Dominion gets OK for 1st of proposed rate hikes

Dominion Virginia Power has received approval from state regulators to add a new charge of $1.20 for residential customers using 1,000 kilowatt hours of electricity per month, starting Sept. 1.

The new charge is the first of several proposed Dominion rate changes. Known as Rider T, it covers some costs that Dominion incurs to operate its transmission system and connect to the regional grid. In the past, Dominion has built those costs into its base rates as part of its overall operating expenses. Dominion had proposed collecting about $78 million outside the base rates through Rider T, which would have amounted to a $1.26 monthly charge. The State Corporation Commission allowed Dominion to collect $10 million less than its proposal, reducing the rate to $1.20.

Dominion plans to add that $10 million back into its request for new base rates, said Chet Wade, a Dominion spokesman. The company already has asked to raise its base rates and add another $6.29 to monthly bills for 1,000 kilowatt hours of usage, starting Sept. 1.

Dominion also planned to put into effect today a reduction in its fuel-supply rates, cutting bills by $3.64 for a customer using 1,000 kilowatt-hours. The commission's public hearing on the fuel rate is scheduled for July 16. Dominion may decrease the rate and adjust it retroactively if the commission later approves a different amount.

Two other Dominion charges, to pay for construction of two new power plants, would go into effect Jan. 1 with the commission's approval.

Carolyn Shapiro, (757) 446-2270, carolyn.shapiro@pilotonline.com