By HEATHER MICHON
EDITOR
Fluvanna County officials told state lawmakers last week that repeated rate hikes by Aqua Virginia are straining household budgets and destabilizing long-term planning, as a House subcommittee advanced legislation to limit how often private water utilities can seek rate increases.
During a Jan. 27 meeting of the Virginia House Labor and Commerce Subcommittee #3, Fluvanna County Attorney Dan Whitten and Board of Supervisors Chair Tony O’Brien testified in support of HB 422, a bill that would restrict regulated water and wastewater utilities from filing rate increase applications more than once every three years, with limited exceptions.
Aqua Virginia serves roughly 15,000 customers in Fluvanna County, representing a majority of county residents, including all of Lake Monticello and neighboring subdivisions.
He warned that frequent rate cases, combined with ongoing service problems, have placed an outsized burden on residential customers.
“The impact of the rate increase would fall disproportionately on single-family residential customers in the county,” Whitten told the subcommittee.
He added that since Aqua’s last rate increase was approved in September 2024, four sanitary sewer overflows have occurred in Fluvanna County, all associated with Aqua-operated systems.
Whitten said a triennial limit on rate cases would provide families with greater predictability and make it easier for residents to budget for water and sewer costs.
O’Brien echoed those concerns, noting that Aqua serves approximately 35% of households in Fluvanna County. Current bills already exceed $200 per month for many customers, he said, and a pending rate increase request could push typical monthly bills to $300 or more.
“When 91% of our tax revenue comes from homeowners, from property taxes, that means the county will ultimately have to raise taxes because of decreased values,” O’Brien told lawmakers. “This is not just an issue about a predatory company charging too much. It’s a compounding interest that’s going to ruin our county.”
HB 422, sponsored by Del. Nicole Cole, would prohibit regulated water and sewer utilities from seeking rate increases more than once every three years, while allowing exceptions for extraordinary circumstances, such as compliance with federal mandates or corporate mergers.
The bill also requires the State Corporation Commission to consider realistic timelines and funding constraints when reviewing applications.
Supporters argue that the change would curb repetitive litigation costs, which are ultimately passed on to customers, while encouraging utilities to engage in longer-term financial and infrastructure planning.
Aqua Virginia did not formally oppose the bill. Company representative Chris White told the subcommittee that Aqua appreciated the sponsor’s engagement and said the substitute version of the legislation provides an opportunity for continued discussion.
Aqua Virginia is seeking state approval to raise water and sewer rates by nearly 30%, arguing that the increase is needed to fund tens of millions of dollars in infrastructure upgrades and rising operating costs.
The legislation also moves forward as Essential Utilities, Aqua Virginia’s parent company, is in the process of being acquired by American Water Works, the nation’s largest publicly traded water utility.
The Virginia Poverty Law Center and the Virginia Association of Counties also supported the measure, though some speakers cautioned that safeguards are needed to ensure utilities can still make necessary infrastructure investments.
The subcommittee voted 6–1 to advance HB 422, adding a reenactment clause that would require the General Assembly to approve the bill again next session before it could take effect.
For Fluvanna officials, the bill represents a rare chance to slow what they described as a cycle of escalating costs and declining service quality.
“Water is an essential service,” Whitten said. “Families don’t have another option.”
