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Loudoun Water outlines $1 billion capital program and three-year 7% rate increases starting Jan. 1, 2025
Summary
Loudoun Water officials presented their 2024 annual report, including a $1 billion capital improvement program over five years, board-approved 7% annual rate increases for 2025–2027, planned expansion of the Broad Run (Bridal Run) Water Reclamation Facility, and public outreach and cybersecurity efforts.
Brian Carnes, general manager of Loudoun Water, presented the utility's 2024 annual update to the committee on March 11, reporting a clean audit opinion for 2023, a robust capital program exceeding $1 billion over the next five years and rate adjustments the utility's board approved in December.
Carnes said the utility's board adopted a cost-of-service recommendation to raise rates by 7% each year for three years, with increases effective Jan. 1, 2025, 2026 and 2027, and to raise availability charges by 7% for the same three-year period. "Every three years we have an independent consultant conduct a cost of service and rate study ... our board approved rate increases at their December meeting of 7% each year for the next 3 years starting 01/01/2025," Carnes told the committee.
Major capital projects include the Broad Run (referred to in the presentation as Bridal Run) Water Reclamation Facility expansions: a recently completed phase that increased capacity from 10 million gallons per day to 15 million, followed by a proposed phase 3 to expand to 30 million gallons per day over a roughly 10- to 15-year schedule. Carnes also described the Milestone Reservoir project to convert a retired quarry into raw water storage, with first-year construction complete and online service expected in 2028.
Carnes said Loudoun Water remains competitively priced for a typical residential quarterly bill (sampled at 21,000 gallons per quarter) relative to neighboring utilities, though availability charges are on the higher side due to continued system expansion. The utility reported it served more than 6,000 students with education and outreach programs in 2024 and emphasized cybersecurity investments based on NIST guidance, including multi-factor authentication, network segmentation and penetration testing.
Supervisors raised concerns about communication and timing: Supervisor Sainz said notification letters about rate increases reached customers late and asked whether additional public outreach or hearings should have occurred earlier; Carnes and board representatives said the utility scheduled additional public hearings after receiving feedback and acknowledged lessons learned on communications. Loudoun Water staff also described coordination with county staff on projects including Broad Run Farms and two water connection feasibility studies (Peony and Waterford/Unison). When asked whether data centers drive rate increases, Loudoun Water staff said commercial users pay higher tier rates and no single customer is causing residential rate changes.
Why this matters: The utility's capital plan and board-approved rate schedule will affect utility customers, future development and county infrastructure planning. Supervisors requested clearer communication to residents and continued scrutiny of the capital plan and project phasing.
