How To Generate Electricity

Dominion power bills set to go up next month

Power bills are about to go up.

The State Corporation Commission has approved a new fuel rate for Dominion Virginia Power.

The fuel rate is the portion of the electric bill that pays for the fuel Dominion uses to generate electricity and the purchase of power from the wholesale market, the release stated.

The new rate, which Dominion requested, will go into effect on July 1, according to a commission press release.

The commission accepted a plan to spread Dominion’s higher cost of fuel across two years rather than one, the release stated.

The new plan with the fuel rate increase will mean a monthly bill for 1,000 kilowatt hours of electricity will increase $4.86 and go from $103.91 to $108.77.

If the increase fuel costs had been spread over one year as is customary, the monthly bill for 1,000 kilowatt hours would have increased $8.17 to $112.08, the release stated.

According to Dominion, last year’s hotter-than-normal summer and colder-than-normal winter and rising fuel prices drove the increase.

Dominion  is entitled to recover “prudently incurred fuel costs” on a “dollar-for dollar” basis, but cannot make a profit from increased fuel rates, the release stated.

The commission reviews the fuel rate annually and resets the rate if necessary based on the previous year and projected fuel expenses for the coming year.

Senior reporter Keith Walker can be reached at 703-369-6751.

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