VirginiaHB4222026 Regular SessionHouseWALLET

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

Sponsored By: Nicole Cole (Democratic)

Signed by Governor

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

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

Water utilities face three-year filing limit

The law requires reenactment by Virginia’s 2027 General Assembly before its provisions take effect. It sets a three-year limit on general base-rate increase applications by water and water-and-sewer utilities. The clock starts on the filing date of the utility’s last general rate application. Rate decreases, riders and surcharges that do not raise base rates, and temporary increases under §56-245 are exempt. The State Corporation Commission must dismiss filings that break the limit, without blocking a later filing. After notice and a hearing, the Commission can allow earlier filings for extraordinary circumstances. These include court orders, settlements, enforcement actions, mergers, acquisitions, and drinking-water or clean-water compliance mandates. The Commission must consider deadlines, available financial help, and whether costs are needed for compliance and safe, adequate service. It can give a preliminary, nonbinding opinion, but that opinion does not approve a rate increase. The law also sets a general limit of one regulated revenue increase within 12 months, with exceptions. Exceptions cover increases under §§56-245 and 56-249.6, approved automatic adjustments, new or changed services, and experimental rate programs. Telephone companies can pass through Commission-approved changes in carrier access charges. The Commission can set filing schedules and speed up reviews, including some increases less than 12 months apart, within the annual limit. By December 1, 2026, and annually afterward, the Commission must report extraordinary-circumstances applications, claimed reasons, and outcomes to the House Labor and Commerce and Senate Commerce and Labor committee chairs.

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 - see bill)

    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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