Dominion Virginia Power seeks rate increase for projected higher fuel costs

Dominion Virginia Power, a unit of Dominion Resources (NYSE: D), has asked the Virginia State Corporation Committee to approve a fuel rate increase to compensate for a projected increase in fuel prices and customer demand by July 2014. The increase would be the company’s first in two years.

The increase, which would occur July 1, would increase a monthly 1,000 KWh bill $2.36, raising the bill from $108.39 to $110.75. Dominion stated in a release the company does not earn a profit on what it collects for fuel, which comprises about 25 percent of a typical residential bill, and passes any cost savings or increases directly to customers.

The company also has several other rate increases that will occur or are proposed to occur by Sept. 1. The SCC has approved a 19 cent increase in the typical monthly residential bill, which went into effect May 4, and a $1.32 monthly increase is proposed to begin Sept. 1 pending SCC approval of the Brunswick County Power Station and transmission-related costs.

Read more financial news