FAST FIX: Dominion Virginia Power hikes typical residential electricity bills 4.1%
For those who think electricity prices are stable, even if they are relatively low by national standards, here is a potent reminder how utilities’ growing reliance on natural gas to generate power is driving up electricity rates and why they will likely continue rising.
Unless ordered otherwise, Dominion Virginia Power increased its electricity prices for typical residential customers 4.1% effective July 1, 2014. The increase is likely higher for large commercial and industrial customers. This transpired in less than 60 days from the date Dominion issued the rate hike notice.
If customers of Dominion Virginia Power did not see in their most recent bill for part of July, they’ll certainly notice it during the next billing cycle.
From Dominion’s news release:
New Dominion Virginia Power Fuel Rate Goes Into Effect
July 1, 2014 – A new interim fuel rate took effect today subject to review and approval by the Virginia State Corporation Commission (SCC). The new rate would raise the bill of a typical residential customer using 1,000 kilowatt-hours a month by 4.1 percent.
The increase was requested by the company May 2 because the cost of many power station fuels rose sharply after this winter’s extreme cold, caused by the so-called “polar vortex.” Increases for large commercial and industrial customers could be higher because proportionately larger portions of their bills are related fuel expenses.
The company also on May 2 requested a slight increase for transmission costs which would take effect Sept. 1 if approved.
Read more about their electricity rates here.