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Bill

SB 650

Public utilities; water and sewerage companies, discounted rates for low-income customers.

2026 Regular Session Introduced by Dave Marsden

Virginia bill requiring water and sewer utilities to offer discounted rates for low-income customers to improve essential service affordability.

Referred to Committee on Commerce and Labor
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Bill Summary · SB 650

Legislative bill overview

SB 650 would require water and sewerage companies in Virginia to offer discounted rates for low-income customers. The bill establishes a framework allowing these utilities to provide reduced pricing structures specifically designed to make water and sewer services more affordable for households meeting income eligibility criteria.

Why is this important

Water and sewer services are essential utilities with costs that consume a disproportionate share of low-income household budgets—often exceeding 5-10% of income compared to 1-2% for median-income households. Utility shutoffs for non-payment can create serious public health and sanitation issues, making affordability assistance a practical concern for both residents and municipalities managing water system sustainability.

Potential points of contention

  • Cost allocation concerns: Utilities may argue that subsidizing low-income rates requires cost-shifting to other ratepayers, potentially raising bills for middle and upper-income customers who cross-subsidize the discount program
  • Funding mechanism unclear: The bill's prefiled status means details about whether utilities absorb costs, receive state subsidies, or use other mechanisms remain undefined, creating uncertainty about financial impacts
  • Definition and administration: Questions likely exist around income thresholds, verification processes, program eligibility, and administrative burden on water companies to implement and maintain the discount structure

Compiled from official sources — confirm details with the bill’s official record.

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