A state senator is proposing what sounds like a good deal for consumers – an 8-year freeze on rates charged by Virginia’s largest electric company.
Frank Wagner says he introduced the measure so Dominion Power wouldn’t pass the costs of meeting clean air requirements on to its customers, but Attorney General Mark Herring says the measure might actually deprive consumers of rebates. Mike Kelly speaks for the attorney general.
“Y’know the fact is that the State Corporation Commission in 2013 said that Dominion’s rates projected them to produce a $280 million surplus, which would mean that Virginians may be entitled to credits.”
What’s more, the Commission could order lower rates for the utility if it inspects Dominion’s books and finds another year of surplus.
“If a utility over-earns in one biennium, they’re required to provide one-time rebates to customers. If they over-earn in consecutive biennia, they’re required to have their base rate reduced, but without any oversight or review of those rates, that couldn’t happen for the next eight years.”
Senate Bill 1349 could be considered when the Committee on Commerce and Labor meets in Richmond today.
