By Heather Michon
Correspondent
Call it the holiday gift nobody wanted.
State regulators announced last week they are partially approving Dominion Energy’s request to raise residential base rates, a decision that will permanently push monthly electric bills higher beginning next year.
The ruling translates to an $11.24 jump in the typical residential bill beginning in 2026, followed by an additional $2.36 increase in 2027 as Dominion phases in the higher base rates.
That works out to a $565.7 million revenue boost for Dominion in 2026 and another $209.9 million in 2027.
While those aren’t small potatoes, the totals are far below what the company initially sought. The SCC trimmed Dominion’s proposed 15 percent increase down to roughly nine percent, citing insufficient justification for a larger increase.
Dominion, which serves 2.5 million residential customers statewide and about 13,600 in Fluvanna County, requested the increase earlier this year, pointing to rising costs for everything from utility poles and wire to transformers and broader grid infrastructure. It’s the first base-rate hike the company has sought since 1990.
Virginia’s surging electricity demand, driven in large part by the state’s data-center boom, also factored into Dominion’s request. Regulators approved the company’s proposal to create a new rate class for these high-energy users.
Under the new structure, data-center operators must enter into 14-year contracts with energy providers and could face steep penalties if a project fails or shuts down early. The requirement protects both Dominion and its residential customers, who might otherwise absorb the costs when large users exit the market.
With data centers now driving the majority of Virginia’s energy use, the SCC also directed Dominion to study how its rates are allocated to these customers and report back within the next two years.
