Virginia SCC approves increase to Dominion Energy customer bills
In order to pay for the fuel used to generate electricity and costs associated with power purchased by Dominion Energy Virginia, the company is raising its fuel rate, following approval from the Virginia State Corporation Commission (SCC) last week.
Total, the increase will generate $1.02 billion in recovery for the company over three years — a deferral to spread the costs out and reduce the immediate burden on customers. As is, the average residential customer, using 1,000 kW hours of electricity per month, should see their monthly bills increase by $14.93, or more than $179 per year. The rate already entered operation on an interim basis in July.
In its final order, the Commission sought to defend its decision, noting its awareness of the effects of inflation and other economic pressures on the public. While effectively agreeing the timing was poor, it emphasized its hands were tied, legally speaking.
“We are sensitive to the effects of rate increases, especially in times such as these,” the SCC said. “The Commission, however, must follow the laws applicable to this case, as well as the findings of fact supported by the evidence in the record. This is what we have done herein.”
As part of the arrangement with the SCC, though, Dominion Energy agreed to waive recovery of one-half of its incremental carrying costs related to the three-year mitigation proposal. That amounts to about $27.5 million.
