Sunday, August 7, 2022

Dominion customers to see cheaper electric bills this summer

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.

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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