Dominion Energy customers will notice a new fuel-related surcharge on bills starting this month, and part of that added cost could remain for years.
The added amount begins with an $8 monthly fuel charge over the coming year, and a separate smaller fee may remain on bills for as long as 10 years.
What's happening?
In a letter to customers, Dominion said the new charge is meant to recover more than $1 billion in fuel expenses that remain unpaid after a year of higher fuel prices and electricity purchases from outside suppliers, WTVR reported.
Rather than move forward with the roughly $22 monthly increase that the company had previously forecast for a one-year period, Dominion decided to finance the costs using deferred fuel cost bonds.
According to WTVR, that interest on the bonds will add another $1.80 per month as early as October, and that part of the bill is expected to stay in place for 10 years. Separately, customers will pay an $8 monthly fuel charge for the next 12 months.
To help cover the $1.1 billion in unrecovered fuel costs, a typical household using 1,000 kilowatt-hours each month will pay about $312 over time, according to Dominion's estimate cited by WTVR.
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Why do rising energy costs matter?
For many households, even a relatively small bill increase can make a noticeable difference in a monthly budget.
Weather is another factor that could raise costs, Dominion says, because the new surcharge comes on top of normal power consumption. During a heat wave, households using more electricity for AC could get hit with both higher usage and the added fee.
Spreading the cost out through bonds softens the immediate blow compared with a $22 monthly jump, but it also means some of the expense will linger for years in the form of interest payments.
"I don't like to see my bill go up in any way, shape, or form," Dominion customer Mike Uzel said, per WTVR. Dominion customer Margaret Murphy added, "The cost of living is so high already, that a higher electricity bill is not something we need right now."
What's being done?
According to WTVR, Dominion says it's trying to rely less on outside electricity purchases by generating more of its own power and adding transmission lines.
Customers will be able to comment on the fuel factor charge during an online public hearing on Aug. 11. Anyone who wants to speak must contact the commission by August 5.
The hearing gives customers a chance to put their concerns on the record as regulators review how these costs are being passed along.
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