Nicole Cole House Bill 422 Limits Water Utility Rate Increase Filings

Sep 14, 2026, 3:00 PM ET

Rural water tower, pipes, and residential water utility equipment

RICHMOND, Va. — The Virginia House of Delegates approved House Bill 422 on February 4, 2026, with a vote of 69-29, sending the measure to the Senate for consideration. Sponsored by Delegate Nicole Cole, the legislation targets public utilities providing water or water and sewer services, prohibiting them from filing applications for rate increases more frequently than once every three years.

The bill includes specific exceptions to this restriction. Utilities may still apply for a decrease in rates, adjustments limited to a rate adjustment clause, rider, or surcharge, temporary emergency rate increases, or increases if the State Corporation Commission determines extraordinary circumstances exist. Among those circumstances are requirements to comply with federal or state mandates under the Safe Drinking Water Act or Clean Water Act. The State Corporation Commission must dismiss any violating applications without prejudice and report annually on such cases starting December 1, 2026.

House Bill 422 advanced through the legislative process with strong committee support. Prefiled on January 12, 2026, and offered January 14, it was referred to the House Committee on Labor and Commerce. On January 19, Subcommittee 3 received the assignment. The subcommittee recommended reporting with a substitute on January 27 by a vote of 6-1. The full committee reported the substitute on January 29, passing 15-7. The House agreed to the Labor and Commerce committee substitute on February 3, read the bill a second time that day, and passed the engrossed version the following day.

Fiscal impact statements from the State Corporation Commission, issued on January 19, February 2, and later, concluded no anticipated fiscal impact on the commission’s revenues, expenditures, or full-time equivalents. This assessment underscores the measure’s design to regulate filing frequency without imposing new administrative burdens.

The legislation responds to concerns raised by communities facing repeated rate hikes from operators like Aqua Virginia. Residents in the Lake Land’Or community in Caroline County have voiced frustration over escalating water bills and service disruptions. Local officials in Fluvanna County highlighted Aqua Virginia’s rate increases and reliability issues in supporting the bill during House deliberations. These examples illustrate the pressures on households and local governments from unpredictable utility costs.

Provisions in the committee substitute refine the original introduced version, printed as 26103989D, to include detailed exceptions ensuring utilities can address genuine emergencies or regulatory compliance without undue delay. The subcommittee substitute, 26106002D-HC2, and final committee substitute, 26106002D-H1, were incorporated seamlessly into the House-passed text.

As of March 3, 2026, House Bill 422 remains in the Senate Committee on Commerce and Labor, referred there on February 5 following a constitutional reading dispensed. The Senate has yet to take further action on the measure.

The bill carries a unique clause: its provisions do not become effective unless reenacted by the 2027 Session of the General Assembly. This built-in review mechanism allows lawmakers to assess the impact after one year before making changes permanent.

Water and sewer utilities serve essential needs across Virginia, from rural subdivisions to growing suburbs. By spacing out rate case filings, the legislation promotes budgeting stability for families and businesses reliant on these services. Frequent applications can strain ratepayers through legal and administrative costs passed along in approvals. The House’s bipartisan tally—69 yes votes to 29 no—reflects broad agreement on shielding Virginians from such volatility.

Delegate Cole, representing House District 66 encompassing parts of Spotsylvania and Caroline counties, introduced the bill amid local outcry. Community advocates, including figures like Jeff Black from Lake Land’Or, celebrated the House passage as a win for affected residents.

News outlets have covered the pushback against utility practices. Reports detail how repeated rate requests burden fixed-income households and complicate municipal planning. Fluvanna leaders specifically cited service shortcomings alongside hikes in backing HB422.

Should the Senate approve, the bill heads to Governor Glenn Youngkin for signature or veto. Its passage would mark a step toward greater predictability in utility regulation, benefiting ratepayers statewide. The State Corporation Commission’s oversight role remains central, with authority to grant exceptions preserving flexibility for legitimate needs.

This measure aligns with efforts to balance utility operations and consumer protections in a state where water infrastructure demands ongoing investment. House approval positions it for potential enactment, pending Senate review and future reenactment.

Nicole Cole House Bill 422 Limits Water Utility Rate Increase Filings

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