The North Carolina Utilities Commission has scheduled a public hearing this month in Halifax County to take public testimony on Dominion Energy North Carolina’s proposed base rate increase.
The hearing is set for September 28 at 7 p.m. in the Halifax County Courthouse, located at 357 Ferrell Lane in Halifax.
The NCUC issued an order officially suspending Dominion's requested rate increase for up to 270 days from June 1 to allow for a formal investigation and evidentiary hearings.
Dominion has noted its intent to implement proposed rates on an interim basis, subject to refund, on December 1 while awaiting a final permanent order from the commission targeted for March 1, 2027.
The utility is seeking an 11.99% overall base revenue increase — totaling roughly $36.8 million — across its approximately 129,000 North Carolina customers:
Residential Class: Requested increase of $25,870,737 (15.42%).
Small General Service: Requested increase of $3,112,299 (4.80%).
Large General Service: Requested increase of $2,850,755 (8.99%).
Outdoor/Street Lighting: Requested increase of $1,379,678 (20.75%).
If approved, the increase would raise Dominion’s total annual North Carolina base service revenues from $412.8 million to $449.6 million.
"The company's request for a base rate adjustment in this proceeding is not made lightly," said Edward H. Baine, president of Dominion Energy North Carolina, in direct testimony filed with the NCUC. "We understand the economic pressures on our customers and the need to maintain rates that are cost-effective and provide demonstrable value to customers as shown by our operational performance and service quality."
Financial metrics and ROE request
Return on Equity: Dominion is requesting an authorized ROE of 10.50% — up from the 9.95% approved in the 2024 rate case — within an expert-recommended range of 10.20% to 11.70%.
Capital Structure: The utility seeks approval of a capital structure consisting of 54.93% common equity and 45.07% long-term debt, based on actual figures from December 31, 2025.
Earned Returns: Under current rates during the 2025 test period, Dominion’s earned return on North Carolina retail rate base was 7.77%, with an achieved ROE of 7.53%, which the utility argues is inadequate to attract necessary capital.
Supplemental Filings: The NCUC set a Friday deadline for Dominion to file supplemental testimony updating its figures with actual financial data through July 31.
Impact on monthly customer bills (Base Rate Case)
Base Rate Effect: A typical residential customer using 1,000 kilowatt-hours (kWh) per month on Schedule 1 would see their monthly bill increase from $134.34 to $150.01 — an increase of $15.67 per month (11.7%) on non-fuel base rates alone.
Total Impact With Riders: When factoring in proposed adjustments, including the interim Coastal Virginia Offshore Wind rider and the nuclear production tax credit rider, the typical monthly bill would rise by 12.76% to $151.48 (15.15¢/kWh).
The pending fuel factor filing
There is another regulatory filing at play representing the other half of what could impact customer electric bills in North Carolina.
On August 11, Dominion filed an annual fuel factor and rider adjustment application.
While the general rate case covers base rates such as grid infrastructure, capital investments, and operations, the filing last month deals specifically with recovering the actual costs of fuel burned at power plants and purchased wholesale power.
Executive summary and fuel figures
Fuel Under-Recovery: Dominion reports a North Carolina jurisdictional under-recovery balance of $55,283,205 — reaching $56,981,384 including allowable interest — for the 12-month test period ending June 30.
Overall revenue impact
Full Recovery Option: Total fuel revenue increase of $104,537,455.
Mitigation Alternative: Total fuel revenue increase of $76,854,648.
Proposed Effective Date: February 1, 2027, with a temporary one-month Rider A1 bridging to March 1, 2027, to align with the pending base rate case.
Impact on Monthly Bills (Fuel Factor)
Dominion presented two options for recovering the deferred fuel balance: a standard one-year recovery and an alternative two-year "mitigation" plan. Comparisons are based on August 1 reference bills:
Residential Customers (1,000 kWh/month):
Full Recovery (1-Year): Bill increases by $31.77 per month (from $139.94 to $171.71, a 22.7% increase).
Mitigation Alternative (2-Year): Bill increases by $23.48 per month (from $139.94 to $163.42, a 16.8% increase).
Small Commercial (Schedule 5 – 12,500 kWh/month, 50 kW demand):
Full Recovery: Bill increases by $337.23 per month (+24.7%).
Mitigation Alternative: Bill increases by $250.10 per month (+18.3%).
Large Industrial (Schedule 6L – 6,000,000 kWh/month, 10,000 kW demand):
Full Recovery: Bill increases by $107,856.00 per month (+23.6%).
Mitigation Alternative: Bill increases by $78,042.00 per month (+17.1%).
