Virginia Electric Rates Update
Customers to See Savings from Grid Transformation & Security Act of 2018
Savings from legislation passed by the General Assembly and signed by Governor Ralph Northam will soon offer relief to Dominion Energy Virginia customers.
Customers will see savings in two ways: $133 million in bill credits and $125 million in rate reductions, both taking effect when the Grid Transformation & Security Act of 2018 becomes law on July 1.
The typical residential customer will receive a one-time credit of approximately $24.50 on their bill and approximately $2.50 per month in an ongoing reduction to our base rates, based on filings currently being prepared for submission to the State Corporation Commission later this month.
On average, our typical residential customer bill will remain largely unchanged in 2018. Our long record of offering rates below the state, regional and national averages continues.
The costs to support our high-voltage transmission system and to recover fuel expenses incurred to run our power stations would go up later this year under a pair of proposed rate changes filed on May 4, 2018, with the State Corporation Commission.
If approved by the SCC, transmission costs will increase the typical residential monthly bill by $4.18 in September. We continue to make major and needed investments in the transmission network to ensure reliability and increase security.
The fuel rate change will increase the typical bill by $3.36 in July, if approved by the SCC, largely because of this January’s frigid temperatures. The “bomb cyclone” caused record high fuel costs due to a lack of natural gas pipeline capacity. The fuel rate is a straight pass-through of our fuel costs; the company makes no profit on it.
Dominion Energy Virginia is working to keep fuel costs low in several ways. Our parent company, Dominion Energy, is part of a partnership developing the proposed 600-mile Atlantic Coast Pipeline from West Virginia to North Carolina. Construction of the pipeline would improve Virginia’s access to natural gas and hold down that fuel cost. We also continue to expand our solar fleet and will open the nation’s largest and most efficient natural gas power station opening in Greensville County later this year.
Looking to the future, the proposed transmission and fuel cost increases will be mitigated by other savings on the horizon. Dominion Energy Virginia will provide another $67 million credit to customers in January 2019, through the Grid Transformation & Security Act of 2018. Plus, further savings from federal tax reform will be passed along to customers as they are calculated.
Weather has a strong impact on energy bills and we encourage our customers to save energy. For example, in these hot temperatures set your thermostat to 78 degrees, use ceiling fans and check and clean your air-conditioning filters. While extreme temperatures can drive up your bill, our goal is to continue our record of stable, low rates and help you keep your overall costs affordable.