Interim rates could go into effect in early 2026
By Heather Michon
Correspondent
Aqua Virginia is seeking state approval to raise water and sewer rates by nearly 30 percent, saying that the increase is necessary to cover tens of millions of dollars in infrastructure upgrades and rising operating costs.
The company filed its request with the State Corporation Commission (SCC) on July 30, seeking $7.9 million in additional revenues – a 26.42 percent increase in water and a 29.95 percent increase in wastewater.
“Aqua Virginia takes seriously its obligation to meet our customers’ needs and expectations, but providing these essential services is not without cost,” said Aqua Virginia president John J. Aulbach in testimony attached to the SCC filing.
He argued that factors like aging pipes and infrastructure, new regulations, and inflation are driving up expenses. “The company must continue to operate and maintain its systems as well as make ongoing, significant capital investments.”
Consumers pay the price
Aqua customers already pay some of the highest water and wastewater rates in Virginia. The company operates more than 190 water and nine wastewater systems across the state, but the most extensive system is the one serving Lake Monticello and its surrounding subdivisions and businesses.
Those communities represent the bulk of Aqua’s customer base and often feel the sharpest impact when rates rise.
This latest request comes a little over a year after the SCC ruled on a 2023 rate case. In that proceeding, Aqua sought $6.9 million in new revenue, but regulators trimmed the request by about 20.5 percent.
Even so, the final order allowed water rates to rise by more than 30 percent and wastewater rates by more than eight percent, driving up monthly bills for most households by $20 to $25.
With this new request, were it to be fully approved, the average household could pay another $36 a month.
What happens next
This case will follow a now-familiar pattern of review, public comments, and hearings over the next eight months.
Under Virginia law, Aqua’s proposed rates are suspended for 180 days after filing. At the end of that period, the company will be permitted to charge the higher rates on an interim basis.
In the 2023-2024 rate case, interim rates were in place from early February to mid-September 2024. When the SCC later approved only a portion of Aqua’s request, customers were refunded the difference with interest.
Those who want to become a formal party to the case, including counties, businesses, and consumer advocates, must file notice by Dec. 30.
Members of the public can submit comments via the SCC site or by mail until April 23, 2026, just before a public hearing in Richmond on April 28. The SCC will later have an evidentiary hearing, and then consider the case over a period of weeks or months before issuing a final order sometime in the second half of 2026.
If history is any guide, the SCC will ultimately approve less than Aqua requests, but enough to raise bills substantially.
For more information, visit https://www.scc.virginia.gov/docketsearch#/caseDetails/146097 The case number is PUR-2025-00071.
