On March 31, Dominion Energy Virginia (“Dominion”) filed an application for a biennial review of its rates and terms and conditions of service. Dominion requests a $631 million rate increase. Dominion proposes for the revenue increase to be staggered, with a $458 million annual revenue increase starting 1/1/2026 and an additional $173 million increase starting on 1/1/2027. Dominion estimates that this would add about $10.50/month to a 1,000kWh residential bill. The utility claims that it will need to invest $40 billion in capital projects over the next 5 years. The application cites the need to upgrade gas generation plants and new distribution facilities to accommodate data center load growth.
Dominion also proposed a new rate schedule for “high load” customers, including data centers. The proposed terms and conditions include minimum contract demand provisions and collateral requirements for customers with 25MW+ of demand.
The SCC published a final order on November 25. The SCC authorized a $775 million rate increase to be phased in over two years. The rate increase will result in a 7.5% monthly bill increase for residential customers effective January 1, 2026, followed by an additional 1.5% increase effective January 1, 2027. The SCC estimates that the rate increase will add $13.60 to the monthly bill for a residential customer using 1,000 kWh.
The SCC’s order also approves a new rate class for data center customers with demand above 25MW. The new rate class includes minimum demand charges and other terms and conditions designed to protect non-data-center customers from stranded cost risks. The SCC also directed Dominion to begin the process of changing the way it allocates generation costs among customer classes. Dominion is directed to file a revised cost allocation proposal as part of its next biennial rate review.