Dominion wants to reduce electricity bills
Dominion Virginia Power is asking the State Corporation Commission to reduce electric bills for its customers starting April 1.
Under the request, the average residential customer would see a 5.5 percent reduction in his or her bill, while commercial and industrial customers would see a 7 percent and 10 percent reduction, respectively.
That means the typical residential customer, who uses 1,000 kilowatt hours per month, would pay $109.55 per month, or $6.40 less than before.
Most of the reduction, the company said, stems from a drop in fuel rates. As part of state legislation signed into law this week, Dominion agreed to accelerate a drop in rates for customers.
Under the new law, the company’s base rates will be frozen through 2019, but it won’t have to refund customers if it over collects on fuel payments. Dominion has said that the base-rate freeze will help the company respond to stricter Environmental Protection Agency regulations, which could force the company to close some of its coal-fired power plants.
Dominion’s reduction in rates also includes a decrease in construction costs and the low cost of natural gas. Dominion’s Bear Garden plant in Buckingham County was finished in 2011, and the Warren County Power Station came online in December 2014. Another natural gas-fired plant under construction is expected to begin commercial operation in May 2016.