Virginia American Water Rate Case Settlement Receives Approval from State Corporation Commission

Supports $137.6 Million in System Investments

ALEXANDRIA, Va. (April 25, 2023) — The Virginia State Corporation Commission (SCC) issued an order today approving a settlement that adjusts rates for Virginia American Water following a November 2021 rate change request. The request was driven by approximately $137.6 million in completed or planned infrastructure improvements. These improvements include replacement of aging pipe, water treatment plant upgrades and system resiliency projects that will help Virginia American Water continue the provision of clean, safe and reliable service for customers throughout the state.

The rate order approves an overall increase in rates of approximately $10.75 million as reflected in the settlement agreement. The new rates are for the company’s residential, commercial and industrial 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. 

“Virginia American Water is committed to making the needed infrastructure improvements across our service areas so we can continue to provide the high level of safety, service, and reliability that our customers expect and deserve,” said Barry Suits, president, Virginia American Water. “Even with these critical investments in our system that help maintain public health, our customers’ cost for water service remains around one penny per gallon, supporting our focus on affordability.”

Interim rates became effective on May 1, 2022. With the approved rate order, which represents a reduction from the requested overall increase, interim rates will be replaced by permanent rates. As a result, Virginia American Water customers using 4,000 gallons of water per month will see a change in their bill in each service area as follows (includes current purchased water surcharge):

Under the order:

  • Alexandria: $2.54 decrease per month
  • Hopewell: $0.71 increase per month
  • Eastern: $2.25 decrease per month
  • Prince William: $3.76 decrease per month for water service, and $1.59 decrease per month for wastewater service

The new rates will be retroactive to May 1, 2022, and the company will issue credits for the difference between interim and permanent rates, including interest, using the Federal Reserve’s “bank prime loan” rate, to customers within 90 days of the final order.

Rates for Virginia American Water customers in the Town of Waverly will remain unchanged in compliance with the terms of the acquisition agreement approved by the SCC on April 15, 2022.

Virginia American Water also wants to remind customers facing circumstances that are stretching their financial resources about its bill paying assistance programs. Customers who are having difficulty paying their water or wastewater bills are encouraged to explore payment arrangements or budget billing options available on the customer MyWater portal at Customers who meet low-income requirements may also apply for assistance through the company’s H2O Help to Others program, administered by Dollar Energy Fund. More information can be found at under “Customer Service & Billing”, “Bill Paying Assistance”.

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 350,000 people. For more information, visit and follow Virginia American Water on Twitter and Facebook.

About American Water

With a history dating back to 1886, American Water (NYSE: AWK) is the largest and most geographically diverse U.S. publicly traded water and wastewater utility company. The company employs approximately 6,500 dedicated professionals who provide regulated and regulated-like drinking water and wastewater services to an estimated 14 million people in 24 states. American Water provides safe, clean, affordable, and reliable water services to our customers to help keep their lives flowing. For more information, visit and Follow American Water on Twitter, Facebook, and LinkedIn.

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Marybeth Leongini

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Nicolle Bradford

Community Relations Specialist