Cathy Jett is the business editor at The Free Lance-Star, and specializes in covering the area's retail scene. You can email her at email@example.com.
Dominion customers to get a break
The State Corporation Commission (SCC) has approved a reduction in the fuel rate requested by Dominion Virginia Power that will take effect on Dec. 1.
The new fuel rate is 2.572 cents per kilowatt-hour (¢/kWh), which represents a decrease of 0.37 ¢/kWh from the current fuel factor of 2.942 ¢/kWh. For the average residential customer, the fuel rate decrease means the monthly bill for 1,000 kilowatt-hours of electricity will decrease $3.70, or approximately 3.3 percent.
The fuel rate is the portion of the electric bill that pays for the cost of fuel used to generate electricity and reflects the wholesale purchase and sales of power. Dominion Virginia Power is statutorily entitled to recover its prudently incurred fuel costs. This is a dollar-for-dollar recovery, and the company can make no profit on the recovery of fuel expenses.
The company’s voluntary fuel rate reduction seeks to align its 2013-2014 fuel year revenues with corresponding fuel expenses in light of recent weather conditions and fuel commodity prices.
—State Corporation Commission