This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Dominion Virginia Power Says It Will Not Seek Increase In Base Rates For At Least Next Two Years

RICHMOND, Va., March 28, 2013 /PRNewswire/ -- Dominion Virginia Power today proposed holding its base rates unchanged for at least another two years despite encountering more than $450 million in costs in 2011 and 2012 related to major storms, an earthquake and other factors.

Base rates make up about 60 percent of a typical residential bill and cover the company's non-fuel operational costs, salaries and part of its earnings. This part of the bill can only be adjusted every two years and has not increased since 1992.

"Holding down our base rates over this 20-year plus period reflects our continuing focus on operating as efficiently as possible," said Paul D. Koonce, chief executive officer.

The total Dominion monthly bill for a typical residential customer who uses 1,000 kilowatt-hours is now $107.22 -- only two cents higher than it was in July 2008. This same bill has gone up 25 percent since 1992, while fuel oil has increased 325 percent, gasoline 198 percent and the average national electricity rate 57 percent over the same period.

All changes in the company's electric rates must be approved by the Virginia State Corporation Commission. The biennial filing made today, which is required under state law, allows the SCC to review the company's base rates for 2011 and 2012.

Other components of rates, including the cost of fuel for power stations, energy conservation programs, transmission facilities and new power stations, comprise the remaining 40 percent of a typical residential bill and are adjusted periodically during the year.

For example, an increase of 98 cents, or 0.9 percent, on a typical 1,000 kilowatt-hour residential bill will go into effect in April to cover an increase in the cost of four separate power projects.  The company sought the increases last June and they were approved earlier this month.

Over the past two years, the company experienced significantly higher costs from damage primarily caused by Hurricane Irene in August 2011, the earthquake that shutdown North Anna Power Station, and severe summer storms, including the derecho in June 2012.  The planned closing of six coal-fired generating units because of new environmental regulations also caused impairments to company earnings.

In spite of these challenges, Koonce said, the company made major infrastructure investments, achieved superior generating unit performance, improvements in reliability, faster storm response and overall enhanced customer service. Over the next three years the company plans to invest approximately $8 billion to continue infrastructure improvements and meet ever-growing customer demand.

"At the end of the day, our public service obligation revolves around what I like to call our three R's – Reliability, Responsiveness and Reasonable rates," said Koonce. "This is what we focus on and it helps us keep rates down even as we strive to improve service."

With the filing today and the non-base rate adjustments expected to occur over the rest of the year, the company's electric rates would still be among the lowest in Virginia and well below national and regional averages.  Current company projections place the impact of all other rate adjustments this year at about 3 percent.

Dominion (NYSE: D) is one of the nation's largest producers and transporters of energy, with a portfolio of approximately 27,500 megawatts of generation. Dominion operates one of the nation's largest underground natural gas storage systems and serves retail energy customers in 15 states. For more information about Dominion, visit the company's website at www.dom.com

Follow us on Twitter at: http://www.twitter.com/DomVAPower . 'Like' us on Facebook at: http://www.facebook.com/dominionvirginiapower

SOURCE Dominion Virginia Power

Copyright 2011 PR Newswire. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,493.37 -69.93 -0.42%
S&P 500 1,925.15 -5.52 -0.29%
NASDAQ 4,352.6390 -17.1340 -0.39%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs