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Understanding Rates
Learn about your rate and where your payment goes.
Electric Rates Overview
Your energy rate helps pay for the cost of delivering electricity to you, and to support projects that will meet the ever-growing demand for more energy. Several factors affect the rate you pay, including how much energy you use, the cost of fuel, the time of year, and your customer type – whether you're a homeowner, business, or industrial user.
There are two main factors that determine your monthly electric bill:
- Household Usage. Greater reliance on air conditioning and electric heating tends to result in higher bills, especially during peak summer and winter months. Is your energy usage high? You may be eligible for energy efficiency programs, which can help reduce your monthly electricity usage.
- Generating and Delivering Electricity. Electric utility service in Virginia is regulated by the non-partisan State Corporation Commission. Dominion Energy can't raise rates whenever it wants, because it is a regulated utility. The SCC exists to protect customers by ensuring electric rates are fair, reasonable, and tied to the actual cost of providing service – not inflated for excess profit. Before any rate changes take effect, the SCC thoroughly examines utility proposals, audit expenses, and sets limits on how much profit companies can earn. This oversight helps prevent overcharging and ensures you pay only what is necessary for reliable service. You can learn more about rates here.
Due to routine updates to the grid, the underlying cost of electric service frequently changes, even if your household electricity usage remains the same.
What Are the Parts of an Electric Bill in Virginia?
Want to better understand each part of your electric bill?
Your Dollar Broken Down
The largest portion goes towards fuel generation, delivery and maintenance.
- $0.77 of each dollar goes towards the purchase of the fuel itself and the infrastructure that generates and delivers power.
- This includes modernization and futurizing facilities, burying outage-prone overhead lines, protecting the grid against weather and cyber threats and enabling the system to more easily integrate renewable resources.
The remainder of your bill goes toward community efforts and initiatives.
- $0.33 of each dollar supports public policy objectives, taxes, capital investments, customer service systems and energy assistance programs.
- This helps to ensure your everyday is powered responsibly and effectively today, tomorrow and for years to come.
Understanding My Bill
By understanding where your dollars go and how your bill is structured, you can make more informed decisions.
Not at all. In fact, your conservation efforts are more valuable than ever.
When energy rates rise, every kilowatt-hour you save is worth more. For example, cutting 100kWh when rates are 10¢ saves $10 – but if rates jump to 15¢, that same effort can save $15. By continuing to use less energy, you're less affected by price increases. And your conservation efforts help reduce demand on the energy grid, which lowers emissions and supports sustainability.
As more people rely on digital devices, electric vehicles, artificial intelligence and remote work setups, the need for electricity continues to grow. As more people, families and businesses move into the area and new homes and neighborhoods pop up, that means more lights, more appliances, more energy needed to power everyday living.
Rising costs are frustrating, and it's important to understand what's driving them. The SCC approved an adjustment fuel charge that goes into effect in January 2026. This is the first base rate increase since 1992. This increase is due to an expired fuel credit that has historically reduced costs and to help cover rising costs of generation and delivery, which include labor and maintenance costs. In 2026, the average residential bill will see an average increase of $11.24. In 2027, another rate increase will go into effect which will increase bills by $2.36 on average. You can read more about the rate increase here.
To make sure you have the power you need, when you need it, Dominion Energy is working on adding more power sources and is completing state-mandated infrastructure and environmental projects. The SCC supported this rate increase to ensure enough energy was generated to meet the community's energy demand.
Energy Savings Finder
Answer a few simple questions and we'll match you with programs and resources designed for your home and budget. It's fast, easy, and could make a difference.
Energy Assistance Programs
Find resources to help pay your bill. Assistance is not limited to low-income customers.