If you have Dominion, new, lower fuel rate takes effect today, July 1

Dominion Virginia Power customers will have lower electric rates starting today, July 1, when a new fuel charges takes effect on an interim basis, according to a news release from Charles Penn, Dominion spokesman.

For a typical residential customer who uses 1,000 kilowatt-hours a month, the reduction will be $4.35, or about 3.8 percent, Penn said.

With this adjustment, the typical residential bill will have increased by just under 4 percent since July 2008 – less than half the rate of inflation over the same eight-year period, he added.

Dominion applied with the Virginia State Corporation Commission earlier this year, and on May 17 the Commission ordered the new rate to go into effect July 1 on an interim basis until a final order is reached later this year after hearings.

According to Penn, the reduction is primarily due to savings achieved by Dominion through lower fuel prices, milder weather and efficient power station operations.

No change, up or down, can occur in utility rates without approval of the SCC.

The fuel charge comprises about 20 percent of a typical residential bill. Dominion is not allowed to make any profit on the fuel charge, so customers only pay for the actual cost of power station fuels such as natural gas, coal, uranium and oil. The fuel charge is typically only changed once a year.

For more information and to view charts that compare rates for residential, commercial and industrial customer, visit http://www.dom.com/varates.