Hopewell says settlement limits Virginia American Water rate increase after city intervenes

Hopewell officials told the City Council that the city's intervention in a Virginia American Water rate case produced a settlement that reduced the utility's original increase proposal and protected local ratepayers.

At a council meeting Mr. Bissett reported that Hopewell's intervention was the first the city has made before the State Corporation Commission and that the city spent about $16,000 in legal fees to participate. He said changes in state law in 2025 allow water utilities to bypass an earlier "reasonableness" review and move directly to arguing cost amounts to the commission, a shift he said limited the city's leverage in negotiations.

"This is actually the first time that the Hopewell has ever intervened in a rate case in front of the State Corporation Commission," Mr. Bissett said, adding that the legal effort produced savings for Hopewell ratepayers compared with the utility's original ask.

Why it matters: Water-rate changes affect household and municipal bills across multiple local budgets. Mr. Bissett told council members that the 2025 statutory change removed a step that previously required utilities to justify that a capital project was necessary before the commission evaluated cost recovery.

What the city reported: The utility had documented roughly $150 million in capital improvements since its prior rate case. Under the settlement the city negotiated reductions from the utility's original proposal, though Mr. Bissett said the precise dollar savings vary by customer class; he emphasized that the settlement still results in an increase, just a smaller one than initially sought. He also said the State Corporation Commission's internal Office of General Counsel supported the settlement and the Attorney General declined to take a position.

Next steps: Mr. Bissett and councilors described plans for legislative advocacy to "fix" the 2025 amendment so water utilities face the same preconditions to rate increases as other utilities. He said localities are coordinating with Alexandria, Prince William and others, and will seek meetings with the Attorney General's office and local delegates and senators in Richmond.

Council reaction: Councilor Harris asked what additional pressure the council could bring; Mr. Bissett suggested the next legislative day in Richmond and urged council members to attend to press the point with lawmakers.

Context and limits: Mr. Bissett said Hopewell solicited citizen comments to the commission and submitted them as part of the record; he described the overall intervention as a net public benefit while noting it did not eliminate an increase entirely.

The council did not take a separate formal vote on the settlement during the meeting; Mr. Bissett framed the work as ongoing and tied to future legislative actions.