Prince William Water sets its rates based on the actual cost of service as it does not make a profit. An independent financial consultant, Stantec Consultants, Inc., conducted the latest rate study for Prince William Water and recommended an adjustment to the rates. 

Prince William Water’s rate-setting philosophy is governed by the following principles:

  • Cost of Service: Prince William Water’s rates must generate the revenue required to invest in and operate the system, perform needed repairs and replace its existing infrastructure. Customers pay the cost of providing service to their homes or business.
  • Equity in Rates: Rates provide equity among all customers so that the rates for each customer class are fair and reflect the cost of serving that customer class.
  • Simple to Understand: Rates should be easy to understand and calculate.
  • Stability: Rates should provide a stable revenue stream from year to year in order to ensure the reliable operation of the system.
  • Growth Pays for Growth: Revenue requirements for system operation and system expansion are developed separately. The cost of growth (treatment capacity, storage, etc.) is paid by new development while the cost of operations and capital replacements is paid by existing customers.
  • Minimize “rate shock”: Rates should be adjusted in modest amounts annually to phase increases in gradually to ease the impact on customers.
  • Maintain Prince William Water’s Credit Ratings: Rates are set to maintain Prince William Water’s strong credit rating. Strong ratings represent Prince William Water’s ability to meet its obligations in good times and bad and lower Prince William Water’s cost to borrow funds for large capital projects.

Water Rates FAQs

FAQ List

What is considered an affordable bill?

Affordability is measured using Environmental Protection Agency (EPA) guidelines, with Prince William Water’s bills being among the lowest in the region and well under affordability thresholds set by EPA standards.

Why do rates vary by jurisdiction?

Rates vary due to each utility’s unique priorities, operating conditions and capital needs. Prince William Water is careful to ensure its rates are competitive with surrounding jurisdictions while making the investments necessary to provide clean safe drinking water to its customers and protect the environment. Through these efforts, Prince William Water’s rates remain among the lowest in the region. 

How do Prince William Water rates compare with other jurisdictions?

*Rates based on 5,000 gallons per month for a single-family residential home, as of January 2024. 

Local Jurisdiction Estimated Water and Sewer Bill* 
Fauquier County  $                     145.16  
City of Manassas Park  $                     100.93  
Stafford County  $                      88.68  
City of Manassas  $                      86.32  
Virginia Average (Draper Aden Survey)  $                      86.18  
Fairfax County  $                      80.47  
Falls Church  $                      77.63  
Prince William Water  $                         74.35  
Loudoun County   $                      70.25  

Can rate adjustments be deferred?

Deferring rate adjustments risks delaying infrastructure projects, leading to higher future increases to address deferred maintenance. 

Why does Prince William Water set rates for three years at a time?

Setting rates for three years allows for increases to be phased in over time, helping to manage customer financial planning and avoid sudden hikes. 

Does Prince William Water receive tax money?

No, Prince William Water does not receive tax dollars from Prince William County and relies on service fees. 

How does Prince William Water set rates?

Prince William Water sets its rates based on the actual cost of service as it does not make a profit. An independent financial consultant, Stantec Consultants, Inc., conducted a rate study for Prince William Water and recommended an adjustment to the rates. For more information on how we set rates, visit our 'Water Rates Information' page.

Why are periodic rate increases necessary?

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.