Our dedication to supporting customers remains stronger than ever. We continue working with customers to find programs, services and payment options that best match their individual budgets and circumstances. Many assistance options can be conveniently accessed 24/7 through a customer's online account or Dominion Energy's app. Customers can learn more online at DominionEnergySC.com/Assistance or by phone at 800-251-7234.

Dominion Energy offers a comprehensive portfolio of programs that work together to increase overall energy efficiency and reduce energy usage. For more information about EnergyWise and energy-efficiency efforts, visit DominionEnergySC.com/EnergyWise or call toll-free at 877-510-7234.

A fuel cost adjustment involves coal, natural gas, nuclear, oil, solar, and purchased power costs needed to supply electricity to customers. The Public Service Commission of South Carolina annually reviews the costs Dominion Energy incurs for purchasing and transporting fuel to operate our electric generation facilities. Based on this review, the commission authorizes the company to adjust our electric rates – upward or downward – to reflect those incurred costs without any markup or profit.

If approved, the rates proposed would increase the average monthly bill of a customer using 1,000 kilowatt hours per month from $132.79 to approximately $140.53, a net increase $140.53, a net increase of approximately $7.74 or 5.8%. Customers would see the increase in bills beginning in January 2023.

The company estimates increases of approximately 7% for commercial customers and 11% for industrial customers.

Dominion Energy maintains a diverse portfolio of electric generating facilities utilizing many different fuel sources, including natural gas, coal, nuclear, solar and oil. Significant and unforeseen market changes – namely higher commodity prices and increased demand for those commodities – have affected the prices of these fuel sources since our annual fuel cost adjustment, which was approved in April.

On Aug. 8, Dominion Energy South Carolina filed for a mid-period fuel cost adjustment. We respectfully requested that the commission hearing at the earliest time with appropriate notice to customers and the public. The commission heard requests from the company and other parties on Nov. 29. The proceedings were streamed live. Customers participated by intervening or appearing at public hearing on Nov. 28.

Currently, approximately 25% of what a residential customer pays for a kilowatt hour of electricity represents the costs of fuel to run Dominion Energy South Carolina's power plants. If the adjustment is approved as submitted, fuel costs would become 34% of the average residential 1,000 kilowatt-hour bill.

As of Oct. 31, 2022, Dominion Energy has under-collected approximately $356 million in fuel costs. It is projected to increase to approximately $457 million by April 30, 2023. In other words, actual costs are significantly higher than what Dominion Energy has been charging customers based on earlier fuel cost projections determined by market conditions at the time, and this will continue to increase substantially.

We rely upon natural gas pricing data provided by the New York Mercantile Exchange (NYMEX), which is a financial market that captures real-time trading data about the projected price of natural gas and other commodities.

With a diverse energy portfolio, Dominion Energy can select the most economical generation source available on its system and can also purchase power in the electric markets if it is more economical. However, natural gas short-term prices can fluctuate based on weather conditions, increased customer demand, changes in national supply and global demand, fluctuations in storage inventory levels, geopolitical matters, and other economic factors. The market for coal and fuel oil can be less volatile than the market for natural gas, but both fuel sources are subject to cost fluctuations due to production shortages, overall demand, and increased exports into the international market.

The Public Service Commission of South Carolina held a public hearing April 7-8, 2022, for Dominion Energy's annual fuel cost proceeding. During the proceeding, Dominion Energy requested an adjustment to recover approximately $142 million already spent on fuel costs. The company saw our annual fuel costs rise by nearly 50% when comparing calendar year 2021 to calendar year 2020. On April 28, the commission approved the fuel filing, which resulted in the monthly bill of a residential customer using 1,000 kilowatt hours of electricity increasing by approximately 5.19% – or $6.53 beginning in May. Since then, the cost of fuel to operate our electric generation facilities has continued to increase significantly, exceeding industry cost projections that the company expected would be incurred.

In addition to updates that will be provided here, more information is available on the websites for the Public Service Commission and Office of Regulatory Staff.