Senate Bill 850, presented to the committee as a water‑sector counterpart to Virginia’s existing SAVE mechanism for natural gas utilities, would authorize an eligible infrastructure replacement enhancement rider for water and wastewater utilities. Sponsors and utility representatives said the rider gives potential buyers and utilities clarity about cost recovery for capital projects that preserve water-system safety, reliability or compliance with state and federal standards.

Supporters including Virginia American Water, Aqua Virginia and the Virginia Chamber of Commerce said the commission retains discretionary review and the rider would speed necessary investments in failing systems, citing the State Water Commission’s findings about aging infrastructure. “The bill simply allows for more timely recovery on investments for critical water infrastructure,” said a representative for Virginia American Water.

Local governments raised concerns about consumer protections in existing pilot mechanisms. An online witness for the city of Alexandria said the state commission previously approved a water infrastructure surcharge in a pilot with a 7.5% cap on a customer’s base rate and an earnings test; he warned that the proposed statutory mechanism could remove some consumer protections if enacted without amendments. State Corporation Commission staff told the committee the SCC could still exercise discretion in reviewing and capping rate impacts, but that the statutory language does not itself include the 7.5% tariff cap that appeared in past SCC approvals.

The committee adopted the substitute and reported SB 850 (vote recorded as Ayes 12, Noes 1, 2 abstentions). Supporters said the change is intended to make infrastructure financing more predictable and to encourage investment to correct health and reliability problems in smaller and publicly owned systems.