high-quality and reliable water services to approximately
320,000 people.
With a history dating back to 1886, American Water is the
largest and most geographically diverse U.S. publicly traded water
and wastewater utility company. The company employs more than 6,800
dedicated professionals who provide regulated and market-based
drinking water, wastewater and other related services to an
estimated 15 million people in 47 states and Ontario, Canada. More
information can be found by visiting www.amwater.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20170525005554/en/
Virginia American WaterAlison Bibb-CarsonExternal Affairs
Consultantalison.bibb-carson@amwater.com
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