Virginia Rate Case Settlement Update
A new, lower fuel rate will go into effect July 1 as a result of a ruling by the Virginia State Corporation Commission. The rate will lower the typical, 1,000 kilowatt-hour monthly residential bill $1.24, or 1.2 percent, to $98.36 from the current level of $99.60.
This is the fourth reduction in the fuel rate in the last 12 months, making the new fuel rate 28 percent lower than the one in effect June 30, 2009.
Dominion Virginia Power requested the lower rate based primarily on the cost of fuel for its power stations going down. The SCC put the new rate into effect on an interim basis, pending a final order later this year.
The SCC has scheduled a public hearing on the fuel rate change for Wednesday, Sept. 10, at the Commission headquarters in Richmond. Written comments on Dominion's proposal should be submitted to the Commission by September 2. The Commission has the authority to put the interim rates into effect permanently or alter them in its final order.
The fuel rate is a pass-through cost with no profit to Dominion.
New, Lower Base Rates Now In Effect
Lower base rates are now in effect for Dominion Virginia Power customers as a result of the comprehensive 2009 rate settlement recently approved by the Virginia State Corporation Commission.
A base rate case refund and interest are also being returned to Virginia customers as part of the settlement. This refund and interest will begin appearing on customer bills as two separate line items, starting on May 3.
Additionally, a fuel credit was recently returned to residential customers under the terms of the settlement. Non-residential customers will have this credit applied to their electricity usage from May 1 through June 30, so the fuel credit will be reflected in a separate line item on their bills covering that period. The exact amount received by each individual customer depends on their historic or current usage.
View videos on how electric rates are set in Virginia. - Get details on base rate credits and refunds.
- View a sample bill.
Two new charges for energy efficiency programs go into effect May 1. These charges, called "Rider C1" and "Rider C2" on customer bills, will collectively add about 53 cents per month to the bill of a typical residential customer using 1,000 kilowatt hours a month. These riders are being used to pay for five new energy efficiency programs recently approved by the SCC.
For additional rate comparisons, see Supplemental Charts, below.The total amount being returned to Virginia customers under the settlement in the form of credits and lower rates is $726 million or about $153 for a residential customer who uses 1,000 kilowatt-hours a month. In addition, this typical residential customer will also receive an estimated $42 in refunds, plus interest.
On April 21, the company lowered its base rates to pre-Sept. 1, 2009 levels as directed by the SCC. The SCC approved the new lower base rates and the fuel and base rate credits on March 11 as part of the comprehensive rate case settlement agreed to by the parties in the case, which included the SCC staff, consumer representatives, major business customers and others.
Company seeks increase for power stations under construction
On June 25, Dominion Virginia Power filed an update with the SCC to the portion of electric rates (called riders) that cover its two generating stations under construction: Virginia City Hybrid Energy Center in Wise County and Bear Garden in Buckingham County.
As part of the update, the company requested an increase of $1.39 to the monthly bill of a typical 1,000 kilowatt-hour residential customer. If approved, the increase would take effect April 1, 2011.
The SCC approved construction of the Virginia City power station in 2008 and the Bear Garden facility in 2009. The company is recovering financing costs as the stations are being built. The SCC adjusts these rates annually.
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