On May 29, 2026, Dominion Energy Virginia filed a petition, pursuant to § 56-249.6:2 of the Code of Virginia, for authority to refinance certain unrecovered (or “deferred”) fuel cost balances by issuing “deferred fuel cost bonds.” Dominion’s petition cites 2026 legislation that authorizes the utility to request SCC approval to securitize a portion of its deferred fuel costs by filing a petition on or before July 15, 2026.
Dominion is authorized to recover all prudently incurred fuel costs through its fuel recovery rider, called the “fuel factor.” Dominion, however, projects that it will have an unrecovered fuel balance of approximately $1.1 billion by June 30, 2026. This large balance is due to multiple factors, including higher fuel prices and extreme winter temperatures. Dominion states that if its deferred fuel costs were recovered over a one-year period through the fuel factor, a typical residential customer using 1,000 kWh per month would experience an average bill increase of approximately $21.79. Dominion states that proceeds from the bond issuance would be used to satisfy its unrecovered fuel balance at a lower cost to consumers. The actual costs to consumers, however, would depend on the interest rates on the bonds at the time of issuance and the final maturity date of the bonds.
The SCC published a procedural schedule on June 12. The SCC will hold an evidentiary hearing on August 12. The statute directs the SCC to issue a final order within four months of the filing, or by September 29, 2026.
Please contact us if we can answer any questions about this pending matter.
