Dominion: Lower fuel rate should save customers a few bucks a month

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(WYDaily/Courtesy Adobe)
(WYDaily/Courtesy Adobe)

A reduction in fuel rates should save Dominion Energy customers in Virginia an average of $6 a month later this year under a proposed fuel rate adjustment.

Dominion officials said industrial customers will see an overall rate reduction of around 10 percent under the proposal. The new rate will take effect May 1 if approved by the State Corporation Commission. No change can occur in company rates without approval from the SCC.

The state’s largest electricity supplier announced Friday that a proposed fuel rate adjustment would result in roughly a 5 percent reduction in the average residential bill.

The fuel charge comprises about 20 percent of a typical residential bill. The company is not allowed to make any profit on the fuel charge, so customers only pay for the actual cost of power station fuels.

Fuel Rate Total Bill
Current $23.25 $122.07
Proposed $17.26 $116.18
Change -$5.89 (25.3%) -$5.89 (4.8%)

 

(Based on typical 1,000 kwh residential bill)

Base rates comprise about 60 percent of a typical residential bill. With the proposed fuel rate changes, the company’s electric rates continue to be well below national, state and regional averages.

Dominion Energy recently committed to net-zero carbon emissions across its 18-state footprint by 2050. The company is developing the largest offshore wind project in America and is the 4th largest owner of solar energy in the country among utility holding companies, according to a news release from the company.

“We remain focused on providing customers with reliable service, increasingly clean energy and a great value for their energy dollar,” said Robert M. Blue, president of Dominion Energy Virginia. “This proposed fuel reduction shows we are running an efficient operation and providing excellent service to our customers.”

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