City of Alexandria, Virginia
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MEMORANDUM
DATE: MARCH 29, 2022
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
THROUGH: JAMES F. PARAJON, CITY MANAGER /s/
FROM: LAURA B. TRIGGS, DEPUTY CITY MANAGER
EMILY A. BAKER, DEPUTY CITY MANAGER
JOANNA ANDERSON, CITY ATTORNEY
KAREN SNOW, SENIOR ASSISTANT CITY ATTORNEY
JEREMY MCPIKE, DIRECTOR, DEPARTMENT OF GENERAL SERVICES
YON LAMBERT, DIRECTOR, TRANSPORTATION & ENVIRONMENTAL SERVICES
BILL EGER, ENERGY MANAGER, GENERAL SERVICES
DOCKET TITLE:
TITLE
Virginia American Water Rate Case (PUE-2021-00255).
BODY
ISSUE: Consideration of Virginia-American Water Company's (VAWC) proposed rate increase.
RECOMMENDATION: That City Council receive this report outlining staff efforts to (1) minimize the unreasonable magnitude of water rate increase for Alexandria residents and businesses, including opposing VAWC's proposed 28% overall increase in revenue requirement and resulting rate increase, and a proposed 10.9 percent Rate of Return on Common Equity; (2) oppose any additional unreasonable requests in VAWC's rate increase application.
BACKGROUND: On November 15, 2021, the Virginia-American Water Company (VAWC) filed an application with the State Corporation Commission (SCC) requesting an increase in allowable revenues and to increase customer rates, along with other policy and programmatic changes. In their rate increase application, VAWC proposes the following to their Alexandria residential and business customers:
* An increase in annual water service rates of approximately $11.6 million, or approximately 28 percent, across all their service districts (including Alexandria, Prince William, Hopewell, Eastern Shore);
* A 10.9 percent proposed Rate of Return on Common Equity ("ROE");
* Continued consolidation of revenues and rates across all their service districts, resulting in an additional increase of 8 and 11 percent increase to Alexandria's residential ...
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