RICHMOND, Va. – Dominion Energy Virginia has announced plans to implement significant rate increases for residential customers, with the first base rate hike in over three decades on the horizon.
In a proposal submitted to the Virginia State Corporation Commission, Dominion Energy seeks to raise its base rates by $8.51 per month starting in 2026, followed by an additional $2 per month increase in 2027. This would be the first base rate increase since 1992, marking a notable shift for the utility company.
In addition to the base rate hikes, Dominion Energy has also proposed an increase of $10.92 per month to the fuel rate for residential customers. The proposed fuel rate adjustment is largely driven by higher fuel costs, influenced by factors such as cold weather in January 2025 and rising fuel commodity prices. The fuel rate increase also accounts for the expiration of a previous fuel credit, which had helped mitigate costs for consumers.
“We’re focused on providing exceptional value for our customers every single day,” said Ed Baine, President of Utility Operations at Dominion Energy Virginia. “Outside of major storms, we deliver uninterrupted power 99.9% of the time, and we’re significantly reducing storm-related outages as well. This proposal allows us to continue investing in reliability and to serve our customers’ growing needs.”
The proposed rate increases come at a time when Dominion Energy cites rising costs in labor, materials, and equipment as factors driving the need for higher rates. Additionally, the company plans to invest in upgrading its power grid to accommodate growing demand from residential and commercial customers.
Dominion Energy has also suggested creating a new rate class for high-energy users, including data centers, which would require a long-term 14-year commitment to secure the necessary power supply. The new rate class would target large-scale energy consumers, aiming to better manage demand and energy allocation.
Recognizing the financial strain some customers may experience due to the proposed rate hikes, Baine emphasized Dominion Energy’s commitment to supporting customers in need. “We know our customers are feeling the impact of inflation in other areas of their lives, and some of our customers may need assistance with their power bills,” he said. “We’re here to help. Our Energy Share program not only offers among the most supportive bill assistance in the country, but also provides free home energy efficiency upgrades to help lower your energy use and save on your monthly bills.”
The proposed rate increases, if approved by the Virginia State Corporation Commission, would take effect in phases. The fuel rate increase would begin on July 1, 2025, with base rates increasing in 2026 and 2027.
As Dominion Energy continues to seek approval for the proposed rate hikes, the company remains focused on enhancing its service reliability and meeting the evolving needs of its customers. However, the proposed increases have sparked concerns among some residential customers, who may face higher utility bills in the coming years.
