CHARLOTTESVILLE, VA (CVILLE RIGHT NOW) – Charlottesville City Council approved new utility rates that will increase city water and wastewater bills, while slightly cutting the natural gas cost, during its Monday meeting.
In doing so, Council also approved at least a pause of the city’s $300,000 carbon offset program with oil company BP.
“Staff recommends that the $300,000 that was going to be used to fund the BP contract instead be used to explore responsible, locally-based alternatives to mitigate the gas utilities carbon emissions,” said City Finance Director Chris Cullinan to City Council after at least three Councilors expressed an interest in that tact at the June 1 meeting.
There had been some suggestion at that meeting that motion might need to be made at this latest meeting, but Cullinan and City Manager Sam Sanders said that didn’t need to be done because the appropriated funds are being redirected.
“The direction that’s being given to the Office of Sustainability is to coordinate with C3 specifically as one of the external organizations, but maybe others, to develop a list,” Sanders said. “Because that ultimately is what we had agreed that we would make sure what would happen, if you all had renewed BP for another year that that same action would be requested of them.”
Vice Mayor Natalie Oschrin, and Councilors Michael Payne and Lloyd Snook were skeptical of what BP was using the carbon offsets for as they were using these anywhere all over the world, and the city had to trust the funds were being used in the way BP said they were being used.
Ultimately, Councilors agreed that $300,000 can be used more efficiently and more knowingly for local energy efficiency initiatives.
This action was part of the package Council approved in raising the water and wastewater utility rates, and reducing the natural gas rate.
Cullinan stressed the BP contract non-renewal does not affect the fiscal 2027 gas rate which will be reduced by $1.50 on the monthly average city customer bill.
The new rates involving water mean a $7 increase on the average customer’s water bill, and $4 increase on wastewater.
In the presentation June 1, City Utilities Deputy Director Jason McIlwee outlined the work being done to keep Charlottesville utilities updated and able to meet increasing demand.
He pointed out projects such as the two-phase replacement of the water main along Locust Avenue which has had seven breakages since 2017 as the pipes that were there were around 100 years old.
The city is also undergoing a project to replace the water and gas mains on the entirety of West Main St. from Ridge St. to Rugby Ave. and up to the Beta Bridge.
He pointed out challenges seen across central Virginia with infrastructure that fell behind.
“A winter storm (in Richmond in 2022) actually caused an equipment malfunction and several hundred thousand people were without water for a period of five days,” McIlwee said. “This has happened on smaller scales all around us in other localities Greene County, Louisa, Orange, Harrisonburg, Staunton.”
Cullinan says the necessary work will result in water and wastewater rate increases now and in the future, but the infrastructure is expensive and necessary for a reliable supply.
