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Dominion proposes electricity rate hike
Spike in fuel costs means higher monthly electric bills
Date published: 5/7/2008
By RUSTY DENNEN It's not just the cost of a gallon of gas that has spiked. Fallout from rising global energy prices will soon hit Virginians' electric bills. Dominion Virginia Power yesterday announced that it will seek permission from the State Corporation Commission to pass surging fuel costs along to customers, including those in the Fredericksburg area. The typical monthly residential bill--based on 1,000 kilowatt hours--would rise 18 percent, or $16.61, from $90.59 to $107.20. According to the Edison Electric Institute, the national average monthly bill is $113.56. If approved by the SCC, the proposed increase would take effect July 1. "This is a large increase. We realize that," said Mark F. McGettrick, president and chief executive officer of Dominion Generation. "It's happening pretty much across the board," he said in teleconference from Richmond. "All utilities are facing the same pressure because of fuel." Last year, Dominion got a fuel rate adjustment of about 3.9 percent, the first since 2004. McGettrick said that since 2004, prices for oil have increased 224 percent; coal, 143 percent; and natural gas, 129 percent. Electricity purchased from other suppliers went up 130 percent. Dominion is proposing several steps to lessen the financial impact on customers--from deferring a portion of the fuel costs to new billing options and energy savings. The company said it would defer recovery of about $700 million in fuel costs incurred since the July 2007 increase. Dominion would delay collecting that amount over three years, from July 2009 to June 2012. Without the deferral, the requested increase would have been 22 percent. An additional $5 million would be funneled into Dominion's EnergyShare program, which provides emergency grants to customers needing help paying heating and cooling bills. Dominion would make it easier for residential customers to enroll in its budget-billing program. It would offer a similar billing option for small and medium-size businesses, most nonprofit groups and churches, allowing them to equalize monthly payments. Energy-saving pilot programs would be expanded, such as remote controls on air conditioners.
Date published: 5/7/2008
10 Cents/month to bury the lines
(posted by
DeanFetterolf
, May 7, 2008 5:32 pm)
Dominion has publiclly stated that the cost to each customer is 10 cents per month to bury the lines.
Retaliation
(posted by
Blk97F150
, May 7, 2008 1:31 pm)
I would bet that the cost increase is Dominions retaliation for being forced to bury their power lines.
Passin' on the fuel costs
(posted by
DeanFetterolf
, May 7, 2008 1:15 pm)
How has that logic work been working for your at the gasoline pump?? About 70% of your electric bill is the cost to generate the electricity that you use. That involcves burning oil, coal, natural gas or the use of nuclear energy. Since we now use food (corn) as fuel (ethanol) you pay more for your cherrios, bread, milk, sugar, soda etc.
Utilities and fuel?
(posted by
blowinsmoke
, May 7, 2008 8:30 am)
Dominion does not come to my house on a monthly basis to "deliver" my electricity. Likewise with my other utilities so what gas am I paying for that warrants an 18% increase. I don't see where it is the customers responsibility to cover gas price increases for them to conduct their regular business routines. Take it out of profit.
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