Electric rates will drop on September 1 for Dominion Energy residential customers, lowering the rates which are already well below state, regional and national averages.
"When it comes to household expenses we know every penny counts, which is why we always strive to provide reliable energy at the best value to our customers," said Charlene Whitfield, vice-president of customer service for Dominion Energy. "We're proud of our ability to keep rates stable while still providing great service, excellent reliability and increasing our investment in renewable energy."
The typical 1,000 kWh residential monthly bill will drop by $1.55 starting Friday due largely to a $2.07 reduction in transmission costs. While the company is still upgrading and modernizing its transmission system, transmission costs assigned to residential customers declined versus the previous year.
The decrease means Dominion Energy's typical monthly residential bill is 7.0 percent below the Virginia average, 15.9 percent below the national average, 17.9 percent below the D.C. regional average and 29.3 percent below the East Coast average.
The reduced rate is the result of adjustments in the portion of customer rates supporting the transmission system, as well as other bill modifications approved by the Virginia State Corporation Commission effective September 1.
The net impact of the changes for the monthly bill for the typical Dominion Energy residential customer is a decrease of 1.1-percent, lowering the typical bill from $117.20 to $115.65, thirty cents lower than in February 2015.
Dominion Energy has made investments in renewable energy while keeping customer's rates stable. In less than three years, the company's Virginia solar portfolio has grown to 27 projects either currently operational or under development generating 444 MW of electricity across the Commonwealth. Dominion Energy's 2017 Integrated Resource Plan calls for adding at least 5,200 MW of solar in the state over the next 25 years to meet customers' energy needs.
The company also recently announced the Coastal Virginia Offshore Wind initiative, which is the first phase of a plan that could bring more than 2,000 MW of wind power to its Virginia and North Carolina customers.
The transmission rider, which covers the cost of new and upgraded transmission facilities, is decreasing at the same time as two other rate increases are taking effect. Those rate components recover the cost of solar facilities and the natural gas-powered Brunswick Power Station. Base rates, which comprise about 60 percent of a typical residential bill, remain frozen.