Water Rates

Prince William Water’s Board of Directors will hold a public hearing about the proposed schedule of rates, fees and developer charges, as well as creation of an industrial user class. The public hearing will be held at 4 p.m. on Thursday, November 14, 2024, at the Raymond Spittle Building, 4 County Complex Court in Woodbridge, Virginia.  All interested persons are welcome to attend and may sign up to speak during the public hearing.

A typical residential monthly water and sewer bill using 5,000 gallons will increase by $7.25 in January 2025, $7.30 in January 2026, and $7.20 in January 2027.

Prince William Water has identified a group of commercial water customers whose usage patterns vary significantly from the overall commercial customer class. This group of customers is comprised of large (at least 50 Equivalent Residential Units ERUs) industrial water users. The majority of these customers are using water for cooling and typically have a separate sewer meter. 

The volume of water used by industrial customers varies significantly from month to month and is usually seasonal.  The annual average daily usage per ERU for industrial customers is lower than residential and commercial customers; however, the maximum daily water demand is much higher than that of residential and commercial customers. This is important because Prince William Water purchases water capacity and designs its water system based on daily demand.

Because this customer group has different usage patterns and impacts on the system, Prince William Water is proposing to create an industrial customer class. Since Prince William Water purchases water capacity and designs its water system based on maximum daily demand, Prince William Water is also proposing to base ERU calculations on maximum daily demand for industrial customers. 

Prince William Water sets availability fees to recover the cost of expanding water and sewer systems required to serve new customers, together with the cost of development administration. Construction costs have increased significantly in recent years, necessitating the need for increases to availability fees. 

Prince William Water’s goal is to set fair and equitable rates and fees while providing clean, safe drinking water to its customers and protecting the environment. A key element of providing clean drinking water and protecting the environment is ensuring that Prince William Water’s infrastructure is maintained and in good working condition.  This requires a significant capital investment every year. The proposed rate increases are primarily driven by capital replacement needs; the rising cost of construction; and increases in purchased water, purchased water reclamation services and other operating costs. 

Prince William Water purchases most of its drinking water from advanced water treatment plants owned and operated by Fairfax Water. Wholesale water rates charged by Fairfax Water have increased significantly over the past few years. 

Wastewater in western areas of Prince William County is treated at the Upper Occoquan Service Authority (UOSA) Water Reclamation Plant, and wastewater in the eastern areas of Prince William County is treated at the H.L. Mooney Advanced Water Reclamation Facility. Both facilities are among the most advanced water reclamation facilities in the country. Recently, wastewater treatment costs at both treatment plants have also increased considerably.

In addition, Prince William Water is considering changes to rates to properly maintain our infrastructure, meet or exceed environmental regulations, and continue delivering the quality and reliability our customers expect from us. 

Prince William Water’s average monthly bill is considered affordable or low burden using several affordability metrics. 

The Environmental Protection Agency (EPA) recommends multiple affordability measures and guidelines for water and sewer service. The guidance originally developed by the EPA in relation to median household income (MHI) states that customers’ bills under 4.0% of MHI are considered affordable.  To expand upon the view of affordability for households with lower incomes, several additional metrics have been developed over the years, including Lowest Quintile Residential Indicator (LQRI) and the Hours Worked (HM) metrics.  The LQRI approach evaluates a customer bill at the lowest quintile of income instead of median income, with a threshold of under 4% considered affordable. The Hours Worked approach evaluates the number of hours worked at the prevailing minimum wage to pay the typical residential water and sewer bill, with the threshold of under 8 hours worked deemed affordable. 

Based on Prince William Water’s typical household consumption of 5,000 gallons per month, Prince William Water’s proposed monthly water and sewer bills for fiscal years 2025 through 2027 are less than 1.0% of median household income, under 2% for LQRI and under 7.5 hours worked.

The proposed rates continue to reflect Prince William Water’s average monthly bill as affordable and continue to place Prince William Water’s average bill among the lowest in the region. 

Each water and sewer utility sets its rates based on its own priorities, operating environment, and capital needs.  Decisions about the timing of maintenance and infrastructure replacement are based on the utility’s unique system needs, customer requirements, regulatory requirements, and available resources. 

Prince William Water is careful to ensure its rates are competitive with surrounding jurisdictions while making the investments necessary to provide clean and safe drinking water to its customers while protecting the environment. Through these efforts, Prince William Water’s rates remain among the lowest in the region.

In comparison with other local jurisdictions, Prince William Water’s proposed rates in Fiscal Year 2025 remain competitive.

Prince William Water deferred rate adjustments during the Coronavirus 19 pandemic. Further deferring necessary rate adjustments could require Prince William Water to postpone necessary infrastructure replacement projects.  Additionally, keeping rates artificially low results in higher rate increases in the future when Prince William Water is required to catch up with deferred infrastructure replacement. 

Setting rates three years at a time minimizes rate shock to customers and allows for strategic financial decision making. 

No, Prince William Water does not receive any tax dollars from Prince William County Government. Prince William Water is funded solely by User Rates and Fees and Developer Rates and Fees. 

Prince William Water periodically recommends changes to rates to ensure we invest in our system in order to properly maintain our infrastructure, meet environmental regulations, and continue to deliver the quality and reliability our customers expect from us.