RICHMOND, Va., Oct. 18, 2021 /PRNewswire/ -- Dominion
Energy Virginia, the Virginia State Corporation Commission (SCC)
Staff, the Office of the Attorney General, and other parties today
filed a comprehensive settlement agreement in the Company's pending
triennial base rate case. If approved by the SCC, the agreement
would resolve the ongoing review of the company's performance over
the past four years as well as provide significant additional
customer benefits.
The settlement agreement provides a balanced, reasonable and
cost-effective approach that supports continued capital investments
in Virginia in order to meet the
Commonwealth's public policy priorities and the needs of our
customers. Those investments include the development of the Coastal
Virginia Offshore Wind project -- the largest on this side of the
Atlantic – as well as growing one of the leading state-regulated
utility solar portfolios in the country. These, along with other
investments including nuclear relicensing, energy storage and grid
modernization, put the Company well on its way to reaching 100%
clean energy by 2045 in Virginia
and net zero emissions by 2050 across Dominion Energy's
nationwide footprint.
The settlement agreement aligns with the customer-focused,
state regulated utility framework in Virginia. That framework has resulted
in nationally leading decarbonization goals, customer
rates lower than national and regional averages and high
levels of reliability for customers, made possible by a state
regulatory model that embraces long-term planning and resiliency
safeguards.
"I appreciate the thoughtful effort of all parties in reaching
an agreement that puts our customers' interests first," said
Ed Baine, president of Dominion
Energy Virginia. "We have a lot of work ahead as we continue to
build a clean energy future in Virginia. This settlement enables us to
continue to keep rates affordable while creating new jobs through
the development of offshore wind, solar and energy storage
expansion, transformation of the grid and energy-efficiency
enhancements."
In addition to the SCC Staff and Office of the Attorney General,
the agreement is joined by Apartment and Office Building
Association of Metropolitan Washington, Costco, Direct Energy,
Kroger and Harris Teeter, Virginia
Committee for Fair Utility Rates and Walmart. None of the
remaining nine parties to the proceeding are opposed to the
agreement. Key components of the settlement, which requires
approval from the SCC, would provide significant customer benefits,
including the following:
- A total of $330 million in
one-time refunds on customer bills made up of $255 million over a 6-month period and
$75 million over three years,
resulting in a total proposed refund of approximately $67 for a typical residential customer.
- Use of $309 million in revenue to
offset costs of the Coastal Virginia Offshore Wind pilot project,
deployment of smart meters and a Customer Information Platform, as
part of the Customer Credit Reinvestment Offset (CCRO) mechanism
defined by Virginia law.
- A $50 million going-forward rate
reduction, resulting in a proposed monthly bill reduction of
approximately 90 cents for a typical
residential customer.
The proposed settlement also supports:
- An authorized return on common equity of 9.35%.
- A capital structure with an equity ratio of 51.917%.
- Amortization through 2023 of the early retirement charges for
fossil-generation units recorded in 2019 and 2020.
Total rates for Dominion Energy Virginia's typical
residential customer are currently more than 15 percent below
the national average, almost 30 percent lower than the mid-Atlantic
average and 35 percent lower than the average of states that,
like Virginia, have joined the Regional Greenhouse
Gas Initiative.
About Dominion Energy
More than 7 million customers in
16 states energize their homes and businesses with electricity
or natural gas from Dominion Energy (NYSE: D), headquartered
in Richmond, Va. The company is committed to sustainable,
reliable, affordable and safe energy and to achieving net zero
carbon dioxide and methane emissions from its power generation and
gas infrastructure operations by 2050. Please visit
DominionEnergy.com to learn more.
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SOURCE Dominion Energy Virginia