Virginia may soon have a system that has a discounted rate structure for water service. The new rates would be available to lower-income customers.
Water bills are about to get more fluid. That's because Governor Abigail Spanberger is signing a bill allowing water utilities to offer discounted rates for low-income customers, people at or below 200% of the federal poverty level. The bill was introduced by Senator Dave Marsden, a Democrat from Fairfax County.
"And it's just an opportunity for a water utility to spread the costs around for those who may struggle to pay their utility bills and for everybody to kind of pay a little bit more so that others cannot fall behind on their water bills or be threatened with getting their water cut off" Marsden says.
The new law allows water utilities to cover the cost of the program by charging commercial and industrial customers.
"You've taken the cost and shifted it to the commercial industrial customers. What will they do with that increase," Delegate Tony Wilt, a Republican from Rockingham County, asked House Majority Leader Charniele Herring about the program during the session. "Will they just absorb it or will they pass it on?"
"Mr. Chair, I'd answer the delegate that that it’s up to the utility, how they handle that," Herring responded.
When this new law kicks in next year, utility companies will be able to go to the State Corporation Commission and ask for approval to create a discounted rate structure that provides "reasonably adequate service at reasonable and just rates."
