Virginia Natural Gas rate hike approved despite disproportionate harm to low-income ratepayers

FOR IMMEDIATE RELEASE
December 19, 2025

CONTACT
Dan Radmacher, Media Specialist, (276) 289-1018, dan@appvoices.org

RICHMOND, Va. — This week the State Corporation Commission approved another utility rate hike, this time for gas distribution company Virginia Natural Gas. 

VNG requested the rate increase (its third in the last six years) due to capital costs associated with system growth as well as other investments, including its environmental justice initiatives. 

SELC represented Appalachian Voices, The New Virginia Majority, and Virginia Organizing in the SCC proceeding. The groups opposed the requested rate hike and asked that the commission require VNG to take measures to improve its environmental justice efforts, including by protecting low-income rate payers from disproportionate impacts from rate increases like the one proposed. Additionally, they asked the commission to investigate the marketing practices driving VNG’s growth. 

“Here you have a gas company wanting to increase its delivery charge by more than 25%, and it’s not considering or making meaningful efforts to blunt the impact on low-income communities — communities that everyone knows will be hit the hardest,” said Elizabeth Putfark, associate attorney at SELC. “That’s flatly inconsistent with the Environmental Justice Act. Meanwhile, VNG wants to keep doing the very thing that’s driving up rates — expanding. And it’s fueling that expansion with advertising that misinforms people about the price of gas relative to cleaner, cheaper electric alternatives.” 

Ultimately, the commission approved a lower rate increase than VNG initially proposed, accepting the modified revenue requirement stipulated to by both VNG and SCC staff. As a result, customers will receive a refund, plus interest, for the interim rates they have paid since Jan. 1, 2025. But the commission stopped short of requiring the company to take any steps to protect low-income and historically marginalized communities from suffering disproportionate burdens due to the rate hike. 

“This decision locks in higher bills for working families while offering them no new protections,” said Carl Poole, New Virginia Majority organizer for Norfolk. “A one-time refund doesn’t fix a system that keeps asking low-income customers to pay more without a safety net.” 

“Virginia Organizing is disappointed by the SCC’s decision in the Virginia Natural Gas rate case. Our members are already struggling with their energy bills and cannot afford another increase, even if marginally less than requested by the utility,” said Patrice Smallwood, chairperson of Virginia Organizing’s State Governing Board member of its Norfolk chapter. “We’re also sad to see our environmental justice concerns largely dismissed. Seemingly, utility companies need only make a performance of environmental justice to satisfy the law when substantive action is what is really required.” 

“It is disappointing to see yet another utility rate increase approved,” said Appalachian Voices’ Director of State Energy Policy Peter Anderson. “While folks are feeling the impact of higher prices across the board, a rate increase like this obviously hurts low-income customers more than anyone else. We will continue to push for systemic changes that make energy cleaner and more affordable for everyone.”

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