Dominion Energy proposes to increase rates starting summer 2025

RICHMOND, Va. (WWBT)—For many, the story is similar: Inflation is taking a toll on everything, and your power bill is no different.

“What they are dealing with right now is over the cost of the winter; the demand from data centers drove energy prices through the roof, and they are passing on those costs,” said Christopher Miller, President of Piedmont Environmental Council.

He tells 12 On Your Side that his organization has been watching how the increase in energy demand may impact Virginia customers.

For the first time since 1992, Dominion Energy is proposing to increase rates for all customers starting this summer. They’re blaming the jump on the pressure of inflation, high labor costs, and the need for power grid upgrades and supplies.

However, some residents don’t believe the price increase will help with the service.

“If the storm is too big, then our power goes out, and we are out for a while, not just a little bit,” said one Richmond resident. “To increase it doesn’t make sense the service is still the same.”

Dominion’s proposal is in the hands of the State Corporation Commission. If approved, starting July 1, 2025, your fuel rate will increase by $10.92 per month. Then, by January 1, 2026, your base rate will increase by $8.51 per month, and on January 1, 2027, the base rate will increase again by $2.

“There’s already inflation with housing and food prices. People aren’t going to be happy,” said another Richmond resident.

The proposal also mentions a new rate class for high-energy users like data centers. Miller says a new study shows that data centers create additional financial risks to electric utilities and their customers.

“What this is saying is a huge increase in energy demand, huge increase in infrastructure cost,” Miller said. “We need to be really careful how we pay for that going forward, and particularly, we need to make sure the residential rate payers don’t bear the cost of the data center users.”

A spokesperson from Dominion says their proposal requires high-energy facilities to sign a 14-year contract, ensuring they pay their power’s full cost. As of right now, we do not have a timeframe for when the SCC will make their decision.