Dominion Energy offices in Richmond, Va. (Parker Michels-Boyce/ For the Virginia Mercury)
Virginia utility regulators have approved a settlement in the state’s review of Dominion Energy’s earnings between 2017 and 2020.
The settlement, which was first announced last month, will send $330 million in refunds back to ratepayers and reduce the company’s annual rates by $50 million, the maximum amount allowed under the Grid Transformation and Security Act passed by the General Assembly in 2018.
The average residential ratepayer is expected to receive approximately $67 in refunds in the form of bill credits over the 2022-23 period and will also see their monthly bill decline going forward by approximately 90 cents starting in about two months.
Dominion shareholders will also see returns rise under the settlement, which raises the utility’s return on equity from its current level of 9.2 percent to 9.35 percent.
In an order issued Thursday afternoon, the State Corporation Commission concluded that the settlement “taken as a whole, is in the public interest” and “comports with statutory requirements.”
Prior to the filing of the settlement with the SCC on Oct. 18, Dominion’s rate case — its first since 2015, when the General Assembly froze rates for Dominion and Appalachian Power Company — was gearing up to be the utility’s biggest fight of the year. Among the issues expected to be litigated were claims by the Office of the Attorney General and SCC staff that the electric utility had taken in almost $1 billion in profits above what the law allows between 2017 and 2020.
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