FAQ's About FY2027 Rates

In June 2025, AlexRenew adopted a two-year wastewater treatment rate adjustment for fiscal years 2026 and 2027. For FY2027, AlexRenew is also proposing updates to its base charge and winter quarter average.

Why are wastewater treatment rates increasing?

AlexRenew adopted a two-year rate adjustment to help fund the mandated RiverRenew program and support upgrades at our treatment facility to purify wastewater 24/7/365.

How much will rates adjust?

Per the adopted two-year rate adjustment, wastewater treatment rates will increase by 5.7 percent on July 1, 2026. 

What changes are proposed for FY2027 rates?

AlexRenew is proposing to update its base charge to better match how much wastewater each customer sends to the system. Instead of determining the base charge using a customer’s water meter size as we've done in the past, AlexRenew can leverage new metering and billing software to calculate base charges using a customer’s average monthly water use compared to that of a typical household. The new base charge will ensure customers are billed equally for the amount of wastewater they generate. Learn more about the proposed base charge change here.

AlexRenew is also proposing a revision to its winter quarter to better align with actual customer billing/meter reads. To reduce the likelihood of including outdoor water use in the winter quarter average, staff recommend defining the winter quarter as bills rendered during the months of January, February, and March. Learn more about the winter quarter average here.

What are the proposed rates for FY2027?

The proposed rates for FY2027 incorporate the previously-adopted rate increase for FY2027 and the proposed change to the base charge. Previously, the base charge was determined by a customer’s meter size (see Table 1). The base charge will instead be calculated using a customer’s average monthly water use compared to the use of a typical household. base charges will be set using 3,500 gallons per month, representing one wastewater unit — the average use of a typical household in Alexandria (see Table 2).  The proposed rates are:

Table 1. Base charge based on meter size (Commercial, Industrial, and Other Public Agency Classes only) 

Table 2. Charges based on usage

The new base charge methodology will be phased in over a five-year period. Over the five-year period, the base charge for customers in AlexRenew’s Commercial, Industrial, and Other Public Agency classes will be calculated using a portion of the existing base charge based on meter size and the new usage base charge. In the first year, the base charge will be calculated using eighty (80) percent of the base charge based on meter size and twenty (20) percent of the base charge based on usage.

Didn’t my bill already increase? 

The adopted two-year rate adjustment for FY2026 and FY2027 was the fourth two-year rate adjustment in support of RiverRenew. Rate increases were previously implemented in fiscal years 2020 and 2021, 2022 and 2023, and 2024 and 2025. Future rate increases are anticipated through 2028 to pay for RiverRenew. Overall, rate increases associated with RiverRenew are on the lower end of the projections originally planned at the start of the program in 2018.

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What is the RiverRenew program?

The RiverRenew program is the largest infrastructure project in Alexandria’s history and will prevent millions of gallons of combined sewage from polluting the Potomac River, Hunting Creek, and Hooffs Run each year. This will create safer, cleaner, healthier waterways for the community, wildlife, and future generations. Implementation of this historic program is a direct extension of AlexRenew’s vital mission to manage wastewater and keep the community healthy through healthier waterways.

How much will RiverRenew cost?

The RiverRenew program will cost $615 million. Approximately $570 million has been spent to date.

What will the rate increases be used for?

Rate increases will be used to pay off RiverRenew debt incurred through federal and state low-interest water loan programs. This debt will be paid off by AlexRenew over a long period of time, like a home mortgage.

Will my rates go back down again when this is finished?

Debt incurred by AlexRenew will be paid off over a long period of time, like a home mortgage. Therefore, rate increases are not anticipated to decrease after RiverRenew is completed.

Didn’t the Commonwealth of Virginia give financial support for RiverRenew? Will that bring our rates down?

AlexRenew has received grants from the Commonwealth of Virginia totaling $140 million. The grants helped to reduce AlexRenew’s debt capacity associated with RiverRenew, which assisted in offsetting rate increases to customers.

I live outside the area of the combined sewers. Why should my rates be affected?

RiverRenew is a community project. We all benefit from the use of Alexandria’s wastewater systems. This is a significant investment in the health of our waterways that solves an issue for the entire city.

Is AlexRenew doing anything for families who can’t afford to pay their bills?

Through its payment assistance program, AlexRenew offers different options for customers who may struggle to pay their wastewater treatment bills. This includes extended payment plans and AlexRenew’s Lifeline Emergency Assistance Program (LEAP). Customers who have challenges paying their AlexRenew bills can contact customer service at 703-721-3500 and select Option 1 (Monday through Friday, 7:30 a.m. to 5:00 p.m.) or send an email to billing@alexrenew.com.

What about Fairfax County?

The parts of Fairfax County served by AlexRenew share in the costs of treating wastewater. Any rate increase associated with the ongoing operations and maintenance of AlexRenew will continue to be shared. For RiverRenew, certain components within the program address existing sewer system issues that will benefit Fairfax County. The costs of those projects will be shared between Fairfax County and the residents of Alexandria. The components of the project that address existing sewer system issues that benefit Alexandria only will be paid for by Alexandria rate payers.

How does my bill break down? Is it based on how much water I use?

Your wastewater treatment bill includes two charges from AlexRenew. The first charge, a base charge, is a fixed charge based upon your meter size. The second charge, the wastewater treatment charge, is a volume charge based on how much water you use and the expenses required to treat the wastewater produced from that volume.

The other charges on your bill are the City of Alexandria’s sanitary sewer system capital investment and maintenance fee. AlexRenew bills for this on behalf of the City of Alexandria and remits payment back to it.

What about stormwater fees?

The Stormwater Utility Fee is assessed directly by the City of Alexandria and is based on a property’s impervious area, or hard surfaces like roofs and driveways that don't let rain runoff soak into the ground. Residential properties are billed a flat fee in their real estate tax bill based on the type of property. If you need more information about stormwater or stormwater fees, please visit the City of Alexandria's Stormwater Management.  

Additional questions?

If you have any additional questions, we have more information available at our Customer Center.