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Increases in Operating Expenses and Infrastructure Investment Drive Virginia American Water Rate Filing With the Virginia State Corporation Commission

Posted on: Friday, 8 February 2008, 18:00 CST

Virginia American Water announced today that it has filed for a 12.2 percent rate increase, or approximately $4.3 million, with the Virginia State Corporation Commission. The requested increase reflects higher costs of treating and delivering water as well as infrastructure investment.

"Operational improvements and efficiencies have enabled us to avoid increasing rates over the past four years, but the effects of capital improvements and continuing expense increases are not reflected in the Company's current rates. The Company expects to invest more than $8 million in infrastructure and improvements in 2008," said William Walsh, President of Virginia American Water. "Even with the proposed increase, our customers will continue to pay well under one penny per gallon for water service," Walsh continued.

The amount of the proposed increase will vary by district. If the rate case filing is approved, the average customer's bill would increase as follows:

The bill for the average Virginia American Water residential customer in the Alexandria District would increase by $3.09 per month, or about 17 percent.

The bill for the average Virginia American Water residential customer in the Prince William District would increase by $5.35 per month, or about 16 percent.

The bill for the average Virginia American Water residential customer in the Hopewell District would increase by $0.95 per month, or about four percent.

Rates will remain unchanged until July 8, 2008, allowing time for extensive review of the filing by Virginia State Corporation Commission staff and other parties who will participate in the case.

The increased numbers reflected in the rate petition are only a request. The Virginia State Corporation Commission will make the final decision regarding the amount of the actual increase. Once a final decision has been made, customers will receive information via postal mail explaining the new rates. Customers with additional questions can contact Virginia American Water's Customer Service Center toll free at 1 (800) 452-6863.

Virginia American Water is the largest investor-owned water utility in the state, providing high-quality and reliable water services to more than 320,000 people. In addition to its regulated operations, Virginia American Water operates and maintains the city of Danville's wastewater treatment plant and the water system at Fort Lee, serving an additional 58,000 people.

The company is a wholly-owned subsidiary of American Water. Founded in 1886, American Water is the largest investor-owned water and wastewater utility company in the U.S. With headquarters in Voorhees, N.J., the company employs nearly 6,900 dedicated professionals who provide drinking water, wastewater and other related services to approximately 16.2 million people in 32 states and Ontario, Canada. More information can be found by visiting www.amwater.com.

Source: Business Wire

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