VirginiaHB4222026 Regular SessionHouseWALLET

Water utilities; prohibition of multiple rate increases within 3-year period for water utilities.

Sponsored By: Nicole Cole (Democratic)

Became Law

Summary

Water utilities; prohibition of multiple rate increases within three-year period for water utilities. Prohibits a public utility authorized to furnish water or water and sewer service from filing an application for a rate increase more frequently than once in any three-year period. The bill provides exceptions to such prohibition for the utility to file an application (i) for a decrease in rates; (ii) limited to a rate adjustment clause, rider, or surcharge; (iii) for a temporary emergency increase in rates; or (iv) for an increase upon a finding by the State Corporation Commission that extraordinary circumstances exist. The provisions of the bill do not become effective unless reenacted by the 2027 Session of the General Assembly.

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 0 benefits, 1 costs, 2 mixed.

Water rate hikes limited every three years

Water and water/sewer utilities can raise base rates only once every three years. The Commission dismisses filings that break this rule. Utilities may still file to lower rates, use riders or surcharges that do not raise base rates, or seek a temporary increase under §56-245. An earlier general rate case is allowed only for extraordinary circumstances (for example, a court order, a merger, or Safe Drinking Water Act/Clean Water Act deadlines that threaten safe, adequate service). The Commission must weigh timelines, available state or federal aid, and whether costs are truly needed, and it can give a nonbinding advance view on whether a planned filing seems to qualify.

Rules take effect only with 2027 reenactment

The law does not take effect unless the General Assembly reenacts it in its 2027 session. Until reenactment, these limits and procedures do not apply.

Commission can speed utility rate cases

The State Corporation Commission can set when utilities file rate cases and how they move. It can set calendar timing for electric, gas, telephone, cooperatives, and other utilities. Cases can move faster, including starting an increase less than 12 months after the last one, so long as regulated revenues are not increased more than once in that calendar year.

Sponsors & Cosponsors

Sponsor

  • Nicole Cole

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 169 • No: 50

Senate vote 3/11/2026

Passed Senate

Yes: 28 • No: 12

Senate vote 3/10/2026

Constitutional reading dispensed Block Vote (on 2nd reading)

Yes: 37 • No: 0

Senate vote 3/10/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote 3/9/2026

Reported from Commerce and Labor

Yes: 14 • No: 1

House vote 2/4/2026

Read third time and passed House

Yes: 69 • No: 29

House vote 1/29/2026

Reported from Labor and Commerce with substitute

Yes: 15 • No: 7

House vote 1/27/2026

Subcommittee recommends reporting with substitute

Yes: 6 • No: 1

Actions Timeline

  1. Acts of Assembly Chapter text (CHAP0390)

    4/8/2026Governor
  2. Approved by Governor-Chapter 390 (effective 7/1/2026)

    4/8/2026Governor
  3. Fiscal Impact Statement from State Corporation Commission (HB422)

    4/6/2026House
  4. Governor's Action Deadline 11:59 p.m., April 13, 2026

    3/31/2026Governor
  5. Enrolled Bill communicated to Governor on March 31, 2026

    3/31/2026House
  6. Signed by Speaker

    3/31/2026House
  7. Bill text as passed House and Senate (HB422ER)

    3/30/2026House
  8. Enrolled

    3/30/2026House
  9. Signed by President

    3/30/2026Senate
  10. Passed Senate (28-Y 12-N 0-A)

    3/11/2026Senate
  11. Read third time

    3/11/2026Senate
  12. Passed by for the day Block Vote (Voice Vote)

    3/10/2026Senate
  13. Constitutional reading dispensed Block Vote (on 2nd reading) (37-Y 0-N 0-A)

    3/10/2026Senate
  14. Rules suspended

    3/10/2026Senate
  15. Reported from Commerce and Labor (14-Y 1-N)

    3/9/2026Senate
  16. Referred to Committee on Commerce and Labor

    2/5/2026Senate
  17. Constitutional reading dispensed (on 1st reading)

    2/5/2026Senate
  18. Read third time and passed House (69-Y 29-N 0-A)

    2/4/2026House
  19. Engrossed by House - committee substitute

    2/3/2026House
  20. committee substitute agreed to

    2/3/2026House
  21. Read second time

    2/3/2026House
  22. Fiscal Impact Statement from State Corporation Commission (HB422)

    2/2/2026House
  23. Read first time

    2/2/2026House
  24. Committee substitute printed 26106002D-H1

    1/29/2026House
  25. Reported from Labor and Commerce with substitute (15-Y 7-N)

    1/29/2026House

Bill Text

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