• Business Business

'It's insane': Virginia utility seeks nearly 30% water bill increase as residents and small businesses sound alarm

The commission is reportedly likely to place significant weight on feedback from customers who would be directly affected.

Water running out of a faucet.

Photo Credit: iStock

A proposed water-rate hike in Virginia is drawing backlash from residents and small-business owners who say they're already stretched thin by rising utility costs.

Virginia American Water is seeking an almost 30% rate increase that would add about $11 a month for a typical residential customer in Hopewell and nearby parts of Prince George County.

What's happening?

According to WWBT reporting, the rate increase by Virginia American Water is now pending before the State Corporation Commission. To justify the increase, the company says water-service expenses have risen and that it has invested $115 million in infrastructure improvements.

Residents such as Hopewell's Lou Bethea say the proposal comes as other utility bills are already climbing: "The 30% increase on top of the electric already going up, it's insane. Water shouldn't go up that much at all."

For local businesses, the added cost could also be difficult. Ashley Gorkiewicz, general manager at City Point Ice Cream and Burgers, said her business recently relocated to a larger building that uses more water, making another sizable increase in water use harder to manage.

Why does it matter?

Water is an essential household expense, and a nearly 30% increase in monthly bills would be a double-whammy as residents also cope with rising energy costs, housing expenses, and grocery prices.

Small businesses, especially restaurants, that use water in their daily operations could face higher operating costs.

According to WWBT, Jones said regulators should make sure any increase is reasonable because residents' financial situations differ, and not everyone can absorb another jump in utility costs the same way.

What's being done?

Officials in Hopewell and Prince George County are encouraging customers to participate in the State Corporation Commission process by submitting comments or signing up to speak before a decision is made. Residents have until June 3 to send comments to the commission or register for the June 10 public hearing in Richmond at 10 a.m.

According to Jones, the commission is likely to place significant weight on feedback from the customers who would be directly affected by higher bills.

Virginia American Water has also pointed customers to its "H20 Help to Others Program," which offers grants that can help qualifying customers pay their bills.

Critics say a steep utility increase would shift infrastructure and service costs onto customers who may have little room left in their budgets.

"We don't have a choice. It's either do it or figure out how to do it," Bethea said.

Get TCD's free newsletters for easy tips, smart advice, and a chance to earn $5,000 toward home upgrades. To see more stories like this one, change your Google preferences here.

Cool Divider