RICHMOND, Va. (WRIC) — Dominion Virginia Power said customers should expect lower electricity bills this summer. That’s if a fuel rate proposal the company made on Wednesday is approved by the Virginia State Corporation Commission (SCC).
Dominion proposed a reduction in its fuel charge that would lower the monthly bill of a typical residential customer, who uses about 1,000 kilowatt-hours a month, by $4.35, or about 3.8 percent.
With the adjustment, Dominion said the typical residential bill would have increased by just under 4 percent since July 2008 – less than half the rate of inflation over the same eight-year period.
At Dominion our goal is to operate at high levels of efficiency in order to keep bills low for our customers. We have done this, and the efficiency from our generating units, combined with the low cost of natural gas and the generally milder weather, has led to this positive announcement” said Robert M. Blue, president of Dominion Virginia Power, “Providing reliable and affordable energy in an environmentally responsible manner is our core mission, and this proposal to reduce customers’ bills is yet another step forward in our ongoing effort.”
If approved by the commission, the new rate will take effect July 1. No change, up or down, can occur in company rates without approval of the SCC, according to Dominion.
The fuel charge makes up about 20 percent of a typical residential bill. The company isn’t allowed to make any profit from the fuel charge, so customers only pay for the actual cost of power station fuels, such as natural gas, coal, uranium and oil.
In a separate rate filing, Dominion proposed an adjustment in the charge for the company’s new and upgraded transmission infrastructure, which would raise a typical residential customer’s bill by $0.30, or about 0.3 percent. That change would take effect Sept. 1 if approved.
Base rates, which comprise about 60 percent of a typical residential bill, remain frozen. With the proposed fuel and transmission rate changes, Dominion said their electric rates continue to be well below national, state and regional averages.
Click here for more information about Dominion’s electric rates.