Virginia lawmakers pass bill enabling utility discounts for low-income households

A new measure introduced by State Del. Charniele L. Herring seeks to allow utilities to provide lower rates to customers with low incomes while offsetting those costs by adjusting pricing for commercial and industrial sectors, according to the Virginia State House.

The legislation passed both legislative chambers and was officially enrolled on March 3, 2026, receiving a 64-33 vote in the House and a 24-16 vote in the Senate.

Filed as HB770 on Jan. 14, 2026, during the 2026 regular session, the state legislature described the bill as: “Public utilities; water and sewerage companies, discounted rates for low-income customers.”

Below is our analysis, referencing the actual bill text, which may be interpreted for greater clarity on its provisions.

At its core, the measure gives water and sewerage providers the option to offer reduced rates to residential customers with low incomes, recouping the losses from business and industrial accounts. It allows the State Corporation Commission to approve schedules creating discount rates for households earning at or below 80% of the local median income, as defined by the U.S. Department of Housing and Urban Development, or 200% of the federal poverty threshold. The language clarifies that such a discount program for low-income residents is allowed even though utilities are generally required to set reasonable and consistent rates for similarly situated customers.

Support in the House included 63 Democrats and one Republican, with opposition from 33 Republicans.

In the Senate, 21 Democrats and three Republicans voted in favor, while 16 Republicans opposed the bill.

Sponsoring the bill were Del. Charniele L. Herring (Democrat-4th District), Del. Destiny LeVere Bolling (Democrat-80th District), and Del. Karen Keys-Gamarra (Democrat-7th District).

Herring graduated from George Mason University in 1993 with a bachelor’s degree and earned her JD from Catholic University’s Columbus School of Law in 1997.

Herring, a Democrat, was elected in 2024 to represent Virginia’s 4th House district, taking over from former state representative William Wampler III.

In Virginia, the bill process starts with introduction in either the House of Delegates or the Senate. After being assigned to relevant committees for consideration and potential amendment, a bill goes to the floor in both chambers for debate and voting. If both approve it, the measure is sent to the governor, who may sign it, veto it, or let it become law without a signature. The Virginia General Assembly convenes in regular session every year beginning the second Monday in January. Lawmakers bring forward hundreds of bills annually, only a fraction of which are enacted.

Information in this article was obtained from the Virginia State House. The source data can be found here.