[Archived] City Opposes Virginia-American Water Company Proposed Rate Increase

For immediate release: July 8, 2008

City Opposes Virginia-American Water Company Proposed Rate Increase

The Virginia-American Water Company (Water Company), a private utility which provides water to Alexandria homes and businesses, has filed with the State Corporation Commission (SCC) an application for a 16.8% increase for Alexandria customers.  Although the proposed rate increase is still under SCC review, under Virginia law, this rate increase will become effective on July 8, 2008.  According to the Water Company, the proposed 16.8% increase is driven largely by new capital investments in the Water Company’s Alexandria infrastructure, and the Water Company’s request for an increase in their rate of return.  Investments in infrastructure are consistent with City Council’s articulated desire for the Water Company to maintain its system’s reliability, so a rate increase is justified, but not a 16.8% rate increase. 

The City has reviewed the rate case documents and provided formal comments to the SCC in objection to the proposed increase in the Water Company’s Alexandria District rates.  The rate increase will be subject to a refund with interest if the SCC later determines a lower rate was appropriate.  In 2000 and 2004, the SCC approved rate increases below what the Water Company requested.

City residents and businesses can express their concerns about this rate increase to the SCC by writing by September 10, 2008, to:

   Clerk of the Commission
   State Corporation Commission
   c/o Document Control Center
   P.O. Box 2118
   Richmond, Virginia 23218-2118

Correspondence to the SCC should note the SCC case number:  PUE-2008-00009.  Comments may also be submitted electronically via the SCC web site by following the instructions at www.scc.virginia.gov/case.