- Proposed rates reflect the increasing cost of labor, materials and equipment, power capacity and fuel, as well as grid upgrades to reliably serve customer growth
- If approved, proposal would be the company’s first base rate increase since 1992
- If approved, new fuel rate would take effect on July 1, 2025, and new base rates would take effect in 2026 and 2027
- Company proposes new rate class for high energy users, including data centers, and additional consumer protections
RICHMOND, Va.–(BUSINESS WIRE)–In separate filings with the Virginia State Corporation Commission (SCC) yesterday, Dominion Energy Virginia proposed new base and fuel rates that will allow the company to continue delivering reliable, affordable and increasingly clean energy to its customers.
The company requested base rate increases of $8.51 per month in 2026 and $2.00 per month in 2027 for a typical residential customer. If approved, this would be the company’s first increase in base rates since 1992. Over the past decade, the company’s residential rates have increased at a rate approximately 40% lower than the rate of inflation.
The request reflects significant inflationary pressures since 2023, when the company filed its last biennial case, including increases in the cost of labor, as well as materials and equipment such as cables and wires, utility poles, transformers and power generation equipment. The increase also reflects needed investments to reliably serve a growing customer base.
“We’re focused on providing exceptional value for our customers every single day,” said Ed Baine, President of Utility Operations and Dominion Energy Virginia. “Outside of major storms, we deliver uninterrupted power 99.9% of the time, and we’re significantly reducing storm-related outages as well. This proposal allows us to continue investing in reliability and to serve our customers’ growing needs.”
Baine added, “We know our customers are feeling the impact of inflation in other areas of their lives, and some of our customers may need assistance with their power bills. We’re here to help. Our Energy Share program not only offers among the most supportive bill assistance in the country, but also provides free home energy efficiency upgrades to help lower your energy use and save on your monthly bills.”
To promote rate stability, the company is also proposing to move power capacity costs from the base rate to the annual fuel rate. These power capacity costs are set by PJM, the regional electric grid operator, and assigned to Dominion Energy Virginia. They reflect the increasing demand for power throughout the region and the company’s service territory. This requested change, in addition to the fuel cost of extended cold weather in January 2025 and higher forecasted fuel commodity prices, will result in a $10.92 monthly fuel rate increase for a typical residential customer. This total includes the scheduled expiration of a $3.99 fuel credit from a previous fuel case. The company does not earn a profit on fuel or power capacity costs.
If approved, the new fuel rate would take effect on July 1, 2025, and the new base rates would take effect on January 1, 2026 and January 1, 2027.
In addition to new rates, the company also proposed a new rate class for high energy users, including data centers, as well as new consumer protections to ensure these customers continue to pay the full cost of their service and other customers are protected from stranded costs. Under the proposal, high energy users would be required to make a 14-year commitment to pay for their requested power – even if they use less.
About Dominion Energy
Dominion Energy (NYSE: D), headquartered in Richmond, Va., provides regulated electricity service to 3.6 million homes and businesses in Virginia, North Carolina, and South Carolina, and regulated natural gas service to 500,000 customers in South Carolina. The company is one of the nation’s leading developers and operators of regulated offshore wind and solar power and the largest producer of carbon-free electricity in New England. The company’s mission is to provide the reliable, affordable, and increasingly clean energy that powers its customers every day. Please visit DominionEnergy.com to learn more.
News Category: Virginia & North Carolina
Contacts
Media Contact:
Aaron Ruby, 804-489-8081, [email protected]
Investor Contact:
David McFarland, 804-819-2483, [email protected]
