Virginia Power proposes rate cut
Published 9:09 pm Thursday, May 19, 2016
Dominion Virginia Power customers can expect to see lower electricity bills this summer if a fuel rate proposal by the company is approved by the Virginia State Corporation Commission.
The company 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, the typical residential bill would have increased by just under 4 percent since July 2008.
“At Dominion our goal is to operate at high levels of efficiency in order to keep bills low for our customers,” said Robert M. Blue, president of Dominion Virginia Power. “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.”
The new rate will take effect July 1 if approved by the commission. No change, up or down, can occur in company rates without approval of the SCC.
The fuel charge comprises about 20 percent of a typical residential bill. The company is not allowed to make any profit on the fuel charge, so customers only pay for the actual cost of power station fuels such as natural gas, coal, uranium and oil.