RICHMOND — The State Corporation Commission (SCC) is directing a reduction in the fuel rate for Dominion Virginia Power on an interim basis for service rendered on and after October 1. This is in addition to a decrease in the fuel rate that occurred on July 1.

The fuel rate is the portion of the electric bill that pays for the fuel used to generate electricity and costs associated with power purchased by the utility company to serve its customers.

The new interim fuel rate of 3.31 cents per kilowatt-hour (¢/kWh) results in an additional reduction of approximately $2.19 on a typical monthly bill for a customer who uses 1,000 kWh of electricity.

The Commission is still reviewing several remaining issues in the case but finds it reasonable to lower the company’s fuel rate at this time. During an SCC hearing on September 1, updated fuel cost information and other resolved issues made possible the reduced interim rate.

Earlier this year, Dominion Virginia Power filed an application to decrease its annual fuel expense recovery by approximately $236.4 million. The adjustments presented at the September 1 hearing amount to another reduction of $102.6 million.

The combined effect of the July 1 and October 1 fuel rate reductions is a monthly savings of $5.83 for a customer using 1,000 kWh of electricity.

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Case Number PUE-2009-00016

View Interim Fuel Order