IE 11 is not supported. For an optimal experience visit our site on another browser.

Dominion Virginia Power wants rate hike

The state’s largest utility can’t say how much it is seeking until the case is filed with the State Corporation Commission
/ Source: WSLS 10

6:11 p.m. RICHMOND, Va. (AP) - Virginians’ electricity bills might be going up again.     Less than a year after passing along an 18 percent increase in fuel costs to its customers, Dominion Virginia Power expects to ask state regulators for an increase in the utility’s base rate. The state’s largest utility can’t say how much it is seeking until the rate case is filed with the State Corporation Commission. The paperwork is due by Wednesday.     Dominion president Thomas F. Farrell II first disclosed plans for the increase in a teleconference with industry analysts in late January. He described the planned increase as “modest” and said it could take effect as early as Sept. 1.     The company has not had a base rate increase since 1992, but it has periodically been allowed to boost rates to recoup higher fuel costs. Sixty-four percent of the typical customer’s power bill comes from the base rate, 36 percent from the fuel rate.     The most recent fuel rate increase last summer added an estimated $16.61 to the bill of a residential customer using 1,000 kilowatts of electricity per month. Dominion deferred about $697 million in costs to hold the increase to 18 percent. Otherwise, it would have been about 22 percent.     The utility also imposed a small rate increase effective Jan. 1 to help pay for construction of a coal-fired plant in Wise County. That increase, authorized by a 2007 state law, added about $1.84 to the average customer’s monthly bill.     However, Dominion said its typical residential customer still pays 9.3 percent less than the national average.     Dominion has nearly 2.3 million customers in Virginia, a 34 percent increase since the last time the utility raised its base rate. ——— 1:06 p.m. RICHMOND, Va. (AP) - Dominion Virginia Power expects to ask for a base rate increase this week.     The state’s largest utility can’t say how much it is seeking until the case is filed with the State Corporation Commission. The case is due by Wednesday.     Dominion president Thomas Farrell first disclosed plans for the increase in a teleconference with industry analysts in late January. He described the planned increase as “modest.“     The SCC allowed Dominion to increase its rates 18 percent last summer to cover rising fuel costs, but the company’s last base rate increase was 17 years ago.