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Dominion Virginia Power Files Rate Case ( Jan. UPDATE) Dominion Virginia Power announced on March 31, 2009 a series of rate filings with the State Corporation Commission (SCC) to meet customer's energy needs through new electric infrastructure and energy conservation programs. The SCC must approve the requests before the utility can place the new rates in effect. If all requests are approved, the net result of the requests would be a 6.9 percent increase in rates for a typical residential customer phased in over the next 14 months. Industrial rates generally increase at a higher percentage rate because of their higher load factor. Five filings, which each must be approved by the SCC before it can take effect, include:
The base rate increase that went into effect September 1 has been folded into Case # PUE-2009-00019 for a 2009 statutory review of the rates, terms and conditions for the provision of generation, distribution and transmission services pursuant to VA Code section 56-585.1 A. The SCC staff filed testimony recommending a reduction in Virginia Power's electric rates of $365.3 million a year. Virginia Power earned $523.7 million more than it needed to cover its cost of operation and make a reasonable profit in 2008, the company's last full year of operation under consideration. These earnings translated into a 19.12 percent return on average equity and the staff recommended that the company's rates be based on a rate of return of 10.2 percent. The commission last set Virginia Power's rate of return at 11.4 percent, in 1992. In their March, 2009, the company requested an authorized rate of return of 13.5 percent. The company, the State Attorney General's Office and a small group of large customers proposed a "settlement" that would freeze rates at the pre-Sept. 1 level with a refund of the interim increase which went into effect Sept. 1. This "settlement" would give the company a return on equity of 11.9 percent. If the SCC accepts the staff findings, a refund of $295.8 million for 2008 excess earnings would be applicable or an annual rate reduction of $365.3 million could be ordered. This rate case went to Hearing before the SCC on Jan. 20, 2010. | State By State Comparison, Residential, Commercial, Industrial Electricity Rates Jan/2010 Update |