Dominion Virginia Power Receives SCC Approval to Reduce Monthly Electric Bills in April
A typical Dominion Virginia Power residential customer can expect to see an overall reduction of 5.5 percent in electric rates beginning in April.
The bulk of the reduction stems from the new state law, Senate Bill 1349, that gives consumers the benefits of lower fuel costs immediately and protects them from potential price spikes related to federal mandates to reduce carbon emissions. In the fuel filing
made on Feb. 27, 2015, Dominion asked the Virginia State Corporation Commission to approve a reduction related to fuel costs beginning April 1 rather than waiting until July 1. The SCC issued an order
on March 12, 2015, granting Dominion's request on an interim basis (Case No. PUE-2015-00022). This will result in a $6.12 per month reduction in the typical residential bill
for a customer who uses 1,000 kilowatt hours of power. Commercial
customers could realize a savings of about 7 percent and 10 percent, respectively.
Also scheduled to take effect April 1 is an additional decrease of 28 cents to a typical monthly residential bill that reflects reductions in generation construction costs associated with the Bear Garden and Warren County power stations, Virginia City Hybrid Energy Center and the conversion of three former coal plants to biomass. These reductions are related to filings made last year. With these additional reductions, the typical residential monthly bill would decline a total of 5.5 percent from $115.95 per month to $109.55 per month, making rates 18.8 percent below the national average of $134.90. (> View our news release for additional details.)
Update: On March 26, 2015, the State Corporation Commission issued orders in five cases involving rate reviews and changes requested by Dominion Virginia Power. All of the rate adjustments were placed into effect on April 1, 2015. The combined impact decreased the average monthly bill of a typical residential customer using 1,000 kilowatt hours of electricity by $6.47, from $115.95 to $109.48. (> View the SCC news release for details.)
Dominion Virginia Power bills going up slightly to pay for new energy efficient power station
Dec. 20, 2014 – A typical residential electric bill went up a little under 1 percent starting today as part of Dominion Virginia Power’s continuing effort to build new infrastructure to meet its customers’ growing energy needs.
The slight upward adjustment was approved by the Virginia State Corporation Commission to take effect once the new Warren County Power Station officially began operation. The station entered commercial operation Dec. 10.
The 1,329-megawatt power station is located just north of Front Royal, Va. Powered by economical, clean burning natural gas and using energy-efficient combined cycle technology, it can produce enough electricity to power about 325,000 homes at peak demand.
With the latest adjustment, the typical residential monthly bill will rise from $115.12 to $115.95 starting in January, 2015, the first full month the new rate is in effect. That is an increase of $.83 cents per month, or about .7 percent.
Dominion Virginia Power’s electric rates remain extremely competitive: 14 percent below the national residential average and 21 percent below the East Coast residential average. The averages are based on information reported by the Edison Electric Institute (EEI). (View a rate comparison chart.)
Residential electric bills increase 2.4 percent
Sept. 1, 2014 -Typical residential electric bill went up about 2.4 percent starting today to cover the cost of new transmission and generation facilities designed to maintain strong electric reliability for the company’s 2.4 million customers.
The increase results from adjustments to two special rate adjustment clauses, or riders, approved by the State Corporation Commission. One supports expansion and improvement of the company’s electric transmission system. The second will help pay for the new Brunswick County Power Station, a natural gas-powered facility capable of generating 1,360 megawatts of electricity – enough to supply the needs of approximately 340,000 homes.
The new power station is expected to begin service during the summer of 2016. For more information, view this video: http://www.youtube.com/watch?v=4ykTmeHQZk4.
The effect of the two riders was slightly higher for commercial and industrial customers. The typical commercial bill, measured using EEI standards for such “typical” bills, will increase 3.5 percent. The typical industrial bill, again measured by EEI standards, will increase 3.6 percent.
New Dominion Virginia Power Fuel Rate Goes Into Effect
July 1, 2014 – A new interim fuel rate took effect today subject to review and approval by the Virginia State Corporation Commission (SCC). The new rate would raise the bill of a typical residential customer using 1,000 kilowatt-hours a month by 4.1 percent.
The increase was requested by the company May 2 because the cost of many power station fuels rose sharply after this winter’s extreme cold, caused by the so-called "polar vortex." Increases for large commercial and industrial customers could be higher because proportionately larger portions of their bills are related fuel expenses.
The company also on May 2 requested a slight increase for transmission costs which would take effect Sept. 1 if approved.
Even with the proposed increases, the company’s electric rates will remain below state, regional and national averages.
In May and June, Dominion asked the SCC for permission to change several riders that cover the cost of new generation projects. If approved, the net effect for a typical residential customer who uses 1,000 kilowatt-hours a month would be a decrease of 28 cents on their monthly bill, effective April 2014.
Riders are special rate adjustment clauses designed to pay for specific generation, transmission or energy efficiency projects. Those recently filed include four power station projects, including Warren County, Bear Garden, Virginia City and the conversion of three smaller coal stations to biomass fuel.
The SCC is not expected to rule on these requests until the first quarter of 2015. A ruling on the fuel case is expected later this year.
Dominion Virginia Power Rates Decline Slightly
April 1, 2014 - Dominion Virginia Power’s electric rates went down 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.
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:
- Water and sewer service up 38 percent
- College tuition and fees up 30 percent
- Medical care up 18 percent
- Garbage & trash collection up 15 percent
Two Small Rate Changes Further Lower Typical Bill
Feb. 1, 2014 - 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.
Dominion Request To Lower Fuel Rate Approved
Nov. 20, 2013 - The Virginia State Corporation Commission approved a request by Dominion Virginia Power to reduce its fuel rate to Virginia customers.
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.
Dominion Virginia Power Says It Will Not Seek Increase In Base Rates For At Least Next Two Years
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.