The Virginian-Pilot
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Dominion Virginia Power has agreed to drop a group of requested rate increases and refund customers more than $129 million under an arrangement with the Virginia attorney general's office.
The plan would reduce the current bill of a residential customer using 1,000 kilowatt-hours of electricity per month by $6.33 to $102.90, not including taxes or surcharges. It also would include a one-time credit of about $24 on that customer's bill.
Dominion has estimated that residential customers will see an average savings of $80 through the end of next year if the deal is approved by the State Corporation Commission.
The attorney general's division of consumer counsel filed the agreement with state regulators to resolve Dominion's pending rate cases. In March, Dominion proposed a series of rate increases to take effect this year and next year.
Those proposals included a boost in base rates, which cover the Richmond-based company's operating costs, plus a return on its investments. The company also asked to add three "riders" to customers' bills to help cover certain transmission fees and its costs to build two power plants.
The state's consumer counsel, which represents Virginia residents in utility rate cases, concluded that Dominion had earned $268 million more than it should have in 2008.
Under the deal, Dominion agreed to use that $268 million to cover the amount it would have collected through rate increases.
The one-time credit includes $129 million in excess fuel-related revenue that the attorney general's office believes Dominion should return to customers.
"In these difficult economic times, we believe that the interests of Virginia's consumers are best served by the return of their hard-earned dollars and avoidance of rate adjustment increases now," Attorney General Bill Mims said in a statement released Thursday evening.
Under the agreement, Dominion would drop its proposal to raise base rates, which amounted to $5.22 for the customer using 1,000 kilowatt-hours per month.
That base rate went into effect on Sept. 1 on an interim basis while Dominion awaited approval from the commission. Dominion would refund to customers the amount it has collected from that increase.
The company also would refund to ratepayers the amount it has collected under a rider also added to bills Sept. 1 to cover some of Dominion's costs to operate its transmission system and connect to the regional grid.
The rider, which increased the bill of the customer who uses 1,000 kilowatt-hours by $1.11 and was slated to remain in place through 2010, would go away under the agreement.
Dominion also agreed to drop proposed riders to cover the construction of new power plants, which would have appeared on customer bills starting in January.
Dominion will continue to pursue a proposed rider to cover the costs of conservation programs, which would take effect in May.
Dominion accepted the plan to avoid the uncertainty of proceeding with the rate cases, which could have taken several more months, said Chet Wade, a spokesman for the state's largest electricity company.
"It provides a savings for the customers," he said, "but it provides us clarity going forward so we can plan for the long term, as well."
Carolyn Shapiro, (757) 446-2270, carolyn.shapiro@pilotonline.com
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temp power
I had them install temporary power for a project last month and was charged exactly double the rate that I paid for my last project. Was told there was an increase. 100% in less than 1 year with no notification. I am supposed to review the web site for rates. Seems to rub me wrong a little
haha
I think this is funny
VA Power Nightmare Story
A few years ago I received a $600+ electric bill for my home. Normally it would have been about $200. I called VA Power to tell them there must have been a mistake but they would not make any adjustments. The same day I placed the call I went outside and the VA Power man,was outside reading my meter again and told me he had to make another call down the road but he wanted to come back in a few minutes and check my meter because he had noticed last month that the usage was outrageous so there must be a problem with my meter. He came back shortly but told me he could not check it because someone had already been sent out to swap out the meter with another one during the time he was gone. I immediately called the State Corporation Commission to file a complaint. The SCC contacted VA Power the same day they removed the meter to have it checked but were told the meter had been destroyed and there was no way to check it so I was out of luck. I don't believe for a minute the meter had been destroyed within a few hours of it's removal. I was stuck with the $600 bill. To bad you can't switch electric companies!
You CAN SWITCH!!
It is called alternative power: If you have 2acres you can put in a wind turbine for $20,000 and never need their power lines again, heck you will generate enough power that the excess they will pay you, talk about retirement income!! There is a company in Michigan that have roof top ones that are only $5,000 installed, won't do the whole job, but most of it. And then there is solar: panels would run about the same and again the excess you generate they need to pay you for.
Now talk about the no power due to a storm, never happen again, you will sleep like a baby while your neighbor has his windows open.
$20,000 divided by $200 = 100 months or a little over 8 years to break even. You also need to start hanging out your clothes to dry, you bill would come way down to $100 a month. (just a suggestion)
WE DO HAVE A CHOICE!
Rest assured that the
Rest assured that the electric companies are moving to "smart meters" that eliminate the need for the meter readers. Some of them form a mesh network where the information is passed house to house, making it's way back to a point where the information is pushed back by internet or some other means.
So this should eliminate the reading errors when the guy is taking numbers by hand and not using a tool that gets it by infrared or radio.
The other good news is that kids everywhere will be going to town hacking the snot out of the network. My favorite part is the remote service disconnection option, where they will be able to remotely cut off the power for non payment. That means once you hack the meters, you can turn off people's power too! What? UNPOSSIBLE? 25 frequencies spread spectrum 2 bytes per frequency 900mhz ISM band, nothing is impossible.
Similar problem, different solution
We had the same sort of problem happen to us one time. We had an outrageous bill come through - about four times our typical bill. We had been in the same place six years and had kept all the previous bills. We looked back at the same month for the last six years and it clearly showed a major difference. We even checked with the weather service to see if there was an outstanding shift in temperature - which there wasn't.
We made copies of the bills and the documented temperatures of those months, wrote a letter explaining our complaint and sent it in. A month later VP called back and said they couldn't help us. So I turned the problem over to an attorney friend who wrote another letter with all the documentation. A month later we had a full refund for the overcharge. Amazing the difference when an attorney writes such a letter . . .
Dominion's situation
Dominion Power's situation is not easy: they're a regulated monopoly that has to go before the government any time they want to raise their rates, unlike other businesses that can do so at their whim. The best scenario would be a number of equal competitors for people and companies to choose from so market forces could determine pricing instead of the government. The cost for setting up equal competitors is prohibitive though, and Dominion knows it and they LIKE being a monopoly, even with the limitations it has to deal with.
In this case, the heads of the power company saw the writing on the wall - and cut their rates. Their massive PR campaign to get people to think 'poor, poor power company' didn't work at all. They knew regulators weren't going to go along with any increases, at least not this time.
Not Easy?
"Dominion Power's situation is not easy....."
Come on, they are guaranteed a profit! Many companies are bleeding red ink all over their P/L statements and are fighting to make ANY profit! If fuel costs go up, pass it on. If they want to build a power plant, pass it on. More transmission lines, pass it on. Increased regulatory issues (future cap and trade), pass it on. I think that IS a pretty easy way of doing business. I shed no tears for Virginia Power.
Think about it
How would you like to run a company, own it lock stock and barrel, and every time you wanted to raise rates the slightest amount you have to go to the government with a petition fully documenting why you need the increase - and hope they'll grant you the increase? That is the situation Dominion Power finds itself in. That is why they dump so much money into PR campaigns so that when they do ask for an increase, people won't be screaming about it. I don't doubt they do make money: that's what private corporations are there to do: make money. But they have to jump through a lot of hoops with the government to make that money. Now if they did get away with deregulation, you can bet everyone's rates would double if not quadruple. Unless at least two other sources of power can be set up to equally compete with Dominion Power, all of us are stuck with the current system.
Barrett cannot help himself
Mike Barrett cannot help himself. He just can't. He can turn any article in a referendum on transportation. The election is over Mike and all of your cronies lost. But you are amusing, nonetheless.