Heather Michon
Aqua Virginia has agreed to scale back its proposed rate increase, but customers are still likely to see higher bills if the State Corporation Commission (SCC) signs off on the plan.
The company, which provides water and wastewater service to Lake Monticello and surrounding parts of Fluvanna County, along with nearly two dozen communities across Virginia, submitted the revised proposal after a lengthy and at times emotional public hearing in Richmond on April 28.
Aqua initially sought $7.9 million in additional revenue, a request that translated to a 26.42% increase for water service and 29.95% for wastewater.
Under state law, the company has been allowed to charge those higher “interim” rates while the case is under review. Those rates took effect in January 2026 and will remain in place until the SCC issues a final decision, expected later this year. If regulators approve a smaller increase, Aqua must refund customers the difference.
As in past cases, regulators appear poised to approve only part of the request. SCC staff have argued the company’s proposal would generate excessive profits, though they also acknowledge rising operating costs.
The revised plan now on the table reflects a middle ground between the company and regulators.
For customers, the bottom line is straightforward: bills are still going up — just not quite as much.
According to an analysis by the Richmond Times-Dispatch, a typical residential water bill would increase by about $73 per month, roughly 27% higher than pre-January levels but slightly lower than what customers have been paying under the temporary rates.
Sewer bills would follow a similar pattern, rising to about $111 per month, well above earlier levels, but a bit below current interim charges.
The structure of those bills is also shifting in a way that may be less visible but just as important.
Under the revised proposal, Aqua lowered its per-thousand-gallon water charge from $13.33 to $12.44, but increased the base monthly fee to $30.39. This is higher than both current levels and the company’s original proposal.
That shift means more of the cost is locked into a fixed monthly charge, with a smaller portion tied to how much water a customer actually uses.
In practical terms, cutting back on water use may not reduce bills as much as it once did, because a larger share of the total is now built into unavoidable base fees.
The proposed compromise does little to address the concerns raised by customers across Virginia during the April 28 hearing.
Residents described paying steadily rising bills for water they say is sometimes discolored, foul-smelling, or inconsistent in quality, along with service issues they feel have not kept pace with the cost.
Unlike customers served by municipal systems, those in private utility service areas have no practical alternative. They cannot switch providers or, in most cases, opt for wells — leaving them with limited leverage beyond participating in regulatory hearings.
Pressure over repeated rate hikes has now reached Richmond.
State lawmakers are considering legislation to limit how often utilities like Aqua Virginia can file rate cases, following concerns raised by local officials about rising costs and ongoing service issues.
The bill would still need to pass in the next General Assembly session before taking effect. If it does, it could put guardrails on how frequently companies return for increases.
For now, customers are left to absorb the latest increase while the policy debate plays out. The SCC is expected to issue a final ruling later this year.
Correction: An earlier version of this story incorrectly stated that a typical residential water bill “would be about $73.” Instead, the analysis found that the typical bill would increase by about $73 per month. The story has been updated to reflect the correction.
