If the request is approved, the monthly bill for a typical residential customer using 1,000kWh of electricity would increase by 9% from $99.17 to $108.13. The increase would go into effect after the NCUC rules on the request. The company estimates the increase would become effective from January 1, 2011.
Paul Koonce, CEO of Dominion, said: “Dominion has worked hard to be as efficient as possible and will continue to do so to help keep electric rates low. Even with this adjustment, our rates will remain well below the national average. This adjustment is needed to meet our higher operating and capital expenses and thus ensure that our customers continue to have the power they need when they need it.”
The company requested an increase of $29.4m in non-fuel base rates, which cover operating, maintenance and capital costs. Base rates recover approximately two-thirds of the total cost of providing electrical service to the company’s North Carolina customers and include costs of power plants, the transmission and distribution power delivery network and customer service. Fuel costs and fuel-related expenses account for the remaining one-third of customer bills.
The company is also asking the NCUC for approval to add an estimated $17m in purchased power costs into calculations for the next annual fuel rate adjustment. The company projects that this charge is likely to be offset or mostly offset by a continuing decline in fuel costs if recent trends continue.
If approved, the new cost for the typical residential customer would still be 7% lower than the national average of $116.33, according to figures from the Edison Electric Institute. The company plans to invest an additional $200m in transmission and distribution system improvements in the next five years.
