A Dominion Virginia Power fuel rate increase will go into effect in July 1 this year.
In May, Dominion requested the State Corporation Commission approve the fuel rate increase, the first in two years. The SCC approved the request, which makes the new fuel rate 2.942 cents per kilowatt-hour. The increase is 0.236 cents per kilowatt-hour from the current rate.
For an average residential 1,000 kilowatt-hour electric bill, the charge will increase by $2.36, which is about 2.2 percent. The average 1,000 kilowatt hour bill is currently $108.39 and would increase to $110.75.
The portion of an electric bill that is classified as the fuel rate covers the cost of fuel used toward electricity generation. Dominion does not earn profit on fuel charges and any savings or increases are passed to customers.
The rate is reviewed annually by the SCC and reset when needed to reflect the previous year’s actual fuel cost as well as project fuel cost for the next year.