ALEXANDRIA, Va.--(BUSINESS WIRE)--Virginia American Water today filed a general rate application with the
State Corporation Commission (SCC) requesting an overall increase in
rates of $5.6 million.
“The company is requesting this increase based on approximately $98
million of infrastructure upgrades,” said Barry Suits, Virginia American
Water president. “These infrastructure improvements help to ensure
continued water quality, service reliability and fire protection for our
customers in Alexandria, Dale City, Hopewell and the Northern Neck who
depend on us every day.”
The requested revenue increase incorporates savings associated with the
Tax Cuts and Jobs Act of 2017 which accounts for the reduction in the
corporate federal income tax rate from 35 percent to 21 percent, which
became effective on January 1, 2018.
Some of the company’s critical infrastructure projects included in the
New domestic and industrial pump stations and conversion from chlorine
gas to an on-site hypochlorite generation system at Hopewell treatment
plant. In addition, the company is making plant improvements to
address source water issues that impact taste and odor.
Replacement of water mains that have reached the end of their useful
lives throughout the city of Alexandria.
Water and wastewater infrastructure replacements and improvements in
the Prince William District.
Upgraded well and water main replacements in the Eastern District in
and around Virginia’s Northern Neck.
“According to the latest report card issued by the American Society of
Civil Engineers last year, the U.S.’s water infrastructure was graded a
‘D’ and the wastewater infrastructure received a ‘D+.’ Virginia American
Water is committed to proactively upgrading our water and wastewater
infrastructure to ensure the reliability of our services,” said Suits.
Suits added that the company’s operating expenses have remained
relatively flat since its last rate order.
As part of the rate application, Virginia American Water is
incorporating consolidated tariff pricing in a gradual manner consistent
with Senate Bill 1492, which was signed in 2017. The result of the
gradual move to consolidated pricing is that the cost of water will
remain different per district until 2021, at which point all water
customers in Virginia American Water residential districts will have the
same base rates.
Interim rates based on the company’s proposed increase of approximately
$5.6 million, or 10.64 percent of current revenues, are planned to take
effect on May 1, 2019, though it could take nine months or longer for
the SCC to make its final decision. Final rates are subject to the SCC’s
final decision, which includes a thorough public review of Virginia
American Water’s rate application.
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 6,900 dedicated
professionals who provide regulated and market-based drinking water,
wastewater and other related services to an estimated 15 million people
in 46 states and Ontario, Canada. American Water provides safe, clean,
affordable and reliable water services to our customers to make sure we
keep their lives flowing.