Dominion Power rates to drop – slightly – effective Jan. 1

Staff Report
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Rates for Dominion Virginia Power customers will be reduced on Jan. 1, 2010, in accordance with changes approved by the Virginia State Corporation Commission (SCC). For the typical residential customer who uses 1,000 kilowatt-hours of electricity, the net result is a decrease in the monthly electric bill of 87 cents, or 0.8 percent, from $109.23 to $108.36.

The SCC ordered Dec. 16 that the interim fuel factor be reduced to 2.927 cents per kWh, which translates to a reduction of $3.83 per month for the typical residential customer. The reduction was based on data the company submitted on the continuing declines in prices for coal, natural gas and other fuel used to generate electricity.

The fuel factor also was reduced in July and October 2009. The three adjustments result in reducing the typical residential customer’s bill by a total of $9.66 per month.

The SCC also on Dec. 16 granted increases related to the construction of Bear Garden Power Station in Buckingham County and the Virginia City Hybrid Energy Center in Wise County totaling $2.96 per month for the typical residential customer. The facilities are being built to help meet Virginia’s future energy needs.

When completed in 2011, Bear Garden will use natural gas and oil in a combined-cycle facility to generate 580 megawatts of power. Virginia City will use coal, waste coal and up to 20 percent biomass to generate 585 megawatts of power when it begins generating electricity in 2012.


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