HAMPTON ROADS, Va. — Dominion Energy submitted plans to the Virginia State Corporation Commission (SCC) on Monday that, if approved, would provide savings for the "typical residential customer" beginning July 1.
"We must keep our rates as affordable as possible, especially given the economic pressures affecting our customers," said Ed Baine, president of Dominion Energy Virginia. "Earlier this year we promised substantial rate relief for our customers. Thanks to bipartisan legislation and broad support from consumer advocates, we are delivering on that promise. This will provide immediate relief for our customers now and ongoing savings in the future."
The rate decrease was enable by bipartisan legislation passed in the 2023 General Assembly, which requires Dominion Energy to eliminate $350 million in stand-alone charges. According to the company, this would reduce the monthly bill for a typical residential customer by nearly $7.
Dominion Energy says that in addition, a separate proposal with the intent to securitize certain fuel costs will provide up to $7 a month in additional savings beginning July 1.
If approved by the SCC, Dominion Energy says fuel securitization would reduce the stand-alone fuel charge on customers' monthly bills by allowing the company to spread fuel costs over a multi-year period to ease the impact of unusually high fuel costs experienced in 2022.
The monthly savings from both proposals will be partially offset by a $2.68 increase to the stand-alone transmission charge that, if approved, will go into effect Sept. 1 and result in net monthly savings of $4-$11 for a typical residential customer, according to the company.
Dominion Energy also filed the Integrated Resource Plan (IRP) with the Virginia SCC and the North Carolina Utilities Commission (NCUC).
Dominion Energy says the IRP is a long-term planning document that predicts customer energy needs over the next 15 to 25 years and evaluates several potential scenarios to meet customers' needs.
The plan includes potential costs, emissions impacts, public policy and various types of facilities needed, and is based on the latest forecast for the company's regional transmission organization, PJM.
Dominion Energy says PJM's 2023 forecast increased dramatically over the 2022 forecast, with electric demand in the company's service area projected to grow by more than 85% over the next 15 years.
To meet the unprecedented growth, which is largely driven by data centers and electrification, Dominion Energy says the IRP calls for significant new power generation in Virginia over the next 15 years with solar, wind, nuclear, natural gas and energy storage.
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