Colder weather usually means higher energy bills, but that might not be the case for the next few years. A proposed new agreement between Dominion and state government would keep costs stable until 2026 — but first, a quick recap:
The bill
Following legislation to increase Dominion’s profit margins, a proposed agreement between the power company, state government, and environmental groups is looking to cap customer base rates for the next two years.
In February, the General Assembly passed legislation making changes to Dominion’s profit model. The company’s former profit margins, as mandated by the state, were set at 9.35%. For the next two years, those profit margins have been boosted to 9.7%.
The bill’s bump for Dominion’s profits came alongside its major overhauls to Virginia’s energy system. The two-year rate is designed to allow Dominion to prepare for 2025, when the State Corporation Commission will take over control of its margins.
The agreement
Now, Dominion has reached an agreement to keep customer base rates where they are for the next two years. A group of organizations including the Office of the Attorney General, the Department of the Navy, SCC staff, Appalachian Voices, Google, Harris Teeter, and Walmart have all signed on.
Customers would also receive a one-time credit from Dominion totaling roughly $2.25 per person. These credits are another aspect of the agreement, part of a $15 million allotment.
The agreement still needs to be officially approved by the SCC.