Dominion Energy proposes new rate increases to cover rising costs

RICHMOND, Va. (WRIC) -- Dominion Energy Virginia has proposed new rate increases that would raise costs for customers.

According to Dominion Energy, the company is seeking to implement base rate increases of $8.51 per month in 2026 and $2 per month by 2027 for residential customers. If this is approved, this would be the first base rate hike since 1992.

In addition to these base rate increases, Dominion Energy also proposed a $10.92 per month increase to the fuel rate for residential customers. This is largely due to the higher cost of fuel, including the impact of cold weather in January 2025 and rising fuel commodity prices. This fuel rate increase also includes the expiration of a prior fuel credit.

“We’re focused on providing exceptional value for our customers every single day,” said Ed Baine, President of Utility Operations and Dominion Energy Virginia. “Outside of major storms, we deliver uninterrupted power 99.9% of the time, and we’re significantly reducing storm-related outages as well. This proposal allows us to continue investing in reliability and to serve our customers’ growing needs.”

Dominion Energy said the proposed increases are a reflection of rising costs in labor, materials, equipment, and the need to upgrade the grid to keep up with customer growth. The company has also proposed a new rate class for high-energy users, such as data centers, which would require a 14-year commitment to pay for the power they request.

“We know our customers are feeling the impact of inflation in other areas of their lives, and some of our customers may need assistance with their power bills," Baine added. "We’re here to help. Our Energy Share program not only offers among the most supportive bill assistance in the country, but also provides free home energy efficiency upgrades to help lower your energy use and save on your monthly bills.”

If approved by the Virginia State Corporation Commission, these increases would go into effect with the new fuel rate starting Tuesday, July 1, 2025, and base rates increasing in 2026 and 2027.