Dominion customers to see rate increase, though SCC takes steps to ensure data centers pay fair share

FOR IMMEDIATE RELEASE
November 25, 2025

CONTACT
Dan Radmacher, Media Specialist, (276) 289-1018, dan@appvoices.org 
Tasha Durrett, 571-405-1101, tdurrett@selc.org

CHARLOTTESVILLE, Va. — Today, Virginia’s State Corporation Commission issued a final order in Dominion Energy’s rate case. While the commission approved a substantial rate increase, it is significantly lower than what Dominion had requested. The commission also took a number of steps aimed at mitigating burdens on residential customers, while placing more financial responsibility onto the utility’s largest customers — primarily data centers — who are necessitating increased investment. Importantly, the commission approved a new rate class for these large energy users with much stronger financial requirements, and also required Dominion to shift away from its current cost allocation methodology, which is placing far too high a burden on residential customers.

SELC represented Appalachian Voices in the proceeding and issued the following statement following the final order:

Appalachian Voices Director of State Energy Policy Peter Anderson:
“Data centers and other large energy users create a special set of risks, and we are pleased to see the commission engage with these emerging issues here in Dominion’s rate cases. Residential customers should not be subsidizing these wealthy companies, and Virginians are relying on the commission to address these fundamental questions of fairness.”

SELC Senior Attorney Nate Benforado:
“In today’s order, the commission has recognized that data center growth in Virginia necessitates major changes to our rate system. Bills are already increasing for residential customers and there is growing evidence that data centers have been getting a sweet deal under the current system. Hopefully, this order represents the beginning of a suite of changes aimed at protecting customers from the risks and costs that are being driven almost singlehandedly by data centers. Today’s decision is a good start but there is so much more to be done.”  

Key takeaways from today’s order:

• The commission approved a revenue increase for Dominion of $565.7 million in 2026 and $209.9 million for 2027. While these increases are substantial, they are significantly lower than Dominion’s request, which would have increased by $822 million in 2026 and $346 million in 2027. As approved, a typical residential customer will see an increase of $11.24 a month in 2026 and an additional $2.36 increase in 2027.

•  The commission approved a return on equity of 9.8%, lower than Dominion’s requested 10.4%.

•  The commission ordered Dominion to transition away from its current cost allocation methodology for generation costs (called “average & excess”). Other methodologies will likely reduce the burden on residential customers, who are not driving the need for new infrastructure, and put more responsibility on large customers like data centers, who are creating the need.

• The commission also recognized that large load customers contribute less towards transmission costs than other customer classes and ordered Dominion to develop and propose alternative cost allocations for transmission related costs in the next transmission rider proceeding.

•  The commission approved Dominion’s methodology for calculating the fixed customer charge, although Appalachian Voices had presented an alternative method through its expert, John D. Wilson of Grid Strategies, LLC, that would have further reduced residential customer burdens.•  The commission approved a new rate class for large energy users, with significantly improved customer protections as compared to the status quo. Given the speed and scale of data center growth, this is a critical step to ensuring data centers in Virginia help pay for the investments they are causing.