Dominion seeks rate hike

Dominion Energy Virginia is seeking an increase in the base rate of $8.51 per month in 2026 plus another $2 monthly increase in 2027 for the typical residential customer.

Dominion also wants to raise the monthly fuel rate for the average customer by $10.92, starting on July 1.

If the rate hikes are approved by the Virginia State Corporation Commission, the average electricity bill for homeowners would increase by 15 percent from $140 per month to $161 in January 2027.

According to a Dominion press release, the proposed increase “reflects significant inflationary pressures since 2023” and the need for new investments to serve a growing number of customers. The company cites rising costs for labor and materials, including cables and wires, utility poles, transformers, and power generation equipment.

“Outside of major storms, we deliver uninterrupted power 99.9 percent of the time, and we’re significantly reducing storm-related outages as well,” said Ed Baine, president of utility operations. “This proposal allows us to continue investing in reliability and to serve our customers’ growing needs.”

If approved, this would be the company’s first base rate increase since 1992, Dominion states.

Dominion is also proposing a new rate class for high-energy users, such as data centers. Under the proposal, high energy users would be required to make a 14-year commitment to pay for their requested power – even if they use less.