(The Center Square) – Virginia regulators signed off on Dominion Energy’s new rate plan, but the increase they approved ended up being much smaller than what the company originally requested.
In a final order issued last week, the State Corporation Commission approved a revenue increase of $565.7 million for 2026 and $209.9 million for 2027.
Dominion had initially requested $822 million and $345 million.
For residential customers, the approved plan will raise a typical monthly bill by about $11.24 in 2026 and $2.36 in 2027.
The SCC said these increases are significantly lower than what the company proposed and reflect the minimum needed to maintain reliability.
The Commission also lowered Dominion’s profit level.
The utility asked for a 10.4% return on equity. Regulators approved 9.7% to 9.8%, which limits how much Dominion can ultimately recover from customers.
Another major change focuses on how different customer groups will share grid costs going forward, according to the final order.
The SCC also approved a new rate class for the biggest electricity users, including data centers, beginning Jan. 1, 2027.
Under the changes, certain large-scale customers will have to pay at least 85% of their contracted distribution and transmission demand.
They’ll also have to cover 60% of their generation demand.
The commissioners explained their role in a statement, saying they are required to set revenue levels that give the utility a chance to recover “reasonable and prudent projected costs” while keeping rates in check for customers. “In this case, that has resulted in an increase in rates, but not to the extent requested by Dominion,” they wrote.
Appalachian Voices said the ruling helps address long-standing concerns about how much data centers and other large users contribute to the grid.
Peter Anderson, director of state energy policy with Appalachian Voices, said in a statement that these companies “create a special set of risks,” and he welcomed the Commission’s attention to those issues.
He said residential customers “should not be subsidizing these wealthy companies” and called fairness an expectation for Virginians.
The Southern Environmental Law Center, which represented Appalachian Voices in the case, said the ruling acknowledges how quickly data center demand is reshaping Virginia’s electric system.
Nate Benforado, a senior attorney with SELC, said the commission recognized that data center growth “necessitates major changes to our rate system.” He said bills are already rising for residential customers and pointed to “growing evidence that data centers have been getting a sweet deal under the current system.”
Benforado said the decision marks the beginning of changes aimed at protecting customers from costs that are being driven “almost singlehandedly by data centers.”
Clean Virginia took the opposite view.
The group criticized the SCC’s decision, saying it will still raise bills for families already dealing with high energy costs and that Virginia’s energy regulatory system is “fundamentally broken and needs urgent repair.”
With the final order now in place, the updated rates and cost shifts will take effect over the next two years as Virginia adjusts to growing electricity demand from homes, businesses and data centers.
