The Shadow
RICHMOND, Va. (VR) — The State Corporation Commission has approved the creation of a new rate class for the biggest users of electricity, including data centers.
In its final order issued today in Dominion Energy’s biennial review, the Commission said the new GS-5 rate class will comprise customers demanding 25 megawatts or more. The new rate class will be effective beginning January 1, 2027.
In addition, to help insulate ratepayers from the costs around the rapid build-out and construction of infrastructure to support businesses such as data centers, certain large-scale customers will be required to pay a minimum of 85% of contracted distribution and transmission demand, and 60% of generation demand, among other requirements.
The Commission in its order also rejected Dominion’s requested base-rate increases of $822 million in 2026 and $345 million for 2027. Instead, it found that the evidence presented supports an increase of $565.7 million in 2026 and $209.9 million in 2027.
For a typical residential customer, the approved rates would mean monthly increases of $11.24 in 2026 – 23.7% lower than Dominion’s request – and $2.36 in 2027 – 51.2% lower than the company had requested.
In its decision, the Commission also approved an increase in Dominion’s authorized return on equity from 9.7% to 9.8%, less than the company’s requested return of 10.4%.
The Commissioners wrote: “As the utility regulator, we are obligated by law to set a revenue requirement that affords the Company an opportunity to recover reasonable and prudent projected costs and earn a reasonable rate of return. In this case, that has resulted in an increase in rates, but not to the extent requested by Dominion.”
