The company is seeking the fuel rate hike following a projection that the fuel prices and customer demand for electricity is going to increase by July 2014.
If the Virginia SCC approves the hike, the residential customer of Dominion will see an increase on the monthly 1,000 kilowatt-hour bill by $2.36.
The bill will increase from the current rate of $108.39 to $110.75.
Following the annual review and decision by the commission the increase would come into effect from 1 July.
Dominion contributes 25% of the residential bill towards fuel rates, which pays for the natural gas, coal, uranium and biomass it buys to generate electricity for its 2.3 million Virginia customers.
The remaining 75% of the bill is used for the base rates and special charges for approved new power projects, energy efficiency measures and transmission.
The main reason for the increased residential bill rates is higher fuel prices, normal demand for electricity, and additional nuclear refueling outage scheduled for next year.
The SCC recently approved a 19 cent increase in the typical monthly residential bill for Dominion’s energy efficiency programs.
