VIRGINIA New Water System Service Charges

Virginia: Two private (for profit) water and/or waste water systems in Virginia are petitioning the State Corporation Commission for a new service charge to be put on the customers for infrastructure improvements. Whereas the current regulations require a public hearing before any rate increases can be approved, this WWISC (Water and Waste Water Infrastructure Service Charge) would allow the companies to ask the SCC for an added charge to pay for infrastructure improvements and customers would NOT have a way to appeal the decision. It means less transparency, and companies could purchase crumbling systems and then charge ALL customers for their repair whether they use that system or not. The public hearing is scheduled for March 10 at the SCC offices in Richmond, Virginia. The case number is PUE-2014-00066 if you would like to look at the proposal and documents filed. Note that originally, when this was brought to the SCC there were no plans for a public hearing, but a large public outcry from customers, county governments and legislators persuaded the SCC to have the hearing. A public form for customers of one of the private companies is on facebook at Aqua Virginia Customers Unite!!
Likewise, the same company recently asked for a rate increase. This has been happening every two years to the extent that the rates for water and sewerage in one homeowner's association have risen by 215% since 2005 if the latest request is granted. Details on that request can be found on the SCC website at PUE-2014-00045.
If your homeowner's association has been involved in a similar conundrum and has good suggestions for our campaign, I would appreciate it. You may leave them on the facebook group page or send them to [email protected]

WOW, after getting all the links together for others, I took the time to read the petition.

Having read the petition, I understand the concerns. It is similar to any corporation that fails to plan for the future and set aside funds to maintain, repair and replace existing structures. In homeowner Associations, we call this a reserve fund.

Companies that fail to plan for the future must pay for that failure. Unfortunately, similar to HOAs, those who actually pay are the members/customers of the company.

At some point, the issue of replacing infrastructure must be addressed and unfortunately, it must be paid for by existing customers.

My main suggestion, which I offered to the SCC, is if the Commission is to create such rules as the companies suggest, to limit the funds raised to be used only in the area raised and to have a huge penalty if this doesn't happen. This will prevent funds raised in VA from being used to fix infrastructure in other States.