Dominion proposes Richmonders pay about $20 more a month
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Richmonders could see higher power bills starting in January, under the first of several rate hikes that Dominion Energy presented to state regulators last week.
Why it matters: Dominion customers would pay about $20 more a month over two years if the hikes are approved.
- Also at play: Dominion's proposal to create a new rate class for data centers, which would effectively make them pay a higher rate due to their outsized energy needs.
By the numbers: If approved, Dominion's more than 2.5 million Virginia customers would start paying $8.51 more a month for their base rate in January, plus another $2 more in January 2027, for a total $10.51 monthly increase.
- Plus, Dominion wants a separate fuel rate increase, which it estimates would cost customers an additional $10.92 monthly.
- The energy giant says it needs to cover rising infrastructure costs, like poles and wires, per Virginia Mercury. The company outlined in its SCC filings that it needs to increase its revenue by $822 million next year and $345 million in 2027.
Friction point: Last week's routine State Corporation Commission hearings were closely watched by Virginians and some of the world's largest tech companies.
- Nearly 3,000 pages of public comments were filed ahead of the hearings, largely from customers concerned about paying more for their electric bills amid rising living costs, per the Virginian Pilot.
- Amazon, Google and Microsoft paid heed, too — because of Dominion's proposed data center rate class, which could have them paying billions of dollars more on energy, Inside Climate News reports.
Between the lines: A data center rate was a recommendation from the state's watchdog group last year, which found they're largely driving the state's voracious energy demands — the cost for which would eventually be passed on to Dominion customers.
- Tech companies like Google and Microsoft, along with the Data Center Coalition, pushed back on Dominion's proposal and submitted one of their own.
- Their plan calls for a separate rate class, but one in which they pay a lower minimum demand charge than Dominion suggested — and one that would only apply to new centers, not the 450 existing ones Dominion currently serves.
What's next: A decision from the SCC on all of its rate proposals is expected in December.
Editor's note: This story has been corrected to reflect that the proposal from Google, Microsoft and the Data Center Coalition suggests that they pay a lower minimum demand charge than Dominion suggested (not an overall lower rate).<br/>