Rate increases · Dominion Energy Virginia

Why is my Dominion Energy Virginia bill going up in 2025–26?

Your Dominion Energy Virginia bill went up, and it's not your imagination or just the AC. Virginia works differently — no supplier auction. Dominion recovers costs through a 'fuel factor' plus base rates set at the State Corporation Commission. The July 2025 fuel increase (~$10.92/mo) cites rising PJM capacity costs.

The key facts

  • Dominion Energy Virginia's fuel factor + base rates rose , effective July 1, 2025.
  • For a typical 700 kWh home, that's roughly $10.92 more a month (estimate — your bill depends on your usage).
  • The driver is the PJM capacity market, where the price spiked from $28.92 to $269.92/MW-day (about 830%).
  • Dominion Energy reported about $2.0 billion in 2024 profit — but not from this supply charge (it's a pass-through). See the Dominion Energy Virginia Report Card →

Source: Virginia SCC — Dominion fuel case (PUR-2025-00059). Rates reset on a schedule — confirm the current figure before relying on it.

Rate change timeline — Dominion Energy Virginia

When What changed Bill impact
1992 Last base rate decrease before the 2026 increase Dominion held base delivery rates flat for 30+ years
Jul 1, 2025 Fuel factor increase approved (SCC Case PUR-2025-00059) +$10.92/month for a typical 1,000 kWh residential customer
Jan 1, 2026 Base rate increase approved (SCC Case PUR-2025-00058): $565.7M of $822M requested +$11.24/month — first base rate increase in Virginia since 1992
2027 (planned) Scheduled second step of same SCC base rate case +$2.36/month additional

Source: Virginia SCC — Cases PUR-2025-00059 (fuel factor) and PUR-2025-00058 (base rates). Figures are for a typical 1,000 kWh/month residential customer.

What's actually driving it

Think of the PJM capacity market as a retainer fee. Every year the regional grid operator pays power plants to promise they'll be available on the worst-demand days — the January cold snap, the August heat wave — even if they sit idle the rest of the time. You're not paying for electricity here; you're paying to keep the plants on call. That retainer spiked, and it flows onto the supply line of your bill.

The price went from $28.92/MW-day to $269.92 (about 830%), and the latest auction cleared even higher at $329.17 — the cap. Why? Electricity demand is rising fast — led by data centers, plus electrification and economic growth. Older power plants are retiring faster than new ones can connect to the grid. Source: PJM Interconnection — 2026/2027 Base Residual Auction results (July 2025).

Is Dominion Energy Virginia pocketing this?

This lands on the supply (generation) part of your bill, which on a default/standard rate is a pass-through — your utility buys the power and bills it through with no markup. The utility's own profit lives in the separate delivery (distribution) charge, set in a rate case.

Where the utility's profit does live: On top of fuel, the SCC approved a base-rate increase (PUR-2025-00058): about +$11.24/mo in 2026 and a further +$2.36/mo in 2027. That's the part worth scrutinizing — and the part you can comment on at the commission before it's approved.

What's on your Dominion Energy Virginia bill

A Dominion Energy Virginia bill isn't one charge — it's a stack of line items called riders. Some pass through costs with no utility markup (supply, fuel); others are where the utility earns its regulated return (delivery/distribution). Understanding which is which helps you know which ones the commission actually controls.

Supply / generation charges

Fuel Factor Passes through the monthly cost Dominion pays to generate electricity (natural gas, nuclear, coal, renewables). Adjusts monthly via SCC review. This charge rose about +$10.92/month effective July 1, 2025 (SCC Case PUR-2025-00059) due to PJM capacity costs.
Deferred Fuel Cost Charge Recovers prior-period fuel costs that Dominion paid up-front before billing customers. When fuel costs spike (as in 2025), this charge can carry the overage into future bills over time.

Delivery charges

Distribution Service Charge (DSC) Pays for the local poles, wires, and transformers that physically deliver power to your home. This is the largest delivery-side charge and the one Dominion earns a regulated return on. It increased as part of the SCC's January 2026 base rate order (PUR-2025-00058) — the first base rate increase since 1992.
Transmission Charge Pays for the high-voltage interstate transmission lines that move bulk power across the PJM grid. Set by FERC, not the Virginia SCC. Appears as a separate rider on your bill.

Regulatory & administrative

Electric Supply Service Charge (ESS) A small administrative fee covering the cost of managing Dominion's default electric supply procurement. Typically a few cents per month.
Renewable Portfolio Standard (RPS) Rider Funds Dominion's compliance with Virginia's renewable energy mandate — buying or retiring Renewable Energy Certificates (RECs) to meet the Virginia Clean Economy Act requirements.

Infrastructure & clean energy

Grid Transformation Rider Recovers capital costs for Dominion's SCC-approved 10-year grid modernization program: smart meters, substation upgrades, distribution automation, and preparation for electric vehicle and data center load growth.
Offshore Wind Rider Recovers Dominion's capital and financing costs for the Coastal Virginia Offshore Wind (CVOW) project, approved by the SCC as a rider under the Virginia Clean Economy Act.

Estimated Dominion Energy Virginia monthly bill by usage

These are ESTIMATES — see the note below before using these figures.

Monthly usage (kWh) Estimated total bill
500 kWh ~$95/month
750 kWh ~$139/month
1,000 kWh ~$183/month
1,250 kWh ~$227/month
1,500 kWh ~$271/month

⚠ ESTIMATES based on Virginia's 2024 EIA average residential rate (~16.43¢/kWh) plus the SCC-approved January 2026 base rate increase (~+1.1¢/kWh at 1,000 kWh). Basic customer charge ($7.58/month verified from Dominion Schedule 1) included. Does not account for seasonal rate variation, all individual riders, or taxes and fees. Verify your exact rate on your bill or at dominionenergy.com.

What you can actually do

  • Check usage vs. rate. A higher rate and a hot month stack up. Pull your kWh from last month and compare it to the same month last year — it tells you how much is the rate and how much is the weather.
  • Engage the rate-case process. Virginia has no retail supplier to switch to, so the rate itself is set at the state commission. Public comment and the state's consumer advocate are where ratepayer pushback actually lands.
  • If the bill is more than you can cover, there's real help — assistance programs, payment plans, and your shutoff protections. Bill help in Virginia →

The fuller picture on Dominion Energy Virginia

A rate increase is one number. Here's the context most coverage skips: in 2024, Dominion Energy Virginia disconnected about 15.5 households per 100 customers for nonpayment. Its parent, Dominion Energy, cleared about $2.0 billion in 2024.

See the full Dominion Energy Virginia Report Card → Compare every utility on rates, reliability, disconnections and profit →

Common questions

How much is the Dominion Energy Virginia rate increase?
Dominion Energy Virginia's fuel factor + base rates rose effective July 1, 2025. That's roughly $10.92 more a month for a typical 700 kWh home.
Why is my Dominion Energy Virginia bill going up?
Virginia works differently — no supplier auction. Dominion recovers costs through a 'fuel factor' plus base rates set at the State Corporation Commission. The July 2025 fuel increase (~$10.92/mo) cites rising PJM capacity costs.
Is Dominion Energy Virginia making more profit from this?
Not from the supply increase itself — that's a pass-through with no markup. Dominion Energy (the parent company) reported about $2.0 billion in profit in 2024, but that comes from the delivery/distribution side and its other businesses, not from marking up the power you buy. This lands on the supply (generation) part of your bill, which on a default/standard rate is a pass-through — your utility buys the power and bills it through with no markup. The utility's own profit lives in the separate delivery (distribution) charge, set in a rate case.
Can I switch suppliers to avoid the Dominion Energy Virginia increase?
No — Virginia doesn't have retail electricity choice, so there's no supplier to switch to. The real levers are cutting usage and engaging in the rate-case process at the state commission.
Did Dominion Energy raise their rates for Virginia?
Yes. The Virginia SCC approved Dominion Energy Virginia's first base rate increase since 1992 in Case PUR-2025-00058: +$11.24/month for a typical residential customer (1,000 kWh) effective January 1, 2026, plus a further +$2.36/month step in 2027. A separate fuel factor increase of +$10.92/month also took effect July 1, 2025 (SCC PUR-2025-00059).
Why is Dominion Energy going up so much?
Three forces stacked: (1) PJM capacity costs — the grid's retainer fee for backup power — cleared at $329/MW-day in 2025, the highest in PJM history, flowing into Dominion's fuel factor. (2) Northern Virginia's massive data center growth is driving grid infrastructure investment. (3) The Virginia Clean Economy Act mandates offshore wind and grid modernization that Dominion recovers through SCC-approved riders. The SCC cut Dominion's requested $822M package to $565.7M, but the approved amount still produced the largest Dominion residential rate increase in decades.
What is the Distribution Service Charge on my Dominion bill?
The Distribution Service Charge (DSC) is the delivery-side rider that pays for the local poles, wires, and transformers bringing power to your home. It's the portion of your bill Dominion earns a regulated return on — not a supply pass-through. The DSC increased under the SCC's January 2026 base rate order (Case PUR-2025-00058). The SCC biennial review process is where the DSC gets scrutinized and set.
Why has my electric bill suddenly doubled?
Two increases hit within seven months of each other: the July 2025 fuel factor increase (+$10.92/month) and the January 2026 base rate increase (+$11.24/month). Together they add about $22/month for a typical 1,000 kWh customer before seasonal usage. Hot summers and cold winters amplify the per-kWh impact because you're using more kWh at a higher rate. Virginia has no retail supplier choice — the main levers are reducing usage and engaging the SCC rate-case process.

Dominion Energy Virginia — service territory

Dominion Energy Virginia serves roughly 2.7 million customers across most of eastern and central Virginia. Major regions:

  • Northern Virginia: Arlington, Fairfax, Loudoun, Prince William, Stafford counties; Cities of Alexandria, Falls Church
  • Central Virginia: Richmond metro, Charlottesville
  • Hampton Roads / Tidewater: Virginia Beach, Norfolk, Newport News, Chesapeake
  • Eastern Virginia and the Northern Neck

Appalachian Power (AEP) serves western Virginia (Roanoke, Lynchburg, and the Appalachian region) — a separate utility with separate rates. See Appalachian Power →

Last reviewed June 18, 2026. Default-supply rates reset on a schedule and rate cases move — confirm the current figure with Virginia SCC — Dominion fuel case (PUR-2025-00059) or your bill before relying on it. Virginia has no retail supplier choice, so 'shopping' isn't an option here — the lever is usage and the rate-case process. This is general consumer information, not legal or financial advice.

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