Report: Policy decisions, infrastructure pushing up electric bills

A recent report from Clean Virginia claims that electricity bills are rising in Virginia due to a combination of policy decisions, infrastructure needs, and external cost pressures, significantly including the growing demand from data centers. Brennan Gilmore, Executive Director of Clean Virginia, stated that the issue stems from several interlinked causes that require comprehensive solutions to address the energy affordability crisis. The report recommends changes to utility regulation, such as increased oversight of spending and adjustments to how costs are shared among customers. Dominion Energy has countered Clean Virginia's report, calling it "factually wrong." The utility asserts that its residential rates have remained below the national average for over a decade and have increased at a slower pace than inflation. Dominion attributes recent price increases to broader national trends, including colder weather and rising fuel and equipment costs, while highlighting its expanded customer assistance programs and support for legislation aimed at reducing energy costs. Evidence of rising costs is reflected in a recent State Corporation Commission (SCC) decision, which, in a November biennial review, approved rate increases for Dominion Energy based on deemed reasonable costs, though it rejected the company's full request. This decision is projected to increase typical residential customer bills by about $11.24 per month (7.5%) in 2026, with an additional $2.36 (1.5%) increase in 2027. A 2023 analysis by the Joint Legislative Audit and Review Commission (JLARC) had previously forecasted substantial growth in Virginia's electricity demand, identifying data centers as a primary contributor. Despite legislative consideration during the recent General Assembly session for changes tied to utility oversight, major reforms, including House Bill 1075, did not advance.