Boost to electric rate would sting

By Uriah A. Kiser

Published: May 28, 2008

STAFFORD —Dominion Virginia Power is looking to get more money from its customers.

The state’s largest energy provider says that fuel costs in the areas of natural gas, coal, oil and uranium have increased more than 200 percent since 2004, and the agency needs to pass the increase along to its customers.

The State Corporation Commission must approve the 18 percent rate increase that the company would like to see take effect July 1.

Dominion is also proposing a deferral of $697 million in fuel costs, which wouldn’t be collected until January 2009.

“We recognize the impact higher energy costs are having on our customers, and we are committed to doing everything to ease the burden,” said David Heacock, president of Dominion Virginia Power, in a released statement.

If approved, the company says this would be the first rate increase they have passed along to their customers since 2004.

A customer who uses at last 1,000 kilowatt-hours per month would see a $16.61 increase, with their bill totaling $107.20.

In the wake of the proposed increase, the company says they have given businesses the option to enroll in a program that would “levelize” their monthly bill, similar to the budget billing option made available to residential customers.

According to Dominion, energy conservation is a key factor in its plan to raise energy costs. Dominion is providing discounts to customers who purchase energy-saving compact fluorescent light bulbs at Home Depot stores.

Representatives from Home Depot in Doc Stone shopping center confirmed the existence of the rebate program, but declined to elaborate.

“I don’t like the fact that people are wasting our resources,” said Betsy Ryan of Stafford.Ryan said she switched to using energy-efficient light bulbs more than three years ago. While effective, she said the switch was not easy.

“The first bulb I replaced only burned for about six weeks, so I called the company who made the bulb and had them replace it,” said Ryan.

Ryan said that any rate increase would be difficult to absorb, as she is already paying more than $200 per month in electric costs to Dominion. She said she also worries about senior citizens on fixed incomes who already struggle to pay utility costs.

Dominion officials say they are also are looking into wind energy in Illinois and West Virginia, in an effort to keep energy costs down.

The SCC has set up public hearing on the rate increase set for June 24 in Richmond.