Panel backs limit on frequency of water and sewer rate cases, citing affordability concerns
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Summary
A subcommittee reported a substitute for HB422 to bar regulated water and sewer utilities from filing for rate increases more frequently than once every three years except for extraordinary circumstances; proponents cited sharply rising bills and service problems, while industry representatives said they will continue to work with the sponsor.
Delegate Delia Cole sponsored a substitute to HB422 that would prohibit regulated water and wastewater utilities from filing rate increase applications more frequently than once every three years, with exceptions for "extraordinary circumstances" such as mergers, federal mandates or emergencies. Cole said the bill aims to promote affordability and planning; she cited examples she said illustrate the problem, including testimony that monthly bills in some areas have reached levels described as unaffordable.
Local officials and residents offered detailed testimony about local service and high bills. Jeff Black, a Caroline County supervisor, told the subcommittee that residents had endured service interruptions and now face what proponents called large monthly bills. Fluvanna County officials and county attorneys described multiple sanitary sewer overflows and warned that proposed increases would disproportionately affect residential customers. Caroline County and other local governments and legal representatives testified in support.
Industry witnesses including AQUA Virginia and Virginia American Water said they appreciated the sponsor’s engagement and were not presenting formal opposition at this time, noting ongoing discussions about amendments and implementation. The subcommittee adopted the substitute with amendments and reported the bill by a vote of 6–1.
What’s next: HB422, as amended, is reported out of Subcommittee 3 and will advance to the full committee for further consideration.