Dominion Virginia Power’s electric rates went down on April 1 by 33 cents a month for a typical residential customer using 1,000 kilowatt hours. It was the third consecutive decrease since December 1, 2013. At $107.90 per month, company’s rates are 16 percent below national average, 22 percent below the East Coast average and 8 percent below the state average. View a rate comparison chart.
Dominion’s electric rates declined Dec. 1 when the company reduced its fuel charge by $3.70 a month for a typical residential customer. On Feb. 1, that same customer’s bill was reduced by 12 cents a month to reflect savings from three discontinued conservation programs.
The most recent decrease resulted from slight changes to four rate adjustment clauses, called riders, that netted out to a 33-cent reduction. The riders support construction of new power stations to help meet customers’ growing demand for electricity.
Despite major investments in new electric infrastructure, Dominion Virginia Power’s electric rates have remained remarkably stable over the past six years even as the Consumer Price Index has marched slowly but steadily upward. The CPI has climbed about 7 percent since July 2008, while DVP’s rates have increased less than 1 percent over the same period.
Many other goods and services have far outpaced the CPI:
Two small rate changes have lowered the typical residential electricity bill by 12 cents a month. Both changes were approved by the Virginia State Corporation Commission.
With these changes, effective Feb. 1, Dominion Virginia Power’s typical residential bill will be 7 percent below the Virginia average, 16 percent below the national average, 16 percent below the DC-Area average and 22 percent below the East Coast average. View a comparison chart. (Additional charts are available below, under Rate Comparison Charts.)
The Virginia State Corporation Commission approved a request on Nov. 20, 2013, by Dominion Virginia Power to reduce its fuel rate to Virginia customers. (> View the SCC order.)
On Nov. 26, the SCC issued a final order in the 2011-12 biennial rate case. The company had not requested an increase in its base rates but those rates will be lowered slightly to reflect three discontinued demand-side management programs. The SCC calculated those savings at $7.9 million, or about $1.32 annually for a typical residential customer. (> For details, see the SCC news release.)
The new, lower fuel rate will reduce the bill of a typical residential customer using 1,000 kilowatt-hours of electricity a month by $3.70, from $112.05 to $108.35, or about 3.3 percent. Customers using larger amounts of electricity will see greater reductions.
The fuel change will take effect Dec. 1 and bring an estimated $140 million in customer savings.
The fuel charge pays for fuel the company uses in its power stations to produce electricity, including natural gas, coal and uranium. It is charged on a dollar-for-dollar pass through without any mark-up or profit to the company.
The company made the request to reduce the fuel rate on Oct. 15 based on lower commodity fuel prices and milder weather that reduced its projected fuel expenses. Dominion Virginia Power spends about $2 billion annually on fuel and related expenses for its Virginia customers.
With the change, Dominion’s overall electric rates will be at virtually the same level they were more than five years ago, despite major investments by the company in new power stations and electric grid infrastructure to increase reliability and meet growth.
On March 28, 2013, Dominion Virginia Power proposed holding its base rates unchanged for at least another two years despite encountering more than $450 million in costs in 2011 and 2012 related to major storms, an earthquake and other factors. (> View our news release for details.)
Base rates make up about 60 percent of a typical residential bill and cover the company's non-fuel operational costs, salaries and part of its earnings. This part of the bill can only be adjusted every two years and has not increased since 1992.
The total Dominion monthly bill for a typical residential customer who uses 1,000 kilowatt-hours is now $107.22 -- only two cents higher than it was in July 2008. This same bill has gone up 25 percent since 1992, while fuel oil has increased 325 percent, gasoline 198 percent and the average national electricity rate 57 percent over the same period.
All changes in the company's electric rates must be approved by the Virginia State Corporation Commission. The biennial filing made on March 28, which is required under state law, allows the SCC to review the company's base rates for 2011 and 2012.
Use the links below for additional information. If you do not find what you need, e-mail us or call 1-866-DOM-HELP (1-866-366-4357).
October 15, 2013: Dominion Virginia Power Seeks Lower Fuel Rate
March 28, 2013: Dominion Virginia Power Says It Will Not Seek Increase In Base Rates For At Least Next Two Years
May 17, 2012: Dominion Virginia Power Proposes New Rate to Encourage Solar Power in The Commonwealth
May 2, 2012: Monthly Bills Of Typical Dominion Virginia Power Customers Could Fall By 4 Percent By Sept. 1
Sept. 1, 2011: Dominion Virginia Power 15-Year Plan Targets Reliable, Cost-Effective Solutions for Growing Energy Needs
May 2, 2011: Dominion Virginia Power Seeks Approval of New Power Station, Transmission and Fuel Rates to Continue Reliable Service to Customers
Feb. 1, 2011: Dominion Virginia Power Proposes Rate Options for Charging of Electric Vehicles
View the company's fact sheet, which includes information on our affordable power, reliability, economic benefits and clean energy.
View the Virginia Deferred Fuel Balances: