How much have Dominion's fuel costs in Virginia risen over the past five years, and what is driving this increase?

Dominion's fuel costs in Virginia have risen nearly 90% in five years—increasing from $2.31 billion (2.59 cents per kWh) in 2021 to a projected $4.35 billion (3.95 cents per kWh) through June 2027—driven primarily by surging data-center-driven electricity demand, which has forced the utility to buy 23% of its energy from the volatile PJM wholesale market, up from 14% in 2021.

What impact could Dominion's rising fuel costs have on residential electricity bills in Virginia, and what mitigation options are under consideration?

Dominion's rising fuel costs could raise the average monthly residential bill by as much as 13%, from $173 to $195; however, if Dominion is allowed to issue bonds to defer some fuel cost recovery into future years, the increase would be reduced to about 5%, according to Virginia regulatory filings.

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