Dominion Virginia Power seeks First Fuel Rate Increase In Two Years
- Company cites expected higher fuel costs, increasing electricity demand
- Monthly residential bill would remain below national, regional levels
- Company's base electric rates, profit level to remain unchanged
RICHMOND, Va., May 3, 2013
RICHMOND, Va., May 3, 2013 /PRNewswire/ --Dominion Virginia Power asked state
regulators today to approve the first fuel rate increase in two years as fuel
prices and customer demand for electricity are projected to increase by July
If approved by the Virginia State Corporation Commission (SCC), the monthly
1,000 kilowatt-hour bill for the typical Dominion residential customer would
increase by $2.36, from $108.39 to $110.75, which would still be below
national and regional averages. The increase would occur July 1, pending the
annual review and decision by the commission.
The fuel rate, which comprises about 25 percent of a typical residential bill,
pays for the natural gas, coal, uranium and biomass the company purchases to
generate electricity for its 2.3 million Virginia customers. Base rates and
special charges for approved new power projects, energy efficiency measures
and transmission make up the remainder of the bill.
The company earns no profit on what it collects for fuel and passes any cost
savings or increases directly to customers. Dominion maintains a balanced fuel
mix, which reduces price volatility when one fuel source is relied on too
The primary drivers for the requested adjustment are higher fuel prices, a
return to normal demand for electricity from customers and one additional
nuclear refueling outage in the next year compared to the previous year.
Dominion's nuclear power stations produce the least expensive electricity
among its fuel sources; therefore, replacement electricity needed during the
refueling outages that occur every 18 months is usually more expensive.
Other annual rate adjustments either are occurring or are proposed to occur
between today and Sept. 1. The SCC recently approved a 19-cent increase in
the typical monthly residential bill, effective tomorrow, for the company's
energy efficiency programs. On Sept. 1, a $1.32 monthly increase is proposed
pending SCC approval of the Brunswick County Power Station (83 cents) and
transmission-related costs (49 cents).
Dominion Virginia Power is a subsidiary of Dominion (NYSE: D), one of the
nation's largest producers and transporters of energy, with a portfolio of
approximately 27,500 megawatts of generation, 11,000 miles of natural gas
transmission, gathering and storage pipeline and 6,300 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.
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SOURCE Dominion Virginia Power
Contact: Media, Chet Wade, (804) 771-6115, Chet.Wade@dom.com, or Analysts,
Nathan Frost, (804) 819-2187, Nathan.J.Frost@dom.com
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