Thursday, April 2, 2009

Dominion Virginia Power Proposes Rate Increase

Officials at Dominion Virginia Power are asking to raise power rates by 6.9%.

As a result, the average household bill would go up $7.54 per month. The increase wouldn't just hit homes.

Deb Dove, co-owner of The Mystik Dove in McGaheysville feels that yet another increase by Dominion is unfair.

"Since they just raised it 18-percent last year for the fuel increase, I think they're getting a little greedy at this point," says Deb Dove. She feels the company is taking advantage of its customers

"They know that if they raise it, we have to pay it. Maybe they need to look at some of their costs," says Dove.

A spokesman for Dominion Virginia Power says the increase in necessary to support growth in the commonwealth.

"The reason for the increase it to meet the much needed demand for electricity that Virginia is going to be experiencing over the next several years.

In order to build the much needed infrastructure, we need to start building today," says spokesman David Botkins. "We have to buy commodities like coal, natural gas, uranium and oil, all to generate electricity.

That expense is passed to the customer on a dollar-for-dollar basis, and we simply recoup our expenses," continues Botkins.

The company says the fuel portion of bills will not be raised. Starting July 1st, that portion of your bill is expected to be reduced by 3.3%.

The rate increase must first be approved by the state corporation commission before it can be implemented.

Dominion officials say their electric infrastructure construction project is expected to bring 20-thousand jobs over the next three years.

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