Loudoun County Residents Prepare for Dominion Energy Rate Increases

Dominion Energy Rate Increase Proposals:

Dominion Energy has submitted applications to the State Corporation Commission (SCC) to increase both base and fuel rates for its Virginia customers.
The company is requesting:
- An $8.51 per month base rate increase in 2026.
- An additional $2 per month base rate increase in 2027 for a typical residential customer.
If approved:
- The new fuel rate would take effect July 1, 2025.
- The new base rates would take effect January 1, 2026, and January 1, 2027.
- These would be Dominion’s first base rate increases since 1992.

Impact on Customer Bills

The average monthly bill for a typical residential customer is currently $140.
After the fuel rate increase (July 1, 2025): expected to rise to $150.92.
After the first base rate increase (Jan. 1, 2026): expected to rise to $159.43.
After the second base rate increase (Jan. 1, 2027): expected to rise to $161.43.

Reasons for the Increases

Fuel Rate Increase Drivers:
- Higher PJM power capacity costs.
- Higher forecasted fuel commodity prices.
- Higher fuel costs from extreme cold in January 2025.
- Expiration of a $3.99 monthly fuel credit.
Base Rate Increase Drivers:
- Rising costs of labor, materials, and equipment.
- Need for new infrastructure to serve a growing customer base, including data centers.

New Rate Class for High Energy Users

Dominion proposes a new rate class specifically for high energy users, such as data centers.
High energy users would be required to make a 14-year commitment to pay for their requested power, even if they use less.
New consumer protections are proposed to ensure these customers pay the full cost of their service, protecting other customers from stranded costs.

Changes in Cost Allocation

Dominion proposes moving power capacity costs from the base rate to the annual fuel rate. These costs are set by PJM, the regional grid operator.

Concerns and Reactions

The Piedmont Environmental Council (PEC) reiterated concerns about the impact of data centers on residential rates, noting Dominion’s proposal acknowledges the unique strain high energy users place on the system.
PEC President Chris Miller urged the SCC to act to prevent data centers from overwhelming the grid, draining water resources, and industrializing unintended areas.

Regulatory Review and Broader Context

The SCC will release a review schedule soon; the process typically takes nine months.
A December report by the state Joint Legislative Audit and Review Commission found that while data centers currently pay their full cost of service, rising demand may shift costs to other customers in the future.
The report recommended creating a separate rate class for data centers and adjusting utility rates more frequently to protect non-data center customers from increased costs.

Customer Assistance

Dominion highlighted its Energy Share program, which offers bill assistance and free home energy efficiency upgrades to help customers manage costs.

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