Dominion Energy customers received a notice in the mail about rate changes. Here’s what it means.
Published 3:20 pm Wednesday, August 21, 2024
A six-page notice went out from the NC Utilities Commission last month, notifying Dominion Energy customers about two rate changes requested by Dominion. The changes will end up reducing the average customer’s bill by about $4, according to Dominion.
First, Dominion requested the authority to increase the base rates and charges for additional revenue of $56.6 million. This is an increase of approximately 22% over current base revenues, according to the letter sent to customers. This is the first rate increase since 2019.
Residential customers will see an increase of about $19 a month, or 14%.
The increase is proposed to support investments in grid reliability, clean energy, and an improved customer experience, according to a letter from Dominion’s senior communications specialist Cherise M. Newsome.
Dominion has invested $350 million to modernize the grid. These upgrades include 100 miles of rebuilt or refurbished transmission lines, and new substations and circuits.
Clean energy investments, totally $1.5 billion, include the addition of 10 solar facilities and the first offshore wind turbines.
Dominion has also introduced a new customer information platform that is designed to give customers more control over their energy use. The company is installing over 120,000 smart meters.
Secondly, Dominion requested a change to decrease the fuel rate, which is projected to “decrease substantially later this year to more than offset the base rate increase,” said Newsome. This change also requires approval from the NC Utilities Commission. With the rate increase and the fuel decrease, most residential customers will see an average drop in their monthly bill of about $4.
Dominion Energy’s fuel update is filed annually with the North Carolina Utilities Commission, and Newsome said she anticipates the company will file the next fuel update in mid-August.
Under the currently approved fuel rates, fuel accounts for about one-third of a typical 1,000 kWh per month residential customer’s bill. For customers who use more or less energy than the typical customer, the ratios are roughly the same. Under the currently approved fuel rates, fuel accounts for about one-third of an 800 kWh per month residential customer’s bill as well as a 1,200 kWh per month residential customer’s bill.
“Energy bills are based on a customer’s usage,” Newsome said. “In that sense, an electric bill is like a water or sewer bill. The more you use, the higher your bill. The less you use, the lower your bill.”
If both changes are approved by the commission, Dominion residential rates will be about 17% lower than the national average and about 8% lower than the South Atlantic average.
Community members can weigh in at any of the public hearings set forth by the commission.
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