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Utilities May Have Overcharged, According to State Study

SCC

A new report provided to state legislators shows consumers in Virginia paying a lot more for electricity than they did a decade ago, and lawmakers could require refunds.

Since 2007, typical residential bills from Dominion have increased 29% and customers of Appalachian Power are paying 64% more according to a review by the state corporation commission.  A spokesman for Dominion says rates are well below the national average, but at Clean Virginia – a consumer advocacy group – director Brennan Gilmore says that’s not the whole story.

Credit Clean Virginia
Clean Virginia's Brennan Gilmore says consumers should get refunds from Dominion and Appalachian Power.

“The rate is one aspect of your bill, but there are additional charges which add additional costs onto your bill.  Their rates may be competitive, but the bills that Virginians pay are some of the highest in the country.”

State regulators say Dominion is correct when you look at charges per kilowatt hour. But, because Virginians tend to use more electricity than residents of some other states, Clean Virginia is also correct that the total average monthly bill is higher.  The state also claims Dominion earned bigger profits than regulations permit.  Gilmore hopes lawmakers will approve legislation during the special session to rebate half a billion dollars.

“It accelerates the refund so that people who are struggling now can see that money back in their pocket, " Gilmore says, "and then it gives us fairer rules when the State Corporation Commission reviews Dominion’s rates next year.”

The SCC says its report to the legislature is preliminary and the numbers could change when it completes formal reviews.  

Sandy Hausman is Radio IQ's Charlottesville Bureau Chief