RICHMOND (CVILLE RIGHT NOW) – Dominion Energy Virginia has filed paperwork with the State Corporation Commission seeking its first base rate increase in 33 years. A Dominion release says in separate filings, they’re asking for a fuel rate increase, that has seen increases and decreases depending on the prices for energy commodities used to make electricity, and the base rate that has not seen an increase since 1992.

The company is requesting base rate increases of $8.51-a-month on the average bill in 2026, and $2-a-month in 2027 for residential customers. In their case to the SCC, Dominion notes over the past decade, the company’s residential rates have increased at a rate 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,” a Dominion release says.

As for the fuel rate, the Dominion release says, “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.”
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