Tuesday, June 25, 2024

Dominion customers to see cheaper electric bills this summer

Dominion Energy customers can expect rate reductions in July. (File photo/WYDaily)
Dominion Energy customers can expect rate reductions in July. (File photo/WYDaily)

Dominion Energy customers can expect smaller electric bills starting this summer.

The Virginia State Corporation Commission will ensure the power company will reduce its rates starting July 1, the commission said last week.

Rates are being reduced because of a corporate tax cut prompted by a federal tax bill passed by Congress in December, the SCC said.

The order also affects Appalachian Power Co., which provides electricity to western Virginia.

The tax cut will take $125 million off Dominion customers’ bills, and $50 million from Appalachian Power’s customers.

The legislation, Senate Bill 966, reduced the corporate income tax rate from 35 to 21 percent, effective Jan. 1, 2018. One week after the tax rate came into effect, on Jan. 8, the SCC ordered companies to use the savings from the legislation to benefit their customers.

The SCC’s order requires the two companies to comply within 30 days of July 1.

Dominion Energy will also be issuing a “voluntary rate credit” for customers in July. The rate credit totals $133 million and is also housed under Senate Bill 966.

Dominion reported “excess earnings” in calendar years 2015 and 2016, the SCC said.

The bill also requires an additional $67 million to be refunded in January 2019.

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