Legal Setback for Atlas Arteria as Toll Rate Hike Rejected in Virginia

Supreme Court Decision and Its Immediate Impact

On 17 July 2025, the Virginia Supreme Court delivered a significant ruling by upholding the State Corporation Commission’s (SCC) 2024 decision to deny Toll Road Investors Partnership II’s (TRIP II) latest toll rate application for the Dulles Greenway. This decision marks a continuation of regulatory resistance to toll increases on this key Virginia toll road, which is fully economically owned by Atlas Arteria.

The ruling effectively maintains the status quo on toll pricing, limiting near-term revenue growth potential for the Dulles Greenway. However, it also clarifies the regulatory landscape, allowing TRIP II and Atlas Arteria to refocus their efforts on alternative avenues to address toll rates and returns.

Federal Case to Proceed Amid Legal Complexity

While the state-level appeal has been resolved, TRIP II’s related federal lawsuit, which had been paused pending the Supreme Court’s decision, will now move forward. This federal complaint alleges constitutional violations distinct from the issues considered by the SCC and the Virginia Supreme Court. It seeks remedies including compensatory damages and injunctive relief that were not available through the state regulatory process.

The continuation of this federal case introduces an additional layer of legal uncertainty. Its outcome could have material implications for toll road regulation and investor returns, potentially reshaping the framework under which toll rates are set in Virginia.

Looking Ahead – New Toll Rate Application and Regulatory Engagement

Despite the setback, TRIP II remains engaged with the SCC’s working group and anticipates submitting a new toll rate application later this year. This ongoing dialogue suggests a willingness to negotiate and adapt proposals to meet regulatory expectations, aiming to secure a more favorable outcome in the future.

For Atlas Arteria, which holds a diversified portfolio of toll road assets across the United States and Europe, the Dulles Greenway remains a critical component of its US operations. The company’s approach to navigating regulatory challenges here will be closely watched by investors and industry observers alike.

Broader Implications for Toll Road Investors

The Virginia Supreme Court’s decision underscores the complex interplay between infrastructure operators and regulatory bodies. It highlights the challenges toll road operators face in balancing infrastructure funding needs with public and governmental scrutiny over toll pricing.

As toll roads continue to be vital transport arteries, the evolving regulatory environment will be a key factor shaping investment returns and operational strategies. Atlas Arteria’s experience with the Dulles Greenway may serve as a bellwether for similar infrastructure assets navigating regulatory hurdles worldwide.