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What is the rate case and how will customers be impacted?
You may have heard that Dominion Energy Ohio is seeking a rate increase.
This is a normal process for a utility to go through from time-to-time. However, Dominion Energy Ohio has not asked for a rate increase since 2007, approximately 16 years ago.
A rate case such as this takes time and is subject to approval by regulators, in this case the Public Utilities Commission of Ohio (PUCO). Dominion Energy Ohio has filed a request for a rate increase with the PUCO on October 31, 2023. If approved, these new rates would go into effect in 2025.
Over the last 16 years, Dominion Energy Ohio has invested more than $4 billion in its system infrastructure, of which roughly $1 billion has yet to be recovered in natural gas distribution rates.
This investment in infrastructure, which includes replacement of pipelines, meters, and other operational assets, has increased our property taxes and other expenses as well. In addition, since our last rate case was filed in 2007, operating and maintenance costs, such as labor, material, and construction expenses, have risen substantially.
As part of a settlement with the PUCO, Dominion Energy Ohio made a commitment in 2020 to file a natural gas distribution rate case to reflect its costs to deliver gas to customers and to recover the costs associated with operating and maintaining our equipment that allows us to provide service to customers in a safe manner that is reliable, efficient and environmentally responsible.
We submitted a pre-filing notice on September 29, 2023, and a completed application to the PUCO on October 31, 2023. The testimony supporting and explaining the changes requested will be filed on November 14. At that point, our entire rate case will be filed.
Sometime in 2024, the PUCO will hold public hearings throughout our service area, at which time customers, elected officials and consumer groups will have the opportunity to evaluate and comment on our rate proposals. The rate case process can take from a year or more to complete.
The cost to deliver natural gas to our customers in 2023 requires an approximately 16% increase in the average monthly residential total bill. New gas distribution rates likely won't go into effect until early 2025 and will not affect customer bills during the upcoming winter heating season.
Additionally this rate increase will not impact the calculation of amounts due for income-eligible customers on the Percentage of Income Payment Plan (PIPP).
Dominion Energy is committed to working with customers to find the payment plan and financial assistance that best fits their individual circumstances. Many options can be accessed 24/7 through our Billing Options and Assistance page and the Dominion Energy app.
IN addition to short- and long-term payment plans, energy assistance is offered through Dominion Energy's EnergyShare® program, funded by company contributions and donations from customers, employees, and retirees. Customers are also able to use other programs such as PIPP, PIPP Plus and Weatherization Assistance or seek special payment plans with Dominion. Additional payment assistance is also offered through state and federal programs, such as the Home Energy Assistance Program (HEAP), PIPP, PIPP Plus and Weatherization Assistance.
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