Dominion Virginia Power announced last month it would not seek base rate increases for at least another two years; the base rate has not increased since 1992.
“Holding down our base rates over this 20-year plus period reflects our continuing focus on operating as efficiently as possible,” said Paul D. Koonce, chief executive officer, in a news release.
Base rates cover the company’s non-fuel operational costs, salaries and part of Dominion’s earnings and the rates make up about 60 percent of a typical residential bill. The remaining 40 percent comprises fuel costs, energy conservation programs, transmission facilities and new power stations.
An increase of 98 cents per typical 1,000 kilowatt-hour residential bill will take effect this month. Dominion sought the increase in June last year and it was approved March this year. The increase will cover a few projects.
In 2011 and 2012, more than $450 million in costs were encountered by Dominion relating to major storms, an earthquake and other factors. Six coal-fired generation units are planned to close, including one at Yorktown, and these planned closures impaired company earnings as well.
Dominion still made infrastructure improvements and improvements in reliability and storm response time despite the costs setbacks, said Koonce in a news release. Dominion plans to invest about $8 billion to continue infrastructure investments over the next three years.
In an ongoing case before the Virginia State Corporation Commission, Dominion is seeking permission to build an overhead power line from Surry to Skiffes Creek as well as a new switching station at Skiffes Creek. James City County and other groups are fighting the proposed line, saying it would affect the historical value and views in the area.
At a recent James City County Board of Supervisors meeting, the board voted to allocate another $200,000 toward fighting the case before the SCC. Jamestown Supervisor Jim Icenhour said citizens electric bills are paying for the fight against the county.
A Dominion spokesperson, Karl Neddenien, said in an email interacting “with the SCC is a normal, legitimate business expense that is part of our operating budget and is born by our customers.”
The company has to meet federal transmission system reliability standards which can sometimes result in a need for additional power lines or infrastructure. In those cases, applications are submitted to the SCC, which conducts hearings.
“The SCC is responsible for ensuring that our projects are a net benefit to our customers and [are] cost-effective,” Neddenien wrote.
If either of the proposed lines is constructed, local customers will not be solely responsible for paying the cost of the line.
“Transmission lines and other infrastructure construction is a normal operating cost that is borne by all our customers. In some cases, a neighborhood or community will ask us to take a special action that benefits them alone, such as moving an overhead power line underground. In that case, the local community is responsible for paying for the work,” Neddenien explained in an email.
Previous Coverage:
- JCC Supes Agree to Spend Another $200,000 to Fight Proposed Overhead Power Lines
- Officials Unsure Retrofitting Entire Yorktown Power Station is an Option
- SCC Changes Hearing Examiner, Date for Dominion Power Line Case
- GA Subcommittee to Send Letter Opposing Proposed Power Lines
- Chickahominy Chief Says Overland Power Line Would Harm Tribal Grounds
- Is Burying Proposed Power Line Across James an Option?
