Virginia state regulators are scheduled next month to hear Old Dominion Power’s case for raising its electric rates and are accepting public comments through Nov. 5.
Old Dominion Power, a subsidiary of Kentucky Utilities, provides electric service to more than 28,000 Virginia customers in Dickenson, Lee, Russell, Scott and Wise counties.
The company is asking regulators for permission to earn $19 million more in revenue, a 22.4% increase, by raising its base rates, which pay for operations and maintenance and are separate from the cost of fuel.
Old Dominion Power said in its application to the State Corporation Commission that it needs the additional base rate revenue to cover “continuous significant investments in its facilities to provide safe, reliable access to energy at the lowest reasonable cost in accordance with applicable environmental regulations.”
The company has invested or plans to invest $2.26 billion in its operations from Aug. 1, 2025, through July 31, 2027, it said in the application.
Under Old Dominion Power’s proposal, a residential customer using a benchmark 1,000 kilowatt-hours of electricity per month would see a monthly bill increase of $36.66, from $156.46 to $193.12.
The company has told Cardinal News that it forecasts an average residential customer will use 1,198 kilowatt-hours per month in 2027, and that customer’s bill would go from $185.07 to $228.39, a difference of $43.
Both examples represent an increase of about 23%.
Old Dominion Power is asking to be able to raise its rates for service on or after Feb. 1. The company’s last base rate increase was approved in January 2025.
Separately, the company seeks permission to raise its fuel factor by $2.73 on a benchmark 1,000-kilowatt-hour residential monthly bill. The fuel factor is what the company charges as it passes fuel costs directly to customers without markup.
The State Corporation Commission’s three judges will decide whether to approve all, part or none of both proposals.
Mike Brindle, a resident of Ewing in Lee County, wrote one of two public comments filed with the commission. He said that an increase of 3% to 5% would be reasonable but that Old Dominion Power’s request is “simply too substantial, particularly for the residents of Southwest Virginia.”
“Families and businesses in our region are already facing significant financial pressures from rising fuel costs, insurance premiums, food prices and other essential expenses. A large increase in electric rates would place an additional burden on households that are already struggling to make ends meet,” Brindle wrote.
Old Dominion Power’s request to raise its base rates includes seeking regulatory permission to earn a return on equity of 10.95%, up from its currently authorized 9.95%.
How to weigh in
The State Corporation Commission hearing on Old Dominion Power’s base rate increase proposal will begin at 10 a.m. Nov. 12.
Members of the public who wish to speak during it should either sign up by Nov. 5 with the Virginia State Corporation Commission’s online form, referring to case PUR-2026-00051, or call the SCC at 804-371-9141.
The SCC will also accept comments through its website or by mail to the Clerk of the State Corporation Commission, c/o Document Control Center, P.O. Box 2118, Richmond, VA 23218-2118. Comments should refer to case PUR-2026-00051.
For a regulated utility, return on equity is essentially its ability to earn money for investors up to the amount authorized by regulators.
Earlier this month, staff of the State Corporation Commission recommended a lower revenue increase of about $11.9 million. That would raise a 1,000-kilowatt-hour residential monthly bill by $23.07 instead of $36.66, or about 15% instead of 23%.
The commission’s staff cited several factors, and among the more significant differences between the company’s proposal and the staff’s recommendation was an authorized return on equity of 9.8% instead of 10.95%.
Among other things, the commission’s staff said that the lower figure is supported by its analysis of other electric utilities.
Separately, the financial research firm S&P Global has said that regulated electric utilities that had rate cases decided in the first half of 2026 were authorized to have a return on equity of 9.84% on average.
Old Dominion Power’s request also includes raising its basic residential service charge, a fixed monthly fee, by $3, from $12 to $15. The commission’s staff recommend keeping the charge as is.
