RICHMOND — In separate filings with the Virginia State Corporation Commission, Dominion Energy Virginia proposed new base and fuel rates that will raise monthly bills for residential customers beginning July 1.
Dominion said the new rates “will allow the company to continue delivering reliable, affordable and increasingly clean energy to its customers.”
Dominion Energy Virginia requested base rate increases of $8.51 per month in 2026 and $2 per month in 2027 for a typical residential customer.
If approved, it 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, it said.
According to Dominion, the requests are due to inflationary pressures, including increases in the cost of labor, materials and equipment, as well as investments needed to reliably serve its 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, and reflect the increasing demand for power throughout the region and the company’s service territory, it said.
The change, in addition to the fuel cost of cold weather in January and higher forecasted fuel commodity prices, will result in a $10.92 monthly fuel rate increase for a typical residential customer, according to Dominion. This 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, it notes.
If approved, the new fuel rate would take effect on July 1, and the new base rates would take effect on Jan. 1, 2026 and Jan. 1, 2027.
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, Dominion said. 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.
