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Dominion Energy lays out proposal for price hikes
Virginians may soon see higher electricity prices as state regulators hold a public hearing on the matter. It comes as Dominion Energy has laid out a proposal for how the rate hikes should take effect. FOX 5's Shirin Rajaee has the breakdown.
Virginians may soon see higher electricity prices as state regulators hold a public hearing on the matter.
It comes as Dominion Energy has laid out a proposal for how the rate hikes should take effect.
What we know:
Dominion Energy does not set its own prices. Every two years, the state regulator comes in and determines what electricity prices should be in the state. But the company has proposed a $21 rate hike that would be phased in over the next two years.
The Virginia State Corporation Commission held a public hearing and there were more than 2000 comments submitted, with many expressing concerns with the rate increases.
Dig deeper:
Dominion Energy has proposed a $9 increase that temporarily went into effect in July. The next jump of $8.50 would start January 2026, and another $2 in 2027.
Dominion says the increase is due to the drastic rise in electricity costs compared to two years ago.
"The reason we need to increase prices is because the cost of the fuel for our power plants has increased. The cost of all the materials and equipment that we need to serve our customers has increased. We are continuing to make significant upgrades to modernize the power grid so we can reliably serve growing demand and serve our customer's growing needs. All those costs have gone up," Dominion Energy spokesperson Aaron Ruby said.
Many Virginians are raising questions as to who should pay for the infrastructure needed for data center energy use. Right now, Virginia customers share the cost, and many say the burden should be on the data center, not residents.
Big picture view:
Dominion has proposed that high energy users enter a 14-year contract, and pay for 60% of the cost.
"What we've done is we've proposed some very strong consumer protections In this rate case, to make sure that data centers continue paying for the full cost of their power, and to make sure that data center costs don't fall under the shoulders of residential customers," said Ruby.
Some groups argue that Dominion's proposal doesn't go far enough and data centers should pay for 100% of the energy costs.
Meanwhile, a final decision on electricity prices should be made in the next few months.