VA HB422

Prohibits water and water/sewer utilities from filing applications for general base rate increases more than once every three years, measured from the date of their most recent rate application filing

Allows exceptions for rate decreases, rate adjustment clauses/riders/surcharges that don't increase base rates, temporary rate increases, and cases where the State Corporation Commission finds "extraordinary circumstances"

Defines "extraordinary circumstances" to include compliance with federal or state court orders, consent decrees, enforcement actions, mergers/acquisitions, or regulatory mandates under the Safe Drinking Water Act or Clean Water Act that would impair the utility's ability to provide safe service

Requires the State Corporation Commission to submit annual reports beginning December 1, 2026, summarizing rate applications filed under the extraordinary circumstances exception and their dispositions

Bill provisions will not take effect unless reenacted by the 2027 General Assembly session