SCC to review Dominion Energy’s rate increase proposal, new data center rate class

RICHMOND, Va. (WRIC) — Virginia regulators are preparing to decide how much customers will pay for electricity as Dominion Energy seeks approval for new rate increases that would raise costs for customers.

On Tuesday, Sept. 2, the State Corporation Commission (SCC) will begin reviewing Dominion Energy's proposal to increase customers' bills by an average of $21 per month within the next two years.

Dominion Energy announced the new base and fuel rates in April after submitting filings to the SCC, which is its regulator. In a press release, the utility company said the rate changes were because of the increasing cost of labor, materials and equipment, power capacity and fuel, and grid upgrades.

The proposal also includes a new rate class for high-energy users, such as data centers. It would require these customers to sign a 14-year contract, paying for 60% of their contracted demand, even if they use less. Dominion said this rate class is meant to ensure other customers are protected from stranded costs. 

The proposal came after a December 2024 report by the Joint Legislative Audit and Review Commission (JLARC) found that increased energy demand from data centers would equal increased energy costs for all Virginians.

As that demand has continued to grow, more Virginians are raising questions about who pays for data center energy use. Currently, Virginia ratepayers share the cost of new infrastructure — meaning residents and businesses pay for the infrastructure that data centers use. Dominion's proposed rate class would shift that cost.

"This is probably one of the most important regulatory decisions ever made in Virginia," said Christopher Miller, President of the Piedmont Environmental Council (PEC).

Miller warns that the stakes are high for all Virginians.

"The whole understanding of how we distribute costs has to change," he said. "Every person, every household, every small business, every farm runs the risk of a doubling or even a tripling of the amount they pay each month."

More than 2,000 people have submitted public comments ahead of the SCC hearing, many voicing frustration over residents bearing the costs for infrastructure needed to support the growing data center industry.

While it’s unclear how long it will take for the SCC to decide on final rates, Miller said he hopes the hearing will address outstanding questions.

"We’re the global leader in data center development and in the tech industry," he said. "It’s going to be part of our future. But let’s do it right. Let’s do it as well as we can."

Audio from the SCC hearing will be streamed live on the commission’s website.