Subcommittee advances bill allowing utilities to offer discounted water rates to low-income households

Delegate Chosen Speaker Herring presented a substitute to HB 770 to allow investor-owned utilities to offer discounted water rates for households making up to 200% of the federal poverty level, saying the change would reduce shut-offs and late fees that deepen utility debt cycles. "This bill creates a targeted sensible solution by allowing investor owned utilities to offer discounted rates to households most in need, defined as households making up to 200% of the federal poverty level," Herring said.

Supporters told the subcommittee the substitute preserves cost-recovery mechanisms for utilities. Carmen Bingham of the Virginia Poverty Law Center said the proposal addresses affordability for regulated utilities and urged passage. Laura Runkel, president of Virginia American Water, said the bill would let the company work with the State Corporation Commission on a program "that would address affordability for our customers" by offering "low, discounted rates for certain low income eligible customers." Wendy Ginsburg of the City of Alexandria also expressed support.

Herring noted utilities would be permitted to recover the cost of discounts through rates that include commercial and industrial customers, which he described as consistent with other cost-recovery practices. When asked how commercial and industrial customers would respond to cost shifts, Herring said that is a utility decision: "it's up to the utility, how they handle that." Witnesses and the patron said the funding strategy minimizes financial impact for residential customers while targeting assistance.

The subcommittee voted to report the substitute on a roll call of 8 to 1. The bill will proceed to the next committee for further consideration.