Dominion Energy Virginia Proposes First Base Rate Increase Since 1992 to Support Grid Reliability and Clean Energy
Dominion Energy Virginia filed proposals with the Virginia State Corporation Commission to update its base and fuel rates, citing rising operational costs and the need to support infrastructure growth and clean energy investments.
If approved, the typical residential customer would see an $8.51 monthly base rate increase in 2026, followed by a $2.00 increase in 2027. This would mark the company’s first base rate hike in over three decades. Dominion noted that its rates have risen at a pace about 40% below inflation over the past ten years.
The company attributed the proposed changes to inflationary pressures on labor, materials, and essential equipment, as well as increasing energy demands driven by customer growth. Additionally, Dominion is proposing to shift power capacity costs—assigned by regional grid operator PJM—from base rates to fuel rates to improve cost transparency. Combined with higher projected fuel prices and the end of a fuel credit, this would result in a $10.92 increase in monthly fuel charges beginning July 1, 2025.
To further safeguard customers, Dominion is introducing a new rate class for high energy users such as data centers. These users would be required to commit to a 14-year service agreement to ensure they cover the full cost of their electricity needs, protecting other customers from shouldering potential stranded costs.
Dominion emphasized its commitment to reliability, affordability, and clean energy, and reassured customers of available assistance through its Energy Share program, which offers bill support and free energy efficiency upgrades. The new base rates would take effect on January 1, 2026, and January 1, 2027.
WS News2025-04-01