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Virginia American Water Receives New Rate Order
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.
ContactsVirginia American Water
Alison Bibb-Carson
External Affairs Consultant
alison.bibb-carson@amwater.com
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Infrastructure improvements drive new rates; Water service costs
remain about a penny per gallon
ALEXANDRIA, Va.–(BUSINESS WIRE)–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.
Contacts
Virginia American Water
Alison Bibb-Carson
External Affairs
Consultant
alison.bibb-carson@amwater.com
