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HB 2711

Water & wastewater utilities; eligible infrastructure replacement and enhancement.

2025 Regular Session Introduced by Alfonso Lopez

Virginia expands water utility eligible infrastructure projects, allowing broader rate-based cost recovery for utility system replacement and enhancement starting July 2025.

Acts of Assembly Chapter text (CHAP0501)
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Bill Summary · HB 2711

Legislative bill overview

HB 2711 expands the definition of eligible infrastructure replacement and enhancement projects for water and wastewater utilities in Virginia, broadening what utilities can fund through rate increases. The bill, sponsored by Alfonso Lopez, was approved by the Governor and takes effect July 1, 2025.

Why is this important

Water and wastewater infrastructure is aging across Virginia and the nation, requiring significant capital investment. By expanding eligible project categories, this bill allows utilities to potentially recover more costs through regulated rates rather than seeking alternative funding, which could affect both utility operational flexibility and consumer water bills.

Potential points of contention

  • Rate impact uncertainty: Broader eligibility for infrastructure projects may enable higher rate increases, potentially affecting low-income households and fixed-income residents without clear cost containment mechanisms
  • Definition scope: The expansion of "eligible" projects could be interpreted broadly, raising questions about whether all proposed improvements meet genuine infrastructure needs versus discretionary enhancements
  • Regulatory oversight: Success depends on whether the State Corporation Commission adequately scrutinizes utility requests to ensure ratepayer funds are spent efficiently on necessary improvements

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

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