(The Center Square) – Electricity bills are rising in Virginia, and a new report is pointing to several reasons why.
The report, released by Clean Virginia, says a mix of policy decisions, infrastructure needs and outside cost pressures are pushing bills higher for households and small businesses.
The report says part of the increase comes from how utilities pass costs on to customers through state-approved rates.
It also says fuel prices and growing demand for electricity are adding pressure, including expansion tied to data centers.
Clean Virginia Executive Director Brennan Gilmore said the issue is not tied to one cause but reflects several factors working together.
“There is not a singular force to blame for climbing energy costs, but a number of interlinked causes that must be addressed comprehensively to seriously address the energy affordability crisis,” Gilmore said in a statement.
Recent action from the State Corporation Commission shows how those pressures are showing up in monthly bills.
In a November biennial review, the State Corporation Commission rejected Dominion Energy’s full request but approved rate increases based on costs it determined were reasonable.
The decision is expected to raise bills for a typical residential customer by about $11.24 per month, or 7.5%, in 2026, followed by an additional $2.36, or 1.5%, in 2027. Estimates included in the report project a typical monthly bill of at least $175 in 2026.
The commission said it is required by law to set rates that allow utilities to recover reasonable and prudent costs while earning a fair return.
Virginia’s electric system operates under that structure, where utilities serve set territories and rates are reviewed by the commission.
A 2023 analysis from the Joint Legislative Audit and Review Commission projected significant growth in Virginia’s electricity demand, with data centers identified as a primary driver.
The issue also came up during the recently completed General Assembly session, where lawmakers considered changes tied to utility oversight but did not move forward with major reforms.
House Bill 1075, which would have required additional review and reporting tied to utility rate decisions and system costs, was continued to 2027 in the Senate Commerce and Labor Committee.
The Clean Virginia report recommends changes to how utilities are regulated, including more oversight of spending and adjustments to how costs are shared among customers.
For many Virginians, the issue comes down to monthly expenses as energy bills take up a larger share of household budgets.
The Center Square was unsuccessful prior to publication getting comment from Dominion Energy.
