Dominion Virginia Power Seeks Lower Fuel Rate
-- Requested change would lower typical residential bill $3.70 per month
-- Reduced fuel costs, milder weather enable company to propose lowering customer bills
-- Proposed new rate would reduce charges to customers by more than $140 million
RICHMOND, Va., Oct. 15, 2013 /PRNewswire/ -- Dominion Virginia Power today asked the State Corporation Commission of Virginia (SCC) for approval to reduce the company's fuel charge and lower customer electricity bills.
If approved, the change would reduce the bill of a typical residential customer using 1,000 kilowatt-hours of electricity a month by $3.70, from $112.05 to $108.35, or about 3.3 percent. Customers using larger amounts of electricity would see greater reductions. (See chart here: https://www.dom.com/dominion-virginia-power/customer-service/rates-and-tariffs/pdf/ResComIndBillComparisonsDec2013.pdf).
"While the next adjustment in the fuel charge is not required for another seven months, we believe the circumstances in this case warrant passing along the savings to our customers as soon as possible," said Paul Koonce, chief operating officer of Dominion Virginia Power. "We recognize that many customers are facing financial challenges in this difficult economy."
The company asked that the change take effect December 1.
If the request is approved, Dominion's overall electric rates will be down at virtually the same level they were more than five years ago, when the significant portions of the 2007 law re-regulating Virginia electric utilities went into effect, despite major investments by the company in new power stations and electric grid infrastructure to increase reliability and meet growth.
The fuel charge pays for fuel the company uses in its power stations to produce electricity, including natural gas, coal and uranium. It is charged on a dollar-for-dollar pass through without any mark-up or profit to the company.
Dominion Virginia Power spends nearly $2 billion annually on fuel and related expenses for its Virginia customers. The company is requesting that more than $140 million be returned to customers as a result of the savings due to lower-than-expected fuel prices and mild weather.
The fuel charge comprises about 25 percent of a typical residential bill but substantially more for large industrial customers, meaning they could see significantly greater savings. The remaining part of the bill covers operating and maintenance costs as well as investments in power stations, the transmission grid and other infrastructure to support reliable electric service for customers.
By state law, the company files a fuel case only once a year, normally around May 1. The fuel rate normally changes on July 1st each year.
Dominion's overall electric rates remain well below state, regional and national averages. If the reduced fuel charge is approved, a typical residential bill of 1,000 kilowatt-hours a month would be 16 percent lower than the U.S. average and 22 percent lower than the East Coast average.
Dominion (NYSE: D) is one of the nation's largest producers and transporters of energy, with a portfolio of approximately 23,500 megawatts of generation, 11,000 miles of natural gas transmission, gathering and storage pipeline and 6,400 miles of electric transmission lines. Dominion operates one of the nation's largest natural gas storage systems with 947 billion cubic feet of storage capacity and serves retail energy customers in 15 states. For more information about Dominion, visit the company's website at www.dom.com.
Save time, energy and postage by enrolling in Dominion's eBill paperless billing program.
SOURCE Dominion Virginia Power