At their June 27, meeting, Chesapeake City Council approved a new 30-year water purchase
contract with Portsmouth. Due in part to this action, Public Utilities customers will continue to
pay the current water rate rather than the previously approved 4.9% increase.
The new contract lowers the amount of water Chesapeake has to purchase annually and reduces
the price per thousand gallons. This results in a first year savings to Chesapeake of about $2
The old contract was due to expire in 2026 when Portsmouth would lose its biggest customer –
the City of Chesapeake. With a new contact, Portsmouth is guaranteed a very stable, reliable,
predictable income stream for the next 30 years and Chesapeake will have a very stable, reliable,
predictable water supply for the same time period.
In addition to the Portsmouth water provided to our Western Branch and Deep Creek customers,
Norfolk provides water under contract for the Indian River and South Norfolk customers. These
strong interconnections between our neighbors, in addition to the Northwest River and Lake
Gaston water treatment plants, provide Chesapeake a multi-source plan that ensures an adequate
supply of safe drinking water citywide.