Virginia Natural Gas Bill Increase Set for Virginia Beach
Local businesses will pay an additional $0.36 monthly to help fund a new $30 million renewable energy facility.
Updated on Oct. 28, 2026 in Utilities
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The Hampton Roads Sanitation District is partnering with Virginia Natural Gas to build a $30 million renewable energy facility in Virginia Beach. This project will capture and purify biogas from wastewater, with the cost passed on to utility customers through a monthly bill increase.
Why it matters
Operators in the region should anticipate rising utility costs as local infrastructure projects shift toward renewable energy integration. The project aims to convert wastewater byproducts into power, following a regulatory shift regarding biosolids management enacted earlier this year.
The $30 million project will provide enough gas to power 5,000 homes, significantly scaling the model seen in the 2023 Roanoke facility that serves 500 homes. Virginia Natural Gas intends to recover these costs from its 315,000 customers via a $0.36 monthly increase.
The players
Hampton Roads Sanitation District
A regional utility provider responsible for wastewater collection and treatment across the Hampton Roads area.
Virginia Natural Gas
A regulated utility company providing natural gas services to approximately 315,000 customers.
The details
The facility will utilize machinery at the existing Virginia Beach wastewater treatment plant to process biogas generated during anaerobic digestion. Instead of flaring this byproduct, the system purifies the gas and moves it through a new 200-foot interconnection pipe into the main utility grid. This infrastructure shift coincides with 2026 state legislative requirements that restrict PFAS levels in biosolids, pushing water authorities to find alternative handling methods for waste.
Timeline
2023: Comparable renewable gas facility opened in Roanoke.
2026: Virginia General Assembly passed new biosolids regulations.
Next four months: Virginia Natural Gas expects to file for cost recovery approval.
Market Landscape
This facility follows a pattern set by the 2026 Virginia General Assembly biosolids regulations, which forced local treatment plants to reconsider waste management strategies. It mirrors the operational model established by the Roanoke Gas Company and Western Virginia Water Authority in 2023.
Business operators should factor a $0.36 monthly utility surcharge into their operational budget once cost recovery is approved. Companies relying on significant energy volumes should monitor the filing timeline, as this represents a recurring cost adjustment for utility ratepayers.
The takeaway
The transition to wastewater-to-energy projects represents a growing operational shift for regional utilities under new state biosolids rules. Operators should track the upcoming cost-recovery filings to determine when this surcharge will reflect on their monthly overhead.
Further reading
For broader trends in infrastructure upgrades, visit the Utilities section.
Source note: This article includes information reported by Virginia Mercury.
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