Dominion ordered by SCC to reduce rates

- Posted on Mar 13, 2019 - 12:37 PM

The State Corporation Commission has ordered a reduction in the rates for Dominion Energy Virginia customers on April 1, according to a SCC release.

The reduction and forthcoming rate credits continues a directive of the commission issued in January 2018 that ensures customers receive the benefits of the corporate tax cut contained in federal tax legislation passed by Congress in December 2017, a release stated.

The federal corporate income tax rate was reduced from 35 percent to 21 percent, effective Jan. 1, 2018. A week later, on Jan. 8, the SCC ordered Dominion Energy to preserve the savings from this tax cut for the benefit of their customers.

Last July, in response to legislation passed by the 2018 Virginia General Assembly, Dominion Energy Virginia reduced rates by $125 million, on an interim basis subject to further commission review.

Since then, Dominion has submitted additional filings with the commission to make certain the tax savings are properly calculated and reflected in base rates as of April 1, 2019.

Dominion Energy Virginia’s base rates are being reduced by $182.5 million, or $57.5 million more than the interim rate reduction last July.

Dominion will provide a one-time credit to customers to account for the difference in rates between the Jan. 1, 2018 effective date of the federal tax reduction and March 31, 2019, the last day of interim rates.

Dominion Energy Virginia must provide the one-time credit by July 1.

Appalachian Power was also ordered by the SCC to reduce its rates as a result of the cut to the corporate tax rate.