Friday, February 3, 2023

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

(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.”

John Mangalonzo
John Mangalonzohttp://wydaily.com
John Mangalonzo (john@localdailymedia.com) is the managing editor of Local Voice Media’s Virginia papers – WYDaily (Williamsburg), Southside Daily (Virginia Beach) and HNNDaily (Hampton-Newport News). Before coming to Local Voice, John was the senior content editor of The Bellingham Herald, a McClatchy newspaper in Washington state. Previously, he served as city editor/content strategist for USA Today Network newsrooms in St. George and Cedar City, Utah. John started his professional journalism career shortly after graduating from Lyceum of The Philippines University in 1990. As a rookie reporter for a national newspaper in Manila that year, John was assigned to cover four of the most dangerous cities in Metro Manila. Later that year, John was transferred to cover the Philippine National Police and Armed Forces of the Philippines. He spent the latter part of 1990 to early 1992 embedded with troopers in the southern Philippines as they fought with communist rebels and Muslim extremists. His U.S. journalism career includes reporting and editing stints for newspapers and other media outlets in New York City, California, Texas, Iowa, Utah, Colorado and Washington state.

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