The Virginia State Corporation Commission (SCC) is calling for public to have their say on Dominion Energy’s plan to raise base rates, monthly fuel rates, and introduce new rules for high load users, such as data centers.
Dominion is seeking a significant revenue boost: $822 million in 2026 and an additional $345 million in 2027. To hit those numbers, the company is proposing hikes that could significantly increase bills by 2027.
Meanwhile, Dominion claims it’s trying to also shield smaller customers from costs tied to large energy users, like data centers.
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Proposed Hikes
As part of its 2025 biennial review, Dominion has proposed raising the monthly fuel rate by $10.92 starting July 1, meaning higher bills could be on the way in less than two months.
Dominion is also proposing to raise base rates by 6.1% beginning January 1, 2026. According to the Dominion, for the average residential customer using 1,000 kilowatt hours monthly, the average bill is currently $140, and there would be an $8.51 monthly bill increase.
According to the SCC, Dominion’s overall plans would lead to a $14.73 a month increase in 2026 for a residential customer using 1,000 kilowatt hours.
Beginning January 1, 2027, Dominion wants an incremental increase of 1.3%, which the company says will cost an extra $2.00 per month. The SCC says that monthly increase will be $4.84.
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Ed Baine, president of Dominion Energy Virginia claims, as of March 1, the company’s rates are 13.75% below the national average. He said there was a $350 million rate cut in 2023 and approving this request mark Dominion’s first base rate increase since 1992.
Baine said the base rate increase is needed for investments in generation and distribution, inflation in the cost of goods and labor, as well as increases in employee-related costs, including pensions.
“We do not ask for this lightly, as we understand the economic pressures on our customers and the need to maintain rates that are cost-effective and a good value for them,” he told the SCC.
High Load User Proposals
Dominion’s proposal includes a new rate class, GS-5, for high load users—customers with a demand of 25 MW or more and a 75% load factor. Currently, this would apply to 139 accounts, including almost all data centers, according to Dominion. But the measure isn’t exclusively for data centers.
According to Dominion, it’s a part of the company’s philosophy that large industrial users need to “pay their fair share” without burdening smaller customers.
The high load proposal allows Dominion to impose minimum demand charges on large users to reduce risks of those operations underusing capacity.
Dominion also wants a 14-year minimum contract term, new deposit/credit requirements, and exit fees to prevent “stranded” costs, which expenses left on the backs of customers if investments are made for large users who then then scale back. According to Dominion, the rapid growth of data centers is projected to quadruple energy demand by 2040, requiring hefty grid investments.
Dominion insists the proposed high load rules aren’t meant to scare off large businesses. On the contrary, Baine said adding large loads to the system can promote long-term affordability
Have Your Say
The SCC invites public feedback. The case is PUR-2025-00058.
Submit written comments by August 26, 2025, via scc.virginia.gov/casecomments/Submit-Public-Comments or by mail to: Clerk of the SCC, P.O. Box 2118, Richmond, VA 23218-2118.
To speak at the public hearing on Sept. 2, pre-register by August 26 at scc.virginia.gov/pages/Webcasting or call 804-371-9141.
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