Effective July 1, 2022, the State Corporation Commission (SCC) approved an increase to the fuel rate for Dominion Energy Virginia customers.
The approval includes a mitigation proposal to spread the recovery of the $1.020 billion projected fuel deferral over three years. According to a press release, the Commission also approved a stipulation under which Dominion Energy agreed to waive recovery of one-half of its incremental carrying costs arising from the three-year mitigation proposal, which is approximately $27.5 million.
The rate increase is effective on an interim basis and subject to further modification by the SCC. A residential customer using 1,000 kilowatt-hours of electricity per month may see an average increase to their monthly bill of $14.93. The fuel rate is the portion of a customer’s electric bill that pays for fuel used to generate electricity and costs associated with electricity which is purchased by the utility company.
“The Commission notes its awareness of the ongoing rise in gas prices, inflation and other economic pressures that are impacting all utility customers,” the Commission said in its final order. “We are sensitive to the effects of rate increases, especially in times such as these. The Commission, however, must follow the laws applicable to this case, as well as the findings of fact supported by the evidence in the record. This is what we have done herein.”