Dominion Virginia Power has asked the Virginia State Corporation Commission to approve the first fuel rate increase in two years.
Due to projected fuel price and customer demand increases by July 2014, Dominion is seeking to offset the increase. If approved, a typical 1,000 kilowatt hour monthly bill would increase by $2.36. The average 1,000 kilowatt hour bill is currently $108.39 and would increase to $110.75.
The cost would still be below the national and regional average, according to a Dominion news release.
If approved, the increase would take effect July 1.
The fuel rate makes up about 25 percent of a typical bill; it pays for natural gas, coal, uranium and biomass used to generate power. Base rates and special charges make up the rest of the bill and are used for new projects, transmission and energy efficiency measures. In March, Dominion said it would not seek a base rate increase for at least two years.
Dominion does not earn profit on fuel charges and any savings or increases are passed to customers.
A 19 cent increase for a typical monthly residential bill went into effect Saturday; the SCC approved the increase for Dominion’s energy efficiency programs. A $1.32 monthly increase is pending before the SCC as part of the proposed Brunswick County Power Station and transmission-related costs.
