Friday, December 2, 2022

Dominion Energy Virginia Files Rate Settlement Agreement That Provides Significant Customer Benefits

Sign up here for our free newsletter that tells you about the newest stories, three mornings each week.

Dominion Energy Virginia, the Virginia State Corporation Commission (SCC) Staff, the Office of the Attorney General, and other parties recently filed a comprehensive settlement agreement in the Company’s pending triennial base rate case. If approved by the SCC, the agreement would resolve the ongoing review of the company’s performance over the past four years as well as provide significant additional customer benefits.

In addition to the SCC Staff and Office of the Attorney General, the agreement is joined by Apartment and Office Building Association of Metropolitan Washington, Costco, Direct Energy, Kroger and Harris Teeter, Virginia Committee for Fair Utility Rates, and Walmart. None of the remaining nine parties to the proceeding are opposed to the agreement. Key components of the settlement would provide the following customer benefits:

  • A total of $330 million in one-time refunds on customer bills made up of $255 million over a 6-month period and $75 million over three years, resulting in a total proposed refund of approximately $67 for a typical residential customer.
  • Use of $309 million in revenue to offset costs of the Coastal Virginia Offshore Wind pilot project, deployment of smart meters and a Customer Information Platform, as part of the Customer Credit Reinvestment Offset (CCRO) mechanism defined by Virginia law.
  • A $50 million going-forward rate reduction, resulting in a proposed monthly bill reduction of approximately 90 cents for a typical residential customer.

The proposed settlement also supports:

  • An authorized return on common equity of 9.35%.
  • A capital structure with an equity ratio of 51.917%.
  • Amortization through 2023 of the early retirement charges for fossil-generation units recorded in 2019 and 2020.

Total rates for Dominion Energy Virginia’s typical residential customer are currently more than 15 percent below the national average, almost 30 percent lower than the mid-Atlantic average and 35 percent lower than the average of states that, like Virginia, have joined the Regional Greenhouse Gas Initiative. 

The settlement agreement provides a balanced and cost-effective approach that supports continued capital investments in Virginia in order to meet the Commonwealth’s public policy priorities and the needs of Dominion Energy customers. Those investments include the development of the Coastal Virginia Offshore Wind project—the largest on this side of the Atlantic—as well as growing one of the leading state-regulated utility solar portfolios in the country. These, along with other investments including nuclear relicensing, energy storage and grid modernization, put Dominion well on its way to reaching 100% clean energy by 2045 in Virginia and net zero emissions by 2050 across Dominion Energy’s nationwide footprint.

The settlement agreement aligns with the customer-focused, state-regulated utility framework in Virginia. That framework has resulted in nationally leading decarbonization goals, customer rates lower than national and regional averages, and high levels of reliability for customers, made possible by a state regulatory model that embraces long-term planning and resiliency safeguards.

“I appreciate the thoughtful effort of all parties in reaching an agreement that puts our customers’ interests first,” said Ed Baine, president of Dominion Energy Virginia. “We have a lot of work ahead as we continue to build a clean energy future in Virginia. This settlement enables us to continue to keep rates affordable while creating new jobs through the development of offshore wind, solar and energy storage expansion, transformation of the grid, and energy-efficiency enhancements.”

You must purchase this article or be a subscriber to comment on it.

Latest News

Many Local Retailers Expect Positive Sales During The Holiday Season

According to a survey conducted by Retail Alliance in early November, many local retailers are expecting a moderate sales growth this holiday season. The...

Short-term Rentals Stir Concern In James City County

JAMES CITY-A nearly surefire way to make waves in the neighborhood is to rent out rooms in your home, or the whole home itself,...

The New Local News Model

On July 1, we started a new way to pay for news. Yes, we want you to subscribe, but we know nobody subscribes to every site they visit just because there's a paywall.

So if you don't want to subscribe (even at the low price of $39.99 for a year), you can pay for access to individual articles. Or just buy a 24-hour pass, as if you were buying a single copy of a newspaper. We use a new payment service called Transact, which lets you pay for individual articles in as little as three seconds. And you will get $3 in credit when you sign up (just an email address, no credit card required), which will let you pay for at least 20 articles.

This is new for everyone, so we're going to ease you into this. Initially, there won't be many articles that you have to pay for. Short ones will always be free. And even the longer stories will let you read the first half or so for free. We'd love to hear what you think, so send us a note at